Nihon Kogyo Co., Ltd. (5279) AI Stock Analysis

• Market Cap: ¥3.76B
• Dividend Yield: 3.08%
• Average Volume (3M): 7.32K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.44
• Revenue Growth: 10.26%
• EPS Growth: 101.39%
• Country: JP
• Employees: 400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 9.65
• Shares Outstanding: 3,064,200
• 10 Day Avg. Volume: 4,040
• 30 Day Avg. Volume: 7,320
• PEG Ratio: 0.19
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 6.60
• 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: ¥1,462.00
• Price Target Upside: 6.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,462.00 ▲(6.56% Upside)

The overall stock score of 72 reflects strong financial performance and attractive valuation, which are offset by weak technical indicators. The company's robust revenue growth and profitability, combined with a low P/E ratio and solid dividend yield, are significant strengths. However, the current bearish technical signals suggest caution in the short term.

Nihon Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Kogyo Co., Ltd. (5279) is a Japan-based company primarily engaged in the manufacturing and sale of various construction materials and products. The company operates in the construction sector, focusing on high-quality and innovative solutions for infrastructure development, including concrete products, road materials, and environmental management systems. Nihon Kogyo is recognized for its commitment to sustainability and efficiency in construction practices, catering to both public and private sector projects.

How the Company Makes Money

Nihon Kogyo Co., Ltd. generates revenue through multiple streams related to its core offerings in construction materials and services. The primary revenue model relies on the sales of construction products, particularly precast concrete components and road construction materials, which are crucial for large-scale infrastructure projects. Additionally, the company may benefit from government contracts and public sector projects that require high-quality materials for urban development and road maintenance. Significant partnerships with construction firms and government agencies also contribute to its earnings by ensuring a steady demand for its products. Furthermore, the company may explore opportunities in environmental technology solutions, providing services and products that promote sustainable construction practices, thereby tapping into the growing market for eco-friendly materials and practices.

Nihon Kogyo Co., Ltd. Financial Statement Overview

Summary

Nihon Kogyo Co., Ltd. shows robust revenue growth and profitability improvements, with stable margins underscoring operational effectiveness. The balance sheet reflects moderate leverage and solid equity, enhancing financial stability. While cash flow generation faces pressure, overall financial health remains strong, supported by positive earnings and manageable debt.

Income Statement

Nihon Kogyo Co., Ltd. demonstrated strong revenue growth of 7.86% from 2024 to 2025. The gross profit margin is consistently healthy at approximately 20.7%, indicating stable operational efficiency. Net profit margin improved to 2.67% in 2025, reflecting better profitability. The EBIT and EBITDA margins are stable at 4.03% and 7.94% respectively, showing consistent earnings performance.

Balance Sheet

The company's debt-to-equity ratio is 0.47, suggesting moderate leverage and manageable financial risk. Return on equity stands at 4.97%, reflecting modest returns for shareholders. An equity ratio of 48.81% indicates a strong equity position, contributing to financial stability.

Cash Flow

Free cash flow decreased by 52.84% from 2024 to 2025, indicating pressure on cash generation. Operating cash flow to net income ratio is 1.69, suggesting strong cash earnings. However, the free cash flow to net income ratio has declined, indicating potential challenges in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.00B	14.75B	13.67B	11.34B	11.77B	12.23B
Gross Profit	3.23B	3.05B	2.76B	2.29B	2.34B	2.42B
EBITDA	1.21B	1.17B	965.69M	735.06M	789.97M	807.66M
Net Income	469.13M	393.68M	295.15M	198.68M	273.18M	327.12M
Balance Sheet
Total Assets	15.45B	16.21B	15.62B	15.21B	13.76B	14.02B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.47B	1.45B	1.44B	1.37B	1.34B
Total Debt	3.38B	3.70B	3.70B	3.95B	3.14B	3.32B
Total Liabilities	7.64B	8.30B	7.96B	7.72B	6.60B	7.00B
Stockholders Equity	7.81B	7.91B	7.66B	7.31B	7.16B	7.02B
Cash Flow
Free Cash Flow	0.00	370.18M	785.04M	-38.93M	431.03M	522.82M
Operating Cash Flow	0.00	665.69M	1.26B	224.92M	678.88M	1.01B
Investing Cash Flow	0.00	-310.71M	-426.83M	-735.68M	-256.84M	-493.08M
Financing Cash Flow	0.00	-342.15M	-816.65M	581.38M	-388.46M	-403.07M

Nihon Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1372.00
• 50DMA: Negative
• 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:5279, the sentiment is Neutral. The current price of 1372 is below the 20-day moving average (MA) of 1384.35, below the 50-day MA of 1381.30, and above the 200-day MA of 1059.55, indicating a neutral trend. The MACD of -25.73 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 40.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5279.

Nihon Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1743	80 Outperform	¥4.16B	7.86	―	1.91%	15.02%	0.96%
5279	72 Outperform	¥3.76B	8.03	―	3.08%	10.26%	101.39%
1841	72 Outperform	¥4.05B	8.28	―	2.63%	-21.00%	-7.27%
1897	71 Outperform	¥6.25B	39.14	―	1.70%	-32.43%	-64.37%
1788	69 Neutral	¥2.78B	11.92	―	2.19%	10.80%	73.13%
1764	66 Neutral	¥3.03B	6.77	―	4.40%	9.69%	175.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%