Nousouken Corp. (3541) AI Stock Analysis

• Market Cap: ¥12.42B
• Dividend Yield: N/A
• Average Volume (3M): 927.69K
• Price to Earnings (P/E): 82.7
• Beta (1Y): 0.55
• Revenue Growth: 20.21%
• EPS Growth: 138.50%
• Country: JP
• Employees: 107
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.14
• Shares Outstanding: 22,025,900
• 10 Day Avg. Volume: 485,310
• 30 Day Avg. Volume: 927,686
• 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: ¥630.00
• Price Target Upside: 11.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥630.00 ▲(11.70% Upside)

Nousouken Corp. benefits from strong financial performance, particularly in revenue growth and profitability. However, high valuation metrics and mixed technical indicators suggest caution. The lack of earnings call data and corporate events means these factors do not influence the score.

Nousouken Corp. Business Overview & Revenue Model

Company Description

Nousouken Corporation engages in the farmer's direct sales office business in Japan and internationally. The company is also involved in the wholesale and distribution of agricultural products. Nousouken Corporation was incorporated in 2007 and is headquartered in Wakayama, Japan.

How the Company Makes Money

Nousouken Corp. generates revenue primarily through its consulting services and the sale of agricultural products. The company's consulting services are tailored to help farmers optimize their operations, leading to increased crop yields and cost efficiencies. This consulting service is a major revenue stream, as it involves long-term contracts with agricultural businesses seeking to improve their productivity. Another significant source of revenue comes from the sale of agricultural products, such as seeds, fertilizers, and farming equipment, which are sold directly to farmers and agricultural companies. The company may also engage in collaborations with technology providers to offer advanced agricultural solutions, further enhancing its service offerings and revenue potential.

Nousouken Corp. Financial Statement Overview

Summary

Nousouken Corp. shows strong revenue growth and improving profitability, with a solid equity base and prudent leverage. However, cash flow efficiency needs improvement, which could impact liquidity and investment capabilities.

Income Statement

Nousouken Corp. has demonstrated strong revenue growth with a significant increase of 25.9% from 2023 to 2024, alongside improving profitability metrics. The gross profit margin stands at 45.8% and the net profit margin has increased to 1.51%, reflecting a positive trend in operational efficiency. However, the EBIT margin remains low at 1.3%, indicating room for improvement in core operating profit.

Balance Sheet

The company's financial leverage is well-managed with a debt-to-equity ratio of 0.35, indicating conservative use of debt. The equity ratio is 38.7%, providing a solid equity base relative to total assets. Return on equity (ROE) is modest at 10.5%, highlighting moderate profitability relative to shareholder investments.

Cash Flow

Cash flow performance shows mixed results. The operating cash flow to net income ratio is 0.22, suggesting that operating cash generation could be stronger. Free cash flow has grown from last year, but the free cash flow to net income ratio of 0.08 indicates limited cash flow relative to profits, which could affect liquidity and reinvestment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.99B	7.22B	5.74B	5.19B	4.74B	3.47B
Gross Profit	2.99B	3.31B	2.95B	2.83B	2.29B	2.13B
EBITDA	74.96M	167.26M	93.29M	-70.45M	-307.72M	89.15M
Net Income	15.12M	108.76M	24.87M	-127.09M	-283.19M	31.29M
Balance Sheet
Total Assets	2.55B	2.67B	2.42B	2.44B	2.51B	1.75B
Cash, Cash Equivalents and Short-Term Investments	1.04B	779.43M	1.07B	1.06B	1.09B	614.50M
Total Debt	370.32M	358.33M	389.58M	475.01M	621.55M	182.90M
Total Liabilities	1.60B	1.63B	1.49B	1.54B	1.59B	1.11B
Stockholders Equity	952.90M	1.03B	923.75M	898.89M	925.95M	644.79M
Cash Flow
Free Cash Flow	123.69M	9.00M	97.67M	32.33M	-542.06M	142.22M
Operating Cash Flow	123.69M	23.74M	124.77M	53.25M	-198.90M	233.32M
Investing Cash Flow	0.00	-286.88M	-28.56M	-21.26M	-308.57M	-145.26M
Financing Cash Flow	0.00	-31.89M	-85.83M	-54.13M	979.21M	9.61M

Nousouken Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 564.00
• 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:3541, the sentiment is Positive. The current price of 564 is above the 20-day moving average (MA) of 556.20, above the 50-day MA of 560.34, and above the 200-day MA of 385.52, indicating a bullish trend. The MACD of 3.22 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3541.

Nousouken Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2708	75 Outperform	¥8.74B	6.08	22.15%	0.76%	5.02%	-25.87%
7614	73 Outperform	¥10.09B	10.12	6.37%	2.27%	5.62%	-21.92%
3160	71 Outperform	¥8.69B	19.35	8.21%	2.36%	4.62%	-29.55%
7698	70 Outperform	¥8.11B	16.65	12.55%	0.92%	6.68%	45.01%
3541	69 Neutral	¥12.42B	82.71	―	―	20.21%	138.50%
8039	60 Neutral	¥7.95B	22.44	4.39%	0.99%	5.89%	82.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%