Nippon Chutetsukan K.K. (5612) AI Stock Analysis

• Market Cap: ¥5.46B
• Dividend Yield: 1.57%
• Average Volume (3M): 20.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -0.86%
• EPS Growth: -162.79%
• Country: JP
• Employees: 392
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -10.33
• Shares Outstanding: 3,293,074
• 10 Day Avg. Volume: 24,260
• 30 Day Avg. Volume: 20,910
• PEG Ratio: 0.13
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -4.65
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥1,795.00 ▼(-2.07% Downside)

Nippon Chutetsukan K.K.'s overall stock score is primarily impacted by its financial performance, which indicates significant challenges in profitability and liquidity. Technical analysis suggests a mixed outlook with short-term bearish signals. Valuation concerns arise from a negative P/E ratio, reflecting recent financial difficulties. The absence of earnings call insights and notable corporate events leaves these areas unaddressed.

Positive Factors

Stable Market Position

Nippon Chutetsukan K.K. benefits from its essential role in public infrastructure projects, providing a stable demand base and long-term revenue opportunities.

Balanced Capital Structure

A moderate debt-to-equity ratio suggests financial prudence, providing a stable foundation for future growth and resilience against economic fluctuations.

Public Sector Partnerships

Long-term contracts with public sector entities enhance revenue predictability and reduce exposure to market volatility, supporting sustained business operations.

Negative Factors

Declining Profitability

Negative profit margins highlight operational inefficiencies and cost management issues, potentially impacting long-term financial health and competitiveness.

Negative Cash Flow Trends

Negative cash flow trends suggest potential difficulties in sustaining operations without additional financing, posing risks to financial stability and growth.

Increased Leverage

Increased leverage can strain financial resources and limit strategic flexibility, potentially affecting the company's ability to invest in growth opportunities.

Nippon Chutetsukan K.K. Business Overview & Revenue Model

Company Description

Nippon Chutetsukan K.K. (5612) is a Japanese company engaged in the iron and steel industry, specializing in the production and processing of steel products. The company primarily operates in the manufacturing sector, focusing on high-quality steel materials used in various applications, including construction, automotive, and industrial machinery. With a strong commitment to technological innovation and sustainability, Nippon Chutetsukan K.K. aims to meet the evolving demands of its customers while contributing to the global steel market.

How the Company Makes Money

Nippon Chutetsukan K.K. generates revenue primarily through the sale of steel products to various industries, including construction, automotive, and manufacturing. The company operates a revenue model that includes both direct sales to end-users and distribution through partnerships with other manufacturers and suppliers. Key revenue streams involve the production of specialized steel grades and custom steel solutions tailored to client specifications, which often command premium pricing. Additionally, strategic partnerships with construction firms and automotive manufacturers help secure long-term contracts, providing a stable income source. The company's focus on research and development also leads to innovative products that can enhance profitability through higher margins.

Nippon Chutetsukan K.K. Financial Statement Overview

Summary

Nippon Chutetsukan K.K. faces financial challenges, as indicated by declining profitability, increased leverage, and negative cash flow trends. While the balance sheet remains relatively stable, the income and cash flow statements suggest operational and liquidity issues that may affect future performance. Strategic improvements in cost management and revenue growth are essential to enhance financial health.

Income Statement

Nippon Chutetsukan K.K. has shown inconsistent revenue growth with a recent decline in net income, affecting profitability. The gross profit margin decreased from previous years. Net profit margin turned negative in the latest period, indicating challenges in cost management and profitability. The EBIT and EBITDA margins have also shrunk, reflecting operational inefficiencies.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating a balanced capital structure but with rising debt levels. Stockholders' equity remains stable, though the recent equity ratio shows a slight decline. Return on Equity has turned negative due to recent losses, raising concerns about shareholder value creation.

Cash Flow

The company's cash flow from operations has significantly decreased, with negative free cash flow highlighting liquidity challenges. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in converting earnings into available cash. These factors suggest potential difficulties in sustaining operations without additional financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.05B	16.93B	16.86B	17.29B	15.19B	14.66B
Gross Profit	2.69B	2.73B	3.40B	3.05B	2.77B	2.87B
EBITDA	777.25M	589.00M	1.19B	944.00M	710.00M	996.00M
Net Income	-146.00M	-230.00M	475.00M	362.00M	236.00M	661.00M
Balance Sheet
Total Assets	23.70B	22.22B	20.46B	18.60B	17.78B	17.13B
Cash, Cash Equivalents and Short-Term Investments	3.61B	2.91B	3.42B	2.19B	3.11B	3.68B
Total Debt	7.05B	5.55B	4.55B	3.35B	3.05B	3.05B
Total Liabilities	14.12B	12.58B	10.69B	9.83B	9.39B	8.84B
Stockholders Equity	9.21B	9.28B	9.43B	8.46B	8.08B	8.00B
Cash Flow
Free Cash Flow	0.00	-956.00M	-37.00M	-1.08B	-108.00M	453.00M
Operating Cash Flow	0.00	142.00M	986.00M	-380.00M	419.00M	1.04B
Investing Cash Flow	0.00	-1.47B	-816.00M	-730.00M	-802.00M	-579.00M
Financing Cash Flow	0.00	820.00M	1.05B	193.00M	-183.00M	-234.00M

Nippon Chutetsukan K.K. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1833.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5612, the sentiment is Positive. The current price of 1833 is above the 20-day moving average (MA) of 1639.70, above the 50-day MA of 1661.44, and above the 200-day MA of 1604.85, indicating a bullish trend. The MACD of 16.65 indicates Negative momentum. The RSI at 56.14 is Neutral, neither overbought nor oversold. The STOCH value of 56.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5612.

Nippon Chutetsukan K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	78 Outperform	¥12.05B	11.90	―	3.90%	0.58%	-9.72%
5940	74 Outperform	¥11.75B	4.26	―	2.89%	2.56%	17.52%
5273	65 Neutral	¥113.41B	11.63	―	1.92%	12.72%	28.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.06B	8.10	―	4.13%	2.76%	-10.23%
5262	57 Neutral	¥77.08B	23.54	―	1.49%	-8.92%	1.67%
5612	48 Neutral	¥5.46B	-40.46	―	1.57%	-0.86%	-162.79%