Nisshinbo Holdings (3105) AI Stock Analysis

• Market Cap: ¥145.08B
• Dividend Yield: 3.9%
• Average Volume (3M): 866.65K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.73
• Revenue Growth: -2.43%
• EPS Growth: N/A
• Country: JP
• Employees: 18,630
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Conglomerates
• EPS (TTM): 97.65
• Shares Outstanding: 169,328,840
• 10 Day Avg. Volume: 910,110
• 30 Day Avg. Volume: 866,650
• PEG Ratio: -0.43
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -56.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥1,008.00 ▲(9.26%Upside)

The overall stock score of 72 reflects a balance of strengths and challenges. The most significant factor is the positive valuation with a low P/E ratio and high dividend yield, indicating undervaluation and potential income for investors. Technical analysis also indicates a generally positive trend. However, financial performance is mixed, with improved profitability but declining revenue and cash flow challenges.

Nisshinbo Holdings Business Overview & Revenue Model

Company Description

Nisshinbo Holdings Inc., headquartered in Japan, operates as a diversified conglomerate with a focus on providing innovative solutions across several industry sectors, including electronics, automotive brakes, precision instruments, chemicals, textiles, and real estate. The company is renowned for its commitment to sustainability and technological advancement, leveraging its expertise to deliver high-quality products and services tailored to the needs of its global clientele.

How the Company Makes Money

Nisshinbo Holdings generates revenue through a diversified portfolio of businesses that span multiple industries. In the electronics sector, it manufactures and sells semiconductors, electronic components, and devices which are critical for various high-tech applications. The automotive segment, another key revenue driver, specializes in the production of brake systems and components, catering to both domestic and international automotive manufacturers. Additionally, Nisshinbo's precision instruments and chemicals divisions contribute to its revenue through the sale of industrial equipment and specialized chemical products. The company also derives income from its textiles business by producing and distributing high-quality fabrics. Furthermore, Nisshinbo leverages its real estate holdings to generate additional earnings, providing a stable income stream through property leasing and management. Strategic partnerships and joint ventures across these sectors further enhance its revenue potential by expanding market reach and fostering innovation.

Nisshinbo Holdings Financial Statement Overview

Summary

Nisshinbo Holdings shows a mixed financial performance with improved margins but declining revenue, suggesting operational efficiency amidst revenue challenges. The balance sheet is stable with a strong equity base and manageable leverage, while the cash flow statement indicates some issues in cash generation despite profitability improvements.

Income Statement

Nisshinbo Holdings shows a mixed performance on the income statement. The gross profit margin improved from 21.2% in 2023 to 22.1% in 2024, indicating better cost management. However, the net profit margin is volatile, moving from a loss in 2023 to a 2.1% profit in 2024. Revenue growth is negative, declining by 8.6% in 2024 compared to 2023, which is a concern. The EBIT margin improved from 2.3% in 2023 to 3.4% in 2024, while the EBITDA margin increased significantly from 1.6% to 8.7%, showing improvement in operational efficiency.

Balance Sheet

The balance sheet of Nisshinbo Holdings reflects a stable financial position. The debt-to-equity ratio slightly increased from 0.86 in 2023 to 0.81 in 2024, indicating a manageable level of leverage. Return on equity improved significantly from -8% in 2023 to 3.8% in 2024, showing a return to profitability. The equity ratio stands at 39.6%, indicating a healthy capital structure with a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some challenges for Nisshinbo Holdings. The operating cash flow to net income ratio improved from -1.17 in 2023 to 2.76 in 2024, indicating better cash generation relative to profits. However, free cash flow growth is negative, which suggests challenges in generating excess cash after investments. The free cash flow to net income ratio is low at 0.34 in 2024, indicating limited free cash flow relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	494.75B	541.21B	516.09B	510.64B	457.05B
Gross Profit	109.33B	119.37B	115.35B	115.48B	91.62B
EBITDA	52.80B	8.93B	48.51B	46.29B	25.20B
Net Income	10.28B	-20.05B	19.74B	24.82B	13.54B
Balance Sheet
Total Assets	679.96B	672.22B	616.27B	604.80B	581.20B
Cash, Cash Equivalents and Short-Term Investments	50.41B	52.50B	45.17B	44.94B	50.55B
Total Debt	217.19B	216.04B	146.38B	131.38B	150.33B
Total Liabilities	382.51B	395.64B	337.78B	332.17B	339.14B
Stockholders Equity	269.45B	250.64B	263.82B	259.18B	229.02B
Cash Flow
Free Cash Flow	3.52B	-1.78B	-2.81B	19.72B	17.99B
Operating Cash Flow	28.37B	23.51B	19.59B	39.83B	42.59B
Investing Cash Flow	-20.86B	-46.51B	-11.69B	-16.77B	-6.32B
Financing Cash Flow	-8.75B	25.39B	-8.89B	-30.82B	-24.23B

Nisshinbo Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 922.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3105, the sentiment is Positive. The current price of 922.6 is above the 20-day moving average (MA) of 894.20, above the 50-day MA of 869.93, and above the 200-day MA of 878.89, indicating a bullish trend. The MACD of 6.93 indicates Negative momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 26.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3105.

Nisshinbo Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5393	81 Outperform	$368.22B	11.30	15.22%	2.02%	2.86%	20.93%
8020	80 Outperform	¥228.00B	8.30		3.85%	6.59%	18.36%
8014	80 Outperform	¥99.05B	8.51		4.02%	1.25%	21.02%
3105	72 Outperform	¥145.08B	8.43	6.67%	3.90%	-2.43%	―
3106	71 Outperform	¥126.35B	14.37		2.41%	-0.43%	42.04%
Sector *	70 Neutral	¥172.64B	11.05	6.37%	3.56%	3.93%	6.22%
3401	64 Neutral	¥226.48B	8.01	-17.62%	4.24%	-2.64%	167.02%

Nisshinbo Holdings Corporate Events

Nisshinbo Holdings Receives Significant Dividend from Affiliate

Nisshinbo Holdings Inc. announced the receipt of a significant dividend from its equity-method affiliate, Continental Automotive Corporation (Lianyungang) Co., Ltd., amounting to RMB 288 million (5,834 million yen). This dividend will be recorded as non-operating income in the company’s non-consolidated financial statements for the fiscal year ending December 31, 2025, but will not affect the consolidated financial results.

Nisshinbo Holdings Completes New Share Issuance as Remuneration

Nisshinbo Holdings Inc. has completed the payment procedures for issuing new shares as remuneration in the form of restricted shares. This move, resolved by the Board of Directors, involves issuing 82,665 common shares at ¥822.9 per share, totaling ¥68,025,028. The shares are allocated to directors, managing officers, and employees of the company and its subsidiaries, potentially impacting the company’s internal equity structure and aligning the interests of its management and employees.

Nisshinbo Holdings Issues New Restricted Shares for Remuneration

Nisshinbo Holdings Inc. has announced the issuance of 82,665 new restricted shares as part of a remuneration plan for its directors and managing officers. This initiative, aimed at aligning the interests of directors with shareholders and enhancing corporate value, involves a total monetary remuneration of ¥68,025,028 and includes a transfer restriction period until May 2028, ensuring long-term commitment from the allottees.