Nousouken Corp. (3541) AI Stock Analysis

• Market Cap: ¥16.87B
• Dividend Yield: N/A
• Average Volume (3M): 415.41K
• Price to Earnings (P/E): 1708.7
• Beta (1Y): 0.46
• Revenue Growth: 15.71%
• EPS Growth: -90.92%
• Country: JP
• Employees: 107
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): -3.61
• Shares Outstanding: 22,025,900
• 10 Day Avg. Volume: 311,990
• 30 Day Avg. Volume: 415,410
• PEG Ratio: -11.91
• Price to Book (P/B): 13.27
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 50.60
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥799.00 ▲(84.53% Upside)

The score is mainly supported by strong financial momentum in revenue and cash flow plus a stable balance sheet, but is capped by extremely high valuation (P/E 1706.45) and very weak profitability metrics. Technicals are positive on trend but look overheated (very high RSI/Stoch), adding near-term risk.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust sales performance, suggesting strong demand for Nousouken Corp.'s products and services, which can enhance market position and drive long-term business expansion.

Cash Generation

The impressive growth in free cash flow demonstrates Nousouken Corp.'s ability to efficiently convert earnings into cash, providing financial flexibility for reinvestment and strategic initiatives, supporting sustainable growth.

Balance Sheet Health

A moderate debt-to-equity ratio indicates a stable capital structure, allowing Nousouken Corp. to manage leverage effectively, which supports long-term financial stability and resilience against economic fluctuations.

Negative Factors

Profitability Challenges

The low net and operating margins suggest difficulties in converting revenue into profit, which could hinder long-term profitability and limit the company's ability to reinvest in growth opportunities.

Low Return on Equity

A low return on equity indicates limited returns for shareholders, which may affect investor confidence and the company's ability to attract new capital for future growth initiatives.

Weak Profitability Metrics

Weak profitability metrics highlight challenges in cost management and operational efficiency, which could impact long-term competitiveness and the ability to sustain growth in a competitive market.

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 balance sheet. However, cash flow metrics indicate a need for better cash management.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.99B	8.36B	7.22B	5.74B	5.19B	4.74B
Gross Profit	2.99B	3.86B	3.31B	2.95B	2.83B	2.29B
EBITDA	74.96M	152.03M	167.26M	93.29M	-70.45M	-307.72M
Net Income	15.12M	11.03M	108.76M	24.87M	-127.09M	-283.19M
Balance Sheet
Total Assets	2.55B	2.56B	2.67B	2.42B	2.44B	2.51B
Cash, Cash Equivalents and Short-Term Investments	1.04B	777.59M	779.43M	1.07B	1.06B	1.09B
Total Debt	370.32M	291.27M	358.33M	389.58M	475.01M	621.55M
Total Liabilities	1.60B	1.67B	1.63B	1.49B	1.54B	1.59B
Stockholders Equity	952.90M	889.78M	1.03B	923.75M	898.89M	925.95M
Cash Flow
Free Cash Flow	123.69M	233.27M	9.00M	97.67M	32.33M	-542.06M
Operating Cash Flow	123.69M	264.94M	23.74M	124.77M	53.25M	-198.90M
Investing Cash Flow	0.00	-44.00M	-286.88M	-28.56M	-21.26M	-308.57M
Financing Cash Flow	0.00	-222.78M	-31.89M	-85.83M	-54.13M	979.21M

Nousouken Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 433.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 433 is below the 20-day moving average (MA) of 601.40, below the 50-day MA of 514.90, and below the 200-day MA of 463.86, indicating a bullish trend. The MACD of 85.23 indicates Negative momentum. The RSI at 88.96 is Negative, neither overbought nor oversold. The STOCH value of 94.72 is Negative, 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	77 Outperform	¥9.69B	6.43	―	0.71%	7.40%	-5.83%
7698	72 Outperform	¥9.32B	16.98	―	0.89%	6.46%	80.02%
3160	71 Outperform	¥8.34B	71.40	―	2.67%	4.13%	-86.75%
7614	71 Outperform	¥10.73B	11.10	―	2.23%	7.53%	-17.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥8.66B	20.03	―	0.95%	6.26%	67.81%
3541	59 Neutral	¥16.87B	1,708.68	―	―	15.71%	-90.92%