Nitta Gelatin Inc. (4977) AI Stock Analysis

• Market Cap: ¥23.36B
• Dividend Yield: 1.82%
• Average Volume (3M): 79.72K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.88
• 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: ¥1,538.00 ▲(25.14% 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

Free Cash Flow Strength

A 42.9% jump in free cash flow signals durable cash-generation ability. Strong FCF supports reinvestment, working-capital needs, debt reduction and shareholder returns, increasing financial resilience through industry cycles and enabling strategic spending without relying on external financing.

Margin Recovery

Material improvement in gross and net margins indicates sustained operational efficiency and pricing or mix advantage. Higher margins create ongoing earnings power, buffering raw-material swings and funding R&D or specialty product development that can preserve competitiveness over multiple quarters.

Improved Balance Sheet

Lower leverage and a stronger equity ratio enhance financial flexibility and reduce refinancing risk. This structural improvement increases capacity for capex, selective M&A, or weathering downturns, supporting long-term stability and the ability to invest in higher-value product lines.

Negative Factors

Revenue Decline

A decline in revenue despite margin recovery suggests demand weakness or limited market expansion. Persistent top-line contraction can erode scale advantages, constrain long-term EPS growth, and force reliance on cost cuts rather than sustainable organic growth drivers over the medium term.

Limited Asset Growth

Stable total assets imply constrained capacity expansion and limited capital investment. Over time, this can cap revenue growth and restrict ability to scale production for new, higher-margin products or enter new markets, increasing dependence on efficiency gains for performance improvements.

Dependence on Animal-derived Inputs

Heavy reliance on animal-derived raw materials exposes the business to supply volatility, biosecurity events, and regulatory or consumer shifts toward plant-based alternatives. These structural risks can raise costs or reduce addressable market over the medium term if not mitigated.

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 makes money primarily by manufacturing and selling gelatin- and collagen-based ingredients to business customers (B2B). Its core revenue stream comes from product sales of (1) gelatin used as a gelling, stabilizing, and texturizing ingredient in foods and as an excipient/material component in pharmaceutical applications (e.g., capsule-related uses), and (2) collagen peptides and other collagen-derived functional ingredients sold into health, nutrition, and wellness categories where they are formulated into finished goods by customers. Revenue is typically generated through supply contracts and repeat purchasing driven by customers’ ongoing production needs, with pricing influenced by product grade/specification, quality requirements, and raw-material/input costs. The company also earns from supplying specialized or higher value-added formulations/grades tailored to specific end-use requirements (such as different molecular weight profiles, gel strength, or purity standards), supporting margin differentiation versus commodity-grade materials. If information about specific major partnerships, customer concentration, or segment-level revenue breakdown is not available in the provided context, null.

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	16.84B	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: Neutral
• Last Price: 1229.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4977, the sentiment is Neutral. The current price of 1229 is below the 20-day moving average (MA) of 1388.05, below the 50-day MA of 1329.44, and above the 200-day MA of 1083.75, indicating a neutral trend. The MACD of -7.27 indicates Positive momentum. The RSI at 41.80 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥84.18B	11.63	15.07%	1.74%	15.12%	40.72%
4977	80 Outperform	¥23.36B	9.84	―	1.82%	-7.26%	―
4362	75 Outperform	¥55.60B	16.36	―	2.92%	3.03%	28.27%
4078	70 Outperform	¥57.47B	-468.17	―	4.37%	-1.09%	―
4182	67 Neutral	¥770.74B	77.75	-2.50%	3.49%	-6.83%	-123.67%
4369	64 Neutral	¥85.86B	19.44	―	1.30%	47.56%	49.58%
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.