Nippon Pallet Pool Co. (4690) AI Stock Analysis

• Market Cap: ¥2.77B
• Dividend Yield: 2.38%
• Average Volume (3M): 8.89K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.63
• Revenue Growth: -5.18%
• EPS Growth: 0.36%
• Country: JP
• Employees: 102
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 50.81
• Shares Outstanding: 1,620,000
• 10 Day Avg. Volume: 4,100
• 30 Day Avg. Volume: 8,886
• PEG Ratio: -0.22
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 3.10
• 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: 64 Neutral
• Price Target: ¥1,857.00 ▲(9.30% Upside)

Nippon Pallet Pool Co.'s overall stock score reflects a stable financial position and attractive valuation, offset by bearish technical indicators. The company's strong EBITDA margin and conservative debt levels support its financial health, but challenges in revenue growth and free cash flow management pose risks. The stock's undervaluation and dividend yield are positive, but technical analysis indicates potential short-term downside.

Positive Factors

Operational Efficiency

A strong EBITDA margin indicates effective cost management and operational efficiency, which can support profitability and competitive positioning.

Balance Sheet Health

Conservative leverage and a strong equity ratio reflect financial stability, providing resilience against economic fluctuations and supporting long-term growth.

Cash Generation

Strong cash generation relative to net income enhances liquidity and financial flexibility, enabling the company to invest in growth opportunities and manage obligations.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential market challenges or competitive pressures, which could impact future profitability and market share.

Free Cash Flow Management

Challenges in free cash flow management suggest potential issues with capital expenditures, which may affect the company's ability to fund new projects or return capital to shareholders.

Profitability Pressures

Moderate net profit margins indicate potential cost pressures, which could limit the company's ability to improve profitability and invest in growth initiatives.

Nippon Pallet Pool Co. Business Overview & Revenue Model

Company Description

Nippon Pallet Pool Co., Ltd. engages in the rental of a pallet pool system that enables corporate activities and supports physical distribution in Japan. Its pallet pool system is used for to transport various consumer and industrial goods, and raw materials. Nippon Pallet Pool Co., Ltd. was incorporated in 1972 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nippon Pallet Pool Co. generates revenue primarily through its pallet rental services, where clients pay for the use of pallets over a specified period. This rental model allows companies to avoid the capital expenditure associated with purchasing pallets outright. Additional revenue streams may include the sale of new pallets, maintenance services, and logistics consulting aimed at optimizing pallet use. The company may also benefit from partnerships with logistics providers and manufacturers, enabling it to expand its reach and enhance service offerings, ultimately contributing to its earnings.

Nippon Pallet Pool Co. Financial Statement Overview

Summary

Nippon Pallet Pool Co. demonstrates a stable financial position with strong operational capabilities, as indicated by its EBITDA margin and conservative debt levels. However, the company faces challenges in revenue growth and free cash flow management, which might impact future profitability and liquidity. The balance sheet remains robust, supporting long-term financial health.

Income Statement

Nippon Pallet Pool Co. shows a mixed performance in its income statement. The company experienced a decline in total revenue from the previous year, indicating a negative revenue growth rate of -8.54%. The gross profit margin stood at 21.3%, and the net profit margin was 4.47%, both reflecting moderate profitability. The EBITDA margin was strong at 36.39%, showcasing operational efficiency. However, the EBIT margin was lower at 5.32%, suggesting potential operational cost pressures.

Balance Sheet

The balance sheet of Nippon Pallet Pool Co. is relatively stable, with a debt-to-equity ratio of 0.35, indicating conservative leverage. The return on equity (ROE) was 4.8%, which is moderate, and the equity ratio was 63.6%, reflecting strong equity financing and financial stability. The company maintains a healthy balance between debt and equity, with a focus on equity financing.

Cash Flow

Cash flow analysis reveals some challenges with a significant decline in free cash flow growth rate of -44.2%. The operating cash flow to net income ratio was favorable at 7.32, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio was lower at 2.92, suggesting potential issues with capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.92B	6.94B	7.58B	7.39B	7.09B	6.97B
Gross Profit	1.54B	1.54B	1.86B	2.07B	1.46B	1.54B
EBITDA	2.48B	2.52B	3.18B	3.19B	2.89B	3.02B
Net Income	317.16M	310.01M	527.49M	833.29M	272.85M	452.91M
Balance Sheet
Total Assets	9.89B	10.16B	11.20B	12.10B	10.36B	10.24B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.30B	1.61B	897.49M	898.84M	1.01B
Total Debt	2.11B	2.26B	2.92B	3.56B	3.14B	3.34B
Total Liabilities	3.44B	3.70B	4.86B	6.27B	5.30B	5.32B
Stockholders Equity	6.45B	6.46B	6.34B	5.84B	5.06B	4.91B
Cash Flow
Free Cash Flow	0.00	906.29M	1.62B	-486.70M	41.96M	743.10M
Operating Cash Flow	0.00	2.27B	3.21B	3.17B	2.75B	2.95B
Investing Cash Flow	0.00	-1.38B	-1.42B	-3.61B	-2.72B	-2.17B
Financing Cash Flow	0.00	-1.20B	-1.08B	446.28M	-141.66M	-511.31M

Nippon Pallet Pool Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1699.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4690, the sentiment is Positive. The current price of 1699 is above the 20-day moving average (MA) of 1696.85, above the 50-day MA of 1677.56, and below the 200-day MA of 1807.20, indicating a neutral trend. The MACD of 4.94 indicates Negative momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4690.

Nippon Pallet Pool Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7923	80 Outperform	¥5.96B	8.69	―	1.72%	5.37%	20.22%
7131	79 Outperform	¥4.38B	8.19	―	2.85%	7.55%	49.84%
3944	73 Outperform	¥2.58B	7.37	―	2.09%	2.37%	98.09%
7800	73 Outperform	¥2.19B	10.51	―	4.01%	2.79%	―
4690	64 Neutral	¥2.77B	9.93	―	2.38%	-5.18%	0.36%
3953	63 Neutral	¥2.85B	-30.54	―	6.31%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nippon Pallet Pool Co. Corporate Events

Nippon Pallet Pool Reports Decline in Semi-Annual Profits, Revises Forecasts

Nippon Pallet Pool Co., Ltd. reported a slight decline in its financial performance for the six months ending September 30, 2025, with net sales decreasing by 0.2% and profits showing a more significant drop. Despite these declines, the company maintains a strong equity ratio, indicating stable financial health. The company has revised its dividend forecast and financial results projections for the fiscal year ending March 31, 2026, suggesting strategic adjustments to navigate the current market conditions.

The most recent analyst rating on (JP:4690) stock is a Hold with a Yen2148.00 price target. To see the full list of analyst forecasts on Nippon Pallet Pool Co. stock, see the JP:4690 Stock Forecast page.