Nozawa Corp. (5237) AI Stock Analysis

• Market Cap: ¥14.29B
• Dividend Yield: 3.9%
• Average Volume (3M): 9.13K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.33
• Revenue Growth: 0.58%
• EPS Growth: -9.72%
• Country: JP
• Employees: 347
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 26.23
• Shares Outstanding: 12,075,000
• 10 Day Avg. Volume: 9,030
• 30 Day Avg. Volume: 9,130
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,428.00 ▲(41.11% Upside)
• Action: Reiterated Date: 11/16/25
• Date: Action: Reiterated 11/16/25

The overall stock score for Nozawa Corp. is driven by strong technical analysis indicators and a reasonable valuation. The company's financial performance is stable, but recent declines in revenue and cash flow generation pose potential risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong balance sheet

A substantial equity base and low leverage provide durable financial resilience for a distributor exposed to construction cycles. This capital strength supports working-capital needs, supplier terms and selective investments in logistics or inventory without overreliance on external funding, preserving strategic flexibility over coming quarters.

Stable gross and healthy operating margins

Consistent gross margins and healthy EBIT/EBITDA margins indicate procurement discipline and operational efficiency in distribution. Margin sustainability helps absorb demand fluctuations, funds reinvestment in value-added logistics and services, and underpins long-term profitability even if top-line growth moderates.

Distribution model with value-added services

A distributor model combined with logistics and project coordination creates recurring revenue, stickier customer relationships and differentiated service. These capabilities form a structural moat in building-materials supply chains, supporting repeat business from contractors and enabling margin capture beyond pure product resale.

Negative Factors

Inconsistent cash flow and negative FCF growth

Irregular and declining free cash flow reduces the firm's ability to self-fund inventory, capex or logistic investments critical for a distributor. Over a multi-month horizon this can force higher working-capital financing, limit expansion of value-added services, and weaken resilience to construction-market slowdowns.

Recent declines in revenue and net income

Declining revenue and net income erode scale benefits and bargaining power with suppliers. If the trend persists it can compress margins, reduce reinvestment capacity for logistics or service enhancements, and impair long-term competitiveness in a fragmented distribution market.

Negative EPS growth / earnings volatility

A near-28% decline in EPS signals material earnings volatility or one-off impacts that could reflect margin pressure or demand swings. Persistent EPS contraction undermines retained-earnings build-up and limits strategic initiatives funded from operating profits, increasing reliance on external financing for growth.

Nozawa Corp. Business Overview & Revenue Model

Company Description

Nozawa Corporation manufactures and sells extruded cement panels in Japan. Its principal products include flat panels, rib and emboss design panels, and coated panels. The company offers extruded cement panels for resistance against noise, freezing, fire, and earthquakes; and exterior walls and partitions of various office buildings, plants, and warehouses, as well as for external insulation systems with other application technologies. It also engages in the manufacture and sale of building materials. The company was founded in 1890 and is headquartered in Kobe, Japan.

How the Company Makes Money

Nozawa Corp. makes money primarily by purchasing building materials from manufacturers and selling them to construction-industry customers (e.g., contractors, builders, installers, and related trade companies) at a margin. Revenue is generated through (1) product sales volume across construction-material categories and (2) value-added services tied to distribution—such as logistics/warehousing, delivery scheduling, and project-based supply coordination—where applicable. Earnings are driven by gross margin management (procurement terms, pricing, and mix of higher-margin items), demand levels in the construction and renovation markets, and the company’s ability to maintain relationships with both upstream suppliers (to secure stable supply and favorable purchasing conditions) and downstream customers (to win repeat orders and project supply contracts). Specifics on segment breakdowns, named major partners, or the exact share of service vs. product revenue are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 1174.20, below the 50-day MA of 1120.68, and below the 200-day MA of 1020.37, indicating a bullish trend. The MACD of 48.09 indicates Negative momentum. The RSI at 70.08 is Negative, neither overbought nor oversold. The STOCH value of 83.89 is Negative, 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
7971	79 Outperform	¥37.65B	7.75	―	3.59%	6.91%	13.17%
5237	78 Outperform	¥14.29B	10.01	―	3.90%	0.58%	-9.72%
5940	74 Outperform	¥12.10B	16.74	―	2.89%	2.56%	17.52%
7943	66 Neutral	¥108.93B	13.03	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥129.11B	10.42	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.13B	4.98	―	4.13%	2.76%	-10.23%