Nitta Gelatin Inc. (4977) AI Stock Analysis

• Market Cap: ¥22.61B
• Dividend Yield: 1.82%
• Average Volume (3M): 79.72K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.78
• Revenue Growth: -7.26%
• EPS Growth: N/A
• Country: JP
• Employees: 946
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 87.45
• Shares Outstanding: 18,373,974
• 10 Day Avg. Volume: 66,280
• 30 Day Avg. Volume: 79,723
• PEG Ratio: -0.02
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 3.96
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥1,239.00 ▼(-0.80% Downside)

Nitta Gelatin Inc. demonstrates a strong financial recovery and attractive valuation, supported by bullish technical indicators. The primary strengths are its improved profitability and cash flow, along with a low P/E ratio. However, the negative revenue growth and potential overbought technical signals are areas to watch.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.

Margin Improvement

Improved margins indicate better cost management and operational efficiency, which can lead to sustained profitability and competitive advantage.

Balance Sheet Health

Reduced leverage enhances financial stability and lowers risk, providing the company with more opportunities for strategic investments and growth.

Negative Factors

Revenue Decline

Declining revenue growth may indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Asset Growth Stagnation

Stable asset levels suggest limited expansion capacity, which might restrict the company's ability to scale operations or invest in new opportunities.

Negative Revenue Growth

Ongoing negative revenue growth can undermine financial recovery efforts and may indicate underlying issues in market positioning or product demand.

Nitta Gelatin Inc. Business Overview & Revenue Model

Company Description

Nitta Gelatin Inc. engages in the production and sale of edible gelatin, pharmaceutical gelatin, and photographic gelatin in Japan. The company manufactures and sells related products made from collagen for animal bones and skin, and fish scales and skin; and gelatin for applications in industrial sectors comprising food and pharmaceutical markets; collagen peptide, which is recognized as a bioactive compound and a material that has bioregulatory functions, produced using its proteolytic technology. It also manufactures other food materials; and stabilizers for confectionery, desserts, delicatessen items, chilled foods, etc. In addition, the company manufactures and sells collagen and medical gelatin for medical device manufacturers, research institutions, and others that are used as a biomaterial for artificial skin and bone. Nitta Gelatin Inc. was founded in 1918 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nitta Gelatin generates revenue through the production and sale of gelatin and collagen products, which are key ingredients in a variety of sectors. The company has multiple revenue streams, including direct sales to food manufacturers, pharmaceutical companies, and cosmetic brands. It also engages in long-term contracts with major clients, ensuring a steady income flow. Additionally, Nitta Gelatin invests in research and development to create specialized products tailored to specific market needs, enhancing its competitive edge. Strategic partnerships with industry players further bolster its market position, contributing to its overall earnings.

Nitta Gelatin Inc. Financial Statement Overview

Summary

Nitta Gelatin Inc. has exhibited a strong financial recovery, especially in profitability and cash flow metrics. While revenue growth is currently a concern, the company has managed to enhance its margins and reduce leverage, contributing to an overall positive financial outlook.

Income Statement

Nitta Gelatin Inc. has shown a solid recovery in profitability metrics. The gross profit margin improved from 21.57% in 2024 to 25.72% in 2025, reflecting better cost management. The net profit margin turned positive in 2025 at 8.16%, compared to a negative margin in 2024, indicating a significant turnaround in profitability. Revenue growth was negative between 2024 and 2025 at -4.14%, which is a concern. However, the EBIT and EBITDA margins have improved, signaling enhanced operational efficiency.

Balance Sheet

The debt-to-equity ratio improved to 0.37 in 2025 from 0.54 in 2024, indicating reduced leverage and a healthier balance sheet. Return on equity improved to 15.27% in 2025 from negative in 2024, showing a positive return for equity holders. The equity ratio increased to 51.2% in 2025, reflecting a strong equity base relative to total assets. However, the company's total assets have remained relatively stable, suggesting limited growth in asset base.

Cash Flow

Free cash flow grew by 42.91% from 2024 to 2025, indicating strong cash generation capability. The operating cash flow to net income ratio improved significantly, suggesting efficient cash conversion. The free cash flow to net income ratio indicates robust cash generation relative to earnings, demonstrating effective cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.51B	38.74B	40.42B	39.19B	31.78B	30.55B
Gross Profit	10.11B	9.96B	8.29B	8.90B	7.00B	6.30B
EBITDA	5.82B	5.86B	1.86B	3.89B	3.18B	2.75B
Net Income	3.17B	3.16B	-1.85B	1.56B	726.00M	742.00M
Balance Sheet
Total Assets	40.24B	40.41B	39.96B	41.61B	37.41B	34.91B
Cash, Cash Equivalents and Short-Term Investments	4.79B	5.12B	4.08B	2.86B	3.05B	4.02B
Total Debt	6.20B	7.74B	9.80B	10.79B	8.32B	8.57B
Total Liabilities	14.63B	15.04B	17.69B	19.36B	16.85B	16.04B
Stockholders Equity	20.85B	20.69B	18.19B	19.10B	18.08B	16.79B
Cash Flow
Free Cash Flow	0.00	3.77B	2.64B	-2.70B	-285.00M	2.23B
Operating Cash Flow	0.00	5.18B	4.91B	-540.00M	1.04B	3.51B
Investing Cash Flow	0.00	-1.18B	-3.02B	-1.50B	-1.32B	-897.00M
Financing Cash Flow	0.00	-2.55B	-1.61B	1.82B	-762.00M	-31.00M

Nitta Gelatin Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1249.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4977, the sentiment is Positive. The current price of 1249 is above the 20-day moving average (MA) of 1176.15, above the 50-day MA of 1100.60, and above the 200-day MA of 924.52, indicating a bullish trend. The MACD of 41.09 indicates Negative momentum. The RSI at 70.30 is Negative, neither overbought nor oversold. The STOCH value of 92.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4977.

Nitta Gelatin Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4977	80 Outperform	¥22.61B	4.98	―	1.82%	-7.26%	―
4064	80 Outperform	¥24.10B	8.24	―	3.21%	9.61%	173.72%
4231	69 Neutral	¥19.25B	4.88	―	5.21%	0.91%	100.31%
4113	66 Neutral	¥18.07B	9.55	―	3.23%	13.09%	89.45%
4409	66 Neutral	¥15.40B	12.57	―	2.78%	1.30%	-5.03%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4228	55 Neutral	¥18.53B	-1.97	―	3.23%	-0.45%	-3792.87%

Nitta Gelatin Inc. Corporate Events

Nitta Gelatin Reports Profit Growth Despite Sales Decline

Nitta Gelatin Inc. reported a decrease in net sales by 6.3% for the quarter ending September 2025 compared to the previous year. Despite the decline in sales, the company saw significant increases in operating profit by 9.2% and ordinary profit by 21.2%, with a notable 170% rise in profit attributable to owners of the parent. This indicates improved operational efficiency and profitability, potentially strengthening its market position and benefiting stakeholders.