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

• Market Cap: ¥4.76B
• Dividend Yield: N/A
• Average Volume (3M): 22.54K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.70
• Revenue Growth: -0.22%
• EPS Growth: -54.50%
• Country: JP
• Employees: 855
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 162.20
• Shares Outstanding: 6,700,000
• 10 Day Avg. Volume: 13,700
• 30 Day Avg. Volume: 22,536
• PEG Ratio: 0.04
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ¥800.00 ▲(13.15%Upside)

The overall stock score of 72 reflects a combination of a stable financial position and positive technical indicators, alongside an attractive valuation. Financial performance shows improvement potential, while technical analysis suggests sustained momentum. The lack of a dividend yield and earnings call data slightly temper the score.

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

Company Description

Nippon Kinzoku Co., Ltd. is a Japanese company primarily engaged in the manufacture and sale of various metal products. The company operates in sectors such as automotive, electronics, and infrastructure, providing specialized metal components and materials. Its core products include stainless steel tubes, processed metal parts, and other metal materials tailored for industrial use, supporting a wide range of applications and industries.

How the Company Makes Money

Nippon Kinzoku Co., Ltd. generates revenue through the production and sale of specialized metal products. The company's key revenue streams include supplying stainless steel tubes and processed metal components to industries like automotive and electronics. It earns money by entering into contracts with manufacturers and industrial clients who require high-quality metal materials for their products and infrastructure projects. Partnerships with companies in these sectors and a focus on meeting the specific material needs of its clients contribute significantly to its earnings. Furthermore, Nippon Kinzoku's ability to innovate and offer customized solutions helps maintain its competitive edge and revenue growth in the metal manufacturing industry.

Nippon Kinzoku Co., Ltd. Financial Statement Overview

Summary

Nippon Kinzoku Co., Ltd. faces significant financial headwinds across its income, balance sheet, and cash flow statements. The steel industry pressures, reflected in declining revenues and negative profitability margins, suggest operational inefficiencies and financial instability. Future performance will depend on strategic adjustments to address cash flow and leverage concerns while stabilizing revenue streams.

Income Statement

The company exhibits a volatile revenue pattern with a recent decline in gross profit margins. The TTM data shows a negative net profit margin and EBIT, indicating operational challenges. Although past annual reports showed some profitability, the recent downturn suggests instability in core operations.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, reflecting a balanced approach to leverage. However, recent increases in liabilities and a decline in equity ratio highlight potential risks. Return on equity has been inconsistent, with recent negative net income impacting overall stability.

Cash Flow

Cash flow analysis reveals significant challenges, with operating and free cash flows often negative in recent periods. The absence of positive free cash flow growth and zero operating cash flow in TTM adds to concerns about liquidity management and cash generation capacity.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
52.47B	51.41B	52.57B	49.12B	40.11B	45.18B
	Gross Profit
5.15B	4.27B	6.47B	6.51B	2.46B	5.97B
	EBIT
-148.00M	-1.09B	1.27B	1.44B	-2.39B	629.56M
	EBITDA
134.75M	4.47B	3.07B	3.07B	1.58B	1.51B
	Net Income Common Stockholders
-801.00M	1.54B	916.00M	2.52B	-277.00M	-197.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.57B	12.04B	8.04B	10.13B	8.77B	6.22B
	Total Assets
71.67B	75.08B	73.87B	72.18B	64.18B	61.80B
	Total Debt
22.58B	24.46B	24.75B	22.69B	23.00B	20.57B
	Net Debt
13.01B	12.42B	16.71B	12.56B	14.22B	14.35B
	Total Liabilities
44.73B	48.22B	49.43B	48.87B	43.70B	41.30B
	Stockholders Equity
26.95B	26.86B	24.45B	23.31B	20.47B	20.50B
Cash Flow		Free Cash Flow
0.00	-2.92B	-6.14B	1.77B	-153.00M	-799.42M
	Operating Cash Flow
0.00	-203.00M	-1.51B	4.50B	2.35B	1.71B
	Investing Cash Flow
0.00	4.20B	-2.72B	-2.75B	-2.04B	-2.52B
	Financing Cash Flow
0.00	-502.00M	2.02B	-399.00M	2.30B	562.59M

Nippon Kinzoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 707.00
• 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:5491, the sentiment is Neutral. The current price of 707 is below the 20-day moving average (MA) of 724.40, above the 50-day MA of 669.48, and above the 200-day MA of 658.75, indicating a neutral trend. The MACD of 7.52 indicates Positive momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
5542	78 Outperform	¥4.78B	7.60		3.59%	-7.18%	15.81%
5986	73 Outperform	¥4.26B	12.92		2.10%	-0.54%	5.46%
5491	72 Outperform	¥4.76B	6.73		―	-0.22%	-54.50%
5609	68 Neutral	¥3.96B	16.77		3.65%	-10.51%	-63.75%
5446	65 Neutral	¥5.28B	9.26		3.27%	-9.72%	22.17%
5476	53 Neutral	¥5.83B	―		12.44%	0.44%	-217.03%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%

Nippon Kinzoku Co., Ltd. Corporate Events

Nippon Kinzoku Reports Financial Results for Fiscal Year 2025

Nippon Kinzoku Co., Ltd. reported its consolidated financial results for the year ending March 31, 2025, showing a slight decrease in net sales by 0.2% to 51,298 million yen. Despite a reduction in losses compared to the previous year, the company faced challenges with an operating loss of 189 million yen and an ordinary loss of 474 million yen. However, the profit attributable to owners of the parent was 703 million yen, marking a significant decrease of 54.5% from the previous year. The financial position showed a slight improvement in the equity ratio to 39.9%, with total assets amounting to 69,897 million yen. The company did not declare any dividends for the fiscal year and has forecasted a modest increase in net sales and profits for the upcoming year.