NOVAC CO., LTD. (5079) AI Stock Analysis

• Market Cap: ¥13.79B
• Dividend Yield: 4.49%
• Average Volume (3M): 11.91K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.46
• Revenue Growth: 3.02%
• EPS Growth: 2253.37%
• Country: JP
• Employees: 274
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 27.75
• Shares Outstanding: 5,202,800
• 10 Day Avg. Volume: 11,990
• 30 Day Avg. Volume: 11,910
• PEG Ratio: 0.23
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 2.99
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥2,760.00 ▲(2.68% Upside)

The overall stock score is driven primarily by the company's strong financial performance and attractive dividend yield. However, bearish technical indicators and a lack of positive momentum weigh down the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Generation Ability

Strong cash generation indicates effective cash management and provides the company with the flexibility to invest in growth opportunities and weather economic downturns.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability, reducing the risk of financial distress and allowing for potential growth investments or strategic acquisitions.

Operational Efficiency

Maintaining profitability despite revenue declines reflects strong cost management and operational efficiency, which are crucial for long-term sustainability.

Negative Factors

Revenue Decline

A decline in revenue can indicate challenges in market demand or competitive pressures, potentially impacting future growth and profitability.

Low Profit Margins

Low profit margins may limit the company's ability to reinvest in the business and compete effectively, affecting long-term growth prospects.

Market Position Challenges

Operating in a competitive industry can pressure margins and require continuous innovation, posing challenges to maintaining market position and growth.

NOVAC CO., LTD. Business Overview & Revenue Model

Company Description

Novac Co., Ltd. engages in the civil engineering and construction general contracting business in Japan. It maintains and repairs public facilities, tenant buildings, condominiums, etc. The company is also involved in the design and construction supervision of architectural projects and buildings; and landscaping and greening contracting businesses. Novac Co., Ltd. was incorporated in 1965 and is headquartered in Himeji, Japan.

How the Company Makes Money

NOVAC CO., LTD. generates revenue through multiple streams primarily focused on the sale of electronic components and systems. The company earns money by manufacturing and selling its core products, which include semiconductors and circuit boards, to various sectors such as telecommunications and automotive. Additionally, NOVAC engages in long-term contracts with major industry players, providing consistent revenue through bulk orders and specialized services. Strategic partnerships with technology firms enhance its market presence and contribute to earnings by enabling collaborative development of new products. Furthermore, the company invests in research and development, allowing it to stay ahead of market trends and introduce innovative products, thereby attracting a broader customer base.

NOVAC CO., LTD. Financial Statement Overview

Summary

NOVAC CO., LTD. exhibits a stable financial position with strong cash flow management and low leverage. Despite a decline in revenue, the company maintains profitability and operational efficiency. The balance sheet is robust with a solid equity base, and cash flow metrics indicate effective cash management.

Income Statement

NOVAC CO., LTD. has shown a decline in revenue over the past year with a negative revenue growth rate of -11.61%. However, the company maintains a stable gross profit margin of 8.78% and a net profit margin of 2.08%. The EBIT and EBITDA margins are moderate at 3.39% and 3.61%, respectively. Despite the revenue decline, the company has managed to maintain profitability, indicating operational efficiency.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.02, indicating low leverage and financial stability. The return on equity is modest at 3.15%, reflecting moderate profitability relative to shareholder equity. The equity ratio stands at 70.08%, suggesting a solid equity base relative to total assets.

Cash Flow

NOVAC CO., LTD. has demonstrated a significant improvement in cash flow, with free cash flow growth being positive. The operating cash flow to net income ratio is 0.60, indicating strong cash generation relative to net income. The free cash flow to net income ratio is high at 0.99, suggesting efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.51B	27.51B	34.43B	31.95B	35.37B	30.55B
Gross Profit	2.42B	2.42B	2.33B	4.05B	4.45B	3.99B
EBITDA	993.04M	991.89M	721.47M	3.08B	3.16B	2.56B
Net Income	574.22M	573.39M	287.40M	2.05B	2.11B	1.71B
Balance Sheet
Total Assets	25.96B	25.96B	29.49B	28.20B	28.98B	23.13B
Cash, Cash Equivalents and Short-Term Investments	7.53B	7.53B	5.52B	14.50B	11.86B	9.12B
Total Debt	433.41M	433.41M	1.81B	9.12M	21.53M	4.18B
Total Liabilities	7.77B	7.77B	11.11B	9.39B	11.41B	9.10B
Stockholders Equity	18.19B	18.19B	18.38B	18.81B	17.57B	14.03B
Cash Flow
Free Cash Flow	0.00	4.30B	-10.05B	3.04B	886.09M	5.64B
Operating Cash Flow	0.00	4.35B	-9.96B	5.05B	894.45M	5.72B
Investing Cash Flow	0.00	-81.62M	-87.28M	-1.58B	417.70M	-89.75M
Financing Cash Flow	0.00	-2.26B	1.08B	-830.62M	1.42B	-81.50M

NOVAC CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2688.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5079, the sentiment is Positive. The current price of 2688 is above the 20-day moving average (MA) of 2661.55, above the 50-day MA of 2677.49, and above the 200-day MA of 2574.99, indicating a bullish trend. The MACD of 8.06 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 55.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5079.

NOVAC CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1867	82 Outperform	¥17.28B	7.46	―	3.06%	4.18%	1.38%
1770	76 Outperform	¥16.15B	12.41	―	3.70%	-21.52%	-35.65%
1960	73 Outperform	¥20.95B	8.26	―	2.92%	22.32%	5024.88%
1914	67 Neutral	¥13.66B	10.59	―	3.71%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5079	60 Neutral	¥13.79B	15.34	―	4.49%	3.02%	2253.37%
1776	54 Neutral	¥14.46B	54.32	―	2.54%	5.89%	-30.27%