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

• Market Cap: ¥18.18B
• Dividend Yield: 3.24%
• Average Volume (3M): 385.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -3.73%
• EPS Growth: -143.19%
• Country: JP
• Employees: 1,346
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 5.77
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥329.00 ▲(1.54% Upside)

The overall stock score of 49 reflects significant challenges in financial performance, particularly in profitability and cash flow, which are major concerns. Technical analysis provides a neutral outlook with some bullish momentum, but valuation remains weak due to a negative P/E ratio. The dividend yield offers some support, but overall, the stock faces considerable risks.

Positive Factors

Debt Management

A manageable debt-to-equity ratio indicates prudent financial leverage, which can support long-term financial stability and flexibility.

Equity Base

A strong equity base provides a buffer against financial volatility and supports the company's ability to invest in growth opportunities.

Dividend Yield

A competitive dividend yield can attract income-focused investors, providing a stable shareholder base and supporting stock price stability.

Negative Factors

Profitability Decline

Declining profitability and negative margins indicate operational challenges, which can hinder long-term growth and investor confidence.

Cash Flow Issues

Negative free cash flow suggests cash constraints, potentially limiting the company's ability to invest in growth and meet financial obligations.

Revenue Growth Challenges

A decline in revenue growth reflects market challenges and competitive pressures, which may impact long-term market position and profitability.

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

Company Description

Nippon Concrete Industries Co., Ltd. produces, constructs, and distributes precast concrete products. The company offers concrete and NC poles; single and flange poles for infrastructure, such as power lines, telecommunication lines, mobile phone base stations, and electric railroads, as well as for lifestyle, including sports net poles, disaster radio poles, lighting poles, speaker poles, carp streamer support poles, wind power generation support poles, and drying poles for firefighting hoses; and pole accessories. It also provides piles and precast concrete walls. In addition, the company offers civil engineering products, such as tunnel shield and lining materials, box culverts, earth bracing retaining walls, ground anchors, concrete manholes and hand-holes, concrete walls for railway bridges, ultra-high-strength fiber-reinforced concrete, and precast concrete floor panels and construction materials; and soundproof construction materials. It operates in Japan, Myanmar, Vietnam, Thailand, and Indonesia. Nippon Concrete Industries Co., Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

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: Negative
• Last Price: 324.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 324 is below the 20-day moving average (MA) of 326.35, below the 50-day MA of 327.94, and above the 200-day MA of 320.70, indicating a neutral trend. The MACD of -0.78 indicates Negative momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	80 Outperform	¥54.09B	10.34	―	3.27%	9.50%	77.72%
5268	69 Neutral	¥13.96B	65.41	―	1.32%	-2.82%	-44.93%
5285	67 Neutral	¥19.37B	8.32	―	3.17%	18.19%	27.62%
5287	67 Neutral	¥3.03B	12.30	―	1.97%	-3.03%	-14.50%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5271	54 Neutral	¥3.04B	12.53	―	3.83%	0.29%	-45.50%
5269	49 Neutral	¥18.18B	-141.02	―	3.24%	-3.73%	-143.19%

Nippon Concrete Industries Co., Ltd. Corporate Events

Nippon Concrete Industries Reports Extraordinary Income Amid Sales Shortfall

Nippon Concrete Industries Co., Ltd. announced an extraordinary income from the sale of investment securities as part of its strategy to reduce cross-shareholdings, contributing to a gain of 456,412 thousand yen. Despite this gain, the company reported a shortfall in net sales and operating profit for the six months ended September 30, 2025, due to a lack of large-scale project orders and deferred projects. However, the profit attributable to owners exceeded expectations due to the successful sale of cross-shareholdings. The company maintains its full-year forecast, anticipating the realization of delayed projects in the second half of the fiscal year.

Nippon Concrete Reports Decline in Sales but Boosts Profit

Nippon Concrete Industries Co., Ltd. reported a decline in its consolidated financial results for the six months ended September 30, 2025, with net sales decreasing by 7.1% compared to the previous year. Despite the drop in sales, the company saw a 17.8% increase in profit attributable to owners of the parent, indicating improved efficiency or cost management. The company also announced a reduction in annual dividends per share for the fiscal year ending March 31, 2026, reflecting a cautious approach to shareholder returns amid challenging market conditions.