Nishikawa Rubber Co., Ltd. (5161) AI Stock Analysis

• Market Cap: ¥133.23B
• Dividend Yield: 5.78%
• Average Volume (3M): 185.03K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.69
• Revenue Growth: -4.26%
• EPS Growth: 17.85%
• Country: JP
• Employees: 6,966
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 74.04
• Shares Outstanding: 37,000,000
• 10 Day Avg. Volume: 129,880
• 30 Day Avg. Volume: 185,030
• PEG Ratio: -1.11
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 16.86
• 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: 73 Outperform
• Price Target: ¥4,192.00 ▲(30.39% Upside)

The score is driven primarily by strong financial performance—especially a robust, low-leverage balance sheet and improving operating profitability—partly offset by weakening cash flow in the latest year. Technicals show a strong uptrend, but extremely overbought readings increase near-term risk. Valuation is supported by a high dividend yield, while a mid-20s P/E limits upside from a value perspective.

Positive Factors

Low financial leverage / strong liquidity

A low debt-to-equity profile and stronger equity ratio provide durable financial flexibility for cyclical auto demand. This balance sheet strength supports continued capex, working capital needs, and dividend/return policies without relying on costly external financing, improving long-term resilience.

Improving gross and EBITDA margins

Sustained improvement in gross and EBITDA margins signals better operational efficiency and product mix (higher-value engineered parts). Structurally higher margins enhance cash generation and reinvestment capacity, making earnings less sensitive to raw-material swings over the medium term.

Recurring OEM B2B revenue model

A model tied to OEM and tiered supply contracts creates predictable, repeatable revenue from vehicle production cycles. Long-term OEM relationships and model-specific parts foster stickiness, scale advantages, and visibility into future volumes, supporting steady manufacturing utilization.

Negative Factors

Decline in operating and free cash flow

A decline in operating and free cash flow reduces internal funding for capex, dividends, or strategic investments. If persistent, weaker cash conversion can force reliance on external financing or constrain growth investments, eroding the balance sheet cushion despite current low leverage.

Recent negative revenue growth

Negative top-line growth indicates waning demand or lost volume versus prior periods. For a parts supplier, sustained revenue contraction can weaken scale economics, pressurize margins, and reduce bargaining power with OEMs, making long-term margin recovery and investment harder.

Modest and slipping profitability metrics

A slipping net margin and only modest ROE limit the company’s ability to generate high returns on capital. Persistently muted profitability reduces retained earnings for reinvestment, constraints growth initiatives, and may cap long-term shareholder compounding unless margins sustainably rebound.

Nishikawa Rubber Co., Ltd. Business Overview & Revenue Model

Company Description

Nishikawa Rubber Co., Ltd. manufactures and sells rubber and sealing products in Japan and internationally. It offers automotive-related products, such as insulators for electrical parts; hood, lamp, waist, and door hole seals; sunroof, trunklid, roofside, door mounted, drip, body mounted, convertible header, and convertible roofside weatherstrips. The company also provides housing-related products, including joint gaskets, backup seals, door seals, and other seals for water-proofing, fire-protection, dust-proofing, noise insulation, barrier-free, energy-saving applications, etc.; and civil engineering-related products, such as AN joint I, Excel joints, and ANB flexible joints for sewage works and water-swelling sponge applications. Nishikawa Rubber Co., Ltd. was founded in 1934 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

Nishikawa Rubber Co., Ltd. generates revenue primarily through the manufacturing and sale of rubber products, with a significant focus on the automotive sector. The company benefits from long-term contracts with major automotive manufacturers, which provide a steady stream of income. Additionally, Nishikawa engages in research and development to create advanced materials and solutions, allowing them to capture new market opportunities. The company also diversifies its revenue by supplying products to industrial and consumer markets. Strategic partnerships and collaborations with other firms enhance their product offerings and market reach, further contributing to their overall earnings.

Nishikawa Rubber Co., Ltd. Financial Statement Overview

Summary

Solid fundamentals: strong revenue growth and improving gross/EBITDA margins support a healthy income statement. Balance sheet is a key strength with low leverage, improving equity ratio, and good liquidity. Main risk is cash generation momentum—operating cash flow and free cash flow declined from 2024 to 2025, and net profit margin slipped in 2025.

Income Statement

Nishikawa Rubber Co., Ltd. has shown a solid revenue growth trend, with a consistent increase from 2022 to 2025. The gross profit margin improved significantly over the years, reaching approximately 17.45% in 2025. However, the net profit margin has seen some fluctuations, decreasing from 2024 to 2025. The company maintains a healthy EBIT and EBITDA margin, with EBITDA margin improving to 11.84% in 2025, indicating efficient operations. Overall, the income statement reflects a strong growth trajectory with minor concerns about net income stability.

Balance Sheet

The balance sheet indicates a robust financial position with a strong equity base. The debt-to-equity ratio is low, demonstrating prudent financial leverage, and the equity ratio has improved over time, reflecting financial stability. The return on equity (ROE) has been modest, with a slight decline in 2025. The company's assets have grown, supported by increased cash and equivalents, contributing to a solid liquidity position. Overall, the balance sheet showcases strength and stability, with low leverage and a strong equity base.

Cash Flow

Cash flow analysis reveals a decline in operating cash flow from 2024 to 2025, which could point to potential cash generation concerns. Free cash flow has decreased, impacting the free cash flow to net income ratio. However, the company has managed to maintain positive free cash flow, indicating an ability to cover capital expenditures. The operating cash flow to net income ratio remains healthy, suggesting efficient cash conversion. Overall, while cash flow management is generally sound, the recent decline in free cash flow growth requires monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.42B	120.64B	117.90B	98.17B	84.50B	80.23B
Gross Profit	20.90B	21.43B	18.70B	11.21B	12.98B	15.47B
EBITDA	14.32B	14.28B	14.80B	7.88B	9.42B	10.62B
Net Income	3.58B	3.96B	5.04B	1.17B	2.10B	2.70B
Balance Sheet
Total Assets	137.58B	138.40B	137.73B	126.13B	115.63B	115.62B
Cash, Cash Equivalents and Short-Term Investments	49.65B	49.92B	45.36B	42.70B	38.98B	38.42B
Total Debt	19.58B	18.43B	18.61B	25.79B	21.10B	20.04B
Total Liabilities	49.20B	46.67B	50.22B	50.60B	43.17B	44.41B
Stockholders Equity	84.84B	87.94B	84.54B	71.94B	68.63B	67.03B
Cash Flow
Free Cash Flow	0.00	5.61B	10.33B	30.00M	171.00M	1.64B
Operating Cash Flow	0.00	9.24B	14.88B	5.24B	4.16B	6.38B
Investing Cash Flow	0.00	-4.34B	-5.16B	-4.68B	-4.97B	-3.06B
Financing Cash Flow	0.00	-2.88B	-9.40B	1.48B	-897.00M	6.08B

Nishikawa Rubber Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3215.00
• 50DMA: Positive
• 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:5161, the sentiment is Positive. The current price of 3215 is below the 20-day moving average (MA) of 3651.00, below the 50-day MA of 3306.28, and above the 200-day MA of 2851.50, indicating a bullish trend. The MACD of 129.03 indicates Positive momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5161.

Nishikawa Rubber Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5185	77 Outperform	¥33.03B	13.73	―	4.20%	-1.15%	-34.09%
7283	77 Outperform	¥132.97B	9.03	―	3.30%	0.29%	9.87%
5161	73 Outperform	¥133.23B	22.72	―	5.78%	-4.26%	17.85%
5189	72 Outperform	¥5.07B	7.88	―	2.64%	2.28%	41.72%
5992	64 Neutral	¥87.05B	8.26	―	1.61%	6.81%	6.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	58 Neutral	¥3.14B	-51.92	―	3.03%	4.17%	-693.96%