Nippon Concrete Industries Co., Ltd. (5269) AI Stock Analysis

• Market Cap: ¥18.46B
• Dividend Yield: 3.13%
• Average Volume (3M): 385.43K
• Price to Earnings (P/E): 98.2
• Beta (1Y): 0.87
• Revenue Growth: -6.24%
• EPS Growth: -146.29%
• Country: JP
• Employees: 1,346
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 4.68
• Shares Outstanding: 57,777,430
• 10 Day Avg. Volume: 192,990
• 30 Day Avg. Volume: 385,433
• PEG Ratio: 0.66
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -7.08
• 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: ¥327.00
• Price Target Upside: -2.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ¥327.00 ▼(-2.39% Downside)

Nippon Concrete Industries faces significant financial challenges, with declining profitability and negative cash flow being the most impactful factors. Technical analysis suggests a neutral trend with potential for upward movement, but valuation remains poor due to negative earnings. The attractive dividend yield offers some investor appeal, but overall, the stock is under pressure due to financial instability.

Nippon Concrete Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Concrete Industries Co., Ltd. (5269) is a leading Japanese company specializing in the production and supply of concrete products and materials for construction and infrastructure projects. The company operates primarily in the construction sector, offering a wide range of products including precast concrete components, ready-mixed concrete, and other related construction materials. With a strong focus on innovation and sustainability, Nippon Concrete Industries is committed to enhancing the efficiency and durability of construction projects across Japan and internationally.

How the Company Makes Money

Nippon Concrete Industries generates revenue through several key streams, primarily from the sale of its concrete products such as precast components and ready-mixed concrete. The company serves various sectors including residential, commercial, and civil engineering projects. Additionally, it may have revenue from providing construction services and technical consulting related to its products. Significant partnerships with construction firms and government contracts for infrastructure projects play a crucial role in securing steady income. The company's focus on innovation allows it to develop specialized products that meet evolving market demands, contributing to its earnings.

Nippon Concrete Industries Co., Ltd. Financial Statement Overview

Summary

Nippon Concrete Industries is facing challenges in profitability and cash generation. The income statement reveals declining revenue and profitability, which is concerning for future growth prospects. The balance sheet remains relatively stable with a strong equity base but is undermined by poor ROE. Cash flow issues are significant, with negative free cash flow indicating potential liquidity concerns.

Income Statement

Nippon Concrete Industries shows a declining trend in profitability with a negative net profit margin of -0.4% in the latest year due to a significant drop in net income. Revenue decreased by approximately 1.9% from the previous year, indicating challenges in growth. The gross profit margin is stable but there is a notable decline in EBIT and EBITDA margins, reflecting increased operational challenges.

Balance Sheet

The company's debt-to-equity ratio is manageable at approximately 0.35, suggesting reasonable leverage. However, the return on equity is negative due to losses, which is a concern. The equity ratio remains strong at 47.9%, indicating a solid equity base, but the overall financial health is affected by declining profitability.

Cash Flow

The company experienced a negative free cash flow in the latest year, reflecting cash constraints. The operating cash flow to net income ratio is unfavorable due to negative operating cash flows, suggesting issues in cash generation relative to profit. This poses a risk to financial stability if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.60B	52.65B	53.65B	52.99B	47.38B	48.88B
Gross Profit	8.29B	8.66B	8.88B	6.44B	7.80B	8.55B
EBITDA	2.47B	2.62B	4.24B	2.14B	3.94B	4.95B
Net Income	-270.98M	-209.75M	614.27M	-439.20M	876.34M	1.87B
Balance Sheet
Total Assets	78.37B	77.28B	82.00B	77.06B	75.00B	74.83B
Cash, Cash Equivalents and Short-Term Investments	8.77B	7.15B	11.12B	7.14B	8.60B	8.80B
Total Debt	14.12B	12.82B	13.02B	13.05B	12.87B	11.07B
Total Liabilities	37.56B	37.30B	41.60B	39.40B	36.33B	35.44B
Stockholders Equity	37.84B	36.98B	37.51B	34.95B	36.05B	37.54B
Cash Flow
Free Cash Flow	-553.04M	-2.62B	4.21B	-1.12B	1.09B	2.92B
Operating Cash Flow	3.43M	-297.31M	5.84B	432.38M	2.88B	4.24B
Investing Cash Flow	-614.78M	-2.66B	-1.35B	-1.43B	-3.59B	-1.53B
Financing Cash Flow	-734.92M	-1.13B	-511.75M	-447.39M	532.71M	966.17M

Nippon Concrete Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 335.00
• 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:5269, the sentiment is Positive. The current price of 335 is above the 20-day moving average (MA) of 333.98, above the 50-day MA of 327.59, and above the 200-day MA of 326.49, indicating a neutral trend. The MACD of -1.60 indicates Positive momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 70.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5269.

Nippon Concrete Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	81 Outperform	¥45.71B	11.54	―	3.88%	7.10%	35.43%
5287	78 Outperform	¥4.07B	10.48	―	1.62%	5.06%	245.18%
5285	70 Outperform	¥21.00B	9.39	―	2.82%	15.39%	27.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5268	60 Neutral	¥11.53B	31.69	―	1.60%	-0.66%	-11.08%
5271	54 Neutral	¥2.97B	12.03	―	3.99%	0.29%	-45.50%
5269	48 Neutral	¥18.46B	98.19	―	3.13%	-6.24%	-146.29%

Nippon Concrete Industries Co., Ltd. Corporate Events

Nippon Concrete Industries Continues Takeover Defense Strategy

Nippon Concrete Industries Co., Ltd. announced the continuation of its countermeasures against large-scale acquisition of its shares, a policy approved at the 94th Annual General Meeting of Shareholders. This move aims to enhance corporate value and protect shareholder interests, reinforcing the company’s strategic positioning in the market.

Nippon Concrete Industries Extends Takeover Defense Measures

Nippon Concrete Industries Co., Ltd. has decided to continue its takeover defense measures, initially approved in 2022, to protect its corporate value and shareholder interests. The company emphasizes that any large-scale acquisition should align with its long-term corporate value and shareholder interests, and has made adjustments to the plan to reflect recent legal precedents and practices.

Nippon Concrete Industries Maintains Stable Dividend Amid Temporary Loss

Nippon Concrete Industries announced a year-end dividend of ¥6.50 per share for the fiscal year ended March 31, 2025, maintaining the same dividend as the previous year. Despite a recorded loss attributed to temporary factors, the company aims for a total annual dividend of ¥13.00 per share, reflecting its commitment to stable shareholder returns while considering future business development and financial soundness.

Nippon Concrete Industries Faces Profit Decline, Eyes Recovery

Nippon Concrete Industries reported a challenging fiscal year ending March 31, 2025, with a decline in net sales by 1.9% and a significant drop in operating profit by 45.2%. Despite these setbacks, the company maintains a stable dividend payout and forecasts a modest recovery in the upcoming fiscal year, aiming for a 4.5% increase in net sales and an 11.1% rise in operating profit.

Nippon Concrete Industries Reports Impairment Losses and Financial Forecast Variances

Nippon Concrete Industries Co., Ltd. announced an extraordinary impairment loss of 700 million yen for the fiscal year ending March 31, 2025, due to insufficient recovery in the profitability of its Civil Engineering Product Business segment. This loss, along with reduced production from subsidiaries due to project delays, led to a significant variance from the company’s financial forecasts, resulting in a net loss. Despite this, the company will distribute a year-end dividend, considering the temporary nature of some losses and future business prospects.

Nippon Concrete Industries Reports Decline in Annual Financial Performance

Nippon Concrete Industries reported a decrease in net sales and profits for the fiscal year ending March 31, 2025, with net sales dropping by 1.9% and operating profit falling by 45.2%. The company also experienced a significant decline in comprehensive income, reflecting challenges in its financial performance. Despite these setbacks, the company plans to maintain its dividend payments and has outlined a modest growth forecast for the next fiscal year.