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

• Market Cap: ¥5.34B
• Dividend Yield: 4.35%
• Average Volume (3M): 27.44K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.97
• 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: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 65 Neutral
• Price Target: ¥964.00 ▲(7.47% Upside)

NISSO PRONITY Co., Ltd. has a strong financial performance with significant revenue growth and efficient cash generation, but faces challenges with profit margins and leverage. The stock's technical indicators show bearish momentum, which is a concern. However, the attractive valuation with a low P/E ratio and high dividend yield provides a positive outlook for potential investors.

Positive Factors

Revenue Growth

The substantial revenue growth reflects strong demand for NISSO PRONITY's products, indicating successful market penetration and expansion potential.

Cash Generation

Improved cash flow generation enhances financial flexibility, supporting reinvestment in growth initiatives and providing a buffer against economic downturns.

Market Position

Specialization in precision machinery and equipment positions NISSO PRONITY as a key player in industrial sectors, leveraging advanced technology for competitive advantage.

Negative Factors

Profit Margin Pressure

Decreasing profit margins suggest rising costs or pricing pressures, which could impact profitability if not managed effectively.

Increased Leverage

Higher leverage increases financial risk, potentially limiting the company's ability to invest in growth or weather economic challenges.

Operating Cash Flow Challenges

Low cash conversion efficiency may hinder the company's ability to fund operations and growth initiatives, affecting long-term sustainability.

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

Company Description

NISSO PRONITY Co., Ltd. (3440) is a Japanese company specializing in the development and manufacturing of precision machinery and equipment. Operating primarily in the industrial sector, NISSO PRONITY focuses on providing high-quality products such as automated assembly systems, inspection equipment, and specialized tools. The company is dedicated to innovation, leveraging advanced technology to enhance the efficiency and productivity of manufacturing processes across various industries.

How the Company Makes Money

NISSO PRONITY generates revenue through the sale of its precision machinery and equipment, which includes automated assembly systems and inspection tools. The company operates on a B2B model, primarily serving manufacturers in sectors such as automotive, electronics, and consumer goods. Key revenue streams include direct sales of machinery, maintenance and support services, and potential ongoing contracts for equipment upgrades. Additionally, NISSO PRONITY may benefit from strategic partnerships with other technology firms to enhance its product offerings and expand market reach, further contributing to its financial performance.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.81B	23.04B	17.69B	12.55B	7.37B	7.53B
Gross Profit	5.52B	5.62B	4.81B	2.69B	1.66B	1.65B
EBITDA	2.50B	2.33B	2.04B	2.47B	768.67M	907.97M
Net Income	1.32B	917.00M	1.09B	1.52B	154.63M	427.13M
Balance Sheet
Total Assets	25.48B	26.95B	22.41B	21.89B	14.48B	12.22B
Cash, Cash Equivalents and Short-Term Investments	7.61B	7.75B	6.15B	7.29B	5.75B	6.31B
Total Debt	8.74B	10.21B	7.21B	7.07B	3.13B	1.14B
Total Liabilities	12.66B	14.30B	10.35B	10.72B	4.75B	2.49B
Stockholders Equity	12.81B	12.64B	12.06B	11.16B	9.73B	9.74B
Cash Flow
Free Cash Flow	0.00	2.33B	-761.72M	251.21M	-1.81B	698.96M
Operating Cash Flow	0.00	2.92B	-186.66M	668.10M	-519.15M	1.48B
Investing Cash Flow	0.00	-3.93B	-455.40M	-1.50B	-673.59M	-850.85M
Financing Cash Flow	0.00	2.55B	-202.70M	2.15B	550.17M	-405.89M

NISSO PRONITY Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 897.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3440, the sentiment is Neutral. The current price of 897 is below the 20-day moving average (MA) of 914.10, below the 50-day MA of 944.60, and below the 200-day MA of 957.74, indicating a neutral trend. The MACD of -12.70 indicates Negative momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 83.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥4.15B	4.55	―	4.79%	-0.27%	59.50%
5994	69 Neutral	¥8.54B	4.43	―	1.03%	6.41%	―
3441	67 Neutral	¥5.15B	5.66	―	1.98%	26.69%	142.65%
3440	65 Neutral	¥5.34B	6.48	―	4.35%	30.19%	-15.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5987	59 Neutral	¥2.82B	22.01	―	1.18%	2.94%	―
2962	46 Neutral	¥3.45B	-1.22	―	―	-19.32%	-171.53%