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

• Market Cap: ¥26.48B
• Dividend Yield: 3.45%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -26.72%
• EPS Growth: -832.77%
• Country: JP
• Employees: 1,022
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Coal
• EPS (TTM): -31.45
• Shares Outstanding: 302,349,430
• 10 Day Avg. Volume: 1,644,440
• 30 Day Avg. Volume: 1,058,020
• PEG Ratio: 0.05
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥84.44
• Price Target Upside: -7.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ¥83.00 ▼(-8.79%Downside)

The most significant factor influencing the overall stock score is the poor financial performance, with negative margins and cash flow challenges indicating instability. Technical analysis shows a neutral trend but with bearish signals, adding uncertainty. The negative P/E ratio severely affects valuation, suggesting the stock may be overvalued given its earnings performance. The absence of earnings call data and corporate events means the score is largely driven by financials and technicals.

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

Company Description

Nippon Coke & Engineering Company, Limited (3315) is a Japanese company primarily engaged in the production and sale of coke and related chemical products. The company operates within the industrial sector and focuses on the manufacture of coke used in steel production, as well as a variety of chemical products. Additionally, Nippon Coke & Engineering is involved in the engineering and construction of coke ovens and related facilities, catering to both domestic and international markets.

How the Company Makes Money

Nippon Coke & Engineering Company, Limited generates revenue through several key streams. The primary source of income is the sale of coke, which is an essential material in steel manufacturing. The company also earns from its chemical products, which are by-products of the coke manufacturing process. Furthermore, the company's engineering division provides services related to the design, construction, and maintenance of coke ovens and related facilities, contributing to its revenue. Strategic partnerships and contracts with steel manufacturers and other industrial clients play a significant role in sustaining and growing its earnings.

Nippon Coke & Engineering Company, Limited Financial Statement Overview

Summary

Nippon Coke & Engineering Company, Limited presents a mixed financial profile with challenges in revenue growth and profitability. The income statement shows unstable revenue with a significant decline and negative profit margins. The balance sheet indicates moderate leverage but stable liquidity. However, cash flow generation is a major concern with recent zero or negative cash flows.

Income Statement

The company has experienced volatile revenue and earnings performance. The TTM gross profit margin is low at approximately 3.62%, and the net profit margin is negative due to a net loss. Revenue growth has fluctuated significantly, with a 17% decline from 2023 to 2024, indicating potential market challenges. Negative EBIT and EBITDA margins in TTM highlight operational inefficiencies. Historically, revenue had growth spikes, but recent periods show instability.

Balance Sheet

The debt-to-equity ratio stands at 1.11, indicating moderate leverage. Stockholders' equity has decreased, affecting the equity ratio, which is a stable 34.8%. The return on equity has been negative in the most recent period, reflecting net losses. The balance sheet shows adequate liquidity but reveals potential risk from high debt levels.

Cash Flow

The company faces challenges in generating positive cash flow, with TTM operating cash flow at zero and free cash flow negative in prior periods. The free cash flow to net income ratio is unviable due to net losses. Historical cash flow volatility suggests difficulty in maintaining consistent cash generation, posing liquidity concerns.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	106.91B	135.15B	174.06B	124.71B	87.88B	107.41B
Gross Profit	3.87B	10.56B	6.20B	20.07B	12.76B	7.40B
EBITDA	474.50M	7.84B	5.00B	17.18B	12.11B	6.95B
Net Income	-3.86B	1.90B	-1.07B	7.38B	3.97B	28.00M
Balance Sheet
Total Assets	145.62B	140.71B	140.20B	128.77B	102.15B	106.30B
Cash, Cash Equivalents and Short-Term Investments	4.79B	6.16B	5.62B	5.02B	5.71B	3.87B
Total Debt	56.06B	45.93B	46.33B	23.19B	23.09B	30.59B
Total Liabilities	94.96B	84.36B	85.93B	71.42B	51.05B	59.12B
Stockholders Equity	50.66B	56.35B	54.28B	57.34B	51.10B	47.19B
Cash Flow
Free Cash Flow	0.00	155.00M	-20.04B	793.00M	9.89B	-47.00M
Operating Cash Flow	0.00	10.83B	-12.40B	4.61B	15.50B	6.46B
Investing Cash Flow	0.00	-9.88B	-8.09B	-4.16B	-5.86B	-6.64B
Financing Cash Flow	0.00	-414.00M	21.09B	-1.07B	-7.80B	-7.34B

Nippon Coke & Engineering Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.00
• 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:3315, the sentiment is Positive. The current price of 91 is above the 20-day moving average (MA) of 84.95, above the 50-day MA of 84.94, and above the 200-day MA of 90.78, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1518	74 Outperform	¥66.35B	6.80		3.14%	-21.81%	-36.42%
4112	74 Outperform	¥23.94B	7.33		3.07%	9.75%	28.00%
4025	72 Outperform	¥24.84B	9.98		0.17%	11.95%	68.61%
4022	64 Neutral	¥32.73B	10.35		3.49%	9.33%	45.97%
1514	61 Neutral	¥36.29B	7.91		4.94%	-54.58%	-47.51%
3315	48 Neutral	¥26.48B	―	-28.59%	3.45%	-26.72%	-832.77%
Sector *	44 Neutral	AU$1.43B	-6.04	-40.74%	3.91%	-3.45%	-41.77%

Nippon Coke & Engineering Company, Limited Corporate Events

Nippon Coke & Engineering Strengthens Ties with Major Stakeholders

Nippon Coke & Engineering Co., Ltd has announced its business relationships with major stakeholders, Nippon Steel Corporation and Sumitomo Corporation, highlighting their significant influence and cooperative agreements. These partnerships are crucial for the company’s operations, allowing for enhanced supply chain efficiency and market reach, while maintaining independent decision-making processes.

Nippon Coke & Engineering to Receive Dividends from Subsidiaries

Nippon Coke & Engineering Co., Ltd. announced it will receive year-end dividends totaling 1,330 million yen from six of its consolidated subsidiaries. This dividend income will be recorded as non-operating income in the company’s non-consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, with no impact on the consolidated financial results.

Nippon Coke & Engineering Reports Significant Financial Decline

Nippon Coke & Engineering Co., Ltd reported a significant decline in its financial performance for the fiscal year ended March 31, 2025, with net sales dropping by 26.7% and a substantial operating loss. The company’s financial position weakened, with a decrease in total assets and net assets, and no dividends were declared for the fiscal year. The forecast for the next fiscal year indicates a slight recovery in sales and profits, but the company remains cautious about its financial outlook.

Nippon Coke & Engineering Announces Leadership Changes

Nippon Coke & Engineering Co., Ltd announced changes in its board of directors, corporate auditors, and executive officers, effective June 27, 2025. These changes, pending approval at the upcoming annual general meeting, include the appointment of new directors and auditors, as well as the retirement of some existing members, which could impact the company’s governance and strategic direction.

Nippon Coke & Engineering Reports Significant Financial Decline Due to Operational Issues

Nippon Coke & Engineering Co., Ltd reported significant declines in its non-consolidated financial results for the fiscal year 2024 compared to 2023, with net sales dropping by 28.9% and substantial losses in operating and ordinary profits. The downturn was attributed to operational issues, including troubles with old Coke Oven Batteries and a fire accident in December 2024, which affected production volumes and, consequently, sales and profits.