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Nippon Chutetsukan K.K. (JP:5612)
:5612
Japanese Market
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Nippon Chutetsukan K.K. (5612) AI Stock Analysis

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JP:5612

Nippon Chutetsukan K.K.

(5612)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
¥1,610.00
▼(-12.17% Downside)
Action:Reiterated
Date:04/29/26
The score is held down primarily by weak financial performance—especially very negative recent free cash flow and thin profitability—along with a demanding valuation (high P/E). Technical indicators are mostly neutral, offering limited support while the stock remains below its key longer-term moving averages.
Positive Factors
Essential Infrastructure Demand
The company supplies cast-iron pipes used in municipal waterworks and infrastructure, markets with long asset lifecycles and steady replacement/maintenance cycles. This structural demand can provide a baseline revenue stream less sensitive to short-term consumer cycles and supports long-term contract opportunities.
Negative Factors
Thin Profitability
Margins are extremely thin, leaving little room to absorb raw material or energy cost swings common in metals and pipe manufacturing. Persistently low margins compress ROE and limit retained earnings, hindering the company’s ability to reinvest, pay down debt, or build reserves for cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Essential Infrastructure Demand
The company supplies cast-iron pipes used in municipal waterworks and infrastructure, markets with long asset lifecycles and steady replacement/maintenance cycles. This structural demand can provide a baseline revenue stream less sensitive to short-term consumer cycles and supports long-term contract opportunities.
Read all positive factors

Nippon Chutetsukan K.K. (5612) vs. iShares MSCI Japan ETF (EWJ)

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, e...
How the Company Makes Money
The company primarily makes money by manufacturing and selling cast-iron pipes and associated pipe fittings/accessories used in municipal and infrastructure pipeline projects. Revenue is generated mainly from (1) sales of pipe products (e.g., duct...

Nippon Chutetsukan K.K. Financial Statement Overview

Summary
Overall financial quality is weak. Profitability has deteriorated with very thin 2026 margins (operating ~1.7%, net ~0.6%) and choppy revenue, and cash generation is the main concern with deeply negative 2026 free cash flow (~-¥3.06B). The balance sheet is manageable (debt-to-equity ~0.71) but debt has risen materially, and ROE is low (~0.9%).
Income Statement
44
Neutral
Balance Sheet
60
Neutral
Cash Flow
28
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue17.05B15.94B16.93B16.86B17.29B15.19B
Gross Profit2.69B2.72B2.66B3.35B3.00B2.70B
EBITDA720.00M994.00M720.00M1.28B892.00M708.00M
Net Income-146.00M92.00M-230.00M475.00M362.00M237.00M
Balance Sheet
Total Assets23.70B25.63B22.22B20.46B18.60B17.78B
Cash, Cash Equivalents and Short-Term Investments3.61B3.88B2.91B3.42B2.19B3.11B
Total Debt7.05B9.65B5.61B4.61B3.43B3.15B
Total Liabilities14.12B15.36B12.58B10.68B9.82B9.38B
Stockholders Equity9.21B9.89B9.28B9.43B8.46B8.09B
Cash Flow
Free Cash Flow0.00-3.06B-964.00M77.00M-936.00M-50.00M
Operating Cash Flow0.00297.00M142.00M986.00M-380.00M419.00M
Investing Cash Flow0.00-3.19B-1.47B-816.00M-730.00M-802.00M
Financing Cash Flow0.003.87B820.00M1.05B193.00M-183.00M

Nippon Chutetsukan K.K. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1833.00
Price Trends
50DMA
1647.54
Negative
100DMA
1722.10
Negative
200DMA
1743.96
Negative
Market Momentum
MACD
-29.69
Positive
RSI
37.73
Neutral
STOCH
16.10
Positive
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 1628.55, above the 50-day MA of 1647.54, and above the 200-day MA of 1743.96, indicating a bearish trend. The MACD of -29.69 indicates Positive momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 16.10 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥123.53B10.6112.89%3.40%3.44%-3.09%
68
Neutral
¥5.62B7.044.13%2.80%4.60%
66
Neutral
¥11.83B9.313.58%-1.90%-3.98%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
55
Neutral
¥466.47B-31.801.44%4.80%0.40%306.91%
54
Neutral
¥8.96B5.372.89%-3.13%-8.40%
44
Neutral
¥5.05B1,301.271.57%-5.85%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5612
Nippon Chutetsukan K.K.
1,555.00
278.89
21.85%
JP:5938
LIXIL Group
1,639.00
111.83
7.32%
JP:5930
Bunka Shutter Co., Ltd.
1,833.00
-222.01
-10.80%
JP:5936
Toyo Shutter Co., Ltd.
887.00
138.64
18.53%
JP:5940
Fujisash Co., Ltd.
707.00
42.19
6.35%
JP:5958
Sanyo Industries, Ltd.
4,110.00
548.37
15.40%
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: Apr 29, 2026