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

• Market Cap: ¥3.34B
• Dividend Yield: 0.55%
• Average Volume (3M): 17.98K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.39
• Revenue Growth: 1.38%
• EPS Growth: -43.19%
• Country: JP
• Employees: 283
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 4.15
• 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

• Rating: 59 Neutral
• Price Target: ¥799.00 ▲(9.75% Upside)

NIHON SEIMA CO., LTD. has a solid financial foundation with strong revenue growth and stable margins, but faces challenges in cash flow management. The technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. These factors contribute to a moderate overall stock score.

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

Company Description

Nihon Seima Co., Ltd. (3306) is a Japanese company engaged in the production and sale of paper products. The company operates primarily in the paper industry, focusing on manufacturing specialty papers and related products. Nihon Seima is known for its high-quality paper offerings that are used in various applications, including industrial, commercial, and consumer markets.

How the Company Makes Money

Nihon Seima Co., Ltd. generates revenue through the sale of its paper products. The company's key revenue streams include the production and distribution of specialty papers, which are used in a variety of sectors such as packaging, printing, and other industrial applications. The company may also engage in partnerships with other businesses for the distribution and co-development of paper products, contributing to its revenue. Additionally, Nihon Seima's focus on quality and innovation in paper production allows it to maintain a competitive position in the market, thereby supporting its financial performance.

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 reflects a solid equity base and manageable leverage. However, recent negative free cash flow due to increased capital expenditures requires attention.

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	240.13M	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: 728.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 728 is below the 20-day moving average (MA) of 825.75, below the 50-day MA of 853.18, and above the 200-day MA of 667.41, indicating a neutral trend. The MACD of -31.54 indicates Positive momentum. The RSI at 32.36 is Neutral, neither overbought nor oversold. The STOCH value of 23.99 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
4840	71 Outperform	¥3.72B	15.06	―	―	50.85%	176.11%
7827	66 Neutral	¥2.95B	6.66	―	3.93%	15.59%	-9.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3306	59 Neutral	¥3.34B	35.84	―	0.55%	1.38%	-43.19%
4241	57 Neutral	¥1.85B	31.87	―	2.40%	-1.92%	―
9849	54 Neutral	¥3.07B	62.23	―	1.09%	2.81%	844.39%