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

• Market Cap: ¥5.40B
• Dividend Yield: 1.57%
• Average Volume (3M): 20.91K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.09
• Revenue Growth: -0.86%
• EPS Growth: -162.79%
• Country: JP
• Employees: 392
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 38.72
• 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: -4.62
• 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: 49 Neutral
• Price Target: ¥1,674.00 ▼(-8.67% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is weighed down primarily by weak financial performance—declining profitability and negative free cash flow—alongside loss-driven valuation (negative P/E). Technicals are the main offset, with price in a clear uptrend, though overbought readings temper the technical score.

Positive Factors

Balanced capital structure (moderate leverage)

A moderate debt-to-equity profile provides durable financial flexibility: manageable interest burden and room to access capital if needed. This structural balance supports continuity of operations and preserves refinancing options while the company works to restore profitability over months.

Stable stockholders' equity base

Stable shareholders' equity acts as a long-term buffer against losses and reduces near-term insolvency risk. It preserves the company's capacity to absorb cyclical downturns and supports negotiation leeway with lenders and suppliers during a multi-month recovery phase.

Established metals/steel manufacturing capability

Owning core manufacturing capabilities in metals/steel is a durable competitive asset: asset-heavy operations, supplier relationships and technical know-how create barriers to entry and support contract continuity with construction customers across multi-month cycles.

Negative Factors

Negative profitability and shrinking margins

Persistently negative net margins and compressed EBIT/EBITDA reduce internally generated capital and impair the company’s ability to reinvest. Over a 2–6 month horizon this undermines operational resilience, limits margin recovery options and pressures returns to shareholders.

Negative operating and free cash flow

Negative operating and free cash flow signal structural cash-conversion problems that persist beyond short-term swings. This forces reliance on external financing or asset sales to fund working capital and capex, constraining strategic flexibility and growth investments.

Declining revenue and collapsed EPS growth

Falling revenue and severely negative EPS growth indicate weakening demand or margin pressures. These trends make margin recovery harder, reduce bargaining power with customers and suppliers, and raise the likelihood of needing operational restructuring within a medium-term timeframe.

Nippon Chutetsukan K.K. Business Overview & Revenue Model

Company Description

Nippon Chutetsukan K.K. manufactures and sells ductile iron pipes and lids, polyethylene gas pipes, and valves primarily in Japan. It provides ductile iron pipes for applications in clean water, sewage, gas, industrial water, agricultural water, etc.; ductile cast iron deformed tubes; ductile iron covers for applications in water supply and sewage, gas, electricity, communication, etc.; polyethylene pipes for gas; valves and stoppers; accessories, such as push rings, rubber ring, and bolts and nuts; cast iron products; and water supply and on-site pipe laying works. Nippon Chutetsukan K.K. was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Nippon Chutetsukan K.K. Financial Statement Overview

Summary

Financial statements point to meaningful weakness: profitability has deteriorated (net margin turned negative; shrinking EBIT/EBITDA margins) and operating cash flow plus free cash flow are negative, despite a relatively moderate balance sheet with only a slight equity ratio decline.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.05B	16.93B	16.86B	17.29B	15.19B	14.66B
Gross Profit	2.69B	2.66B	3.35B	3.00B	2.70B	2.83B
EBITDA	720.00M	720.00M	1.28B	892.00M	708.00M	951.00M
Net Income	-146.00M	-230.00M	475.00M	362.00M	237.00M	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	5.61B	4.61B	3.43B	3.15B	3.15B
Total Liabilities	14.12B	12.58B	10.68B	9.82B	9.38B	8.83B
Stockholders Equity	9.21B	9.28B	9.43B	8.46B	8.09B	8.00B
Cash Flow
Free Cash Flow	0.00	-964.00M	77.00M	-936.00M	-50.00M	563.00M
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: Negative
• Last Price: 1833.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1833 is above the 20-day moving average (MA) of 1792.95, below the 50-day MA of 1853.68, and above the 200-day MA of 1737.07, indicating a bearish trend. The MACD of -42.86 indicates Positive momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5958	80 Outperform	¥16.52B	5.32	―	3.58%	-3.74%	3.99%
5940	74 Outperform	¥12.10B	16.74	―	2.89%	2.56%	17.52%
5930	66 Neutral	¥129.11B	10.42	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.13B	4.98	―	4.13%	2.76%	-10.23%
5938	50 Neutral	¥475.90B	16.11	1.44%	4.80%	0.68%	―
5612	49 Neutral	¥5.40B	10.87	―	1.57%	-0.86%	-162.79%