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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 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
¥123.00
▲(38.20% Upside)
Action:ReiteratedDate:03/04/26
The score is held down primarily by weak financial performance (declining revenue, negative margins, negative free cash flow, and high leverage). Technicals provide partial support with a generally upward longer-term trend and neutral momentum, while valuation remains constrained by losses (negative P/E) and no dividend yield data.
Positive Factors
Diversified business model
Nippon Coke combines physical coke production with engineering, procurement and services tied to coke ovens. This dual model spreads revenue across product sales and contract services, helping stabilize cash flow over cycles and leveraging engineering margins when commodity volumes dip.
Essential end-market exposure
Serving steelmaking and heavy industry gives structurally durable demand: steel production underpins infrastructure and industrial activity. Even amid cyclicality, baseline coke consumption persists, supporting long-term contract opportunities and ongoing service work around coke facilities.
Stable equity proportion
A c.31.8% equity ratio provides a measurable cushion against losses and supports borrowing capacity. While leverage exists, the stable equity base helps preserve access to capital for project finance and maintenance, reducing immediate insolvency risk over the medium term.
Negative Factors
Revenue decline and margin erosion
A steep revenue drop and negative gross/net margins indicate fundamental demand or pricing stress and/or rising costs. Sustained margin weakness undermines profitability, limits reinvestment capacity, and signals the need for structural fixes in pricing, cost base, or customer mix to restore long-term viability.
Negative free cash flow
Persistent negative FCF and weak operating cash conversion raise liquidity and financing risk. The company may struggle to fund capex, maintenance or service contracts internally, forcing reliance on external funding or asset sales which can be costly and impair long-term operational resilience.
Elevated leverage and negative ROE
High leverage combined with negative ROE increases interest burden and reduces financial flexibility. In downturns, servicing debt can squeeze cash for operations and capex; continued losses erode equity, raising refinancing and solvency risks that impair strategic options over months.

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
Financials are weak: revenue fell 26.75% (2024 to 2025), gross and net margins turned negative, and EBIT/EBITDA margins deteriorated. Leverage is elevated (debt-to-equity 1.58) with negative ROE, and free cash flow is negative with a negative operating cash flow to net income ratio, raising liquidity risk.
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
Neutral
Last Price89.00
Price Trends
50DMA
116.90
Negative
100DMA
108.32
Positive
200DMA
99.96
Positive
Market Momentum
MACD
1.12
Positive
RSI
44.83
Neutral
STOCH
20.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3315, the sentiment is Neutral. The current price of 89 is below the 20-day moving average (MA) of 124.85, below the 50-day MA of 116.90, and below the 200-day MA of 99.96, indicating a neutral trend. The MACD of 1.12 indicates Positive momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
¥27.19B6.463.21%9.61%173.72%
75
Outperform
¥51.69B10.109.07%4.46%-1.14%34.15%
73
Outperform
¥28.16B9.015.04%-2.29%-41.92%
69
Neutral
¥59.76B8.684.32%-31.99%-44.75%
64
Neutral
¥33.94B-185.545.02%-13.64%-45.74%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
49
Neutral
¥33.47B-1.77-26.52%-4.78%-633.90%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3315
Nippon Coke & Engineering Company, Limited
115.00
27.00
30.68%
JP:5302
Nippon Carbon Co
4,680.00
709.44
17.87%
JP:4064
Nippon Carbide Industries Company,Incorporated
2,889.00
1,040.52
56.29%
JP:5304
SEC Carbon Ltd.
2,898.00
793.98
37.74%
JP:5357
Yotai Refractories Co., Ltd.
1,902.00
287.70
17.82%
JP:5408
Nakayama Steel Works,Ltd.
627.00
-127.26
-16.87%

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: Mar 04, 2026