Nippon Seisen Co., Ltd. (5659) AI Stock Analysis

• Market Cap: ¥35.23B
• Dividend Yield: 4.91%
• Average Volume (3M): 37.17K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.84
• Revenue Growth: 2.25%
• EPS Growth: 0.39%
• Country: JP
• Employees: 870
• Sector: Industrials
• Sector Strength: 73
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 10.30
• Shares Outstanding: 31,265,190
• 10 Day Avg. Volume: 30,630
• 30 Day Avg. Volume: 37,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,276.00
• Price Target Upside: 11.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,276.00 ▲(11.15% Upside)

Nippon Seisen Co., Ltd. demonstrates strong financial performance with solid revenue and profit growth, effective cost management, and a robust balance sheet. The stock's valuation is attractive, with a low P/E ratio and high dividend yield, making it appealing for value and income investors. Technical indicators show a positive short-term trend, although they are not overly bullish. The absence of earnings call data and corporate events does not impact the overall score.

Nippon Seisen Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Seisen Co., Ltd. (5659) is a Japanese company primarily engaged in the manufacture and sale of specialty steel wires and related products. The company operates within the steel sector, offering a wide range of high-performance stainless steel and titanium wire products. These products are utilized across various industries, including automotive, electronics, and construction, owing to their exceptional quality and durability.

How the Company Makes Money

Nippon Seisen Co., Ltd. generates revenue through the production and sales of specialty steel wires, which are tailored for diverse industrial applications. The company's core revenue streams include the sale of stainless steel and titanium wires to manufacturers in the automotive, electronics, and construction sectors. The company capitalizes on its advanced manufacturing technologies and quality control processes to produce high-demand, high-margin products. Additionally, Nippon Seisen may engage in strategic partnerships and collaborations with other industrial companies to enhance its market reach and technological capabilities, further contributing to its earnings.

Nippon Seisen Co., Ltd. Financial Statement Overview

Summary

Nippon Seisen Co., Ltd. exhibits a strong financial standing with consistent revenue and profit growth, solid margins, and a robust balance sheet. The company's prudent debt management and high equity ratio underscore financial stability. While cash flow has shown improvement, historical fluctuations suggest the need for cautious cash management.

Income Statement

Nippon Seisen Co., Ltd. has demonstrated consistent revenue growth with a notable increase of 4.52% from 2024 to 2025. The gross profit margin is robust at 17.34%, indicating effective cost management. The net profit margin improved to 6.95%, showcasing enhanced profitability. EBIT and EBITDA margins are 9.55% and 13.67% respectively, reflecting strong operational efficiency. However, revenue growth has been moderate, and there were fluctuations in past revenue levels.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio of 0.01, underscoring financial prudence. Return on equity (ROE) is a healthy 7.89%, indicating effective utilization of shareholder funds. The equity ratio stands at 73.74%, reflecting financial stability and low reliance on external debt. The overall balance sheet suggests strong solvency and effective capital management.

Cash Flow

The free cash flow grew significantly by 61.26% from 2024 to 2025, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.45, demonstrating adequate cash conversion from profits. The free cash flow to net income ratio is 1.01, indicating efficient cash management. However, past volatility in free cash flow suggests potential fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.75B	46.75B	44.73B	49.05B	44.80B	34.11B
Gross Profit	8.11B	8.11B	7.06B	7.63B	7.94B	5.52B
EBITDA	6.31B	6.39B	5.40B	5.96B	6.36B	4.13B
Net Income	3.25B	3.25B	2.59B	3.09B	3.18B	1.82B
Balance Sheet
Total Assets	55.88B	55.88B	53.40B	54.05B	51.23B	46.07B
Cash, Cash Equivalents and Short-Term Investments	17.07B	17.07B	15.24B	14.66B	15.64B	13.78B
Total Debt	272.00M	272.00M	460.00M	671.00M	380.00M	644.00M
Total Liabilities	13.98B	13.98B	13.91B	16.45B	15.78B	13.10B
Stockholders Equity	41.21B	41.21B	38.89B	37.05B	34.96B	32.56B
Cash Flow
Free Cash Flow	0.00	3.30B	2.04B	-157.00M	2.69B	2.43B
Operating Cash Flow	0.00	4.72B	4.68B	1.86B	4.47B	3.96B
Investing Cash Flow	0.00	-1.34B	-2.82B	-1.78B	-1.70B	-1.79B
Financing Cash Flow	0.00	-1.71B	-1.54B	-1.05B	-1.34B	-702.00M

Nippon Seisen Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1148.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5659, the sentiment is Positive. The current price of 1148 is above the 20-day moving average (MA) of 1118.45, above the 50-day MA of 1101.26, and below the 200-day MA of 1189.87, indicating a neutral trend. The MACD of 9.49 indicates Negative momentum. The RSI at 65.03 is Neutral, neither overbought nor oversold. The STOCH value of 92.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5659.

Nippon Seisen Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	80 Outperform	¥23.79B	11.36		3.02%	8.60%	9.08%
5659	77 Outperform	¥35.23B	12.77		4.91%	2.25%	0.39%
5945	74 Outperform	¥21.12B	13.08		3.96%	4.22%	6.68%
6157	70 Outperform	¥19.39B	14.82		3.86%	3.38%	-2.80%
5658	69 Neutral	¥19.36B	18.31		2.50%	-3.36%	-18.44%
6480	65 Neutral	¥47.19B	22.91		2.83%	5.34%	79.88%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%

Nippon Seisen Co., Ltd. Corporate Events

Nippon Seisen Reports Decline in Q1 2025 Financial Performance

Nippon Seisen Co., Ltd. reported a decline in its financial performance for the three months ending June 30, 2025, with net sales slightly decreasing by 2.3% and significant drops in operating and ordinary profits by over 59%. The company’s comprehensive income also fell sharply by 79.3% compared to the previous year. Despite these results, the company maintains a strong equity-to-asset ratio of 72.9%, indicating a stable financial position. The forecast for the fiscal year ending March 31, 2026, anticipates further declines in sales and profits, reflecting ongoing challenges in the market.

Nippon Seisen Co., Ltd. Finalizes Liability Limitation Agreement

Nippon Seisen Co., Ltd. announced the conclusion of a liability limitation agreement with its Outside Director and Outside Corporate Auditor. This agreement, aligned with the company’s Articles of Incorporation, aims to limit the liability for damages for these roles, reflecting a strategic move to ensure governance and risk management within the company.