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Nippon Chuzo K.K. (JP:5609)
:5609
Japanese Market

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

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JP

Nippon Chuzo K.K.

(5609)

Rating:69Neutral
Price Target:
¥988.00
▲(10.64%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 operating primarily in the manufacturing sector, specializing in the production of cast iron, steel, and other metal products. The company provides high-quality casting solutions for various industries, including construction, automotive, and machinery. Known for its advanced technology and precision engineering, Nippon Chuzo K.K. focuses on delivering durable and reliable metal components tailored to meet the specific needs of its clients.
How the Company Makes MoneyNippon Chuzo K.K. generates revenue through the sale of its cast metal products, which are used in a wide range of industrial applications. The company leverages its expertise in metallurgy and casting technology to produce components that are integral to the infrastructure, automotive, and heavy machinery sectors. Key revenue streams include contracts and orders from large industrial clients who require custom metal solutions for their operations. Additionally, the company's strategic partnerships with various industries help it maintain a steady demand for its products, allowing it to capitalize on long-term business relationships and repeat orders.

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
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue14.10B14.31B15.99B14.81B12.11B11.90B
Gross Profit2.35B2.03B2.74B2.08B2.00B1.73B
EBITDA919.50M1.00B1.49B1.29B1.40B1.11B
Net Income401.00M236.00M651.00M568.00M663.00M435.00M
Balance Sheet
Total Assets22.64B22.32B23.53B22.66B21.09B19.59B
Cash, Cash Equivalents and Short-Term Investments695.00M586.00M1.12B560.00M356.00M489.00M
Total Debt3.40B3.79B3.74B4.13B2.90B2.23B
Total Liabilities10.86B10.44B11.65B11.30B9.84B8.82B
Stockholders Equity11.78B11.88B11.88B11.37B11.25B10.76B
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 Price893.00
Price Trends
50DMA
821.26
Positive
100DMA
811.85
Positive
200DMA
804.22
Positive
Market Momentum
MACD
16.22
Negative
RSI
65.96
Neutral
STOCH
41.50
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 893 is above the 20-day moving average (MA) of 840.40, above the 50-day MA of 821.26, and above the 200-day MA of 804.22, indicating a bullish trend. The MACD of 16.22 indicates Negative momentum. The RSI at 65.96 is Neutral, neither overbought nor oversold. The STOCH value of 41.50 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥4.93B7.84
2.78%-7.18%15.81%
77
Outperform
¥3.07B6.81
3.95%1.80%16.57%
72
Outperform
¥4.93B6.98
-0.22%-54.50%
69
Neutral
¥4.33B18.37
3.37%-10.51%-63.75%
65
Neutral
¥4.73B8.30
5.69%-9.72%22.17%
62
Neutral
$10.11B9.76-0.15%2.94%2.14%-32.15%
44
Neutral
¥5.66B
12.44%0.44%-217.04%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5609
Nippon Chuzo K.K.
899.00
-62.04
-6.46%
JP:5446
Hokuetsu Metal Co., Ltd.
1,232.00
-222.47
-15.30%
JP:5476
Nippon Koshuha Steel Co., Ltd.
386.00
-100.00
-20.58%
JP:5491
Nippon Kinzoku Co., Ltd.
737.00
-43.00
-5.51%
JP:5542
Shinhokoku Material Corp.
719.00
69.84
10.76%
JP:5697
Sanyu Co., Ltd.
506.00
23.50
4.87%
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