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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)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
¥941.00
▲(5.97% Upside)
The overall stock score is primarily influenced by mixed financial performance, with strengths in operational efficiency but challenges in revenue and cash flow. Technical indicators suggest weak momentum, while valuation metrics indicate reasonable pricing and a solid dividend yield.

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

Nippon Chuzo K.K. Business Overview & Revenue Model

Company DescriptionNippon Chuzo K.K. (5609) is a Japanese company primarily engaged in the production and sale of steel and iron products. The company operates within the manufacturing sector, focusing on a range of products including steel bars, sheets, and other related materials used in construction and industrial applications. With a commitment to quality and innovation, Nippon Chuzo serves various industries, including automotive, construction, and infrastructure.
How the Company Makes MoneyNippon 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.'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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.04B14.31B15.99B14.81B12.11B11.90B
Gross Profit2.07B2.03B2.74B2.08B2.00B1.73B
EBITDA1.06B1.00B1.49B1.28B1.57B1.18B
Net Income261.00M236.00M651.00M568.00M663.00M435.00M
Balance Sheet
Total Assets22.99B22.32B23.53B22.66B21.09B19.59B
Cash, Cash Equivalents and Short-Term Investments2.13B586.00M1.12B560.00M356.00M489.00M
Total Debt4.66B3.79B3.74B4.13B2.90B2.23B
Total Liabilities11.24B10.44B11.65B11.30B9.84B8.82B
Stockholders Equity11.75B11.88B11.88B11.37B11.25B10.76B
Cash Flow
Free Cash Flow0.00-300.00M1.10B-557.00M-1.01B700.00M
Operating Cash Flow0.00685.00M1.81B159.00M-427.00M1.54B
Investing Cash Flow0.00-1.10B-717.00M-726.00M-248.00M-813.00M
Financing Cash Flow0.00-123.00M-529.00M771.00M541.00M-431.00M

Nippon Chuzo K.K. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price888.00
Price Trends
50DMA
888.00
Positive
100DMA
873.96
Positive
200DMA
837.29
Positive
Market Momentum
MACD
-0.63
Positive
RSI
52.04
Neutral
STOCH
34.48
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 888 is below the 20-day moving average (MA) of 895.50, above the 50-day MA of 888.00, and above the 200-day MA of 837.29, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.48 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥5.27B8.842.54%-6.55%6.55%
74
Outperform
¥3.77B7.003.11%3.93%103.42%
70
Outperform
¥5.38B6.36-2.76%-44.71%
64
Neutral
¥4.76B9.423.16%-15.00%9.27%
62
Neutral
¥4.28B16.223.36%-8.45%-42.89%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
44
Neutral
¥6.45B4.33%-234.35%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5609
Nippon Chuzo K.K.
894.00
78.81
9.67%
JP:5446
Hokuetsu Metal Co., Ltd.
1,240.00
-38.08
-2.98%
JP:5476
Nippon Koshuha Steel Co., Ltd.
449.00
65.00
16.93%
JP:5491
Nippon Kinzoku Co., Ltd.
816.00
164.00
25.15%
JP:5542
Shinhokoku Material Corp.
794.00
244.67
44.54%
JP:5697
Sanyu Co., Ltd.
640.00
209.22
48.57%
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: Oct 21, 2025