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

• Market Cap: ¥14.31B
• Dividend Yield: 4.32%
• Average Volume (3M): 6.27K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.38
• Revenue Growth: -13.70%
• EPS Growth: 146.67%
• 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: 8,550
• 30 Day Avg. Volume: 6,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,830.00
• Price Target Upside: -0.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥2,830.00 ▼(-0.18% Downside)

The overall stock score is primarily driven by a stable financial position and strong cash flow management. While technical indicators suggest bullish momentum, overbought conditions could lead to a price correction. The stock's valuation is moderate, with a high dividend yield enhancing its attractiveness.

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 key streams, primarily from the sale of its electronic components and devices to manufacturers and distributors in various industries. The company's revenue model is based on direct sales to clients as well as partnerships with larger corporations that require specialized components for their products. By establishing long-term contracts with major clients, NOVAC ensures a steady flow of income. Additionally, the company invests in research and development to innovate and enhance its product offerings, which helps maintain competitive pricing and attract new customers. Strategic partnerships with technology firms and industry leaders further contribute to its revenue, as these collaborations often lead to joint ventures and co-development projects that expand NOVAC's market reach and product capabilities.

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	28.27B	27.51B	34.43B	31.95B	35.37B	30.55B
Gross Profit	1.87B	2.42B	2.33B	4.05B	4.45B	3.99B
EBITDA	348.43M	991.89M	721.47M	3.08B	3.16B	2.56B
Net Income	53.80M	573.39M	287.40M	2.05B	2.11B	1.71B
Balance Sheet
Total Assets	29.93B	25.96B	29.49B	28.20B	28.98B	23.13B
Cash, Cash Equivalents and Short-Term Investments	3.54B	7.53B	5.52B	14.50B	11.86B	9.12B
Total Debt	5.13B	433.41M	1.81B	9.12M	15.53M	4.18B
Total Liabilities	12.16B	7.77B	11.11B	9.39B	11.41B	9.10B
Stockholders Equity	17.76B	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: 2835.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2835 is above the 20-day moving average (MA) of 2740.05, above the 50-day MA of 2684.92, and above the 200-day MA of 2546.65, indicating a bullish trend. The MACD of 23.86 indicates Negative momentum. The RSI at 73.43 is Negative, neither overbought nor oversold. The STOCH value of 86.74 is Negative, 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	¥15.60B	7.35	6.67%	3.34%	-5.06%	2.78%
1770	79 Outperform	¥14.68B	10.86	9.42%	4.05%	-12.29%	-34.50%
1960	74 Outperform	¥15.42B	9.44	5.74%	3.98%	28.15%	895.81%
1914	67 Neutral	¥13.89B	13.22	6.27%	3.67%	17.93%	-31.47%
5079	63 Neutral	¥14.31B	21.42	―	4.32%	-13.70%	146.67%
1776	51 Neutral	¥13.36B	77.70	1.23%	2.73%	0.66%	-65.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%