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Nitta Gelatin Inc. (JP:4977)
:4977
Japanese Market
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Nitta Gelatin Inc. (4977) AI Stock Analysis

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JP:4977

Nitta Gelatin Inc.

(4977)

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Outperform 72 (OpenAI - 5.2)
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)

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
Strong post-2024 turnaround: net margin recovered from -4.6% (2024) to 8.2% (2025) and 8.6% (2026), with operating margin improving to 12.3% (2026) and leverage falling (debt-to-equity 0.54 to 0.25). Offsets are mixed revenue momentum and only moderate earnings-to-cash conversion (operating cash flow below net income in 2025–2026).
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue38.80B38.05B38.74B40.42B39.19B31.78B
Gross Profit11.01B10.98B9.96B8.29B8.90B7.00B
EBITDA6.10B6.30B5.86B1.86B3.89B3.18B
Net Income3.35B3.28B3.16B-1.85B1.56B726.00M
Balance Sheet
Total Assets44.10B42.87B40.41B39.96B41.61B37.41B
Cash, Cash Equivalents and Short-Term Investments6.21B6.49B5.12B4.08B2.86B3.05B
Total Debt4.91B5.96B7.74B9.80B10.79B8.32B
Total Liabilities13.24B13.24B15.04B17.69B19.36B16.84B
Stockholders Equity25.15B24.25B20.69B18.19B19.10B18.08B
Cash Flow
Free Cash Flow2.39B4.53B3.77B2.64B-2.70B-285.00M
Operating Cash Flow3.51B6.48B5.18B4.91B-540.00M1.04B
Investing Cash Flow-1.97B-5.09B-1.18B-3.02B-1.50B-1.32B
Financing Cash Flow-1.68B-2.39B-2.55B-1.61B1.82B-762.00M

Nitta Gelatin Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1229.00
Price Trends
50DMA
1295.24
Negative
100DMA
1254.13
Negative
200DMA
1228.06
Negative
Market Momentum
MACD
-8.49
Positive
RSI
37.13
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥107.22B12.7615.57%1.74%11.90%93.07%
77
Outperform
¥58.51B12.252.92%-2.70%18.12%
72
Outperform
¥22.63B6.671.82%3.46%5.52%
70
Outperform
¥109.35B18.351.30%11.71%15.04%
68
Neutral
¥67.76B17.993.57%-0.23%-25.47%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
50
Neutral
¥785.67B-26.15-6.25%2.29%2.69%-173.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4977
Nitta Gelatin Inc.
1,227.00
323.97
35.88%
JP:4182
Mitsubishi Gas Chemical Company
4,085.00
1,692.60
70.75%
JP:4187
Osaka Organic Chemical Industry Ltd.
4,920.00
2,039.25
70.79%
JP:4078
Sakai Chemical Industry Co., Ltd.
4,055.00
1,328.35
48.72%
JP:4362
Nippon Fine Chemical Co., Ltd.
2,639.00
-83.18
-3.06%
JP:4369
Tri Chemical Laboratories Inc.
3,405.00
431.26
14.50%

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.Date of analysis: Aug 11, 2026