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NIHON SEIMA CO., LTD. (JP:3306)
:3306
Japanese Market
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NIHON SEIMA CO., LTD. (3306) AI Stock Analysis

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JP:3306

NIHON SEIMA CO., LTD.

(3306)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
¥644.00
▼(-6.53% Downside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by deteriorating financial performance (sharp revenue decline, operating loss, and notably negative free cash flow) and bearish technical signals (below key moving averages with negative MACD). Low valuation (very low P/E) provides partial offset but does not fully counter the operational and cash-flow weaknesses.
Positive Factors
Manageable leverage
Debt-to-equity near 0.40–0.48 gives the company financial flexibility relative to highly leveraged peers. Over a 2–6 month horizon this reduces immediate refinancing pressure, preserves borrowing capacity for working capital or restructuring, and cushions shocks while operational fixes are implemented.
Negative Factors
Sharp revenue decline
A ~46% revenue collapse materially reduces scale, weakens pricing leverage, and impairs fixed-cost absorption. Such a structural demand or market-share hit requires time and reinvestment to reverse, raising the risk that margins and cash flows remain depressed over the medium term absent clear recovery initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage
Debt-to-equity near 0.40–0.48 gives the company financial flexibility relative to highly leveraged peers. Over a 2–6 month horizon this reduces immediate refinancing pressure, preserves borrowing capacity for working capital or restructuring, and cushions shocks while operational fixes are implemented.
Read all positive factors

NIHON SEIMA CO., LTD. (3306) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
The Nihon Seima Co.,Ltd., a Japanese enterprise, specializes in the production and distribution of a diverse array of goods across various sectors, including food products, industrial materials, and floor coverings. Its culinary offerings encompas...
How the Company Makes Money
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NIHON SEIMA CO., LTD. Financial Statement Overview

Summary
Mixed fundamentals skew negative: 2026 revenue fell sharply (-46.1%) and operating profitability turned negative (EBIT margin -1.9%). Cash generation also deteriorated with negative operating cash flow and deeply negative free cash flow, which does not support the reported net margin spike (24.3%) and suggests non-operating/one-time drivers. Balance sheet leverage is manageable (debt-to-equity ~0.40–0.48), providing some resilience.
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
34
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue4.45B2.40B4.42B4.33B3.73B3.15B
Gross Profit1.02B569.17M1.06B1.05B898.32M718.59M
EBITDA255.77M48.21M329.91M370.45M238.07M122.98M
Net Income76.95M583.70M101.36M127.92M95.47M48.30M
Balance Sheet
Total Assets5.74B3.57B5.69B4.62B4.05B3.63B
Cash, Cash Equivalents and Short-Term Investments1.94B998.40M1.95B1.50B1.29B816.97M
Total Debt1.13B1.02B1.01B738.59M777.06M797.27M
Total Liabilities2.15B1.44B1.97B1.74B1.54B1.44B
Stockholders Equity2.44B2.13B2.49B1.85B1.64B1.46B
Cash Flow
Free Cash Flow0.00-601.44M-302.66M223.16M111.33M13.45M
Operating Cash Flow0.00-51.10M211.16M273.96M125.87M67.09M
Investing Cash Flow0.00297.00M-520.81M-53.18M-78.19M103.62M
Financing Cash Flow0.00-4.35M630.37M-71.54M-33.91M-13.28M

NIHON SEIMA CO., LTD. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price689.00
Price Trends
50DMA
641.98
Negative
100DMA
670.61
Negative
200DMA
717.34
Negative
Market Momentum
MACD
-12.66
Negative
RSI
35.18
Neutral
STOCH
20.45
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 689 is above the 20-day moving average (MA) of 610.65, above the 50-day MA of 641.98, and below the 200-day MA of 717.34, indicating a bearish trend. The MACD of -12.66 indicates Negative momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 20.45 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥8.70B8.533.90%7.78%21.11%
68
Neutral
¥100.75B7.092.91%34.02%56.48%
64
Neutral
¥57.23B33.981.52%24.74%-18.83%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥4.51B10.472.79%4.46%21.15%
57
Neutral
¥13.44B23.652.41%-3.10%33.69%
50
Neutral
¥2.65B4.540.59%-45.74%368.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3306
NIHON SEIMA CO., LTD.
601.00
-171.15
-22.17%
JP:3512
Nippon Felt Company Limited
771.00
325.98
73.25%
JP:5355
Nippon Crucible Co., Ltd.
670.00
91.01
15.72%
JP:5821
Hirakawa Hewtech Corp.
3,610.00
2,200.06
156.04%
JP:6554
SUS Co., Ltd.
963.00
-148.04
-13.32%
JP:8057
Uchida Yoko Co., Ltd.
1,957.00
162.22
9.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026