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Nitta Gelatin Inc.
(4977)
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Rating:72Outperform
Price Target:
¥1,386.00
▲(12.77% Upside)
Action:Reiterated
Date:08/11/26
Overall score is driven mainly by improved financial performance (profitability rebound and deleveraging) and supportive valuation (low P/E with a dividend). The key constraint is weaker near-term technical positioning, with the stock trading below key moving averages and muted momentum.
Positive Factors
Margin Recovery & Profitability
A material rebound in gross and operating margins (gross margin rose ~20.5% to 28.9%, operating margin to 12.3%) indicates structural cost or mix improvements. Sustained higher margins support durable profitability, internal reinvestment capacity, and resilience to demand swings over the next several quarters.
Negative Factors
Mixed/Weak Revenue Growth
Top-line stagnation means earnings recovery has relied more on margin restoration than volume or market share gains. Without clearer, sustained revenue growth the company remains exposed to demand cycles and limited scale benefits, constraining durable earnings expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Recovery & Profitability
A material rebound in gross and operating margins (gross margin rose ~20.5% to 28.9%, operating margin to 12.3%) indicates structural cost or mix improvements. Sustained higher margins support durable profitability, internal reinvestment capacity, and resilience to demand swings over the next several quarters.
Read all positive factors
Nitta Gelatin Inc. (4977) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥22.63B
Dividend Yield2.44%
Average Volume (3M)79.72K
Price to Earnings (P/E)6.7
Beta (1Y)0.97
Revenue Growth3.46%
EPS Growth5.52%
CountryJP
Employees851
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)183.99
Shares Outstanding18,373,974
10 Day Avg. Volume66,280
30 Day Avg. Volume79,723
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)0.91
Price to Sales (P/S)0.58
P/FCF Ratio4.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)148.5
Revenue Forecast (FY)¥38.80B
Nitta Gelatin Inc. Business Overview & Revenue Model
Company Description
Established in Osaka, Japan, in 1918, Nitta Gelatin Inc. is a leading manufacturer and supplier primarily focused on gelatin and collagen products. The company's operations encompass the production and distribution of edible, pharmaceutical, and p...
How the Company Makes Money
Nitta Gelatin makes money primarily by manufacturing and selling collagen-derived ingredients—most notably gelatin and collagen peptides—to business customers. Revenue is generated through (1) product sales of gelatin used as a gelling/binding/sta...
Nitta Gelatin Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.80B | 38.05B | 38.74B | 40.42B | 39.19B | 31.78B |
| Gross Profit | 11.01B | 10.98B | 9.96B | 8.29B | 8.90B | 7.00B |
| EBITDA | 6.10B | 6.30B | 5.86B | 1.86B | 3.89B | 3.18B |
| Net Income | 3.35B | 3.28B | 3.16B | -1.85B | 1.56B | 726.00M |
Balance Sheet | ||||||
| Total Assets | 44.10B | 42.87B | 40.41B | 39.96B | 41.61B | 37.41B |
| Cash, Cash Equivalents and Short-Term Investments | 6.21B | 6.49B | 5.12B | 4.08B | 2.86B | 3.05B |
| Total Debt | 4.91B | 5.96B | 7.74B | 9.80B | 10.79B | 8.32B |
| Total Liabilities | 13.24B | 13.24B | 15.04B | 17.69B | 19.36B | 16.84B |
| Stockholders Equity | 25.15B | 24.25B | 20.69B | 18.19B | 19.10B | 18.08B |
Cash Flow | ||||||
| Free Cash Flow | 2.39B | 4.53B | 3.77B | 2.64B | -2.70B | -285.00M |
| Operating Cash Flow | 3.51B | 6.48B | 5.18B | 4.91B | -540.00M | 1.04B |
| Investing Cash Flow | -1.97B | -5.09B | -1.18B | -3.02B | -1.50B | -1.32B |
| Financing Cash Flow | -1.68B | -2.39B | -2.55B | -1.61B | 1.82B | -762.00M |
Nitta Gelatin Inc. Technical Analysis
Negative
1229.00
Price Trends
1295.24
Negative
1254.13
Negative
1228.06
Negative
Market Momentum
-8.49
Positive
37.13
Neutral
23.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4977, the sentiment is Negative. The current price of 1229 is below the 20-day moving average (MA) of 1301.20, below the 50-day MA of 1295.24, and above the 200-day MA of 1228.06, indicating a bearish trend. The MACD of -8.49 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 23.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4977.
Nitta Gelatin Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥107.22B | 12.76 | 15.57% | 1.74% | 11.90% | 93.07% | |
77 Outperform | ¥58.51B | 12.25 | ― | 2.92% | -2.70% | 18.12% | |
72 Outperform | ¥22.63B | 6.67 | ― | 1.82% | 3.46% | 5.52% | |
70 Outperform | ¥109.35B | 18.35 | ― | 1.30% | 11.71% | 15.04% | |
68 Neutral | ¥67.76B | 17.99 | ― | 3.57% | -0.23% | -25.47% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | ¥785.67B | -26.15 | -6.25% | 2.29% | 2.69% | -173.16% |
* Basic Materials Sector Average
JP:4977
Nitta Gelatin Inc.
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35.88%
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Nitta Gelatin Inc. Corporate Events
Nitta Gelatin Lifts Q1 Sales and Earnings as Balance Sheet Strengthens
Aug 7, 2026
Nitta Gelatin Inc. reported consolidated net sales of ¥9.89 billion for the first quarter ended June 2026, an 8.3% increase from a year earlier, while operating profit slipped 5.5% to ¥1.18 billion and ordinary profit edged up 1.8% to &#...
Nitta Gelatin Boosts Profitability and Strengthens Balance Sheet in FY2026
May 14, 2026
Nitta Gelatin Inc. reported consolidated net sales of ¥38.0 billion for the fiscal year ended March 31, 2026, down 1.8% from the previous year, but significantly improved profitability with operating profit up 18.7% to ¥4.66 billion and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.