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

• Market Cap: ¥6.48B
• Dividend Yield: N/A
• Average Volume (3M): 29.11K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.90
• 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: 59 Neutral
• Price Target: ¥972.00 ▲(9.71% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily supported by a stable balance sheet and improving-but-uneven profitability/cash flow trends (financial performance). This is offset by weak near-term technicals, with the stock trading below key moving averages and momentum indicators below neutral. Valuation is reasonable on P/E, but the missing dividend yield reduces visibility on income support.

Positive Factors

Niche specialty-products

Nippon Kinzoku's focus on stainless and specialty steels for corrosion- and heat-resistant applications creates durable end-market niches. Serving industrial customers with precision-processed components raises technical barriers, supports long sales cycles, and fosters sticky customer relationships that sustain revenue over time.

Stable balance sheet

The company's manageable leverage and solid equity base provide financial flexibility to withstand cyclical steel demand. A stable balance sheet supports capital expenditures, working capital needs, and selective investment or restructuring without excessively diluting shareholders or raising refinancing risk.

Improving profitability trends

Recent tightening of operations and improvement in EBITDA margins indicate better cost control and operational leverage. Sustained margin improvement enhances free cash flow potential, enabling reinvestment in specialty capabilities and increasing resilience to raw-material price swings over the medium term.

Negative Factors

Inconsistent revenue growth

Negative and uneven revenue growth erodes scale advantages and raises dependency on a limited set of industrial end markets. Over time this makes margin recovery harder, limits fixed-cost dilution, and increases sensitivity to demand cycles unless the company secures steadier order pipelines or diversifies end markets.

Fluctuating cash generation

Unstable operating cash flow and variable free cash flow constrain the company's ability to fund capex, service growth, or return capital reliably. Persistent cash volatility reduces strategic optionality, raises working-capital risk in cyclical downturns, and can force trade-offs between investment and balance-sheet repair.

Volatile margins & negative EBIT

Erratic net margins and a reported negative EBIT highlight core profitability and cost-structure vulnerabilities. Even with EBITDA showing pockets of efficiency, negative operating results signal exposure to input-cost volatility and pricing pressure, risking persistent underperformance unless structural improvements continue.

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

null

Nippon Kinzoku Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: income statement shows fluctuating margins and inconsistent revenue growth, but recent profitability improvement. Balance sheet is relatively stable with manageable leverage and a solid equity base. Cash flows are uneven with fluctuating free cash flow, though trends appear to be improving.

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	5.21B	4.95B	4.08B	6.27B	6.21B	2.20B
EBITDA	1.85B	1.53B	729.00M	3.07B	3.07B	-773.00M
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	49.42B	48.86B	43.70B
Stockholders Equity	27.75B	27.86B	26.86B	24.45B	23.31B	20.48B
Cash Flow
Free Cash Flow	0.00	96.00M	-2.91B	-6.13B	1.82B	-143.00M
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: 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:5491, the sentiment is Positive. The current price of 886 is below the 20-day moving average (MA) of 998.60, below the 50-day MA of 994.34, and above the 200-day MA of 838.50, indicating a neutral trend. The MACD of -16.14 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 26.60 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
5445	72 Outperform	¥57.76B	7.14	―	6.31%	-8.44%	9.50%
5440	70 Outperform	¥106.30B	10.61	―	3.70%	-3.06%	1.15%
5632	66 Neutral	¥28.62B	21.77	―	4.13%	-2.96%	―
5408	64 Neutral	¥34.00B	-185.54	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5449	60 Neutral	¥80.60B	53.99	―	1.24%	-12.05%	-97.36%
5491	59 Neutral	¥6.48B	11.26	―	―	-5.93%	-36.01%

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.