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

• Market Cap: ¥5.89B
• Dividend Yield: 4.35%
• Average Volume (3M): 27.44K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.90
• Revenue Growth: 30.19%
• EPS Growth: -15.63%
• Country: JP
• Employees: 564
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 22.01
• Shares Outstanding: 6,832,500
• 10 Day Avg. Volume: 47,800
• 30 Day Avg. Volume: 27,443
• PEG Ratio: -0.51
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 3.03
• 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: ¥1,106.00 ▲(23.30% Upside)
• Action: Downgraded Date: 12/19/25
• Date: Action: Downgraded 12/19/25

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

Strong revenue growth

A near-doubling of revenue in the latest year and multi-year revenue growth trends indicate expanding market demand and stronger order intake for precision equipment. Durable revenue expansion supports scaling, reinvestment in R&D, and long-term customer relationships across industrial clients.

Improving free cash flow

Improved free cash flow generation provides durable internal funding for maintenance capex, service business support, dividends or debt paydown. Strong FCF relative to net income increases financial flexibility and resilience versus reliance on external financing over the medium term.

Specialized B2B precision machinery portfolio

A focused product mix serving automotive, electronics and consumer goods creates durable competitive advantages: high technical barriers, recurring maintenance/service revenue, and deep client integration, supporting stable demand and stickier customer relationships over time.

Negative Factors

Margin compression

Falling gross and net margins point to cost pressures or pricing weakness that can persist absent structural fixes. Margin compression erodes the operating leverage benefit of revenue growth and constrains reinvestment, dividend capacity, and buffer against downturns.

Rising leverage

Higher leverage increases financing costs and reduces balance sheet flexibility. Elevated debt levels limit the company's ability to fund capex or absorb shocks, making it more sensitive to interest rates and cyclical downturns in industrial demand over the medium term.

Weak cash conversion of earnings

A low ratio of operating cash flow to net income suggests earnings are not fully converting into cash, possibly from working capital or receivables. This reduces near-term liquidity and could constrain investment or debt reduction even when accounting profits rise.

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 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. shows strong revenue growth and efficient cash generation, but faces challenges in maintaining profit margins and managing increased leverage. The company has potential for growth but must address margin pressures and leverage risks to ensure long-term financial stability.

Income Statement

NISSO PRONITY Co., Ltd. has demonstrated strong revenue growth, with a significant increase of 99.3% in the latest year. However, the gross profit margin has slightly decreased over the years, indicating potential cost pressures. The net profit margin has also declined, suggesting challenges in maintaining profitability despite revenue growth. Overall, the company shows robust growth but faces margin pressures.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose financial risks. However, the return on equity remains positive, albeit lower than previous years, reflecting moderate profitability. The equity ratio is stable, suggesting a balanced asset structure. Overall, the balance sheet shows increased leverage but maintains a stable equity position.

Cash Flow

NISSO PRONITY's cash flow situation shows improvement with positive free cash flow growth in the latest year. However, the operating cash flow to net income ratio is relatively low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income. Overall, the cash flow statement indicates improvement but highlights areas for better cash conversion.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	23.04B	23.04B	17.69B	12.55B	7.37B	7.53B
Gross Profit	5.62B	5.62B	4.81B	2.69B	1.66B	1.65B
EBITDA	2.33B	2.33B	2.04B	2.47B	768.67M	907.97M
Net Income	917.00M	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	2.33B	2.33B	-761.72M	251.21M	-1.81B	698.96M
Operating Cash Flow	2.92B	2.92B	-186.66M	668.10M	-519.15M	1.48B
Investing Cash Flow	-3.93B	-3.93B	-455.40M	-1.50B	-673.59M	-850.85M
Financing Cash Flow	2.55B	2.55B	-202.70M	2.15B	550.17M	-405.89M

NISSO PRONITY Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 897.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 897 is below the 20-day moving average (MA) of 1009.00, below the 50-day MA of 983.38, and below the 200-day MA of 992.06, indicating a neutral trend. The MACD of 5.18 indicates Positive momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 12.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3441	77 Outperform	¥6.51B	2.83	―	1.97%	26.69%	142.65%
3447	73 Outperform	¥14.55B	3.92	―	3.58%	29.20%	122.98%
3449	73 Outperform	¥45.44B	12.79	―	2.40%	14.37%	93.86%
5994	69 Neutral	¥6.98B	-102.51	―	1.06%	6.41%	―
3440	65 Neutral	¥5.89B	10.73	―	4.35%	30.19%	-15.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2962	53 Neutral	¥10.05B	-73.23	―	―	-19.32%	-171.53%