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Nippon Yakin Kogyo Co., Ltd. (JP:5480)
:5480
Japanese Market
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Nippon Yakin Kogyo Co., Ltd. (5480) AI Stock Analysis

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JP:5480

Nippon Yakin Kogyo Co., Ltd.

(5480)

Rating:64Neutral
Price Target:
¥4,178.00
▼(-5.58% Downside)
The stock's overall score reflects strong valuation metrics as a key strength, counterbalanced by financial performance challenges, particularly in revenue growth and cash flow. Technical analysis points to uncertain momentum, affecting the stock's short-term outlook.
Positive Factors
Business Model Strength
The company's focus on high-performance materials for critical industries like aerospace and energy ensures a steady demand, bolstering its business model.
Profitability
Strong profit margins indicate efficient operations and pricing power, which can sustain profitability even amid revenue challenges.
Balance Sheet Health
A moderate debt-to-equity ratio suggests financial stability, providing the company with flexibility to manage economic fluctuations.
Negative Factors
Revenue Decline
Declining revenue growth may indicate market share loss or reduced demand, posing risks to long-term business expansion.
Cash Flow Challenges
Negative free cash flow growth highlights difficulties in generating surplus cash, potentially limiting reinvestment and growth opportunities.
Leverage Risk
High debt levels can increase financial risk, especially if revenue continues to decline, affecting the company's ability to service debt.

Nippon Yakin Kogyo Co., Ltd. (5480) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNippon Yakin Kogyo Co., Ltd. (5480) is a leading Japanese manufacturer specializing in the production of high-performance stainless steel and high-nickel alloy products. The company operates in the steel industry and is known for its innovative materials that are utilized across various sectors, including the chemical, energy, and aerospace industries. Nippon Yakin Kogyo is committed to delivering advanced metallurgical solutions that meet the sophisticated demands of its global clientele.
How the Company Makes MoneyNippon Yakin Kogyo Co., Ltd. generates revenue primarily through the manufacturing and sale of specialty stainless steel and high-nickel alloy products. The company's key revenue streams include the sale of these materials to industries such as chemical processing, aerospace, and energy, where high-performance and corrosion-resistant materials are essential. Additionally, Nippon Yakin Kogyo engages in research and development to innovate and improve its product offerings, ensuring a competitive edge in the market. Strategic partnerships with industrial clients and joint ventures may also contribute to its financial performance, enhancing its market reach and customer base.

Nippon Yakin Kogyo Co., Ltd. Financial Statement Overview

Summary
Nippon Yakin Kogyo Co., Ltd. displays strong profitability with good margins, but faces revenue decline and cash flow challenges. The balance sheet is stable but leverage and negative free cash flow growth are risks.
Income Statement
70
Positive
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
65
Positive
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue172.10B172.10B180.34B199.32B148.93B112.48B
Gross Profit30.64B30.64B33.36B41.95B25.91B17.05B
EBITDA21.94B22.65B25.40B33.59B11.90B9.29B
Net Income11.58B11.58B13.56B19.70B8.47B3.76B
Balance Sheet
Total Assets217.46B217.46B219.99B222.29B187.49B161.23B
Cash, Cash Equivalents and Short-Term Investments9.52B9.52B17.03B11.91B12.65B13.94B
Total Debt78.77B78.77B82.02B90.28B77.27B63.39B
Total Liabilities120.86B120.86B130.25B142.68B125.32B106.10B
Stockholders Equity96.41B96.41B89.49B79.61B62.16B55.12B
Cash Flow
Free Cash Flow0.00-250.00M18.76B-9.48B-16.73B4.53B
Operating Cash Flow0.0011.04B26.82B3.65B-697.00M11.18B
Investing Cash Flow0.00-11.39B-7.92B-13.04B-15.66B-6.78B
Financing Cash Flow0.00-7.39B-14.32B8.53B15.05B-8.00B

Nippon Yakin Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4425.00
Price Trends
50DMA
4263.80
Positive
100DMA
4089.00
Positive
200DMA
4016.39
Positive
Market Momentum
MACD
66.84
Positive
RSI
58.81
Neutral
STOCH
53.95
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 4425 is above the 20-day moving average (MA) of 4412.00, above the 50-day MA of 4263.80, and above the 200-day MA of 4016.39, indicating a bullish trend. The MACD of 66.84 indicates Positive momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 53.95 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
¥67.14B6.30
4.49%-7.69%-18.05%
61
Neutral
$10.48B7.52-0.05%2.87%2.87%-36.73%
€1.54B9.076.87%
$4.93B5.8112.39%5.07%
$1.19B8.628.92%
$1.49B15.127.32%8.25%
€1.06B19.724.65%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5480
Nippon Yakin Kogyo Co., Ltd.
4,425.00
239.19
5.71%
DE:DDL
Daido Steel Co
7.40
-0.95
-11.38%
KBSTF
Kobe Steel
13.31
1.57
13.37%
TOKSF
Tokyo Steel Manufacturing Co
9.98
-3.70
-27.05%
YDWAF
Yodogawa Steel Works
9.48
2.22
30.58%
DE:8T2
Aichi Steel Corporation
16.60
11.51
226.13%

Nippon Yakin Kogyo Co., Ltd. Corporate Events

Nippon Yakin Kogyo Reports Decline in Q1 2025 Financial Performance
Aug 5, 2025

Nippon Yakin Kogyo Co., Ltd. reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 15.9% and profit attributable to owners decreasing by 44.6% compared to the previous year. Despite the downturn, the company maintains its dividend forecast for the fiscal year ending March 31, 2026, indicating a stable outlook for shareholders.

Nippon Yakin Kogyo Announces Share Disposal for Executive Compensation
Jul 25, 2025

Nippon Yakin Kogyo Co., Ltd. announced the disposal of its own shares as restricted stock remuneration to align the interests of its directors and executive officers with shareholders, enhancing corporate value. This move is part of a strategic shift to a new compensation plan aimed at fostering long-term value sharing and corporate growth.

Nippon Yakin Kogyo Updates Special Committee for Share Purchase Policy
Jun 26, 2025

Nippon Yakin Kogyo Co., Ltd. has announced a partial change to its Special Committee members, appointing Nobuyoshi Okada as a new member. This move is part of the company’s ongoing policy to ensure fair and reasonable decision-making in response to large-scale purchases of its shares, aiming to strengthen its governance and protect shareholder interests.

Nippon Yakin Completes Share Buyback Program
Jun 25, 2025

Nippon Yakin Kogyo Co., Ltd. has completed the acquisition of its own shares, purchasing 122,200 common shares for ¥473,175,500 through market transactions on the Tokyo Stock Exchange. This acquisition is part of a broader resolution by the Board of Directors to acquire up to 306,000 shares, enhancing the company’s capital efficiency and potentially increasing shareholder value.

Nippon Yakin Kogyo Advances Share Buyback Program
Jun 6, 2025

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
May 22, 2025

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
May 15, 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
May 8, 2025

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
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025