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Nichia Steel Works,Ltd. (JP:5658)
:5658
Japanese Market
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Nichia Steel Works,Ltd. (5658) AI Stock Analysis

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JP:5658

Nichia Steel Works,Ltd.

(5658)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
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. (5658) vs. iShares MSCI Japan ETF (EWJ)

Nichia Steel Works,Ltd. Business Overview & Revenue Model

Company DescriptionNichia 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 MoneyNichia 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
72
Positive
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
80
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue33.74B34.13B34.50B34.08B30.72B27.82B
Gross Profit6.03B6.10B5.89B6.31B6.40B5.75B
EBITDA3.01B2.86B3.49B3.69B4.04B3.46B
Net Income1.03B1.07B1.26B1.33B1.72B1.33B
Balance Sheet
Total Assets72.65B72.34B73.61B70.63B69.23B65.24B
Cash, Cash Equivalents and Short-Term Investments14.32B12.42B12.66B12.59B15.35B14.34B
Total Debt3.28B3.26B4.14B5.93B5.98B5.77B
Total Liabilities17.11B16.96B18.27B19.01B19.57B17.14B
Stockholders Equity51.92B51.81B51.79B48.26B46.58B45.13B
Cash Flow
Free Cash Flow0.00565.57M1.82B-1.77B1.14B3.02B
Operating Cash Flow0.002.37B3.01B-344.14M2.08B4.49B
Investing Cash Flow0.00-2.11B-873.13M-1.37B-810.33M-709.59M
Financing Cash Flow0.00-1.60B-2.34B-582.56M-227.94M-1.49B

Nichia Steel Works,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price370.00
Price Trends
50DMA
366.42
Positive
100DMA
335.68
Positive
200DMA
318.23
Positive
Market Momentum
MACD
0.13
Negative
RSI
54.49
Neutral
STOCH
81.63
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥34.92B12.504.96%2.25%0.39%
74
Outperform
¥21.63B13.393.91%4.22%6.68%
74
Outperform
¥23.67B11.203.04%8.60%9.08%
70
Outperform
¥14.59B14.981.64%-2.69%6.29%
69
Neutral
¥17.91B16.982.70%-3.36%-18.44%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
¥15.87B17.686.39%-11.60%-255.37%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5658
Nichia Steel Works,Ltd.
371.00
71.01
23.67%
JP:5659
Nippon Seisen Co., Ltd.
1,122.00
-98.76
-8.09%
JP:5945
Tenryu Saw Manufacturing Co., Ltd.
2,095.00
371.96
21.59%
JP:5957
Nitto Seiko Co., Ltd.
641.00
94.47
17.29%
JP:5967
TONE Co. Ltd.
621.00
-20.21
-3.15%
JP:6464
Tsubaki Nakashima Co., Ltd
399.00
-272.53
-40.58%
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: Aug 19, 2025