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

• Market Cap: ¥74.01B
• Dividend Yield: 5.15%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.04
• Revenue Growth: -9.28%
• EPS Growth: -7.18%
• Country: JP
• Employees: 2,079
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 134.13
• 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): 723
• Revenue Forecast (FY): ¥158.70B

• Rating: 71 Outperform
• Price Target: ¥5,420.00 ▲(19.78% Upside)
• Action: Upgraded Date: 10/31/25
• Date: Action: Upgraded 10/31/25

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

Profitability / Margins

Consistently healthy gross and net margins in 2025 reflect pricing power and product mix strength in specialty and high‑alloy steels. Durable margins help the company withstand cyclical raw‑material swings, support reinvestment in value‑added processing, and preserve operating profitability over time.

Balance sheet stability

A moderate leverage profile and a roughly 44% equity ratio imply a stable capital structure with manageable debt burdens. Combined with mid‑teens ROE, this provides financial flexibility to fund capex and cyclical weakness without immediate refinancing stress, supporting long‑term operational continuity.

Operating cash generation

An operating cash flow to net income ratio near 1.0 indicates earnings translate into cash efficiently, demonstrating underlying cash quality in core operations. This durability supports ongoing working capital needs and operational investment even if free cash flow is currently pressured.

Negative Factors

Declining revenue

A material year‑over‑year revenue decline signals weakening demand, lost volumes, or adverse pricing in core markets. For a specialty steel maker, prolonged top‑line contraction reduces scale benefits, pressures fixed‑cost absorption, and can erode long‑term margin sustainability if not reversed.

Negative free cash flow trends

Persistent negative free cash flow growth undermines the company’s ability to fund capital expenditures, pay dividends, or reduce debt organically. Over several quarters, this constrains strategic investments and increases reliance on external financing, raising longer‑term financial flexibility risk.

Earnings pressure / EPS decline

A sharp decline in EPS indicates earnings stress from lower volumes, margin compression, or one‑off impacts. If EPS contraction persists it can reduce retained earnings available for reinvestment and weaken returns to shareholders, limiting the firm's ability to execute long‑term growth initiatives.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• 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 Neutral. The current price of 4525 is below the 20-day moving average (MA) of 4986.25, below the 50-day MA of 4855.60, and above the 200-day MA of 4324.61, indicating a neutral trend. The MACD of 44.65 indicates Positive momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥823.18B	9.48	10.78%	4.68%	-1.97%	47.63%
5463	74 Outperform	¥356.77B	12.83	―	3.26%	-7.77%	58.84%
5471	74 Outperform	¥429.67B	9.05	6.84%	2.99%	-0.02%	-40.45%
5480	71 Outperform	¥74.01B	8.43	―	5.15%	-9.28%	-7.18%
5440	70 Outperform	¥106.87B	10.61	―	3.70%	-3.06%	1.15%
5482	67 Neutral	¥201.67B	11.58	5.06%	1.80%	4.10%	152.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Yakin Kogyo Co., Ltd. Corporate Events

Nippon Yakin Kogyo Posts Lower Nine-Month Profits but Maintains Dividend Outlook

Nippon Yakin Kogyo reported a sharp year-on-year decline in earnings for the nine months ended December 31, 2025, with net sales down 14.8% to ¥111.9 billion and profit attributable to owners of the parent falling 39.7% to ¥5.5 billion, reflecting weaker market conditions and compressed profitability. Despite the earnings deterioration, the company’s financial position remained relatively solid, with total assets edging up to ¥220.4 billion and the equity ratio improving slightly to 44.9%, and it maintained its plan to pay a total annual dividend of ¥220 per share for the fiscal year ending March 31, 2026, while forecasting full-year profit to decline by roughly 40%, signaling a challenging operating environment but an ongoing commitment to shareholder returns.

The most recent analyst rating on (JP:5480) stock is a Buy with a Yen5359.00 price target. To see the full list of analyst forecasts on Nippon Yakin Kogyo Co., Ltd. stock, see the JP:5480 Stock Forecast page.