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

• Market Cap: ¥72.65B
• Dividend Yield: 5.15%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.03
• 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: ¥5,321.00 ▲(17.59% 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

Sustained mid-to-high operating and gross margins indicate the company extracts solid value from its manufacturing and processing mix. Durable margins from specialty alloys and value-added processing support reinvestment capacity and resilience through industry cycles, aiding long-term profitability.

Balanced capital structure

Moderate leverage and a near-45% equity ratio point to a balanced capital structure that supports strategic investment without excess financial strain. ROE around 12% shows competent capital use, providing flexibility for capex or restructuring over the coming 2-6 months and beyond.

Specialty product focus

A focused product mix in stainless and high-alloy steels plus value-added processing creates higher entry barriers and customer stickiness. Structural demand from industrial and infrastructure sectors supports steady baseline demand and pricing power versus commodity-grade producers.

Negative Factors

Declining revenue and earnings

Meaningful top-line and EPS contraction signal weaker demand or market share loss. Over time shrinking revenue reduces operating leverage, constrains margin sustainability, and limits the ability to fund capex or dividends without relying on external financing or margin expansion.

Negative free cash flow trends

Persistent negative or unstable free cash flow undermines internal funding for maintenance capex and strategic investments. Even with decent operating cash conversion vs. net income, negative FCF forces dependence on debt or equity, raising long-term funding and operational risk.

Cyclical exposure and mix sensitivity

Revenue and margins are materially sensitive to shipment volumes, product mix, and commodity/energy spreads. This structural cyclicality makes cash flow and profitability volatile across cycles, complicating long-term planning and increasing execution risk for durable growth.

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

The company primarily makes money by manufacturing and selling specialty steel products, with revenue largely driven by (1) sales of stainless steel and other high-alloy steel materials and (2) value-added processing and product forms (e.g., producing specific dimensions, finishes, or semi-fabricated forms) sold to industrial customers and distributors. Earnings are influenced by shipment volumes, product mix (higher-margin specialty alloys versus more standard grades), and the spread between selling prices and input/production costs (including raw materials and energy). Information on specific customer concentration, major named partnerships, or a quantified segment revenue breakdown is null.

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	29.18B	30.64B	33.35B	41.84B	25.69B	16.99B
EBITDA	21.38B	22.80B	25.61B	34.28B	18.09B	10.12B
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	79.44B	82.02B	90.08B	75.84B	64.47B
Total Liabilities	119.53B	120.86B	130.25B	142.67B	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: Negative
• 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 4947.00, below the 50-day MA of 4899.80, and above the 200-day MA of 4370.99, indicating a neutral trend. The MACD of -22.79 indicates Positive momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.97 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	¥788.59B	9.48	10.78%	4.68%	-1.97%	47.63%
5463	74 Outperform	¥343.57B	12.83	―	3.26%	-7.77%	58.84%
5471	74 Outperform	¥403.22B	9.05	6.16%	2.99%	-0.02%	-40.45%
5480	71 Outperform	¥72.65B	8.43	―	5.15%	-9.28%	-7.18%
5440	70 Outperform	¥102.48B	10.61	―	3.70%	-3.06%	1.15%
5482	67 Neutral	¥191.74B	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 Announces Organizational Restructuring and Leadership Changes

Nippon Yakin Kogyo Co., Ltd. will implement an organizational restructuring on April 1, 2026, renaming its Material Solutions Sales Department as the Solutions & Marketing Department and establishing a Logistics Operations Department at its Kawasaki Plant. The moves suggest a push to strengthen market-oriented solutions, branding, and supply-chain efficiency around its core materials business.

The company has proposed a slate of directors for approval at the June 25, 2026 shareholders’ meeting, largely maintaining its current top management, while adding a substitute outside director who will serve as an Audit & Supervisory Committee member if needed. It also announced the planned departure of Director Hisashi Kubota, who will become an advisor, and reassignments among executive officers, indicating a controlled leadership transition aligned with its evolving operational structure.

Effective April 1, 2026, General Manager of Human Resources Takahiro Araki and Kawasaki Plant Production Department head Taku Aoyama will be promoted to executive officers. Executive Officer and Tokyo Branch Manager Hiroki Takahashi will step down from his executive role on March 31, 2026, and later become Managing Director of NAS STAINLESS STEEL STRIP MFG. CO., LTD., highlighting ongoing personnel rotation within the broader corporate group.

The most recent analyst rating on (JP:5480) stock is a Buy with a Yen5216.00 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 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.