Nousouken Corp. (3541) AI Stock Analysis

• Market Cap: ¥12.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 80.2
• Beta (1Y): 0.54
• Revenue Growth: 20.21%
• EPS Growth: 138.50%
• Country: JP
• Employees: 107
• Sector: Consumer Defensive
• Sector Strength: 59
• Industry: Food Distribution
• EPS (TTM): 0.14
• Shares Outstanding: 22,025,900
• 10 Day Avg. Volume: 470,310
• 30 Day Avg. Volume: 1,651,446
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥553.00
• Price Target Upside: 1.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥553.00 ▲(1.10% Upside)

Nousouken Corp.'s stock score is driven by strong financial performance and positive technical indicators, although the high P/E ratio suggests overvaluation. Cash flow management and valuation concerns are notable risks.

Nousouken Corp. Business Overview & Revenue Model

Company Description

Nousouken Corp. (3541) is a Japan-based company primarily engaged in the agricultural support industry. The company offers comprehensive agricultural consulting services, which include providing guidance to farmers on crop cultivation, soil management, and efficient farm operations. Additionally, Nousouken Corp. is involved in the sale and distribution of agricultural products and related technologies, aiming to enhance the productivity and profitability of agricultural businesses.

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 efficiency needs improvement for better liquidity and reinvestment 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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: 547.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 547 is above the 20-day moving average (MA) of 520.00, above the 50-day MA of 453.58, and above the 200-day MA of 337.50, indicating a bullish trend. The MACD of 26.97 indicates Positive momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 56.17 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	¥7.73B	5.38		0.86%	6.35%	-12.65%
3541	73 Outperform	¥12.05B	80.22		―	20.21%	138.50%
7614	71 Outperform	¥10.02B	10.11		2.28%	3.37%	-28.80%
3160	68 Neutral	¥8.52B	16.28		2.41%	6.21%	-31.20%
7698	65 Neutral	¥7.10B	14.62		1.04%	6.68%	45.01%
Sector *	63 Neutral	$20.97B	14.56	-8.07%	3.14%	2.79%	-9.90%
8039	60 Neutral	¥8.00B	22.57		0.98%	5.89%	82.20%