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

• Market Cap: ¥65.41B
• Dividend Yield: 5.04%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.03
• Revenue Growth: -7.69%
• EPS Growth: -18.05%
• Country: JP
• Employees: 2,079
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 142.42
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥4,747.00 ▲(8.75% Upside)

The overall stock score of 70 reflects a strong valuation with an attractive P/E ratio and high dividend yield, which are significant strengths. Technical analysis supports a positive trend, although financial performance is hindered by declining revenue and cash flow challenges. The absence of earnings call and corporate events data did not impact the score.

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

Company Description

Nippon Yakin Kogyo Co., Ltd. (5480) is a leading Japanese manufacturer specializing in the production and processing of specialty steels and alloys. The company operates primarily in the steel sector, focusing on high-grade materials for various industries, including automotive, construction, and manufacturing. Its core products include stainless steel, nickel-based alloys, and other advanced materials, catering to both domestic and international markets.

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. 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

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: 4365.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4365 is above the 20-day moving average (MA) of 4303.03, above the 50-day MA of 4297.59, and above the 200-day MA of 4000.15, indicating a bullish trend. The MACD of 15.01 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 88.14 is Negative, 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	77 Outperform	$689.32B	5.09	12.39%	5.34%	-0.07%	24.81%
5471	76 Outperform	€269.94B	9.81	6.87%	3.00%	-1.07%	-43.26%
5451	75 Outperform	¥205.93B	14.05	7.32%	5.27%	1.53%	142.11%
5423	73 Outperform	$148.41B	8.95	7.36%	3.62%	-18.72%	-25.23%
5480	70 Outperform	¥65.41B	6.03	―	5.04%	-7.69%	-18.05%
5482	65 Neutral	€167.73B	19.03	4.65%	1.96%	2.65%	97.66%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Yakin Kogyo Co., Ltd. Corporate Events

Nippon Yakin Completes Restricted Stock Disposal

Nippon Yakin Kogyo Co., Ltd. has completed the payment procedures for the disposal of its own shares as restricted stock remuneration. This move involves the allocation of 15,354 common shares to directors and executive officers, signaling a strategic step in aligning management incentives with company performance.

The most recent analyst rating on (JP:5480) stock is a Hold with a Yen4178.00 price target. To see the full list of analyst forecasts on Nippon Yakin Kogyo Co., Ltd. stock, see the JP:5480 Stock Forecast page.

Nippon Yakin Kogyo Reports Decline in Q1 2025 Financial Performance

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

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.