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

• Market Cap: ¥3.78B
• Dividend Yield: 3.43%
• Average Volume (3M): 4.60K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.39
• Revenue Growth: 3.35%
• EPS Growth: -2.22%
• Country: JP
• Employees: 914
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): 267.25
• Shares Outstanding: 2,605,000
• 10 Day Avg. Volume: 6,480
• 30 Day Avg. Volume: 4,600
• 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: ¥1,567.00
• Price Target Upside: 7.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥1,567.00 ▲(7.48% Upside)

Nitto Seimo Co., Ltd. scores well in valuation due to its low P/E ratio and attractive dividend yield, suggesting it may be undervalued. The technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. Financial performance shows solid revenue growth but highlights the need to manage high leverage and improve profitability. The absence of earnings call and corporate events data means these factors did not influence 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. 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	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: 1458.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1458 is above the 20-day moving average (MA) of 1426.65, above the 50-day MA of 1423.52, and below the 200-day MA of 1461.20, indicating a neutral trend. The MACD of 9.12 indicates Negative momentum. The RSI at 72.27 is Negative, neither overbought nor oversold. The STOCH value of 94.31 is Negative, 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	79 Outperform	¥6.80B	8.91		3.01%	-5.12%	-24.98%
3045	77 Outperform	¥3.23B	9.54		3.53%	5.23%	21.77%
3524	69 Neutral	¥3.78B	7.07		3.43%	3.35%	-2.22%
3109	66 Neutral	¥12.72B	14.50		4.87%	1.93%	-1.93%
3202	57 Neutral	¥3.39B	45.71		2.73%	0.69%	-42.63%
Sector *	56 Neutral	HK$25.64B	4.99	-2.69%	5.51%	-0.50%	-53.30%
3409	51 Neutral	¥5.79B	―		―	24.79%	56.47%