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

• Market Cap: ¥14.62B
• Dividend Yield: 3.97%
• Average Volume (3M): 42.66K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.54
• Revenue Growth: -1.07%
• EPS Growth: -14.27%
• Country: JP
• Employees: 835
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 6.73
• Shares Outstanding: 51,755,480
• 10 Day Avg. Volume: 18,840
• 30 Day Avg. Volume: 42,663
• PEG Ratio: -0.48
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.07
• 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

• Rating: 70 Outperform
• Price Target: ¥334.00 ▲(10.60%Upside)

Nichia Steel Works, Ltd. demonstrates a solid financial foundation with strong profitability and stability. Its valuation is fair, supported by an attractive dividend yield. Technical analysis shows balanced market sentiment with potential for positive momentum. The stock's low volatility makes it appealing for conservative investors.

Nichia Steel Works,Ltd. Business Overview & Revenue Model

Company Description

Nichia Steel Works, Ltd. is a Japanese company primarily engaged in the manufacturing and sale of steel products. The company operates in sectors such as steel processing and fabrication, offering a range of products including steel bars, sheets, and other related materials. Nichia Steel Works is known for its high-quality steel products that are used in various industries, including construction, automotive, and infrastructure development.

How the Company Makes Money

Nichia Steel Works, Ltd. generates revenue mainly through the production and sale of steel products. The company earns money by processing raw steel and fabricating it into various forms that meet the specific needs of its clients across different industries. Key revenue streams include the sale of steel bars, sheets, and specialized steel components used in construction, automotive manufacturing, and other industrial applications. The company may also engage in partnerships with construction firms and automotive manufacturers to supply large volumes of steel products under long-term contracts, contributing significantly to its earnings.

Nichia Steel Works,Ltd. Financial Statement Overview

Summary

Nichia Steel Works, Ltd. presents a solid financial position with robust profitability, a stable balance sheet, and moderate cash flow management. The strong balance sheet and low leverage provide a solid foundation, although attention is needed on revenue growth consistency and free cash flow generation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
34.30B	34.13B	34.50B	34.08B	30.72B	27.82B
	Gross Profit
6.17B	6.10B	5.89B	6.31B	6.40B	5.75B
	EBIT
1.49B	1.35B	1.34B	1.82B	2.01B	1.49B
	EBITDA
3.22B	2.86B	3.49B	3.69B	4.04B	3.46B
	Net Income Common Stockholders
1.22B	1.07B	1.26B	1.33B	1.72B	1.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.93B	12.42B	12.66B	12.59B	15.35B	14.34B
	Total Assets
73.61B	72.34B	73.61B	70.63B	69.23B	65.24B
	Total Debt
3.78B	3.26B	4.14B	5.93B	5.98B	5.77B
	Net Debt
-7.65B	-7.87B	-8.25B	-6.66B	-6.92B	-6.56B
	Total Liabilities
18.21B	16.96B	18.27B	19.01B	19.57B	17.14B
	Stockholders Equity
51.79B	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: 302.00
• 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:5658, the sentiment is Positive. The current price of 302 is below the 20-day moving average (MA) of 302.65, above the 50-day MA of 301.54, and above the 200-day MA of 300.14, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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
5945	74 Outperform	¥19.38B	11.64		4.36%	11.71%	54.61%
5957	73 Outperform	¥21.27B	10.69		3.30%	7.59%	12.32%
5659	72 Outperform	¥34.09B	10.41		5.08%	4.52%	25.35%
5967	71 Outperform	¥11.32B	10.12		4.26%	10.47%	48.78%
5658	70 Outperform	¥14.62B	13.44		3.97%	-1.07%	-14.27%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%
6464	46 Neutral	¥13.96B	17.68		5.81%	-7.91%	46.90%