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

• Market Cap: ¥4.08B
• Dividend Yield: 3.64%
• Average Volume (3M): 6.74K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.55
• Revenue Growth: -4.20%
• EPS Growth: -11.70%
• Country: JP
• Employees: 293
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 46.21
• Shares Outstanding: 4,825,050
• 10 Day Avg. Volume: 4,690
• 30 Day Avg. Volume: 6,743
• PEG Ratio: -0.27
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -13.40
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥898.00 ▲(8.85% Upside)

The overall stock score is primarily influenced by the company's mixed financial performance, with notable challenges in revenue and cash flow management. While the technical analysis indicates a bearish trend, the stock's low P/E ratio and attractive dividend yield suggest potential undervaluation, providing some upside potential.

Positive Factors

Operational Efficiency

Operational efficiency indicates the company's ability to manage costs and maintain stable EBIT and EBITDA margins, supporting long-term profitability.

Balanced Leverage Profile

A balanced leverage profile provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Stable Stockholders' Equity

Stable equity supports the company's ability to finance operations and growth without excessive reliance on debt, enhancing long-term sustainability.

Negative Factors

Revenue Decline

Declining revenue and margins can hinder growth and profitability, necessitating strategic adjustments to improve market competitiveness and financial health.

Cash Flow Volatility

Volatile cash flow can affect the company's ability to fund operations and investments, increasing reliance on external financing and impacting financial stability.

Profit Margin Challenges

Decreasing profit margins suggest difficulties in cost management, potentially affecting the company's ability to maintain competitive pricing and profitability.

Nippon Chuzo K.K. Business Overview & Revenue Model

Company Description

Nippon Chuzo K. K. engages in industrial castings, engineering, and construction materials business in Japan. The company provides large casting, special casting, cast iron compounds, and casting technology products, as well as formed and fabricated materials for casting machinery. It also offers low thermal expansion LEX, construction machinery, energy systems, waste incinerations, industrial presses, iron production, mighty bars, hydraulic components, gears, metal molds, stainless steel components, steel and rubber bearings, damper units, cable bands, saddles, construction hardware and landscaping products, and construction material sections. In addition, the company offers NC base plate products and structures. Further, the company designs and manufactures bridge bearings and expansion joints, and joining brackets for construction applications, as well as supplies fixed pedestal materials. The company was founded in 1920 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Nippon Chuzo K.K. generates revenue through the manufacturing and sale of its steel and iron products. The company's revenue model is primarily based on direct sales to industrial clients and construction firms, which rely on high-quality steel for their projects. Key revenue streams include the production of various steel grades and custom solutions tailored to specific client needs. Additionally, Nippon Chuzo may benefit from long-term contracts with major industry players, ensuring a stable income flow. The company's financial performance is also influenced by fluctuations in raw material prices, demand in the construction sector, and its ability to innovate and improve production efficiency.

Nippon Chuzo K.K. Financial Statement Overview

Summary

Nippon Chuzo K.K. displays a mixed financial performance with strengths in maintaining operational efficiency and a balanced leverage profile. However, recent declines in revenue and profitability margins, coupled with cash flow volatility, present challenges that need addressing for 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	14.04B	14.31B	15.99B	14.81B	12.11B	11.90B
Gross Profit	2.07B	2.03B	2.74B	2.08B	2.00B	1.73B
EBITDA	1.06B	1.00B	1.49B	1.28B	1.57B	1.18B
Net Income	261.00M	236.00M	651.00M	568.00M	663.00M	435.00M
Balance Sheet
Total Assets	22.99B	22.32B	23.53B	22.66B	21.09B	19.59B
Cash, Cash Equivalents and Short-Term Investments	2.13B	586.00M	1.12B	560.00M	356.00M	489.00M
Total Debt	4.66B	3.79B	3.74B	4.13B	2.90B	2.23B
Total Liabilities	11.24B	10.44B	11.65B	11.30B	9.84B	8.82B
Stockholders Equity	11.75B	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: Negative
• Last Price: 825.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 825 is above the 20-day moving average (MA) of 824.40, below the 50-day MA of 864.70, and below the 200-day MA of 844.90, indicating a neutral trend. The MACD of -9.86 indicates Negative momentum. The RSI at 43.38 is Neutral, neither overbought nor oversold. The STOCH value of 55.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	¥4.09B	7.59	―	3.04%	4.52%	82.92%
5491	70 Outperform	¥5.34B	4.19	―	―	-5.93%	-36.01%
5542	69 Neutral	¥5.52B	9.26	―	2.72%	-3.45%	34.97%
5446	64 Neutral	¥4.75B	12.31	―	3.19%	-20.10%	-14.13%
5609	63 Neutral	¥4.08B	7.95	―	3.64%	-4.20%	-11.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5476	56 Neutral	¥6.68B	-0.94	―	―	3.22%	-451.22%