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Nippon Coke & Engineering Company, Limited (JP:3315)
:3315

Nippon Coke & Engineering Company, Limited (3315) AI Stock Analysis

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JP:3315

Nippon Coke & Engineering Company, Limited

(3315)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
¥140.00
▲(57.30% Upside)
Action:ReiteratedDate:02/28/26
The score is held down primarily by weak financial performance (declining revenue, negative margins, and negative free cash flow) and a loss-driven negative P/E. These risks are partly offset by strong technical strength, with the stock trading above key moving averages and a positive MACD.
Positive Factors
Diversified Revenue Streams
Having both coke manufacturing and engineering/service contracts provides revenue diversification and reduces reliance on a single commodity cycle. Engineering contracts can offer higher-margin, multi-year project and maintenance revenue that smooths cash flow and supports resilience across steel-cycle swings.
Specialized Engineering Capability
Specialized expertise in coke-oven design, construction and maintenance is a structural competitive advantage. High technical barriers and long project cycles create durable client relationships, aftermarket service opportunities, and a potential backlog that supports medium-term revenue visibility.
Stable Equity Ratio Provides Capital Buffer
Despite leverage, an equity ratio near 32% offers a capital cushion that helps absorb operating volatility. That equity base combined with project-driven revenues can support financing of contracts and preserve solvency over the next several months while management addresses operational issues.
Negative Factors
Declining Revenue and Negative Margins
A sharp revenue decline and negative gross and net margins indicate structural demand weakness or cost pressures that have eroded core profitability. Sustained negative margins undermine ability to fund operations internally and require either cost restructuring or pricing improvements to restore durable profitability.
Negative Free Cash Flow
Negative free cash flow and a weak operating-cash-to-income profile constrain funding for capex, working capital, and debt service. Over months this reduces strategic flexibility, raises refinancing risk, and can force asset sales or cutbacks that impair long-term competitive positioning.
High Financial Leverage
High debt relative to equity increases interest and covenant pressure, reducing financial flexibility. With losses driving negative ROE, leverage amplifies downside risk; continued operating weakness could trigger liquidity stress or require dilutive or costly financing actions in the medium term.

Nippon Coke & Engineering Company, Limited (3315) vs. iShares MSCI Japan ETF (EWJ)

Nippon Coke & Engineering Company, Limited Business Overview & Revenue Model

Company DescriptionNippon Coke & Engineering Company, Limited manufactures and sells coke worldwide. The company also imports and sells coal; and manufactures and sells chemical engineering machinery and equipment. In addition, it processes industrial wastes; provides clean solutions for coal and coke combustion, and chemical machinery technologies; and operates port facilities that offers cargo handling services. The company was formerly known as Mitsui Mining Co., Ltd. and changed its name to Nippon Coke & Engineering Company, Limited in April 2009. Nippon Coke & Engineering Company, Limited was founded in 1889 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNippon Coke & Engineering generates revenue primarily through the sale of coke and related chemical products, which are essential for steel production. The company's revenue model is based on long-term contracts with steel manufacturers, ensuring a steady demand for its products. Additionally, the company offers engineering services that involve the design and construction of facilities for the steel and chemical industries, contributing to its earnings. Significant partnerships with major steel producers also bolster its revenue streams, as these collaborations often lead to joint ventures and shared projects, further enhancing profitability.

Nippon Coke & Engineering Company, Limited Financial Statement Overview

Summary
Weak operating performance and cash generation. Revenue fell 26.75% (2024 to 2025), margins turned negative (gross, net, EBIT/EBITDA), and free cash flow was negative, pointing to operational and liquidity strain. Balance sheet is mixed: leverage is high (debt-to-equity 1.58) while the equity ratio is more stable (31.84%).
Income Statement
35
Negative
The company's income statement shows significant volatility. Revenue has decreased from 2024 to 2025 by 26.75%. The gross profit margin turned negative in 2025, indicating cost pressures or pricing issues. Net profit margin also turned negative, showing operational challenges. EBIT and EBITDA margins deteriorated significantly, reflecting operational inefficiencies. These factors suggest financial instability in the company's operations.
Balance Sheet
50
Neutral
The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 1.58 in 2025, which is relatively high. However, the equity ratio remains stable at 31.84%, suggesting a reasonable proportion of equity financing. Return on equity (ROE) turned negative due to net losses, indicating poor profitability. Overall, the balance sheet shows a mixed picture with potential risks from high leverage.
Cash Flow
40
Negative
The cash flow statement reveals negative free cash flow in 2025, a concerning trend. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Free cash flow has significantly worsened from previous periods, indicating potential liquidity issues. The company needs to address its cash flow management to ensure sustainability.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue97.52B99.05B135.15B174.06B124.71B87.88B
Gross Profit-3.14B-2.83B10.56B6.20B20.07B12.76B
EBITDA-5.16B-5.11B7.57B5.00B17.18B12.11B
Net Income-14.35B-13.91B1.90B-1.07B7.38B3.97B
Balance Sheet
Total Assets131.47B130.63B140.71B140.20B128.77B102.15B
Cash, Cash Equivalents and Short-Term Investments5.43B5.11B6.16B5.62B5.02B5.71B
Total Debt59.98B65.82B45.93B46.33B23.19B23.09B
Total Liabilities90.96B89.03B84.36B85.93B71.42B51.05B
Stockholders Equity40.51B41.60B56.35B54.28B57.34B51.10B
Cash Flow
Free Cash Flow0.00-19.88B155.00M-20.04B793.00M9.89B
Operating Cash Flow0.00-3.18B10.83B-12.40B4.61B15.50B
Investing Cash Flow0.00-16.68B-9.88B-8.09B-4.16B-5.86B
Financing Cash Flow0.0018.81B-414.00M21.09B-1.07B-7.80B

Nippon Coke & Engineering Company, Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price89.00
Price Trends
50DMA
115.04
Positive
100DMA
106.72
Positive
200DMA
99.04
Positive
Market Momentum
MACD
4.06
Negative
RSI
72.44
Negative
STOCH
35.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3315, the sentiment is Positive. The current price of 89 is below the 20-day moving average (MA) of 124.35, below the 50-day MA of 115.04, and below the 200-day MA of 99.04, indicating a bullish trend. The MACD of 4.06 indicates Negative momentum. The RSI at 72.44 is Negative, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3315.

Nippon Coke & Engineering Company, Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥29.74B11.373.21%9.61%173.72%
75
Outperform
¥55.77B11.5610.88%4.46%-1.14%34.15%
73
Outperform
¥29.79B15.655.04%-2.29%-41.92%
69
Neutral
¥61.84B17.374.32%-31.99%-44.75%
64
Neutral
¥34.32B12.125.02%-13.64%-45.74%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
52
Neutral
¥40.45B-2.87-26.52%-4.78%-633.90%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3315
Nippon Coke & Engineering Company, Limited
139.00
51.00
57.95%
JP:5302
Nippon Carbon Co
5,050.00
1,127.16
28.73%
JP:4064
Nippon Carbide Industries Company,Incorporated
3,160.00
1,290.36
69.02%
JP:5304
SEC Carbon Ltd.
2,999.00
894.98
42.54%
JP:5357
Yotai Refractories Co., Ltd.
2,012.00
390.11
24.05%
JP:5408
Nakayama Steel Works,Ltd.
634.00
-115.45
-15.40%

Nippon Coke & Engineering Company, Limited Corporate Events

Nippon Coke & Engineering Projects Ordinary Loss After Fire Alters 2025 Outlook
Feb 20, 2026

Nippon Coke & Engineering has revised its forecast for consolidated financial results for the fiscal year ending March 2026 after a year-end fire forced the temporary withdrawal of earlier guidance. The incident has led to a deterioration of 2.6 billion yen versus the previous outlook, and the company now expects to post a consolidated ordinary loss of 900 million yen for the period.

The downgrade reflects the direct impact of the fire on the coke and fuel and resource recycling businesses, as well as related non-operating items. The move underscores heightened operational and earnings risk for the current fiscal year, with implications for profitability and potentially for investor confidence as the company works through the financial consequences of the accident.

The most recent analyst rating on (JP:3315) stock is a Sell with a Yen114.00 price target. To see the full list of analyst forecasts on Nippon Coke & Engineering Company, Limited stock, see the JP:3315 Stock Forecast page.

Nippon Coke & Engineering Restores Earnings Forecast After Kitakyushu Plant Fire
Feb 20, 2026

Nippon Coke & Engineering has issued its full-year consolidated forecast for the fiscal year ending March 31, 2026, after previously withdrawing guidance due to uncertainty following a fire at its Kitakyushu Coking Works. The company now projects net sales of ¥92 billion, flat operating profit, an ordinary loss of ¥0.9 billion, and a loss attributable to owners of the parent of ¥8.4 billion, all of which represent an improvement from the deeper losses recorded in the prior fiscal year.

The restoration of guidance signals that management believes it can reasonably quantify the financial impact of the accident, reducing uncertainty for investors and lenders. While the company still expects to remain in the red, the narrower projected loss compared with the previous year suggests a gradual recovery trajectory, with operational normalization at Kitakyushu and cost controls likely to be closely watched by stakeholders.

The most recent analyst rating on (JP:3315) stock is a Sell with a Yen114.00 price target. To see the full list of analyst forecasts on Nippon Coke & Engineering Company, Limited stock, see the JP:3315 Stock Forecast page.

Nippon Coke & Engineering Withdraws Full-Year Forecast After Fire at Kitakyushu Plant
Feb 6, 2026

Nippon Coke & Engineering has withdrawn its previously announced full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, after a fire on a coal conveyor belt at its Kitakyushu Coking Works in January disrupted operations. While part of the damaged facility has been restored and the 1A coke oven batteries resumed operation on January 7, 2026, management says it is still assessing the financial impact of the incident and cannot reasonably estimate full-year performance, leaving its guidance temporarily designated as “undetermined” until visibility improves.

The most recent analyst rating on (JP:3315) stock is a Sell with a Yen102.00 price target. To see the full list of analyst forecasts on Nippon Coke & Engineering Company, Limited stock, see the JP:3315 Stock Forecast page.

Nippon Coke & Engineering Swings to Profit on Higher Coke Output and Lower Costs
Feb 6, 2026

Nippon Coke & Engineering reported a turnaround to a consolidated ordinary profit of 800 million yen for the nine months ended December 31, 2025, an improvement of 6.2 billion yen from the ordinary loss recorded a year earlier. The recovery was mainly driven by the coke business, where the start-up of the 2A coke oven batteries in September 2024 boosted production and sales volumes, while a shift to operating only sound, non-deteriorated coke oven batteries helped cut manufacturing and processing costs; additional support came from favorable market conditions, exchange rates, and subsidies, underscoring a significant strengthening of the company’s earnings structure and operational efficiency.

The most recent analyst rating on (JP:3315) stock is a Sell with a Yen102.00 price target. To see the full list of analyst forecasts on Nippon Coke & Engineering Company, Limited stock, see the JP:3315 Stock Forecast page.

Nippon Coke & Engineering Returns to Operating Profit but Stays in the Red for Nine Months
Feb 6, 2026

Nippon Coke & Engineering reported consolidated net sales of ¥71.5 billion for the nine months ended December 31, 2025, down 8.2% year on year, but swung to an operating profit of ¥1.3 billion and an ordinary profit of ¥0.8 billion after losses in the prior-year period. Despite this operational improvement, the company remained in the red with a loss attributable to owners of the parent of ¥4.9 billion, while equity and the equity ratio declined to ¥37.0 billion and 28.0%, respectively, reflecting continued balance-sheet pressure. The company maintained a zero-dividend policy for the current fiscal year and withdrew its full-year earnings guidance, revising previously announced forecasts and directing investors to a separate notice, signaling ongoing uncertainty about earnings visibility and highlighting persistent headwinds for shareholders and other stakeholders.

The most recent analyst rating on (JP:3315) stock is a Sell with a Yen102.00 price target. To see the full list of analyst forecasts on Nippon Coke & Engineering Company, Limited stock, see the JP:3315 Stock Forecast page.

Nippon Coke & Engineering Halts Coke Oven Operations After Conveyor Fire at Kitakyushu Plant
Jan 5, 2026

Nippon Coke & Engineering has reported a fire at its Kitakyushu Coking Works in Fukuoka Prefecture, where a blaze broke out on the coal conveyor belt feeding its coke oven batteries in the early morning of December 31, 2025, and was extinguished later that day without any human injuries. The incident damaged the conveyor belt and has forced a suspension of coke oven operations, with the batteries kept on standby in a heated state while the company investigates the cause, works on restoring the coal transport line under the guidance of authorities, and assesses potential impacts on its business performance, signaling possible disruption for customers dependent on its coke supply.

The most recent analyst rating on (JP:3315) stock is a Hold with a Yen101.00 price target. To see the full list of analyst forecasts on Nippon Coke & Engineering Company, Limited stock, see the JP:3315 Stock Forecast page.

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: Feb 28, 2026