NIHON SEIMA CO., LTD. (3306) AI Stock Analysis

• Market Cap: ¥3.23B
• Dividend Yield: 0.57%
• Average Volume (3M): 17.98K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.34
• Revenue Growth: -27.54%
• EPS Growth: 253.34%
• Country: JP
• Employees: 283
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 137.21
• Shares Outstanding: 4,413,320
• 10 Day Avg. Volume: 17,960
• 30 Day Avg. Volume: 17,976
• PEG Ratio: -0.85
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -6.92
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥739.00 ▲(5.42% Upside)

NIHON SEIMA CO., LTD. scores well on valuation due to its low P/E ratio, suggesting it is undervalued. However, technical indicators show bearish momentum, which is a significant risk. The company's strong financial performance is a positive, but recent cash flow concerns and increased debt levels need attention.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market reach and maintain demand for its specialty paper products, supporting long-term financial stability.

Stable Margins

Stable margins reflect effective cost control and operational efficiency, which are crucial for sustaining profitability in a competitive industry.

Strong Balance Sheet

A strong balance sheet with manageable leverage provides financial flexibility and resilience against economic fluctuations, supporting long-term growth.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to invest in growth opportunities and may require strategic adjustments to improve cash management.

Increased Capital Expenditures

Higher capital expenditures can strain financial resources, impacting liquidity and potentially delaying returns on investment if not managed carefully.

Decreased Net Profit Margin

A decrease in net profit margin suggests pressure on profitability, which could affect the company's ability to generate sustainable earnings over time.

NIHON SEIMA CO., LTD. Business Overview & Revenue Model

Company Description

NIHON SEIMA CO., LTD. (3306) is a Japanese company primarily engaged in the manufacturing and selling of specialized machinery and components for various industries, including automotive, electronics, and general manufacturing. The company focuses on providing high-precision engineering solutions, contributing to the advancement of automation technologies and enhancing production efficiency across its target sectors.

How the Company Makes Money

NIHON SEIMA CO., LTD. generates revenue through the sale of its specialized machinery and components, which are tailored to meet the specific needs of its clients in different industries. The company’s revenue model is built on direct sales to manufacturers and businesses that require high-quality engineering products. Key revenue streams include the sale of machinery, spare parts, and maintenance services. Additionally, NIHON SEIMA may engage in long-term contracts and partnerships with major industrial players, which can provide a steady income stream and opportunities for cross-selling related services. Factors contributing to its earnings include innovation in product development, a strong reputation for quality, and a focus on customer satisfaction that fosters repeat business.

NIHON SEIMA CO., LTD. Financial Statement Overview

Summary

NIHON SEIMA CO., LTD. shows strong financial health with consistent revenue growth and stable margins. The balance sheet is solid with a strong equity base and manageable leverage. However, the recent negative free cash flow indicates a need for improved cash management.

Income Statement

NIHON SEIMA CO., LTD. has demonstrated strong revenue growth over the years, with a notable increase from 2022 to 2025. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin has slightly decreased in the latest year, suggesting some pressure on profitability. The company maintains a healthy EBIT and EBITDA margin, reflecting solid operational performance.

Balance Sheet

The balance sheet of NIHON SEIMA CO., LTD. shows a robust equity position with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio is manageable, indicating a balanced approach to leveraging. The equity ratio is strong, suggesting financial stability. However, the increase in total debt in the latest year warrants monitoring.

Cash Flow

The cash flow statement reveals a decline in free cash flow in the latest year, primarily due to increased capital expenditures. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. However, the negative free cash flow in 2025 is a concern and suggests a need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.45B	4.42B	4.33B	3.73B	3.15B	3.28B
Gross Profit	1.02B	1.06B	1.05B	898.32M	718.59M	688.11M
EBITDA	255.77M	329.91M	370.45M	238.07M	122.98M	77.14M
Net Income	76.95M	101.36M	127.92M	95.47M	48.30M	95.25M
Balance Sheet
Total Assets	5.74B	5.69B	4.62B	4.05B	3.63B	3.60B
Cash, Cash Equivalents and Short-Term Investments	1.94B	1.95B	1.50B	1.29B	816.97M	660.55M
Total Debt	1.13B	1.01B	738.59M	777.06M	797.27M	800.68M
Total Liabilities	2.15B	1.97B	1.74B	1.54B	1.44B	1.45B
Stockholders Equity	2.44B	2.49B	1.85B	1.64B	1.46B	1.43B
Cash Flow
Free Cash Flow	0.00	-302.66M	223.16M	111.33M	13.45M	108.67M
Operating Cash Flow	0.00	211.16M	273.96M	125.87M	67.09M	131.06M
Investing Cash Flow	0.00	-520.81M	-53.18M	-78.19M	103.62M	58.85M
Financing Cash Flow	0.00	630.37M	-71.54M	-33.91M	-13.28M	-79.76M

NIHON SEIMA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 701.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3306, the sentiment is Negative. The current price of 701 is below the 20-day moving average (MA) of 720.65, below the 50-day MA of 787.60, and above the 200-day MA of 682.86, indicating a neutral trend. The MACD of -20.87 indicates Negative momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 47.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3306.

NIHON SEIMA CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4241	74 Outperform	¥2.21B	22.36	―	2.20%	1.62%	―
7827	72 Outperform	¥2.64B	6.00	―	3.45%	15.59%	-9.99%
4840	71 Outperform	¥3.74B	15.15	―	―	150.27%	233.12%
3306	67 Neutral	¥3.23B	34.93	―	0.57%	-27.54%	253.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9849	54 Neutral	¥3.06B	62.02	―	1.09%	1.67%	15.59%