Nippon Yakin Kogyo Co., Ltd. (5480) AI Stock Analysis

• Market Cap: ¥72.05B
• Dividend Yield: 5.15%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.06
• Revenue Growth: -9.28%
• EPS Growth: -7.18%
• Country: JP
• Employees: 2,079
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 118.26
• Shares Outstanding: 15,497,333
• 10 Day Avg. Volume: 65,110
• 30 Day Avg. Volume: 81,296
• PEG Ratio: -0.42
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -235.12
• 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: 71 Outperform
• Price Target: ¥5,276.00 ▲(16.60% Upside)

Nippon Yakin Kogyo Co., Ltd. receives a solid overall stock score driven by its attractive valuation and positive technical indicators. While the company shows strong profitability, challenges with declining revenue and negative cash flow trends are notable risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong profit margins

Sustained gross and net margins indicate durable pricing power and value-added product mix in specialty alloys. Higher margins provide a buffer versus raw material swings, support reinvestment in processing capabilities, and underpin long-term cash generation and shareholder returns.

Balanced leverage and ROE

A moderate debt-to-equity profile with ~12% ROE signals prudent capital structure and acceptable returns on equity. This balance gives financial flexibility to fund capex or weather cycles without excessive refinancing risk, supporting medium-term operational stability.

Specialty steel business model

Focus on stainless and high‑alloy steel plus value‑added processing creates higher technical barriers and customer switching costs. Structural industrial and infrastructure demand for specialty alloys supports more resilient volume and margin profiles over the medium term.

Negative Factors

Declining revenue trend

A sustained ~9% revenue decline signals weakening top-line scale or demand loss. Continued contraction can erode customer reach, reduce fixed‑cost absorption, pressure margins and limit ability to fund strategic investments, challenging medium‑term growth prospects.

Negative free cash flow trends

Persistent negative or unstable free cash flow reduces internal funding for capex, dividends and working capital. Over time this raises dependency on external financing, increasing vulnerability to rate cycles and constraining investments that support long‑term competitiveness.

Elevated total debt risk

Despite moderate D/E, the report flags a high absolute debt level which can amplify interest and refinancing exposure in downturns. In a cyclical steel market, elevated debt reduces strategic flexibility and increases downside risk to cash flow and credit metrics.

Nippon Yakin Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Yakin Kogyo Co., Ltd. manufactures and sells stainless steel products in Japan and internationally. The company offers corrosion resistant alloys, heat resistant alloys, high strength stainless steels, controlled expansion alloys, soft magnetic alloys, non-magnetic alloys, corrosion resistant pure nickel, and neutron absorbing stainless steel, as well as stainless steel floor plates. Its products have applications in precision electronics, green technologies, marine structures, automotive, precision astronomical instruments, manufacturing and processing plants, and high temperature environments, as well as in the energy and food industry. The company was formerly known as Nippon Kako Co., Ltd. and changed its name to Nippon Yakin Kogyo Co., Ltd. in 1942. Nippon Yakin Kogyo Co., Ltd. was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Yakin Kogyo Co., Ltd. generates revenue through the sale of its specialty steel products, which are tailored to meet the specific needs of various industrial applications. The company has established key revenue streams through direct sales to manufacturers in sectors such as automotive, aerospace, and machinery. Additionally, Nippon Yakin Kogyo benefits from long-term contracts with significant industrial clients, ensuring stable income. The company's focus on research and development allows it to innovate and create high-performance materials, which can command premium pricing. Strategic partnerships with other firms in the supply chain and collaborations on large-scale projects further contribute to its earnings, enhancing its market position and enabling access to new opportunities.

Nippon Yakin Kogyo Co., Ltd. Financial Statement Overview

Summary

Nippon Yakin Kogyo Co., Ltd. demonstrates solid profitability metrics with strong gross and net profit margins. However, the company faces challenges with declining revenue and negative free cash flow growth. The balance sheet is stable with moderate leverage, but the negative cash flow trends pose risks to future financial performance.

Income Statement

Nippon Yakin Kogyo Co., Ltd. displays strong gross and net profit margins, with a noticeable decline in revenue over recent years. The gross profit margin in 2025 is approximately 17.8%, while the net profit margin is about 6.7%. The EBIT and EBITDA margins also indicate profitability, standing at 9.9% and 13.2% respectively. However, the revenue growth rate has been negative, signaling potential challenges in sustaining growth.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.82, indicating a balanced leverage profile. Return on equity (ROE) is approximately 12.0%, showing decent profitability relative to shareholder equity. The equity ratio of 44.3% suggests a stable capital structure, although the high level of total debt remains a potential risk for financial stability.

Cash Flow

Cash flow analysis reveals challenges, with unstable free cash flow trends. The free cash flow growth has been negative in the latest period, indicating issues in generating positive cash after capital expenditures. The operating cash flow to net income ratio is 0.95, reflecting efficient cash generation relative to net income, but the negative free cash flow to net income ratio highlights cash management concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	164.70B	172.10B	180.34B	199.32B	148.93B	112.48B
Gross Profit	29.17B	30.64B	33.36B	41.95B	25.91B	17.05B
EBITDA	20.46B	22.65B	25.40B	33.59B	11.90B	9.29B
Net Income	9.98B	11.58B	13.56B	19.70B	8.47B	3.76B
Balance Sheet
Total Assets	215.87B	217.46B	219.99B	222.29B	187.49B	161.23B
Cash, Cash Equivalents and Short-Term Investments	9.49B	9.52B	17.03B	11.91B	12.65B	13.94B
Total Debt	76.32B	78.77B	82.02B	90.28B	77.27B	63.39B
Total Liabilities	119.53B	120.86B	130.25B	142.68B	125.32B	106.10B
Stockholders Equity	96.16B	96.41B	89.49B	79.61B	62.16B	55.12B
Cash Flow
Free Cash Flow	0.00	-250.00M	18.76B	-9.48B	-16.73B	4.53B
Operating Cash Flow	0.00	11.04B	26.82B	3.65B	-697.00M	11.18B
Investing Cash Flow	0.00	-11.39B	-7.92B	-13.04B	-15.66B	-6.78B
Financing Cash Flow	0.00	-7.39B	-14.32B	8.53B	15.05B	-8.00B

Nippon Yakin Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4525.00
• 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:5480, the sentiment is Positive. The current price of 4525 is below the 20-day moving average (MA) of 4822.50, below the 50-day MA of 4553.60, and above the 200-day MA of 4187.17, indicating a neutral trend. The MACD of 65.53 indicates Positive momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5480.

Nippon Yakin Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5406	80 Outperform	¥875.27B	6.94	10.78%	4.68%	-1.97%	47.63%
5471	74 Outperform	¥408.57B	14.95	6.84%	2.99%	-0.02%	-40.45%
5451	74 Outperform	¥218.90B	14.73	6.87%	5.25%	-1.43%	171.44%
5423	73 Outperform	¥164.90B	11.35	7.36%	3.42%	-18.72%	-25.26%
5482	72 Outperform	¥197.18B	19.15	5.06%	1.80%	4.10%	152.90%
5480	71 Outperform	¥72.05B	7.12	―	5.15%	-9.28%	-7.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%