Nihon Enterprise Co., Ltd. (4829) AI Stock Analysis

• Market Cap: ¥4.20B
• Dividend Yield: 2.75%
• Average Volume (3M): 177.65K
• Price to Earnings (P/E): 173.5
• Beta (1Y): 0.69
• Revenue Growth: -4.90%
• EPS Growth: -85.89%
• Country: JP
• Employees: 220
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.20
• Shares Outstanding: 38,534,900
• 10 Day Avg. Volume: 208,530
• 30 Day Avg. Volume: 177,650
• PEG Ratio: -2.32
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 28.54
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥125.00 ▲(13.64% Upside)

Nihon Enterprise Co., Ltd. demonstrates strong financial performance with a robust balance sheet and consistent revenue growth. Technical analysis indicates stable price movement, with a slight bullish trend. However, a high P/E ratio suggests potential overvaluation, and there is room for improvement in operational efficiency and cash flow management.

Positive Factors

Balance Sheet Strength

A low Debt-to-Equity Ratio indicates minimal leverage, providing financial stability and flexibility. This conservative financial position allows the company to withstand economic fluctuations and invest in growth opportunities without heavy reliance on debt financing.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and enhance product adoption. This trend supports long-term business sustainability and potential for increased market share in the mobile content and IT solutions sectors.

Profit Margin Improvement

Improved net profit margins indicate enhanced profitability and effective cost management. This strengthens the company's financial health and provides a buffer against potential market challenges, supporting reinvestment in business growth and innovation.

Negative Factors

Decline in Q3 Financial Performance

The significant decline in Q3 financial performance suggests operational challenges and potential market positioning issues. This downturn could impact the company's ability to maintain its competitive edge and may require strategic adjustments to address underlying issues.

Free Cash Flow Decline

A decline in free cash flow indicates potential inefficiencies in capital expenditure management. This could strain the company's ability to fund operations and growth initiatives internally, potentially increasing reliance on external financing.

Operational Efficiency

Moderate operational efficiency highlights room for improvement in cost controls and resource allocation. Enhancing operational efficiency is crucial for sustaining profitability and competitiveness, especially in a dynamic industry like software applications.

Nihon Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Enterprise Co., Ltd. is a Japanese company that specializes in providing mobile content and solutions. The company operates in several sectors, including mobile services, enterprise solutions, and e-commerce. Their core products and services include mobile applications, digital content distribution, and IT solutions tailored for businesses, with a focus on enhancing communication and operational efficiency.

How the Company Makes Money

Nihon Enterprise Co., Ltd. generates revenue through a variety of streams. The company earns income from its mobile content services, which include paid applications and digital content accessible via smartphones and other mobile devices. Additionally, Nihon Enterprise provides IT solutions and consulting services to businesses, offering customized software and system integration services that help companies optimize their operations. Another significant revenue stream comes from their e-commerce activities, including online retail platforms. Partnerships with telecommunications companies and other businesses in the tech industry also play a crucial role in expanding their service offerings and customer base, thereby contributing to their earnings.

Nihon Enterprise Co., Ltd. Financial Statement Overview

Summary

The company shows strong financial health with consistent revenue growth, improved net profit margin, and a solid balance sheet characterized by low leverage. However, there is room for improvement in operational efficiency and cash flow management.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a notable increase in Total Revenue from 4,210,102,000 in 2023 to 4,696,350,000 in 2024, marking an 11.56% growth rate. The Gross Profit Margin has remained robust, standing at 36.72%, indicating strong cost management. The Net Profit Margin improved significantly from 2.45% in 2023 to 4.46% in 2024, showing enhanced profitability. However, the EBIT Margin of 5.63% and EBITDA Margin of 8.82% suggest moderate operational efficiency, with room for improvement in cost controls.

Balance Sheet

The company's balance sheet is strong with a low Debt-to-Equity Ratio of 0.03, indicating minimal leverage and a conservative financial position. The Return on Equity (ROE) is 4.25%, which, while not exceptional, reflects consistent profit generation relative to shareholder equity. The Equity Ratio of 82.68% highlights a solid equity base, indicating financial stability and low reliance on debt financing.

Cash Flow

The Free Cash Flow exhibited a decline from 217,386,000 in 2023 to 186,063,000 in 2024, resulting in a negative growth rate of 14.40%. Despite this, the Operating Cash Flow to Net Income Ratio remains positive at 1.30, suggesting good operational cash conversion. However, the Free Cash Flow to Net Income Ratio of 0.89 indicates that not all net income translates into free cash flow, pointing to potential inefficiencies in capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.51B	4.44B	4.70B	4.21B	4.02B	4.35B
Gross Profit	1.63B	1.64B	1.72B	1.69B	1.69B	1.75B
EBITDA	239.35M	204.50M	414.32M	304.26M	284.83M	428.81M
Net Income	49.23M	21.69M	209.27M	103.19M	71.63M	134.52M
Balance Sheet
Total Assets	5.62B	5.59B	5.95B	5.72B	5.66B	6.13B
Cash, Cash Equivalents and Short-Term Investments	3.67B	3.86B	4.42B	4.34B	4.22B	4.74B
Total Debt	142.28M	0.00	159.91M	183.40M	206.90M	230.40M
Total Liabilities	735.28M	694.66M	882.98M	791.40M	771.19M	950.69M
Stockholders Equity	4.73B	4.74B	4.92B	4.79B	4.76B	5.06B
Cash Flow
Free Cash Flow	0.00	157.99M	186.06M	217.39M	-83.27M	352.88M
Operating Cash Flow	0.00	157.99M	272.04M	268.68M	11.69M	483.81M
Investing Cash Flow	0.00	-436.04M	-74.92M	-47.97M	-96.56M	-130.75M
Financing Cash Flow	0.00	-286.24M	-108.62M	-108.91M	-435.71M	-330.63M

Nihon Enterprise Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.00
• 50DMA: Negative
• 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:4829, the sentiment is Negative. The current price of 110 is above the 20-day moving average (MA) of 109.60, below the 50-day MA of 113.42, and below the 200-day MA of 115.86, indicating a bearish trend. The MACD of -1.20 indicates Negative momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4829.

Nihon Enterprise Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4440	78 Outperform	¥4.51B	10.15	―	1.42%	39.66%	57.28%
3816	71 Outperform	¥4.55B	10.84	8.20%	1.63%	-2.63%	22.03%
4829	66 Neutral	¥4.20B	173.48	―	2.75%	-4.90%	-85.89%
4060	64 Neutral	¥6.49B	22.30	―	0.57%	21.03%	32.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3936	46 Neutral	¥5.67B	-30.94	―	―	33.73%	―

Nihon Enterprise Co., Ltd. Corporate Events

Nihon Enterprise Reports Decline in Q3 Financial Performance

Nihon Enterprise Co., Ltd. reported a decline in its financial performance for the third quarter of the fiscal year ending May 2025. The company experienced a significant decrease in net sales and profits compared to the previous year, with net sales down by 5.3% and operating profit falling by 81.9%. This downturn highlights challenges in the company’s operations and may impact its market positioning.