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

• Market Cap: ¥57.71B
• Dividend Yield: 1.04%
• Average Volume (3M): 86.78K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.06
• Revenue Growth: -4.57%
• EPS Growth: -12.16%
• Country: JP
• Employees: 2,079
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 176.47
• Shares Outstanding: 15,497,333
• 10 Day Avg. Volume: 81,130
• 30 Day Avg. Volume: 86,780
• PEG Ratio: 0.02
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.71
• 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

• Rating: 64 Neutral
• Price Target: ¥4,178.00 ▲(6.99%Upside)

Nippon Yakin Kogyo Co., Ltd. is rated moderately with a score of 64, driven primarily by a favorable valuation with a low P/E ratio indicating potential undervaluation. However, the financial performance is challenged by declining revenues and cash flow issues, paired with bearish technical indicators suggesting weak market momentum. The absence of significant earnings call insights or corporate events leaves the focus on these core components.

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

Company Description

Nippon Yakin Kogyo Co., Ltd. is a Japanese company primarily engaged in the production and sale of specialty stainless steel products. The company operates in the materials sector, focusing on the development, manufacture, and marketing of high-performance stainless steel and metal materials. Its core products include nickel-based alloys, high-performance alloys, and precision-rolled stainless steel strips, which are widely used in various industries such as aerospace, electronics, and energy.

How the Company Makes Money

Nippon Yakin Kogyo Co., Ltd. generates revenue through the production and sale of its high-performance stainless steel and nickel-based alloy products. The company serves a diverse range of industries including aerospace, electronics, chemical processing, and energy, providing materials that meet specific demands for durability, heat resistance, and corrosion resistance. Key revenue streams include direct sales to manufacturers and industrial clients, as well as distribution through partnerships and networks. The company's ability to produce specialized alloys tailored to client specifications allows it to maintain competitive pricing and secure long-term contracts, which significantly contribute to its earnings.

Nippon Yakin Kogyo Co., Ltd. Financial Statement Overview

Summary

Nippon Yakin Kogyo Co., Ltd. shows solid profitability margins but faces challenges with negative revenue growth and cash flow volatility. The balance sheet indicates moderate leverage with a stable capital structure, yet declining revenue and negative free cash flow growth pose risks.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
173.92B	172.10B	180.34B	199.32B	148.93B	112.48B
	Gross Profit
31.08B	30.64B	33.36B	41.95B	25.91B	17.05B
	EBIT
17.31B	16.96B	20.01B	29.26B	13.97B	6.14B
	EBITDA
20.93B	22.65B	25.40B	33.59B	11.90B	9.29B
	Net Income Common Stockholders
11.85B	11.58B	13.56B	19.70B	8.47B	3.76B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.82B	9.52B	17.03B	11.91B	12.65B	13.94B
	Total Assets
222.62B	217.46B	219.99B	222.29B	187.49B	161.23B
	Total Debt
79.83B	78.77B	82.02B	90.28B	77.27B	63.39B
	Net Debt
69.01B	69.26B	64.99B	78.37B	64.62B	49.45B
	Total Liabilities
128.43B	120.86B	130.25B	142.68B	125.32B	106.10B
	Stockholders Equity
94.02B	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: Negative
• Last Price: 3905.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 3905 is above the 20-day moving average (MA) of 3875.50, above the 50-day MA of 3898.50, and below the 200-day MA of 4024.55, indicating a bearish trend. The MACD of -18.27 indicates Negative momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 37.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	$627.06B	5.22	10.71%	6.91%	0.47%	9.83%
5451	73 Outperform	$160.94B	11.93	6.92%	8.37%	2.21%	202.58%
5423	73 Outperform	$161.84B	7.49	10.08%	3.37%	-11.02%	-21.84%
5471	68 Neutral	€218.05B	7.49	6.56%	4.76%	-1.09%	-42.36%
5482	66 Neutral	€153.37B	20.35	3.23%	2.09%	0.93%	19.15%
5480	64 Neutral	¥57.71B	4.67		1.04%	-4.57%	-12.16%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

Nippon Yakin Kogyo Co., Ltd. Corporate Events

Nippon Yakin Kogyo Advances Share Buyback Program

Nippon Yakin Kogyo Co., Ltd. announced the progress of its share buyback program, acquiring 122,300 common shares at a total cost of ¥476,529,000 through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader plan approved by the Board of Directors to buy back up to 306,000 shares, representing 2.17% of the company’s issued shares, with a maximum budget of ¥950,000,000. The buyback is expected to enhance shareholder value and optimize the company’s capital structure.

Nippon Yakin Kogyo Proposes Amendments to Enhance Governance

Nippon Yakin Kogyo Co., Ltd. announced a proposal to amend its Articles of Incorporation to transition to a company with an Audit & Supervisory Committee, enhancing its governance structure. This move is expected to streamline decision-making processes and allow non-executive directors to better fulfill their roles, potentially impacting the company’s operational efficiency and stakeholder confidence.

Nippon Yakin Kogyo Revises Financial Results for FY 2025

Nippon Yakin Kogyo Co., Ltd. announced corrections to its Consolidated Financial Results for the fiscal year ended March 31, 2025, due to errors discovered post-release. These revisions, which include numerical data adjustments, are crucial for maintaining accurate financial reporting and could impact stakeholders’ understanding of the company’s financial health.

Nippon Yakin Kogyo Announces Share Buyback Plan to Boost Shareholder Value

Nippon Yakin Kogyo Co., Ltd. announced its decision to acquire up to 306,000 of its own shares, representing 2.17% of its total issued shares, as part of a strategy to enhance shareholder returns and improve capital efficiency. This move, with a maximum acquisition cost of ¥950,000,000, is set to take place between May 9 and June 23, 2025, and reflects the company’s commitment to optimizing its capital structure and providing value to its stakeholders.

Nippon Yakin Reports Decline in FY2025 Financial Results

Nippon Yakin Kogyo Co., Ltd. reported a decline in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales and profits decreasing compared to the previous year. Despite the downturn, the company increased its annual dividend payout, reflecting a commitment to shareholder returns. The forecast for the next fiscal year anticipates further declines in sales and profits, indicating ongoing challenges in the market.