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

• Market Cap: ¥4.02B
• Dividend Yield: 3.18%
• Average Volume (3M): 8.29K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.39
• Revenue Growth: 3.21%
• EPS Growth: -21.80%
• Country: JP
• Employees: 914
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 24.53
• Shares Outstanding: 2,605,000
• 10 Day Avg. Volume: 7,910
• 30 Day Avg. Volume: 8,290
• PEG Ratio: -3.10
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 10.04
• 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: 70 Outperform
• Price Target: ¥1,635.00 ▲(5.48% Upside)

Nitto Seimo Co., Ltd. receives a strong overall score due to its attractive valuation with a low P/E ratio and solid dividend yield, indicating potential undervaluation. The technical analysis supports a positive trend, although financial performance highlights the need for improved profitability and debt management. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Stable Gross Margins

Stable gross margins reflect effective cost control and pricing power, contributing to sustained profitability and competitive positioning.

Product Innovation

Continuous product innovation through R&D enhances competitive advantage and market relevance, driving future growth opportunities.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather downturns.

Profitability Challenges

Declining net profit margins indicate rising costs or inefficiencies, which can erode profitability and investor confidence over time.

Low Operating Cash Flow

Low operating cash flow relative to net income suggests potential liquidity issues, limiting the company's ability to fund operations and growth initiatives.

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

Company Description

Nitto Seimo Co., Ltd. (3524) is a Japanese company primarily engaged in the manufacturing and marketing of specialized adhesive products and materials. The company operates in various sectors, including automotive, electronics, and construction, focusing on providing high-quality solutions that enhance product performance and reliability. Nitto Seimo's core offerings include adhesive tapes, films, and other related materials that cater to a wide array of industrial applications.

How the Company Makes Money

Nitto Seimo generates revenue through the production and sale of its adhesive products, which are essential for various industries such as automotive, electronics, and construction. The company's revenue model is based on direct sales to manufacturers and distributors, as well as long-term contracts with major clients that ensure steady income. Key revenue streams include the sale of adhesive tapes and films, which account for a significant portion of its sales. Additionally, Nitto Seimo engages in research and development to innovate and create new products that meet market demands, further driving revenue growth. Strategic partnerships with leading companies in their respective sectors also contribute to their earnings, as these collaborations can lead to increased market penetration and expanded customer bases.

Nitto Seimo Co., Ltd. Financial Statement Overview

Summary

Nitto Seimo Co., Ltd. demonstrates solid revenue growth and stable gross margins, but faces challenges with profitability and high leverage. The cash flow has shown improvement, yet remains an area for further enhancement. Overall, the company is on a positive trajectory but must manage its debt levels and improve profitability to strengthen its financial position.

Income Statement

Nitto Seimo Co., Ltd. has shown consistent revenue growth over the past years, with a 6.4% increase in the latest year. The gross profit margin is stable at around 19%, indicating efficient cost management. However, the net profit margin has slightly decreased to 2.48%, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are moderate, reflecting steady operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 2.24, indicating significant leverage, which could pose financial risks. However, the return on equity is reasonable at 7.33%, showing that the company is generating decent returns on shareholders' investments. The equity ratio is not explicitly calculated but suggests a moderate level of equity compared to total assets.

Cash Flow

The cash flow situation is mixed, with a significant improvement in free cash flow from negative to positive, but the operating cash flow to net income ratio is low at 0.065. The free cash flow to net income ratio is 0.37, indicating some ability to generate cash relative to net income, but there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.04B	21.60B	20.90B	19.30B	18.37B	17.68B
Gross Profit	4.24B	4.17B	3.91B	3.65B	3.61B	3.84B
EBITDA	1.87B	1.95B	1.92B	1.18B	1.15B	1.26B
Net Income	467.52M	534.76M	546.90M	50.79M	190.50M	419.81M
Balance Sheet
Total Assets	31.11B	30.10B	29.52B	28.22B	27.57B	23.51B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.50B	1.40B	1.17B	1.17B	999.63M
Total Debt	17.15B	16.31B	16.45B	15.30B	14.73B	11.59B
Total Liabilities	23.84B	22.64B	22.58B	21.76B	21.23B	17.17B
Stockholders Equity	7.10B	7.29B	6.77B	6.30B	6.19B	6.19B
Cash Flow
Free Cash Flow	0.00	368.34M	-735.47M	-531.84M	-2.78B	-1.75B
Operating Cash Flow	0.00	993.37M	139.00M	1.09B	989.44M	1.20B
Investing Cash Flow	0.00	-644.67M	-906.20M	-1.67B	-3.80B	-2.96B
Financing Cash Flow	0.00	-265.92M	996.19M	545.58M	2.98B	1.80B

Nitto Seimo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1550.00
• 50DMA: Negative
• 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:3524, the sentiment is Neutral. The current price of 1550 is below the 20-day moving average (MA) of 1559.35, below the 50-day MA of 1550.96, and above the 200-day MA of 1479.06, indicating a neutral trend. The MACD of -1.29 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 47.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3045	77 Outperform	¥3.08B	9.11	―	3.55%	4.96%	15.39%
3109	72 Outperform	¥12.90B	13.88	―	4.80%	4.49%	26.84%
3524	70 Outperform	¥4.02B	8.44	―	3.18%	3.21%	-21.80%
3123	70 Outperform	¥7.43B	7.02	―	2.75%	-4.76%	8.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3202	57 Neutral	¥3.39B	70.61	―	2.63%	-3.01%	-65.96%
3409	41 Neutral	¥3.13B	-58.66	―	―	16.33%	75.48%