Naigai Tec Corporation (3374) AI Stock Analysis

• Market Cap: ¥8.83B
• Dividend Yield: 4.58%
• Average Volume (3M): 9.26K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.06
• 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: -12.42
• 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: ¥2,764.00 ▲(22.36% 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 capital structure

A low debt-to-equity ratio (0.29) and an equity ratio near 48.5% signal conservative leverage and a solid capital base. This reduces refinancing and solvency risk, preserves financial flexibility for capital spending or downturns, and supports durable access to credit over months.

Stable operating profitability

Gross margin of 12.8% with positive EBIT and EBITDA margins indicates the core business still generates operating profits. While margins have softened, maintaining positive operating profitability provides the foundation to fund operations, incremental improvements, and supports long‑term viability.

Niche industrial supplier focus

As a specialized provider in machinery and manufacturing support, the company likely benefits from client stickiness, specialized know‑how and longer sales cycles. Niche industrial exposure can produce more predictable, contract-driven revenue and defendable market position over many months.

Negative Factors

Declining revenue trend

A near‑double digit sales decline weakens scale economics and can pressure margins and pricing leverage. Persistent top‑line contraction over several quarters reduces operating leverage, limits reinvestment capacity and raises the risk that cost cuts will be required to stabilize profitability.

Severe free cash flow deterioration

A massive drop in free cash flow and negative operating cash to net income indicate weak cash conversion. Poor cash generation limits the company’s ability to fund capex, sustain dividends, or shore up working capital, increasing dependence on external financing if trends persist.

Compression in net margins

Net margin down to 3% and declining EBIT/EBITDA margins point to margin pressure from costs or mix shifts. Margin compression erodes returns on invested capital and constrains the capacity to invest in R&D or service levels, making long‑term competitiveness harder to sustain.

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

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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	34.43B	35.34B	39.01B	45.28B	37.55B	26.73B
Gross Profit	4.51B	4.52B	3.96B	5.11B	4.45B	3.11B
EBITDA	1.82B	1.95B	1.61B	2.61B	2.35B	1.27B
Net Income	1.01B	1.05B	848.51M	1.64B	1.54B	743.01M
Balance Sheet
Total Assets	24.00B	24.76B	27.15B	30.15B	25.40B	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	12.82B	15.71B	19.42B	15.91B	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: Neutral
• Last Price: 2259.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3374, the sentiment is Neutral. The current price of 2259 is below the 20-day moving average (MA) of 2580.05, below the 50-day MA of 2500.22, and above the 200-day MA of 2191.70, indicating a neutral trend. The MACD of 16.36 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	85 Outperform	¥28.05B	6.42	―	3.12%	6.60%	0.27%
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
3374	69 Neutral	¥8.83B	9.69	―	4.58%	-0.81%	42.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.04B	7.18	―	1.79%	-10.43%	-368.47%