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Nippon Chuzo K.K. (JP:5609)
:5609
Japanese Market
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Nippon Chuzo K.K. (5609) AI Stock Analysis

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JP:5609

Nippon Chuzo K.K.

(5609)

Rating:69Neutral
Price Target:
¥988.00
▲(14.75%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.

Nippon Chuzo K.K. (5609) vs. iShares MSCI Japan ETF (EWJ)

Nippon Chuzo K.K. Business Overview & Revenue Model

Company DescriptionNippon 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 MoneyNippon 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
65
Positive
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
70
Positive
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
55
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue14.31B15.99B14.81B12.11B11.90B
Gross Profit2.03B2.74B2.08B2.00B1.73B
EBITDA1.00B1.49B1.29B1.40B1.11B
Net Income236.00M651.00M568.00M663.00M435.00M
Balance Sheet
Total Assets22.32B23.53B22.66B21.09B19.59B
Cash, Cash Equivalents and Short-Term Investments586.00M1.12B560.00M356.00M489.00M
Total Debt3.79B3.74B4.13B2.90B2.23B
Total Liabilities10.44B11.65B11.30B9.84B8.82B
Stockholders Equity11.88B11.88B11.37B11.25B10.76B
Cash Flow
Free Cash Flow-300.00M1.10B-557.00M-1.01B700.00M
Operating Cash Flow685.00M1.81B159.00M-427.00M1.54B
Investing Cash Flow-1.10B-717.00M-726.00M-248.00M-813.00M
Financing Cash Flow-123.00M-529.00M771.00M541.00M-431.00M

Nippon Chuzo K.K. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price861.00
Price Trends
50DMA
848.96
Positive
100DMA
826.73
Positive
200DMA
808.90
Positive
Market Momentum
MACD
6.83
Positive
RSI
54.28
Neutral
STOCH
34.04
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 861 is below the 20-day moving average (MA) of 879.55, above the 50-day MA of 848.96, and above the 200-day MA of 808.90, indicating a bullish trend. The MACD of 6.83 indicates Positive momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.04 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥5.58B8.88
2.46%-7.18%15.81%
77
Outperform
¥3.06B6.78
3.95%1.80%16.57%
72
Outperform
¥4.84B6.88
-0.22%-54.50%
69
Neutral
¥4.24B17.98
3.41%-10.51%-63.75%
65
Neutral
¥4.77B8.36
3.62%-9.72%22.17%
63
Neutral
$10.60B10.341.36%2.89%2.35%-33.38%
45
Neutral
¥5.82B
12.44%0.44%-217.04%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5609
Nippon Chuzo K.K.
875.00
-65.76
-6.99%
JP:5446
Hokuetsu Metal Co., Ltd.
1,233.00
-182.76
-12.91%
JP:5476
Nippon Koshuha Steel Co., Ltd.
397.00
-46.00
-10.38%
JP:5491
Nippon Kinzoku Co., Ltd.
723.00
-55.00
-7.07%
JP:5542
Shinhokoku Material Corp.
820.00
190.13
30.19%
JP:5697
Sanyu Co., Ltd.
506.00
24.49
5.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025