Naigai Tec Corporation (3374) AI Stock Analysis

• Market Cap: ¥9.30B
• Dividend Yield: 4.58%
• Average Volume (3M): 9.26K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.12
• Revenue Growth: -0.81%
• EPS Growth: 42.48%
• Country: JP
• Employees: 503
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 58.30
• Shares Outstanding: 3,553,098
• 10 Day Avg. Volume: 4,860
• 30 Day Avg. Volume: 9,263
• PEG Ratio: 0.31
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -12.43
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,909.00 ▲(28.77% Upside)
• Action: Reiterated Date: 10/16/25
• Date: Action: Reiterated 10/16/25

Naigai Tec Corporation's stock score is primarily driven by its attractive valuation, with a low P/E ratio and high dividend yield. The technical analysis shows moderate strength, supporting a positive outlook. However, financial performance is mixed, with challenges in revenue growth and cash flow management, which slightly dampen the overall score.

Positive Factors

Conservative balance sheet

Low leverage and a nearly 50% equity ratio provide durable financial flexibility, reducing refinancing and solvency risk. With a debt-to-equity of 0.29 and ROE of 8.78%, the company can sustain investment or weather downturns without aggressive borrowing, supporting long-term stability.

Established operating profitability

Positive gross and operating margins indicate the business generates operating cash before financing costs. Gross margin of 12.8% and positive EBIT/EBITDA margins suggest structural ability to cover fixed costs and reinvest in operations, underpinning sustainable core profitability.

Per-share earnings improvement

Reported EPS growth of 7.51% while revenue fell suggests management actions (cost control, mix improvement or capital actions) improved per-share returns. That resilience can preserve shareholder earnings power even amid top-line pressure, aiding multi-month stability.

Negative Factors

Declining revenue

Sustained top-line contraction (around -9% YoY) is a structural concern: it reduces operating leverage, pressures capacity utilization, and limits internal funding for R&D or capex. Without recovery or new markets, prolonged sales decline erodes long-term competitiveness and scale.

Weak cash generation

A severe drop in free cash flow and negative operating cash flow relative to net income indicate cash conversion problems. This undermines ability to fund operations, dividends, or capex from internal sources and raises reliance on external financing, reducing long-term financial resilience.

Compressing net margins

Declining net and operating margins (net margin ~3%) point to rising costs or weaker pricing power. Margin compression limits free cash generation and ROE upside, making sustained investment, competitive pricing, or margin recovery necessary to avoid longer-term profitability deterioration.

Naigai Tec Corporation Business Overview & Revenue Model

Company Description

Naigai Tec Corporation purchases, imports, exports, and sells pneumatic devices, pneumatic application devices, working machines, electric and electronic devices, and other tools. The company offers pneumatic, vacuum, mechatronics, temperature control, fluid control, environmental and energy-saving, and measuring equipment; power and electronic device; and other products related to devices and logistics, as well as products for semiconductor and liquidcrystal industries. It is involved in the assembly, repair, and maintenance of semiconductors, FPD manufacturing equipment, etc.; wholesale, import, export and other agent businesses for machines, electronic facilities, and other components; measurement and instrumentation equipment; and provision of consulting and after-sales services and related ancillary services. Naigai Tec Corporation was incorporated in 1961 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Naigai Tec Corporation generates revenue through the sale of its electronic components and systems to a diverse range of clients across multiple industries. The company's primary revenue streams include the manufacturing and sale of semiconductors and connectors, which are critical components in electronic devices. Additionally, Naigai Tec benefits from long-term partnerships with major technology firms and original equipment manufacturers (OEMs), which provide steady demand for its products. The company also invests in research and development to create new technologies and improve existing products, contributing to its competitive advantage and ability to capture market share.

Naigai Tec Corporation Financial Statement Overview

Summary

Naigai Tec Corporation shows a stable balance sheet with low leverage and decent profitability. However, it faces challenges with negative revenue growth and declining profit margins, indicating a need for operational improvements. Cash flow management is a concern, with a significant drop in free cash flow and negative operating cash flow to net income ratio.

Income Statement

Naigai Tec Corporation shows mixed performance in terms of revenue and profitability. The gross profit margin for the latest period is 12.8%, indicating a reasonable level of profitability from its operations. However, the net profit margin has decreased to 3%, reflecting challenges in managing operational costs. The revenue growth rate is negative at -9.42% from the previous year, suggesting a decline in sales. The EBIT margin stands at 4.39% and EBITDA margin at 5.57%, both showing a slight decline from prior periods, indicating pressure on earnings.

Balance Sheet

The company's balance sheet reflects a stable position with a debt-to-equity ratio of 0.29, indicating a conservative use of leverage. The return on equity (ROE) is 8.78%, which suggests decent profitability relative to shareholder investments. The equity ratio of 48.49% demonstrates a solid capital structure, with nearly half of the assets financed by equity, indicating lower financial risk.

Cash Flow

Cash flow analysis reveals challenges, as evidenced by a negative free cash flow growth rate of -260.47%, indicating a significant drop in free cash flow. The operating cash flow to net income ratio is negative, reflecting insufficient cash generated from operations compared to net income. However, the company maintains a free cash flow to net income ratio of -0.59, indicating room for improvement in cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.44B	35.34B	39.01B	45.28B	37.55B	26.73B
Gross Profit	4.51B	4.52B	4.05B	5.16B	4.51B	3.18B
EBITDA	1.82B	1.97B	1.68B	2.64B	2.37B	1.30B
Net Income	1.01B	1.05B	848.51M	1.64B	1.54B	743.01M
Balance Sheet
Total Assets	24.00B	24.62B	27.15B	30.01B	25.25B	20.51B
Cash, Cash Equivalents and Short-Term Investments	8.47B	8.29B	10.38B	10.93B	10.44B	9.51B
Total Debt	4.14B	3.47B	4.57B	5.17B	2.78B	3.63B
Total Liabilities	12.31B	12.68B	15.71B	19.28B	15.75B	12.42B
Stockholders Equity	11.70B	11.94B	11.44B	10.73B	9.49B	8.09B
Cash Flow
Free Cash Flow	0.00	-624.18M	388.98M	-1.41B	2.02B	2.53B
Operating Cash Flow	0.00	-277.91M	1.19B	1.03B	2.35B	2.91B
Investing Cash Flow	0.00	-361.82M	-634.05M	-2.46B	-321.52M	-431.50M
Financing Cash Flow	0.00	-1.47B	-1.11B	1.90B	-1.09B	2.21B

Naigai Tec Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2259.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3374, the sentiment is Positive. The current price of 2259 is below the 20-day moving average (MA) of 2531.75, below the 50-day MA of 2409.24, and above the 200-day MA of 2153.00, indicating a bullish trend. The MACD of 66.27 indicates Negative momentum. The RSI at 69.79 is Neutral, neither overbought nor oversold. The STOCH value of 90.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3374.

Naigai Tec Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6643	81 Outperform	¥28.52B	12.78	―	3.12%	6.60%	0.27%
5819	75 Outperform	¥14.42B	12.16	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥56.87B	12.54	―	0.91%	5.28%	18.38%
3374	69 Neutral	¥9.30B	9.45	―	4.58%	-0.81%	42.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥56.27B	-141.26	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.28B	-34.48	―	1.79%	-10.43%	-368.47%