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

• Market Cap: ¥3.91B
• Dividend Yield: 3.32%
• Average Volume (3M): 8.29K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.36
• Revenue Growth: 4.96%
• EPS Growth: -23.40%
• 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: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,635.00
• Price Target Upside: 8.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,635.00 ▲(8.42% 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.

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

Company Description

Nitto Seimo Co., Ltd. (3524) is a Japan-based company primarily engaged in the manufacturing and selling of various industrial materials, particularly focusing on adhesive tapes and other related products. The company serves multiple sectors, including automotive, electronics, and construction, providing innovative solutions that enhance product quality and operational efficiency. Nitto Seimo's core offerings include adhesive tapes, protective films, and precision cutting materials, which are widely used in assembly processes and surface protection.

How the Company Makes Money

Nitto Seimo generates revenue through the sales of its diverse range of adhesive products and materials. The company primarily earns money by selling these products to various industries, including automotive, electronics, healthcare, and construction. Key revenue streams include direct sales to manufacturers and distributors, as well as long-term supply agreements with major corporations in these sectors. Additionally, Nitto Seimo benefits from strategic partnerships that enhance its market reach and product offerings, allowing it to capitalize on emerging trends in industrial applications. The company's focus on research and development also enables it to introduce new and innovative products, further driving sales growth.

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	21.59B	21.60B	20.90B	19.30B	18.37B	17.68B
Gross Profit	4.11B	4.17B	3.91B	3.65B	3.61B	3.84B
EBITDA	2.06B	1.95B	1.92B	1.18B	1.15B	1.33B
Net Income	693.14M	534.76M	546.90M	50.79M	190.50M	419.81M
Balance Sheet
Total Assets	30.19B	30.10B	29.52B	28.22B	27.57B	23.51B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.50B	1.40B	1.17B	1.17B	999.63M
Total Debt	17.12B	16.31B	16.45B	15.30B	14.73B	11.59B
Total Liabilities	23.02B	22.64B	22.58B	21.76B	21.23B	17.17B
Stockholders Equity	7.01B	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: Positive
• Last Price: 1508.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1508 is above the 20-day moving average (MA) of 1480.00, above the 50-day MA of 1472.06, and above the 200-day MA of 1475.50, indicating a bullish trend. The MACD of 10.53 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 59.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	¥7.47B	9.78	―	2.74%	-5.12%	-24.98%
3045	75 Outperform	¥3.03B	8.93	―	3.55%	4.96%	15.39%
3524	70 Outperform	¥3.91B	8.35	―	3.32%	4.96%	-23.40%
3109	64 Neutral	¥12.26B	13.98	―	5.06%	1.93%	-1.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3202	58 Neutral	¥3.36B	45.30	―	2.70%	0.69%	-42.63%
3409	41 Neutral	¥4.20B	―	―	―	21.44%	47.95%