Nitta Gelatin Inc. (4977) AI Stock Analysis

• Market Cap: ¥26.67B
• Dividend Yield: 1.82%
• Average Volume (3M): 79.72K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.85
• Revenue Growth: -7.26%
• EPS Growth: N/A
• Country: JP
• Employees: 946
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 31.48
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 173.2
• Revenue Forecast (FY): ¥37.80B

• Rating: 80 Outperform
• Price Target: ¥1,690.00 ▲(37.51% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Profitability recovery

The swing to a positive net margin and higher gross margin signals a structural improvement in cost management and pricing mix. Sustained margins increase free cash generation and resilience to downturns, enabling reinvestment in products and supporting long-term shareholder returns if revenue stabilizes.

Deleveraging and stronger equity base

Lower leverage and a higher equity ratio materially improve financial flexibility and reduce interest risk. This stronger capital structure supports strategic investments, dividend capacity, and shock absorption, making the company better positioned to fund growth or weather commodity and demand cycles over the medium term.

Improved cash generation

A large increase in free cash flow and better cash conversion from earnings indicate sustainable internal funding capacity. Robust cash generation reduces reliance on external financing for capex or working capital, enabling steady investment in R&D, capacity, or shareholder returns over multiple quarters.

Negative Factors

Negative revenue trend

Declining top-line undermines the durability of margin and cash-flow improvements; cost gains can be one-off and are harder to sustain without revenue recovery. Persistent revenue contraction limits scale economies, constrains pricing leverage, and raises execution risk for long-term growth strategies.

Raw-material exposure

Dependence on animal-derived inputs and volatile input costs creates structural margin risk. Supply disruptions, disease controls, or commodity price swings can raise costs or force sourcing changes. Over time this can compress margins or require recurring price renegotiations with B2B customers.

Limited asset growth

A stagnant asset base indicates limited capacity expansion and may reflect constrained investment. If demand rebounds, lack of incremental capacity could cap revenue upside or force rushed capex. Stable assets also suggest slower structural growth prospects absent new investments or M&A activity.

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 shown a strong financial recovery, particularly in profitability and cash flow metrics. The improvement in gross and net profit margins, along with enhanced operational efficiency, is notable. However, the negative revenue growth is a concern.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1229.00
• 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 1229 is below the 20-day moving average (MA) of 1351.95, below the 50-day MA of 1295.78, and above the 200-day MA of 1043.94, indicating a bullish trend. The MACD of 52.87 indicates Negative momentum. The RSI at 73.07 is Negative, neither overbought nor oversold. The STOCH value of 89.18 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
4187	80 Outperform	¥104.79B	14.05	10.57%	1.74%	15.12%	40.72%
4977	80 Outperform	¥26.67B	6.58	―	1.82%	-7.26%	―
4362	75 Outperform	¥62.08B	13.67	―	2.92%	3.03%	28.27%
4369	74 Outperform	¥123.33B	21.42	―	1.30%	47.56%	49.58%
4078	70 Outperform	¥65.80B	15.82	―	4.37%	-1.09%	―
4182	64 Neutral	¥846.59B	-52.21	-1.15%	3.49%	-6.83%	-123.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nitta Gelatin Inc. Corporate Events

Nitta Gelatin Boosts Profit and Strengthens Balance Sheet Despite Lower Sales

Nitta Gelatin Inc., a Tokyo Standard-listed gelatin producer, reported consolidated net sales of ¥28.17 billion for the quarter ended December 2025, down 5.0% year on year, but significantly improved profitability, with operating profit rising 13.2% to ¥3.61 billion and profit attributable to owners of parent jumping 48.6% to ¥2.79 billion. Total assets increased to ¥42.59 billion and the capital adequacy ratio strengthened to 55.1%, indicating a more robust balance sheet that may enhance financial stability and support future investment capacity despite top-line pressure.

Ordinary profit edged up 4.6% to ¥3.70 billion and comprehensive income surged 48.5% to ¥3.87 billion, underscoring efficient cost management and earnings leverage even in a slightly contracting revenue environment. Shareholder returns also improved, with basic earnings per share climbing to ¥153.36 from ¥103.29, suggesting enhanced value for investors and a firmer financial footing going into the fiscal year-end in March 2026.

The most recent analyst rating on (JP:4977) stock is a Buy with a Yen1352.00 price target. To see the full list of analyst forecasts on Nitta Gelatin Inc. stock, see the JP:4977 Stock Forecast page.

Nitta Gelatin Boosts Profit and Strengthens Balance Sheet Despite Lower Sales

Nitta Gelatin Inc. reported consolidated net sales of ¥28.17 billion for the quarter ended December 2025, down 5.0% year-on-year, while operating profit rose 13.2% to ¥3.61 billion and ordinary profit increased 4.6% to ¥3.70 billion. Profit attributable to owners of the parent jumped 48.6% to ¥2.79 billion, lifting basic earnings per share to ¥153.36 and highlighting improved profitability despite weaker top-line growth.

The company’s financial position also strengthened, with total assets rising to ¥42.59 billion and net assets to ¥28.66 billion as of December 2025, pushing the capital adequacy ratio up to 55.1% from 51.2% at the end of March 2025. These results indicate enhanced balance sheet resilience and margin expansion, which may support shareholder returns and reinforce Nitta Gelatin’s stability in a softer sales environment.

The most recent analyst rating on (JP:4977) stock is a Buy with a Yen1352.00 price target. To see the full list of analyst forecasts on Nitta Gelatin Inc. stock, see the JP:4977 Stock Forecast page.