Nippon Kinzoku Co., Ltd. (5491) AI Stock Analysis

• Market Cap: ¥7.24B
• Dividend Yield: N/A
• Average Volume (3M): 29.11K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.85
• Revenue Growth: -5.93%
• EPS Growth: -36.01%
• Country: JP
• Employees: 855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 19.37
• Shares Outstanding: 6,700,000
• 10 Day Avg. Volume: 23,860
• 30 Day Avg. Volume: 29,110
• PEG Ratio: -0.11
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 44.07
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,211.00 ▲(36.68% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by strong technical strength (price above key moving averages with positive MACD) and an attractive low P/E valuation, partly offset by mixed financial performance marked by fluctuating profitability and uneven cash flow generation despite a stable balance sheet.

Positive Factors

Stable balance sheet

A stable capital structure with moderate leverage and a solid equity ratio provides durable financial flexibility. This supports investment in equipment and product development, cushions cyclical steel downturns, and preserves access to credit for strategic initiatives over the next several quarters.

Niche specialty-steel business

Focusing on high-value stainless and specialty steels creates durable differentiation versus commodity producers. Supplying corrosion- and heat-resistant components to industrial customers builds sticky relationships, higher technical barriers to entry, and steadier structural demand from manufacturing end-markets.

Improving operational margins

Evidence of margin recovery and improved operational efficiency indicates management has room to sustainably raise profitability. If cost controls and higher-value product mixes persist, improved EBITDA margins translate into stronger cash generation and reinvestment capacity over the medium term.

Negative Factors

Negative revenue trend

Trailing revenue contraction highlights demand volatility in steel-related end markets and exposes the business to cyclical weakness. Sustained top-line pressure would limit margin recovery, constrain reinvestment, and make earnings less predictable over the next several quarters.

Unstable cash generation

Variable operating cash flow and fluctuating free cash flow signal inconsistent internal funding for capex, working capital, or deleveraging. Persistent cash variability can restrict strategic flexibility, reduce ability to pursue growth projects, and increase reliance on external financing.

Earnings volatility & negative EBIT

Periodic negative EBIT and erratic net margins point to sensitivity to input costs and pricing cycles. Earnings volatility undermines forecasting, capital allocation discipline, and investor confidence, raising execution risk for sustaining long-term margin improvements.

Nippon Kinzoku Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Kinzoku Co., Ltd. manufactures and sells stainless steel precision rolling/processing products in Japan and internationally. It offers steel foils, such as cold-rolled stainless and special steel strips; processed products, including precision profile rolled steel products, precision pipes, and stainless steel sections/roll forming products; grain and non-grain oriented electrical steel foils, wound iron cores/reactors, etc.; and magnesium alloy foils and foil silicon steel products. The company was founded in 1930 and is headquartered in Tokyo, Japan

How the Company Makes Money

Nippon Kinzoku Co., Ltd. generates revenue primarily through the sale of non-ferrous metal products, particularly copper and its alloys, which are essential in various industries such as electronics, automotive, and construction. The company benefits from multiple revenue streams, including direct sales to manufacturers, long-term contracts with key industry players, and customized solutions for specialized applications. Significant partnerships with major corporations in the electronics and automotive sectors enhance their market position and drive sales growth. Additionally, Nippon Kinzoku focuses on innovative product development and sustainable practices, which not only attract environmentally conscious clients but also help reduce production costs, thereby improving overall profitability.

Nippon Kinzoku Co., Ltd. Financial Statement Overview

Summary

Financials are mixed: income statement shows fluctuating margins and inconsistent revenue growth with negative EBIT, the balance sheet is relatively stable with manageable leverage and a solid equity base, and cash flows have been unstable but show signs of recovery.

Income Statement

Nippon Kinzoku Co., Ltd. has demonstrated a mixed performance in its income statement. The company's gross profit margin has seen some fluctuations, indicating variability in cost control. The net profit margin has been erratic, with recent improvement suggesting tightening of operations. Revenue growth has been inconsistent, reflecting industry challenges. Despite negative EBIT, EBITDA margin shows some operational efficiency. Overall, the income statement reflects a resilient but fluctuating profitability profile.

Balance Sheet

The balance sheet of Nippon Kinzoku Co., Ltd. shows a stable structure with a moderate debt-to-equity ratio, indicating manageable leverage. Return on Equity (ROE) has shown volatility, but recent improvements suggest better equity utilization. The equity ratio is solid, reflecting a strong asset base supported by equity. This reflects a stable financial position with room for leveraging growth opportunities.

Cash Flow

The cash flow statement reveals challenges and strengths for Nippon Kinzoku Co., Ltd. Operating cash flow has been unstable, but recent years show recovery. Free cash flow has fluctuated, reflecting capital expenditure demands. The operating cash flow to net income ratio indicates variable cash generation efficiency. While free cash flow to net income ratio suggests constrained liquidity, the trend appears to be improving.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	50.86B	51.30B	51.41B	52.57B	49.12B	40.11B
Gross Profit	5.29B	4.95B	4.27B	6.47B	6.51B	2.46B
EBITDA	3.59B	3.33B	4.47B	3.31B	3.07B	1.58B
Net Income	846.00M	703.00M	1.54B	916.00M	2.52B	-277.00M
Balance Sheet
Total Assets	70.41B	69.90B	75.08B	73.87B	72.18B	64.18B
Cash, Cash Equivalents and Short-Term Investments	12.49B	12.01B	12.04B	8.04B	10.13B	8.77B
Total Debt	21.13B	21.51B	24.46B	24.75B	22.69B	23.00B
Total Liabilities	42.66B	42.03B	48.22B	49.43B	48.87B	43.70B
Stockholders Equity	27.75B	27.86B	26.86B	24.45B	23.31B	20.47B
Cash Flow
Free Cash Flow	0.00	96.00M	-2.92B	-6.14B	1.77B	-153.00M
Operating Cash Flow	0.00	1.21B	-203.00M	-1.51B	4.50B	2.35B
Investing Cash Flow	0.00	1.71B	4.20B	-2.72B	-2.75B	-2.04B
Financing Cash Flow	0.00	-3.19B	-502.00M	2.02B	-399.00M	2.30B

Nippon Kinzoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 886.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5491, the sentiment is Positive. The current price of 886 is below the 20-day moving average (MA) of 1009.80, below the 50-day MA of 968.54, and above the 200-day MA of 821.77, indicating a bullish trend. The MACD of 20.10 indicates Negative momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 56.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5491.

Nippon Kinzoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5491	74 Outperform	¥7.24B	5.06	―	―	-5.93%	-36.01%
5445	72 Outperform	¥57.85B	5.95	―	6.31%	-8.44%	9.50%
5440	70 Outperform	¥115.38B	12.02	―	3.70%	-3.06%	1.15%
5632	66 Neutral	¥32.12B	13.64	―	4.13%	-2.96%	―
5408	64 Neutral	¥34.32B	12.12	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	60 Neutral	¥78.00B	-216.13	―	1.24%	-12.05%	-97.36%

Nippon Kinzoku Co., Ltd. Corporate Events

Nippon Kinzoku Returns to Profit Despite Lower Sales

Nippon Kinzoku reported consolidated net sales of ¥37.18 billion for the nine months ended Dec. 31, 2025, down 4.6% year on year, but returned to profitability with operating profit of ¥662 million and profit attributable to owners of parent of ¥341 million, versus a loss a year earlier. The company’s equity ratio improved to 40.9% and net assets rose to ¥28.59 billion, while it maintained a zero-dividend policy for the current fiscal year and forecast full-year net sales of ¥53.4 billion and profit of ¥500 million, signaling a cautious but continuing earnings recovery.

Nippon Kinzoku kept its share count stable but significantly increased treasury shares to 244,064, which modestly reduced the average number of shares outstanding and helped lift earnings per share to ¥51.40 for the period. Management left accounting policies unchanged and projected higher full-year sales and operating profit despite lower year-on-year net profit, indicating a focus on strengthening its balance sheet and stabilizing performance after the previous year’s losses.

The most recent analyst rating on (JP:5491) stock is a Hold with a Yen1039.00 price target. To see the full list of analyst forecasts on Nippon Kinzoku Co., Ltd. stock, see the JP:5491 Stock Forecast page.