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

• Market Cap: ¥4.55B
• Dividend Yield: 2.54%
• Average Volume (3M): 293.91K
• Price to Earnings (P/E): 92.2
• Beta (1Y): 0.71
• Revenue Growth: -0.26%
• EPS Growth: -75.64%
• Country: JP
• Employees: 220
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 38,534,900
• 10 Day Avg. Volume: 539,770
• 30 Day Avg. Volume: 293,910
• PEG Ratio: 1.03
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.40
• 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: ¥130.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥125.00 ▲(5.93%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.

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

Nihon Enterprise Co., Ltd. exhibits strong financial health, characterized by robust revenue and profit growth, as well as a solid balance sheet with minimal leverage. However, improvements in operational and cash flow efficiencies are needed.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.65B	4.70B	4.21B	4.02B	4.35B	3.59B
Gross Profit	1.64B	1.72B	1.69B	1.69B	1.75B	1.55B
EBITDA	290.86M	414.32M	304.26M	284.83M	428.81M	467.12M
Net Income	106.46M	209.27M	103.19M	71.63M	134.52M	176.60M
Balance Sheet
Total Assets	5.72B	5.95B	5.72B	5.66B	6.13B	6.20B
Cash, Cash Equivalents and Short-Term Investments	3.74B	4.42B	4.34B	4.22B	4.74B	4.72B
Total Debt	149.00M	159.91M	183.40M	206.90M	230.40M	255.85M
Total Liabilities	792.00M	882.98M	791.40M	771.19M	950.69M	873.66M
Stockholders Equity	4.77B	4.92B	4.79B	4.76B	5.06B	5.02B
Cash Flow
Free Cash Flow	0.00	186.06M	217.39M	-83.27M	352.88M	474.47M
Operating Cash Flow	0.00	272.04M	268.68M	11.69M	483.81M	632.26M
Investing Cash Flow	0.00	-74.92M	-47.97M	-96.56M	-130.75M	-85.42M
Financing Cash Flow	0.00	-108.62M	-108.91M	-435.71M	-330.63M	-116.70M

Nihon Enterprise Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 118.00
• 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:4829, the sentiment is Positive. The current price of 118 is above the 20-day moving average (MA) of 116.90, above the 50-day MA of 114.98, and above the 200-day MA of 114.30, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 54.18 is Neutral, neither overbought nor oversold. The STOCH value of 23.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥4.88B	11.31		1.20%	59.60%	353.05%
4060	77 Outperform	¥5.85B	21.86		0.60%	10.58%	29.96%
3816	75 Outperform	€4.57B	12.18	7.33%	1.62%	-3.34%	16.67%
Sector *	69 Neutral	¥230.62B	14.12	7.50%	2.70%	9.13%	8.47%
4829	66 Neutral	¥4.55B	92.20		2.54%	-0.26%	-75.64%
3936	50 Neutral	¥8.05B	―		―	25.06%	-60.67%

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.