Nichireki Co., Ltd. (5011) AI Stock Analysis

• Market Cap: ¥75.87B
• Dividend Yield: 3.31%
• Average Volume (3M): 30.33K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.47
• Revenue Growth: 3.24%
• EPS Growth: 26.38%
• Country: JP
• Employees: 977
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 35.57
• Shares Outstanding: 31,685,955
• 10 Day Avg. Volume: 27,400
• 30 Day Avg. Volume: 30,326
• PEG Ratio: 1.66
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -8.79
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,649.00 ▲(8.39% Upside)

Nichireki Co., Ltd. has a stable financial foundation with consistent revenue growth and a strong balance sheet. However, technical indicators suggest bearish market momentum, which is a significant risk. The stock's valuation is attractive, with a reasonable P/E ratio and a solid dividend yield, providing some support to the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability and provides flexibility for future investments.

Operational Efficiency

Efficient cost management supports profitability and competitiveness, ensuring sustainable operations over the long term.

Negative Factors

Net Profit Margin

A moderate net profit margin suggests limited profitability, which could hinder reinvestment and shareholder returns.

Free Cash Flow Challenges

High capital expenditures impacting free cash flow may constrain liquidity and limit strategic investments.

Free Cash Flow to Net Income Ratio

Negative free cash flow to net income ratio indicates potential cash management issues, affecting financial flexibility.

Nichireki Co., Ltd. Business Overview & Revenue Model

Company Description

Nichireki Co., Ltd. manufactures and sells various paving materials primarily in Japan. Its primary products include various types of asphalt emulsions used in constructing and recycling road paving; and various modified asphalts. The company also offers bridge waterproofing materials, crack sealing materials, pothole filling materials, surface level correcting materials, landscape materials, waterproof materials for bridge decks, cement concrete materials, crack repairing materials, mixtures for pavement, and pavement supplementary materials. In addition, it provides special materials, such as airfield aprons, railway tracks primarily for high speed trains, agricultural watercourses, dams, rivers, sewers, reservoirs, and tank base foundations, as well as offers jointing and grouting materials. Further, the company provides roads and paving maintenance and management services. Nichireki Co., Ltd. was founded in 1943 and is based in Tokyo, Japan.

How the Company Makes Money

Nichireki Co., Ltd. generates revenue primarily through the sale of automotive parts and components to manufacturers and aftermarket suppliers. The company's revenue model is built on both direct sales to automotive OEMs (original equipment manufacturers) and distribution to automotive aftermarket retailers. Key revenue streams include bulk orders of specialized automotive components, as well as ongoing contracts with major automotive manufacturers for the supply of parts. Additionally, Nichireki may benefit from strategic partnerships with other companies in the automotive supply chain, which can enhance its market reach and operational efficiencies. The company’s focus on quality and innovation allows it to maintain competitive pricing and secure long-term contracts, contributing significantly to its overall earnings.

Nichireki Co., Ltd. Financial Statement Overview

Summary

Nichireki Co., Ltd. demonstrates stable financial performance with consistent revenue growth and a strong balance sheet. Effective cost controls and operational efficiency are evident, although net profit margins suggest room for improvement. High capital expenditures impact free cash flow, indicating a need to optimize cash flow for sustained growth.

Income Statement

Nichireki Co., Ltd. has shown a stable revenue growth trend with a revenue increase from ¥73.8 billion to ¥75.7 billion in the last year. The gross profit margin remains healthy at approximately 22.9%, indicating strong cost management. However, the net profit margin is moderate at 6.4%, reflecting potential areas for profitability improvement. EBIT and EBITDA margins are also stable, suggesting efficient operational performance.

Balance Sheet

The company's balance sheet shows a solid equity position with a debt-to-equity ratio of approximately 0.26, indicating moderate leverage. The return on equity is commendable at 6.3%, reflecting effective utilization of shareholders' funds. The equity ratio stands at 68.8%, suggesting financial stability. However, the presence of considerable cash and cash equivalents indicates a conservative approach to liquidity management.

Cash Flow

Operating cash flow remains positive, although there is a significant drop in free cash flow, reflecting high capital expenditures. The free cash flow to net income ratio is negative, implying cash flow challenges despite profitability. The operating cash flow to net income ratio is reasonable, indicating adequate cash generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.92B	75.75B	73.83B	78.40B	78.00B	71.47B
Gross Profit	17.19B	17.34B	16.46B	17.46B	18.32B	18.44B
EBITDA	9.20B	9.70B	9.08B	11.41B	11.95B	11.27B
Net Income	4.80B	4.85B	4.49B	6.28B	6.81B	6.36B
Balance Sheet
Total Assets	107.92B	112.37B	95.09B	91.47B	88.42B	82.73B
Cash, Cash Equivalents and Short-Term Investments	29.22B	31.62B	25.75B	27.32B	29.00B	25.92B
Total Debt	20.54B	19.97B	1.56B	1.53B	1.60B	2.22B
Total Liabilities	32.48B	35.05B	20.26B	19.01B	20.35B	20.73B
Stockholders Equity	75.43B	77.32B	74.84B	72.47B	68.07B	62.01B
Cash Flow
Free Cash Flow	0.00	-7.29B	3.05B	3.38B	4.36B	2.17B
Operating Cash Flow	0.00	4.89B	7.39B	6.56B	7.74B	9.10B
Investing Cash Flow	0.00	-12.46B	-3.85B	-5.83B	-2.36B	-5.69B
Financing Cash Flow	0.00	13.73B	-2.82B	-3.12B	-1.43B	2.51B

Nichireki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2444.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5011, the sentiment is Positive. The current price of 2444 is below the 20-day moving average (MA) of 2447.15, above the 50-day MA of 2437.86, and below the 200-day MA of 2503.89, indicating a neutral trend. The MACD of 10.58 indicates Negative momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 80.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5011.

Nichireki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	80 Outperform	¥56.75B	10.85	―	3.25%	9.50%	77.72%
5352	76 Outperform	¥149.32B	7.35	―	2.77%	1.43%	91.97%
5233	67 Neutral	¥451.10B	8.71	7.93%	2.32%	-2.26%	-10.86%
5290	67 Neutral	¥75.64B	14.04	―	2.30%	-0.22%	25.09%
5011	64 Neutral	¥75.87B	14.58	―	3.31%	3.24%	26.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4044	55 Neutral	¥86.73B	17.24	―	4.87%	-4.44%	-47.54%

Nichireki Co., Ltd. Corporate Events

Nichireki Co., Ltd. Reports Stable Financial Performance for H1 2025

Nichireki Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 0.6% compared to the previous year. Despite a decline in operating and ordinary profits, the company saw a significant rise in profit attributable to owners of the parent company by 15.8%. The company maintains a stable financial position with a high equity ratio of 69.7%. The dividend forecast remains unchanged, indicating confidence in future performance. These results suggest a stable outlook for Nichireki, with a focus on sustaining profitability and shareholder returns.

The most recent analyst rating on (JP:5011) stock is a Hold with a Yen2649.00 price target. To see the full list of analyst forecasts on Nichireki Co., Ltd. stock, see the JP:5011 Stock Forecast page.

Nichireki Group Announces Increased Interim Dividend for Shareholders

Nichireki Group Co., Ltd. has announced an interim dividend payment of 40 yen per share, reflecting an increase from the previous year’s interim dividend. This decision aligns with the company’s policy to provide consistent returns to shareholders and adapt to business environment changes, supporting its growth strategy.

The most recent analyst rating on (JP:5011) stock is a Hold with a Yen2711.00 price target. To see the full list of analyst forecasts on Nichireki Co., Ltd. stock, see the JP:5011 Stock Forecast page.