NISSO PRONITY Co., Ltd. (3440) AI Stock Analysis

• Market Cap: ¥5.50B
• Dividend Yield: 4.31%
• Average Volume (3M): 27.44K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.95
• Revenue Growth: 30.19%
• EPS Growth: -15.63%
• Country: JP
• Employees: 564
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -26.80
• Shares Outstanding: 6,832,500
• 10 Day Avg. Volume: 47,800
• 30 Day Avg. Volume: 27,443
• PEG Ratio: -0.23
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -9.56
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,206.00 ▲(30.38% Upside)

The strong financial performance driven by revenue growth and a robust balance sheet is offset by profit pressures and cash flow challenges. The technical indicators reflect a strong bullish trend, but caution is advised due to overbought signals. Attractive valuation metrics such as a low P/E ratio and solid dividend yield further support a positive outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates a robust market position and effective business strategy, enhancing long-term financial stability.

Business Model Strength

Diverse service offerings across sectors ensure steady demand, reducing dependency on a single market and supporting sustainable growth.

Balance Sheet Health

A strong equity ratio reflects financial resilience, providing a buffer against economic fluctuations and supporting future investments.

Negative Factors

Rising Costs

Increasing costs can erode profit margins, potentially impacting the company's ability to reinvest in growth and maintain competitive pricing.

Cash Flow Challenges

Negative cash flow indicates liquidity issues, which could constrain operational flexibility and limit the ability to capitalize on growth opportunities.

Leverage Increase

Increased leverage can heighten financial risk, potentially affecting the company's creditworthiness and increasing interest obligations.

NISSO PRONITY Co., Ltd. Business Overview & Revenue Model

Company Description

NISSO PRONITY Co., Ltd., together with its subsidiaries, engages in the production of various metal products in Japan. It operates in four segments: Metal Processing Business, Rubber Processing Business, Construction Business, and Tile Business. The company offers solar cell array support frames, metal sandwich panels, air conditioning equipment, soundproofing equipment, and livestock excrement processing equipment; rubber products, including sewer manhole earthquake-resistant joints and water stop tapes; and wet and dry tiles. It also provides solar panel installation and other general construction services. The company's products are used in construction, energy, machinery and equipment, housing, public infrastructure, and other industries. NISSO PRONITY Co., Ltd. was founded in 1978 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

NISSO PRONITY Co., Ltd. generates revenue through its comprehensive surface treatment and metal processing services. The company's primary revenue streams involve providing electroplating and coating services to industrial clients across multiple sectors. By offering customizable solutions that improve the functionality and appearance of metal components, the company establishes long-term contracts and partnerships with businesses that require consistent quality and reliability in their metal products. Additionally, the company may engage in research and development to innovate new surface treatment technologies, which can further enhance its service offerings and potentially open new revenue channels.

NISSO PRONITY Co., Ltd. Financial Statement Overview

Summary

NISSO PRONITY Co., Ltd. is experiencing strong revenue growth, but profits are under pressure due to rising costs. The balance sheet remains robust with a healthy equity ratio, although there is an increase in leverage. Cash flow management appears strained, given the negative free cash flow and operating cash flow, suggesting a need for strategic adjustments to improve liquidity and sustain financial health.

Income Statement

NISSO PRONITY Co., Ltd. demonstrated strong revenue growth with a 41% increase from 2023 to 2024, indicating a robust upward trajectory. The gross profit margin remained healthy at approximately 27.2%, and the net profit margin was solid at 6.2%. However, the decline in net income suggests rising costs or other financial pressures. The EBIT margin improved to 7.2%, but the EBITDA margin showed a slight decrease to 11.5%.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 53.8%, indicating financial stability. The debt-to-equity ratio increased to 0.60, reflecting moderate leverage. Return on equity was about 9.1%, lower than the previous year, suggesting reduced profitability. Cash reserves are significant, although there's a notable decline compared to 2023.

Cash Flow

The cash flow position of NISSO PRONITY has weakened, with a negative free cash flow of ¥761.7 million in 2024, compared to a positive flow in 2023. The operating cash flow to net income ratio was negative, indicating challenges in converting income into cash. Additionally, free cash flow to net income also reflects a negative trend, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.81B	17.69B	12.55B	7.37B	7.53B	8.39B
Gross Profit	5.52B	4.81B	2.69B	1.66B	1.65B	2.01B
EBITDA	2.50B	2.04B	2.47B	768.67M	907.97M	1.18B
Net Income	1.32B	1.09B	1.52B	154.63M	427.13M	533.32M
Balance Sheet
Total Assets	25.48B	22.41B	21.89B	14.48B	12.22B	12.29B
Cash, Cash Equivalents and Short-Term Investments	7.61B	6.15B	7.29B	5.75B	6.31B	6.01B
Total Debt	8.74B	7.21B	7.07B	3.13B	1.14B	1.39B
Total Liabilities	12.66B	10.35B	10.72B	4.75B	2.49B	2.84B
Stockholders Equity	12.81B	12.06B	11.16B	9.73B	9.74B	9.45B
Cash Flow
Free Cash Flow	0.00	-761.72M	251.21M	-1.81B	698.96M	3.22B
Operating Cash Flow	0.00	-186.66M	668.10M	-519.15M	1.48B	3.51B
Investing Cash Flow	0.00	-455.40M	-1.50B	-673.59M	-850.85M	-304.65M
Financing Cash Flow	0.00	-202.70M	2.15B	550.17M	-405.89M	-1.91B

NISSO PRONITY Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 925.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3440, the sentiment is Negative. The current price of 925 is below the 20-day moving average (MA) of 932.65, below the 50-day MA of 1008.84, and below the 200-day MA of 953.44, indicating a bearish trend. The MACD of -19.04 indicates Negative momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 16.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3440.

NISSO PRONITY Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5603	76 Outperform	¥4.18B	4.58	―	4.79%	-0.27%	59.50%
3440	75 Outperform	¥5.50B	6.57	―	4.31%	30.19%	-15.63%
5994	69 Neutral	¥7.91B	4.10	―	1.27%	6.41%	―
3441	67 Neutral	¥4.49B	5.63	―	2.15%	23.04%	158.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5987	59 Neutral	¥2.81B	21.99	―	1.18%	2.94%	―
2962	46 Neutral	¥3.68B	―	―	―	-19.32%	-171.53%