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

• Market Cap: ¥17.91B
• Dividend Yield: 2.7%
• Average Volume (3M): 63.48K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.53
• Revenue Growth: -3.36%
• EPS Growth: -18.44%
• Country: JP
• Employees: 835
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 6.20
• 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

• Rating: 69 Neutral
• Price Target: ¥405.00 ▲(9.46% Upside)

Nichia Steel Works, Ltd. demonstrates a strong financial foundation with a stable balance sheet and reasonable valuation. Technical indicators show bullish momentum, though caution is advised due to overbought conditions. The absence of earnings call data and corporate events limits further insights.

Nichia Steel Works,Ltd. Business Overview & Revenue Model

Company Description

Nichia Steel Works, Ltd. (5658) is a prominent Japanese company primarily engaged in the production and distribution of specialty steel products. Established in 1950, the company operates in various sectors, including automotive, construction, and industrial machinery, providing high-quality steel materials that meet diverse customer needs. Nichia Steel Works focuses on manufacturing a range of steel products, including alloy steel, stainless steel, and tool steel, which are essential for various applications in multiple industries.

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: 370.00
• 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 370 is above the 20-day moving average (MA) of 362.28, above the 50-day MA of 366.42, and above the 200-day MA of 318.23, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 81.63 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
5659	74 Outperform	¥34.92B	12.50	―	4.96%	2.25%	0.39%
5945	74 Outperform	¥21.63B	13.39	―	3.91%	4.22%	6.68%
5957	74 Outperform	¥23.67B	11.20	―	3.04%	8.60%	9.08%
5967	70 Outperform	¥14.59B	14.98	―	1.64%	-2.69%	6.29%
5658	69 Neutral	¥17.91B	16.98	―	2.70%	-3.36%	-18.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6464	58 Neutral	¥15.87B	17.68	―	6.39%	-11.60%	-255.37%