Nichia Steel Works,Ltd. (5658) AI Stock Analysis

• Market Cap: ¥17.47B
• Dividend Yield: 2.81%
• Average Volume (3M): 63.48K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.53
• Revenue Growth: -2.31%
• EPS Growth: -52.81%
• Country: JP
• Employees: 835
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -6.64
• Shares Outstanding: 51,755,480
• 10 Day Avg. Volume: 49,650
• 30 Day Avg. Volume: 63,480
• PEG Ratio: -0.97
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 25.98
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥362.00 ▲(0.28% Upside)

Nichia Steel Works, Ltd. has a solid financial foundation with strong profitability and a stable balance sheet, which are significant strengths. However, the stock is facing bearish technical indicators and appears overvalued based on its P/E ratio, which are key risks. The lack of earnings call data and corporate events limits additional insights into future performance.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Profitability

Consistent profitability with stable margins indicates efficient operations and pricing power, supporting long-term financial health and competitive positioning.

Equity Stability

High equity stability suggests a solid capital structure, reducing risk and enhancing the company's ability to fund future growth without excessive reliance on debt.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term market expansion and competitiveness, potentially impacting the company's ability to capture market share.

Decline in Free Cash Flow

A decline in free cash flow may limit the company's ability to invest in growth initiatives, pay dividends, or reduce debt, impacting long-term financial flexibility.

Net Profit Margin Decline

A decline in net profit margins can indicate rising costs or pricing pressures, potentially affecting the company's long-term profitability and shareholder returns.

Nichia Steel Works,Ltd. Business Overview & Revenue Model

Company Description

Nichia Steel Works, Ltd. manufactures and sells iron and steel products in Japan. It offers iron wires, zinc-plated iron wires, colored galvanized iron wires, and galvanized deformed coil rebars, as well as zinc, aluminum, and magnesium alloy plated iron wires; tertiary fences and wires; and civil engineering and architectural processed and pre-mesh processed products. The company also provides hard steel wires, galvanized steel wires, piano wires, zinc/aluminum/magnesium alloy plated steel wires, colored galvanized steel wires, steel flat wires, iron flat wires, deformed wires, stranded wires, coupling coils, and one-touch tunnels. In addition, it offers high strength and hexagon bolts, and hot dip galvanized high strength bolts. The company serves customers in industries, including construction and civil engineering, as well as agriculture, forestry, animal husbandry, fishery, electric power communication, and automobile industries. Nichia Steel Works, Ltd. was founded in 1908 and is headquartered in Amagasaki, Japan.

How the Company Makes Money

Nichia Steel Works generates revenue through the sale of its specialty steel products, catering to both domestic and international markets. The company has established key revenue streams from its core offerings in alloy, stainless, and tool steel, which are sold to manufacturers in the automotive, construction, and industrial sectors. Strategic partnerships with major industry players enhance its market presence and contribute to its earnings. Additionally, Nichia Steel Works benefits from a focus on innovation and quality, allowing it to command premium pricing for its products. The company also engages in long-term contracts with clients, ensuring a steady flow of revenue and fostering customer loyalty.

Nichia Steel Works,Ltd. Financial Statement Overview

Summary

Nichia Steel Works, Ltd. presents a solid financial position with strengths in profitability and a stable balance sheet. While cash flow management shows some areas for improvement, the company's low leverage and equity stability provide a solid foundation for future growth opportunities. Attention to revenue growth consistency and free cash flow generation will be key for sustained financial health.

Income Statement

Nichia Steel Works, Ltd. shows robust profitability with a stable gross profit margin and a respectable EBIT margin. However, net profit margins have slightly declined due to a reduction in net income over the past year. Revenue growth has been inconsistent, indicating potential challenges in market expansion.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is high, reflecting strong financial stability. However, slight fluctuations in stockholders' equity suggest careful monitoring of equity dynamics is needed.

Cash Flow

Nichia Steel Works, Ltd. demonstrates moderate cash flow management with positive operating cash flow. However, the free cash flow has decreased significantly, highlighting potential challenges in sustaining free cash flow growth. The operating cash flow to net income ratio suggests efficient cash conversion from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.74B	34.13B	34.50B	34.08B	30.72B	27.82B
Gross Profit	6.03B	6.10B	5.89B	6.31B	6.40B	5.75B
EBITDA	3.01B	2.86B	3.49B	3.69B	4.04B	3.46B
Net Income	1.03B	1.07B	1.26B	1.33B	1.72B	1.33B
Balance Sheet
Total Assets	72.65B	72.34B	73.61B	70.63B	69.23B	65.24B
Cash, Cash Equivalents and Short-Term Investments	14.32B	12.42B	12.66B	12.59B	15.35B	14.34B
Total Debt	3.28B	3.26B	4.14B	5.93B	5.98B	5.77B
Total Liabilities	17.11B	16.96B	18.27B	19.01B	19.57B	17.14B
Stockholders Equity	51.92B	51.81B	51.79B	48.26B	46.58B	45.13B
Cash Flow
Free Cash Flow	0.00	565.57M	1.82B	-1.77B	1.14B	3.02B
Operating Cash Flow	0.00	2.37B	3.01B	-344.14M	2.08B	4.49B
Investing Cash Flow	0.00	-2.11B	-873.13M	-1.37B	-810.33M	-709.59M
Financing Cash Flow	0.00	-1.60B	-2.34B	-582.56M	-227.94M	-1.49B

Nichia Steel Works,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 361.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5658, the sentiment is Positive. The current price of 361 is above the 20-day moving average (MA) of 348.85, above the 50-day MA of 357.82, and above the 200-day MA of 331.45, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5658.

Nichia Steel Works,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	76 Outperform	¥26.04B	12.48	―	2.76%	7.69%	-0.40%
5659	75 Outperform	¥35.88B	14.01	―	3.70%	-1.05%	-14.70%
5945	74 Outperform	¥21.87B	11.71	―	3.89%	1.33%	29.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5967	61 Neutral	¥11.32B	11.61	―	2.20%	-2.69%	6.29%
5658	59 Neutral	¥17.47B	29.61	―	2.81%	-2.31%	-52.81%
6464	51 Neutral	¥14.53B	-14.57	―	6.98%	-11.46%	43.93%