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

• Market Cap: ¥150.98B
• Dividend Yield: 5.78%
• Average Volume (3M): 185.03K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.79
• Revenue Growth: -4.26%
• EPS Growth: 17.85%
• Country: JP
• Employees: 6,966
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 50.36
• 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: ¥4,722.00 ▲(46.87% Upside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

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 leverage and strong liquidity

A low debt-to-equity profile, improving equity ratio and rising cash balances signal a resilient capital structure. This durable strength lowers refinancing and solvency risk, supports counter-cyclical investment, and preserves strategic optionality for capex, M&A or shareholder returns over the medium term.

Consistent revenue growth and margin improvement

Sustained revenue growth combined with rising gross and EBITDA margins reflects improving operational efficiency and a shift toward higher value-added products. These durable trends enhance earnings quality and cash generation potential, underpinning longer-term profitability even through modest industry cycles.

Positive free cash flow coverage

Consistent positive free cash flow, and solid operating-cash-to-net-income conversion, support the firm's ability to fund capex and dividends without material external financing. That persistent cash generation provides structural flexibility for reinvestment and balance sheet robustness.

Negative Factors

Declining operating and free cash flow

A year-over-year decline in operating and free cash flow is a durable warning sign: it can restrict investment capacity, reduce buffer for cyclical downturns, and pressure dividend sustainability. If driven by working-capital shifts or margin compression, the trend could persist absent corrective management action.

Slipping net profit margin and modest ROE

A declining net margin and only modest return on equity indicate limited leverage of revenue growth into bottom-line returns. Over the medium term this constrains retained-earnings accumulation and investor return potential, and may reflect pricing or cost pressures that reduce capital productivity.

Concentration in automotive OEM demand

Heavy reliance on OEM and tiered auto contracts exposes the firm to structural cyclicality of vehicle production, program timing and OEM model mix. This concentration makes revenues sensitive to auto demand swings and limits pricing power versus commodity input cost volatility in rubber and materials.

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 manufacture and sale of rubber-based components, with the largest driver being supply to the automotive industry. Its earnings are typically tied to (1) OEM and tiered automotive supply contracts where the company produces model-specific parts (e.g., sealing and other rubber components) in volume for vehicle production, and (2) sales of industrial rubber products used outside automotive applications. The revenue model is largely B2B: customers place recurring orders aligned with vehicle production schedules and industrial demand, and the company monetizes through unit-based pricing on delivered components. Profitability is influenced by production efficiency (molding/processing yields, plant utilization), raw-material input costs (rubber and related materials), and the mix of higher value-added engineered parts versus more commoditized rubber goods. Specific details on major customers, contract structures, and partnership arrangements are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	119.42B	120.64B	117.90B	98.17B	84.50B	80.23B
Gross Profit	21.28B	21.05B	18.31B	11.72B	12.62B	15.10B
EBITDA	13.03B	13.40B	12.63B	6.87B	8.32B	10.62B
Net Income	3.58B	3.96B	5.04B	2.11B	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	20.16B	20.20B	26.30B	21.93B	20.76B
Total Liabilities	49.20B	46.67B	50.22B	50.59B	43.16B	44.40B
Stockholders Equity	84.84B	87.94B	84.54B	72.91B	68.63B	67.03B
Cash Flow
Free Cash Flow	0.00	5.61B	10.54B	226.00M	370.00M	1.88B
Operating Cash Flow	0.00	9.24B	14.88B	5.45B	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	1.28B	-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: Neutral

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 4190.00, below the 50-day MA of 3916.50, and above the 200-day MA of 3118.68, indicating a neutral trend. The MACD of 37.39 indicates Positive momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 39.17 is Neutral, 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
7282	75 Outperform	¥517.74B	7.76	8.58%	2.62%	1.44%	-0.92%
5189	75 Outperform	¥6.62B	5.89	―	2.64%	2.28%	41.72%
5161	73 Outperform	¥150.98B	16.04	―	5.78%	-4.26%	17.85%
5110	70 Outperform	$561.16B	6.51	4.89%	2.59%	-0.26%	129.15%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5101	60 Neutral	¥1.02T	6.03	9.11%	1.60%	10.53%	-2.52%
5162	58 Neutral	¥3.99B	10.35	―	3.03%	4.17%	-693.96%