Nippon Chuzo K.K. (5609) AI Stock Analysis

• Market Cap: ¥4.25B
• Dividend Yield: 3.4%
• Average Volume (3M): 6.04K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.52
• Revenue Growth: -8.45%
• EPS Growth: -42.89%
• Country: JP
• Employees: 293
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): 1.49
• Shares Outstanding: 4,825,050
• 10 Day Avg. Volume: 4,790
• 30 Day Avg. Volume: 6,043
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥988.00
• Price Target Upside: 12.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥988.00 ▲(12.02% Upside)

Nippon Chuzo K.K. earns a score of 69, reflecting a reasonable valuation and strong technical momentum. However, financial performance challenges, such as declining margins and cash flow volatility, pose risks to long-term growth. The absence of recent earnings call data limits additional insights into management's guidance and sentiment.

Positive Factors

Stable Margins

Stable EBIT and EBITDA margins indicate operational efficiency, suggesting the company can maintain profitability despite revenue fluctuations.

Balanced Leverage

A balanced leverage profile with a moderate debt-to-equity ratio provides financial stability and flexibility, reducing risk of financial distress.

Strong Industry Relationships

Long-term client relationships ensure a steady flow of orders, supporting revenue stability and providing a competitive edge in the industrial sector.

Negative Factors

Declining Revenue

A decline in revenue growth indicates potential challenges in market demand or competitive positioning, which could affect long-term financial performance.

Cash Flow Volatility

Volatile cash flow and a drop in free cash flow suggest potential difficulties in sustaining operations without external financing, impacting financial stability.

Declining Profit Margins

Decreasing profit margins indicate challenges in cost management, which could pressure profitability and hinder reinvestment in growth opportunities.

Nippon Chuzo K.K. Business Overview & Revenue Model

Company Description

Nippon Chuzo K.K. is a Japanese company engaged in the manufacturing and sale of casting products. The company operates primarily in the industrial sector, producing high-quality steel castings that are essential for various industries, including shipbuilding, construction, and machinery. Nippon Chuzo K.K. is known for its technical expertise and precision in manufacturing complex casting solutions, ensuring durability and performance in demanding applications.

How the Company Makes Money

Nippon Chuzo K.K. generates revenue primarily through the sale of steel castings and related products. The company's key revenue streams include contracts with industrial clients who require custom casting solutions for shipbuilding, construction equipment, and heavy machinery. Nippon Chuzo K.K. benefits from long-term relationships with major industrial players, which provide a steady flow of orders. Additionally, the company may engage in strategic partnerships or collaborations to enhance its technological capabilities and market reach, further contributing to its financial performance.

Nippon Chuzo K.K. Financial Statement Overview

Summary

Nippon Chuzo K.K.'s financial performance is mixed. Strengths include stable EBIT and EBITDA margins, and a balanced leverage profile. However, challenges are evident with declining revenue and profitability margins, and significant cash flow volatility, which could impact sustained growth.

Income Statement

The company's revenue has shown volatility with a recent decline from 2024 to 2025. Gross profit margin and net profit margin have decreased recently, indicating potential challenges in cost management. However, historical revenue growth from 2021 to 2024 was positive, showing the company's capacity to grow in favorable conditions. The EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency in maintaining earnings before interest and taxes.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leverage. Stockholders' equity has been stable, supporting the company's financial resilience. The equity ratio shows a healthy proportion of equity financing, providing a cushion against liabilities. However, total assets have slightly fluctuated, showing some instability in asset management.

Cash Flow

The company faces challenges in cash flow management, with a significant drop in free cash flow between 2024 and 2025. The operating cash flow to net income ratio stayed positive, but the free cash flow to net income ratio fell, indicating potential difficulties in generating free cash. Historical fluctuations in free cash flow suggest potential risks in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.31B	14.31B	15.99B	14.81B	12.11B	11.90B
Gross Profit	2.03B	2.03B	2.74B	2.08B	2.00B	1.73B
EBITDA	1.00B	1.00B	1.49B	1.28B	1.57B	1.18B
Net Income	236.00M	236.00M	651.00M	568.00M	663.00M	435.00M
Balance Sheet
Total Assets	22.32B	22.32B	23.53B	22.66B	21.09B	19.59B
Cash, Cash Equivalents and Short-Term Investments	586.00M	586.00M	1.12B	560.00M	356.00M	489.00M
Total Debt	3.79B	3.79B	3.74B	4.13B	2.90B	2.23B
Total Liabilities	10.44B	10.44B	11.65B	11.30B	9.84B	8.82B
Stockholders Equity	11.88B	11.88B	11.88B	11.37B	11.25B	10.76B
Cash Flow
Free Cash Flow	0.00	-300.00M	1.10B	-557.00M	-1.01B	700.00M
Operating Cash Flow	0.00	685.00M	1.81B	159.00M	-427.00M	1.54B
Investing Cash Flow	0.00	-1.10B	-717.00M	-726.00M	-248.00M	-813.00M
Financing Cash Flow	0.00	-123.00M	-529.00M	771.00M	541.00M	-431.00M

Nippon Chuzo K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 882.00
• 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:5609, the sentiment is Positive. The current price of 882 is above the 20-day moving average (MA) of 881.10, above the 50-day MA of 878.76, and above the 200-day MA of 820.91, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5609.

Nippon Chuzo K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5697	81 Outperform	¥4.06B	7.54		3.06%	3.93%	103.42%
5542	77 Outperform	¥5.41B	9.08		2.49%	-6.55%	6.55%
5491	72 Outperform	¥5.27B	6.23		―	-2.76%	-44.71%
5446	70 Neutral	¥4.89B	9.67		3.57%	-15.00%	9.27%
5609	69 Neutral	¥4.25B	16.29		3.40%	-8.45%	-42.89%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5476	45 Neutral	¥6.84B	―		12.44%	4.33%	-234.35%