Naigai Tec Corporation (3374) AI Stock Analysis

• Market Cap: ¥8.03B
• Dividend Yield: 4.58%
• Average Volume (3M): 9.26K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.21
• Revenue Growth: -0.81%
• EPS Growth: 42.48%
• Country: JP
• Employees: 503
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 75.33
• 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: ¥2,338.00 ▲(3.50% Upside)

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

Stable Balance Sheet

A stable balance sheet with low leverage indicates financial prudence, reducing risk and providing a solid foundation for future growth.

Strategic Partnerships

Strong partnerships enhance product offerings and competitive pricing, supporting long-term revenue potential and market position.

Profitability

Decent profitability as indicated by ROE reflects efficient use of shareholder funds, supporting sustainable business operations.

Negative Factors

Negative Revenue Growth

Declining revenue growth suggests challenges in market demand or competition, potentially impacting long-term business expansion.

Cash Flow Challenges

Poor cash flow management can strain operations and limit investment in growth opportunities, affecting future financial health.

Declining Profit Margins

Decreasing profit margins indicate rising costs or pricing pressures, which can erode profitability and competitiveness over time.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• 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 above the 20-day moving average (MA) of 2211.55, above the 50-day MA of 2147.54, and above the 200-day MA of 2082.55, indicating a bullish trend. The MACD of 48.77 indicates Negative momentum. The RSI at 73.52 is Negative, neither overbought nor oversold. The STOCH value of 85.02 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
5983	80 Outperform	¥13.09B	14.55	―	2.18%	8.87%	31.93%
6763	80 Outperform	¥25.66B	14.51	―	3.16%	12.72%	53.85%
3374	69 Neutral	¥8.03B	7.25	―	4.58%	-0.81%	42.48%
6654	68 Neutral	¥6.08B	34.46	―	2.90%	-0.14%	-32.62%
5939	65 Neutral	¥4.97B	17.55	―	0.55%	-3.52%	-32.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%