Nippon Seiro Co., Ltd. (5010) AI Stock Analysis

• Market Cap: ¥3.79B
• Dividend Yield: N/A
• Average Volume (3M): 64.55K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 1.46
• Revenue Growth: -9.90%
• EPS Growth: 27.50%
• Country: JP
• Employees: 268
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 6.36
• Shares Outstanding: 22,400,000
• 10 Day Avg. Volume: 41,730
• 30 Day Avg. Volume: 64,550
• PEG Ratio: -0.01
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 1.85
• 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: ¥207.00
• Price Target Upside: 7.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥207.00 ▲(7.81% Upside)

Nippon Seiro Co., Ltd. shows strong valuation metrics with a low P/E ratio, indicating potential undervaluation. Financial performance is improving, but high leverage poses a risk. Technical indicators suggest a bearish trend, which could impact short-term performance.

Nippon Seiro Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Seiro Co., Ltd. manufactures and sells petroleum waxes, physically and chemically converted wax products, and fuel oil in Japan and internationally. It offers paraffin wax, microcrystalline wax, oxidized and chemical wax, special wax, blended products comprising anti-ozonant wax, and wax emulsion, as well as Fischer-Tropsch wax. The company provides its products in slab, pellet, powder, and granule forms for use in various applications, such as hotmelt adhesives, paper cups, plastic lubricants, paper converting, rubber anti-ozonants, polishes, cosmetics and pharmaceuticals, candles, water proof corrugated paperboards, chlorinated paraffins, matches, rust prevention, plywood, textiles, electric insulation, modification of paraffin wax, laminations, chewing gums, water repellents, inks, binders, slip agents, ink additives, toners, release agents, rubbers and tires, polymer additive agents, and paraffin wax reformers. Nippon Seiro Co., Ltd. was founded in 1929 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Seiro Co., Ltd. generates revenue through the production and sale of its wax products, which are essential raw materials for numerous industries. The company supplies paraffin and microcrystalline waxes to manufacturers in sectors such as cosmetics, pharmaceuticals, and food processing, where these waxes are used in products like candles, lipsticks, ointments, and packaging. Additionally, Nippon Seiro may engage in strategic partnerships or collaborations with other companies to enhance its market reach and product offerings. The company's earnings are influenced by factors like raw material costs, production efficiency, and market demand for its wax products.

Nippon Seiro Co., Ltd. Financial Statement Overview

Summary

Nippon Seiro Co., Ltd. demonstrates a positive turnaround in its financial performance with substantial improvements in profitability, cash flow, and equity returns. However, high leverage remains a potential risk, with a Debt-to-Equity Ratio of 3.29. Continued focus on reducing debt and maintaining cash flow strength will be crucial for sustaining growth and stability.

Income Statement

Nippon Seiro Co., Ltd. showed significant improvement in profitability with a Gross Profit Margin of 20.75% and a Net Profit Margin of 8.06% in 2024, recovering from negative margins in previous years. Revenue growth was modest at 1.57% from 2023 to 2024, but a positive EBIT Margin of 10.19% indicates better cost management and operational efficiency. Despite historical volatility in EBIT and EBITDA margins, the company is on a positive trajectory.

Balance Sheet

The balance sheet shows a high Debt-to-Equity Ratio of 3.29 in 2024, indicating significant leverage, which poses risk. However, Return on Equity improved to 31.30%, showcasing effective use of equity to generate profits. The Equity Ratio of 19.08% suggests moderate reliance on equity financing. Overall, the balance sheet reflects high financial leverage, which could be a risk if not managed carefully.

Cash Flow

Nippon Seiro Co., Ltd. exhibited strong cash flow performance with a Free Cash Flow Growth Rate of 492.15% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio of 1.66 reflects robust cash generation relative to net earnings. Additionally, the Free Cash Flow to Net Income Ratio of 1.57 indicates effective conversion of income to cash flow, highlighting strong operational cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.25B	22.05B	21.70B	38.46B	27.92B	22.23B
Gross Profit	3.95B	4.58B	1.96B	1.39B	3.56B	359.00M
EBITDA	2.50B	3.19B	5.00M	-1.09B	1.63B	-1.67B
Net Income	1.19B	1.78B	-1.22B	-2.37B	444.00M	-2.88B
Balance Sheet
Total Assets	28.86B	29.73B	30.00B	33.17B	33.57B	30.79B
Cash, Cash Equivalents and Short-Term Investments	2.60B	2.30B	1.83B	2.04B	1.60B	1.40B
Total Debt	17.36B	18.65B	20.53B	21.05B	18.29B	17.95B
Total Liabilities	23.09B	24.05B	26.22B	27.78B	25.83B	23.51B
Stockholders Equity	5.77B	5.67B	3.78B	5.39B	7.74B	7.28B
Cash Flow
Free Cash Flow	0.00	2.79B	471.00M	-1.98B	-29.00M	-3.77B
Operating Cash Flow	0.00	2.94B	1.41B	-1.63B	666.00M	-2.37B
Investing Cash Flow	0.00	-149.00M	-495.00M	-339.00M	-680.00M	-1.23B
Financing Cash Flow	0.00	-2.37B	-1.11B	2.42B	198.00M	3.10B

Nippon Seiro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 192.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5010, the sentiment is Negative. The current price of 192 is below the 20-day moving average (MA) of 194.15, below the 50-day MA of 193.72, and below the 200-day MA of 202.33, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5010.

Nippon Seiro Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5009	82 Outperform	―	―	―	―	8.57%	15.83%
5015	73 Outperform	¥21.12B	24.52	―	4.65%	16.98%	-7.36%
8133	70 Outperform	¥215.83B	12.63	―	3.24%	-4.47%	37.38%
8132	67 Neutral	¥71.58B	21.56	―	1.38%	-6.97%	―
5010	67 Neutral	¥3.79B	3.19	―	―	-9.90%	27.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5017	59 Neutral	¥36.91B	―	-32.70%	2.50%	-19.99%	-243.54%