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Nishikawa Rubber Co., Ltd. (JP:5161)
:5161
Japanese Market
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Nishikawa Rubber Co., Ltd. (5161) AI Stock Analysis

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JP:5161

Nishikawa Rubber Co., Ltd.

(5161)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥3,564.00
▲(10.86% Upside)
Action:Downgraded
Date:05/16/26
The score is driven primarily by solid financial health and a strong earnings/margin rebound, tempered by uneven cash-flow conversion and volatility. Valuation is supportive (P/E ~12 and ~5.6% dividend yield), while technical indicators point to weaker near-term momentum.
Positive Factors
Improved Profitability
A material margin rebound to ~9% net and ~7.4% EBIT suggests structural improvements in cost control, pricing, or mix. Sustained higher margins enhance cash generation capacity and return on equity, giving management scope to invest, pay dividends, or absorb cyclicality over the medium term.
Negative Factors
Volatile Free Cash Flow
Irregular FCF conversion reduces confidence in the company’s ability to consistently fund dividends, repay debt, or invest. Volatility—very strong in 2024, weak in 2023 and 2025—implies working capital or capex swings tied to auto cycles, increasing financing and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
A material margin rebound to ~9% net and ~7.4% EBIT suggests structural improvements in cost control, pricing, or mix. Sustained higher margins enhance cash generation capacity and return on equity, giving management scope to invest, pay dividends, or absorb cyclicality over the medium term.
Read all positive factors

Nishikawa Rubber Co., Ltd. (5161) vs. iShares MSCI Japan ETF (EWJ)

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, ...
How the Company Makes Money
Nishikawa Rubber generates revenue primarily by manufacturing and selling rubber-based and resin-based components, with its largest earnings driver typically tied to automotive parts supplied to vehicle manufacturers and their tiered supply chains...

Nishikawa Rubber Co., Ltd. Financial Statement Overview

Summary
Strong profitability rebound and improved margins with conservative leverage (D/E ~0.28) and better returns (ROE ~12.5%), but cash-flow consistency is a key risk: free cash flow is volatile and covered only ~56% of net income in 2026.
Income Statement
76
Positive
Balance Sheet
78
Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue119.42B122.14B120.64B117.90B98.17B84.50B
Gross Profit21.28B23.03B21.05B18.31B11.72B12.62B
EBITDA13.03B15.01B13.40B12.63B6.87B8.32B
Net Income3.58B10.96B3.96B5.04B2.11B2.10B
Balance Sheet
Total Assets137.58B147.37B138.40B137.73B126.13B115.63B
Cash, Cash Equivalents and Short-Term Investments49.65B54.03B49.92B45.36B42.70B38.98B
Total Debt19.58B24.18B20.16B20.20B26.30B21.93B
Total Liabilities49.20B55.03B46.67B50.22B50.59B43.16B
Stockholders Equity84.84B87.89B87.94B84.54B72.91B68.63B
Cash Flow
Free Cash Flow0.006.84B5.61B10.54B226.00M370.00M
Operating Cash Flow0.0012.21B9.24B14.88B5.45B4.16B
Investing Cash Flow0.00-856.00M-4.34B-5.16B-4.68B-4.97B
Financing Cash Flow0.00-9.72B-2.88B-9.40B1.28B-897.00M

Nishikawa Rubber Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3215.00
Price Trends
50DMA
3417.80
Negative
100DMA
3573.57
Negative
200DMA
3233.33
Negative
Market Momentum
MACD
-101.70
Negative
RSI
35.99
Neutral
STOCH
18.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5161, the sentiment is Negative. The current price of 3215 is above the 20-day moving average (MA) of 3146.00, below the 50-day MA of 3417.80, and below the 200-day MA of 3233.33, indicating a bearish trend. The MACD of -101.70 indicates Negative momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 18.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5161.

Nishikawa Rubber Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥554.02B9.488.58%2.62%8.21%72.79%
70
Outperform
¥1.09T10.119.11%1.60%13.08%78.00%
69
Neutral
¥111.63B10.435.78%1.24%186.45%
69
Neutral
¥534.74B9.884.89%2.59%1.09%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
¥6.06B9.022.64%19.30%56.43%
55
Neutral
¥3.04B21.753.03%2.78%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5161
Nishikawa Rubber Co., Ltd.
3,100.00
779.09
33.57%
JP:5110
Sumitomo Rubber Industries
2,081.00
348.74
20.13%
JP:7282
Toyoda Gosei Co
4,827.00
2,097.75
76.86%
JP:5101
Yokohama Rubber Co
7,179.00
3,635.09
102.57%
JP:5162
Asahi Rubber Inc.
674.00
96.46
16.70%
JP:5189
Sakura Rubber Co., Ltd.
3,105.00
1,283.20
70.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026