Nousouken Corp. (3541) AI Stock Analysis

• Market Cap: ¥16.87B
• Dividend Yield: N/A
• Average Volume (3M): 415.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 15.71%
• EPS Growth: -90.92%
• Country: JP
• Employees: 107
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.22
• 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

Strong top-line growth (+39.65%) and very strong cash generation (free cash flow growth +88.6%, high cash-to-earnings conversion), supported by a stable balance sheet (debt-to-equity 0.33). The main constraint is very weak profitability (net margin 0.13%, low EBIT/EBITDA margins) and low ROE (1.24%).

Income Statement

Nousouken Corp. has shown strong revenue growth with a 39.65% increase in the latest year, indicating robust sales performance. However, the net profit margin is quite low at 0.13%, suggesting challenges in translating revenue growth into profitability. The gross profit margin is healthy at 46.20%, but the EBIT and EBITDA margins are modest at 1.03% and 1.82%, respectively, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is 0.33, reflecting a moderate level of leverage, which is manageable. The return on equity is low at 1.24%, indicating limited returns for shareholders. The equity ratio stands at 34.78%, suggesting a stable capital structure with a reasonable proportion of equity financing.

Cash Flow

Nousouken Corp. has achieved an impressive free cash flow growth rate of 88.6%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 2.40, indicating efficient cash flow management. The free cash flow to net income ratio is high at 8.80, reflecting effective conversion of earnings into cash.

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: Positive
• RSI: Negative
• STOCH: Positive

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 765.00, below the 50-day MA of 603.98, and below the 200-day MA of 497.35, indicating a bullish trend. The MACD of 41.90 indicates Positive momentum. The RSI at 87.78 is Negative, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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	¥9.60B	6.37	―	0.71%	7.40%	-5.83%
7698	72 Outperform	¥9.94B	18.31	―	0.89%	6.46%	80.02%
3160	71 Outperform	¥8.38B	70.52	―	2.67%	4.13%	-86.75%
7614	71 Outperform	¥10.37B	10.71	―	2.23%	7.53%	-17.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥8.82B	20.60	―	0.95%	6.26%	67.81%
3541	59 Neutral	¥16.87B	-300.88	―	―	15.71%	-90.92%