Nitto Seimo Co., Ltd. (3524) AI Stock Analysis

• Market Cap: ¥3.72B
• Dividend Yield: 3.48%
• Average Volume (3M): 18.56K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.38
• Revenue Growth: 4.98%
• EPS Growth: 332.47%
• Country: JP
• Employees: 914
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Manufacturers
• EPS (TTM): 267.25
• Shares Outstanding: 2,605,000
• 10 Day Avg. Volume: 23,120
• 30 Day Avg. Volume: 18,563
• PEG Ratio: -1.02
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.18
• 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

• Rating: 66 Neutral
• Price Target: ―

Nitto Seimo Co., Ltd. presents a mixed outlook. The company's strengths lie in its revenue growth and attractive valuation, with a low P/E ratio and solid dividend yield. However, challenges include high debt levels and poor cash flow management. Technical indicators suggest bearish momentum, which may pose short-term risks. Improvement in operational efficiency and cash generation is crucial for mitigating leverage-related risks and achieving sustainable growth.

Nitto Seimo Co., Ltd. Business Overview & Revenue Model

Company Description

Nitto Seimo Co., Ltd. (3524) is a Japan-based company specializing in the manufacture and sale of fishing nets, industrial nets, and other related products. Established in 1910, the company operates in various sectors including aquaculture, sports, and construction. Its core products include fishing nets, aquaculture-related materials, and netting for industrial and sports applications, serving both domestic and international markets.

How the Company Makes Money

Nitto Seimo Co., Ltd. generates revenue primarily through the sale of its diverse range of netting products. The company's key revenue streams include the fishing and aquaculture industries, where it provides specialized nets and materials designed to optimize fish farming and capture. Additionally, Nitto Seimo supplies industrial nets used in construction, logistics, and safety, as well as sports nets for recreational and professional use. The company benefits from strategic partnerships with distributors and industry players to expand its market reach. Innovations in netting technology and a focus on quality and durability help maintain a competitive advantage and drive sales across its various business segments.

Nitto Seimo Co., Ltd. Financial Statement Overview

Summary

Nitto Seimo Co., Ltd. shows solid revenue growth and improved profitability, but faces challenges with high leverage and cash flow management. The company needs to enhance operational efficiencies and cash generation to mitigate risks associated with high debt levels.

Income Statement

Nitto Seimo Co., Ltd. shows a positive trend in revenue growth with a 8.26% increase from the previous year. Gross profit margin is stable at 18.69% for the latest year, which is consistent with industry norms. The net profit margin has improved significantly to 2.62%, indicating better cost management and profitability. However, EBIT and EBITDA margins, at 2.06% and 9.19% respectively, suggest room for improving operational efficiency.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.43, indicating substantial leverage which could pose a risk in economic downturns. However, return on equity has improved to 8.07%, demonstrating effective use of equity to generate profits. The equity ratio stands at 22.94%, suggesting a moderate reliance on debt financing.

Cash Flow

Operating cash flow has significantly declined to $139 million, and free cash flow remains negative. The operating cash flow to net income ratio is 0.25, which is low, suggesting potential issues in cash generation relative to reported profits. The company needs to focus on improving cash management to ensure long-term sustainability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
21.36B	20.90B	19.30B	18.37B	17.68B	18.35B
	Gross Profit
4.02B	3.91B	3.65B	3.61B	3.84B	3.67B
	EBIT
725.59M	431.36M	275.67M	370.03M	772.61M	748.53M
	EBITDA
1.95B	1.92B	1.18B	1.15B	1.33B	1.17B
	Net Income Common Stockholders
607.98M	546.90M	50.79M	190.50M	419.81M	282.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66B	1.40B	1.17B	1.17B	999.63M	960.35M
	Total Assets
30.16B	29.52B	28.22B	27.57B	23.51B	21.01B
	Total Debt
16.56B	16.45B	15.30B	14.73B	11.59B	9.58B
	Net Debt
14.91B	15.06B	14.13B	13.55B	10.59B	8.62B
	Total Liabilities
23.03B	22.58B	21.76B	21.23B	17.17B	14.95B
	Stockholders Equity
6.96B	6.77B	6.30B	6.19B	6.19B	5.92B
Cash Flow		Free Cash Flow
0.00	-735.47M	-531.84M	-2.78B	-1.75B	-522.16M
	Operating Cash Flow
0.00	139.00M	1.09B	989.44M	1.20B	-109.57M
	Investing Cash Flow
0.00	-906.20M	-1.67B	-3.80B	-2.96B	-554.86M
	Financing Cash Flow
0.00	996.19M	545.58M	2.98B	1.80B	548.47M

Nitto Seimo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1436.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3524, the sentiment is Negative. The current price of 1436 is above the 20-day moving average (MA) of 1432.40, above the 50-day MA of 1425.29, and below the 200-day MA of 1457.31, indicating a neutral trend. The MACD of 7.06 indicates Negative momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3524.

Nitto Seimo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3123	79 Outperform	¥6.14B	7.31		3.34%	-9.85%	-8.43%
3045	70 Outperform	¥2.98B	9.13		3.60%	6.75%	20.53%
3109	66 Neutral	¥11.84B	13.09		5.24%	1.05%	5.32%
3524	66 Neutral	¥3.72B	6.93		3.48%	4.98%	332.47%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
3202	57 Neutral	¥3.18B	56.85		2.86%	1.81%	-63.86%
3409	51 Neutral	¥4.92B	―		―	28.89%	-2448.94%