Nozawa Corp. (5237) AI Stock Analysis

• Market Cap: ¥11.62B
• Dividend Yield: 3.93%
• Average Volume (3M): 8.08K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.45
• Revenue Growth: -2.90%
• EPS Growth: -24.21%
• Country: JP
• Employees: 347
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 6.85
• Shares Outstanding: 12,075,000
• 10 Day Avg. Volume: 4,930
• 30 Day Avg. Volume: 8,080
• PEG Ratio: 0.27
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -30.28
• 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

• Rating: 79 Outperform
• Price Target: ¥1,083.00 ▲(7.02% Upside)

Nozawa Corp. has a solid overall performance, driven by strong technical indicators and attractive valuation metrics. Financial performance presents some concerns due to recent declines in revenue and net income, but the company's strong balance sheet provides a buffer. The stock's bullish momentum and favorable valuation make it appealing, though potential overbought conditions warrant caution.

Nozawa Corp. Business Overview & Revenue Model

Company Description

Nozawa Corp. (5237) is a prominent player in the manufacturing sector, primarily focusing on the production of high-quality electronic components and materials. The company serves a diverse range of industries, including consumer electronics, automotive, and telecommunications. With a commitment to innovation and sustainability, Nozawa Corp. develops cutting-edge products such as semiconductors, circuit boards, and other essential electronic components that cater to the evolving demands of modern technology.

How the Company Makes Money

Nozawa Corp. generates revenue through multiple streams, primarily by selling its electronic components and materials to various industries. The company’s revenue model is driven by direct sales to manufacturers in the consumer electronics and automotive sectors, where demand for high-performance components is consistently growing. Additionally, Nozawa Corp. benefits from long-term contracts and partnerships with key players in these industries, providing a steady income stream. The company also invests in research and development to stay ahead of technological trends, allowing it to introduce new products that meet market needs, thereby enhancing its revenue potential. Furthermore, strategic collaborations with technology firms and participation in industry standards organizations help boost its market presence and credibility, contributing to increased sales and profitability.

Nozawa Corp. Financial Statement Overview

Summary

Nozawa Corp. demonstrates financial stability with a strong balance sheet and reasonable profitability margins. However, recent declines in revenue and net income, coupled with inconsistent cash flow generation, present potential risks. Continued focus on improving revenue growth and cash flow generation will be crucial for sustained financial health.

Income Statement

The income statement shows a mixed performance. The gross profit margin is stable, indicating efficient cost management. However, the net profit margin and revenue growth rate have shown some fluctuations over the years, with a recent decline in revenue. EBIT and EBITDA margins are healthy, but there has been a notable decrease in net income, which may affect long-term profitability.

Balance Sheet

The balance sheet is strong, with a substantial equity base and a low debt-to-equity ratio, indicating financial stability and low leverage risk. The company's equity ratio is solid, showing a strong capital structure. Return on equity is moderate, suggesting efficient use of equity capital.

Cash Flow

Cash flow performance has been inconsistent. The operating cash flow to net income ratio is reasonable, but recent declines in free cash flow are concerning. A negative free cash flow growth rate indicates challenges in generating cash, which could impact future investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.23B	21.95B	23.07B	20.98B	20.55B	22.39B
Gross Profit	6.22B	6.12B	6.57B	5.74B	6.77B	6.91B
EBITDA	1.96B	2.49B	2.14B	1.45B	2.93B	2.27B
Net Income	946.38M	1.16B	874.81M	486.60M	1.71B	1.26B
Balance Sheet
Total Assets	30.81B	30.24B	29.48B	28.39B	27.81B	27.26B
Cash, Cash Equivalents and Short-Term Investments	4.85B	6.75B	7.39B	6.99B	7.02B	5.93B
Total Debt	0.00	10.83M	25.33M	40.21M	59.86M	326.02M
Total Liabilities	10.44B	9.57B	9.67B	9.91B	9.46B	10.15B
Stockholders Equity	20.37B	20.67B	19.81B	18.48B	18.35B	17.26B
Cash Flow
Free Cash Flow	0.00	-322.39M	870.88M	222.43M	1.47B	1.64B
Operating Cash Flow	0.00	431.67M	2.03B	782.32M	2.15B	2.41B
Investing Cash Flow	0.00	-647.65M	-1.22B	-333.30M	-632.99M	-968.88M
Financing Cash Flow	0.00	-417.92M	-413.69M	-474.22M	-454.54M	-296.47M

Nozawa Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1012.00
• 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:5237, the sentiment is Positive. The current price of 1012 is above the 20-day moving average (MA) of 1010.55, below the 50-day MA of 1012.58, and above the 200-day MA of 897.17, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5237.

Nozawa Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5958	―	¥15.43B	9.22	―	2.33%	-4.99%	-10.49%
7871	―	¥18.08B	12.09	―	3.21%	1.51%	-13.05%
5237	―	¥11.62B	12.39	―	3.93%	-2.90%	-24.21%
4026	―	¥13.21B	9.96	―	2.90%	2.25%	-26.12%
5940	―	¥9.89B	4.18	―	3.18%	3.90%	9.38%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5391	―	¥9.50B	300.64	―	4.82%	4.42%	-98.20%