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

• Market Cap: ¥33.50B
• Dividend Yield: 5.17%
• Average Volume (3M): 31.93K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.86
• Revenue Growth: 4.52%
• EPS Growth: 25.35%
• Country: JP
• Employees: 870
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 25.53
• Shares Outstanding: 31,265,190
• 10 Day Avg. Volume: 31,310
• 30 Day Avg. Volume: 31,930
• PEG Ratio: 0.12
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -179.08
• 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: 75 Outperform
• Price Target: ¥1,220.00 ▲(12.55%Upside)

The overall stock score reflects strong financial performance and attractive valuation, moderated by bearish technical indicators. The company's solid financial health and appealing dividend yield are significant positives, while the technical analysis suggests caution due to prevailing negative momentum. The absence of impactful earnings call data and corporate events leaves the primary focus on financials and valuation.

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 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.06B	46.75B	44.73B	49.05B	44.80B	34.11B
Gross Profit	8.37B	8.11B	7.06B	7.63B	7.94B	5.52B
EBITDA	6.46B	6.39B	5.40B	5.96B	6.36B	4.13B
Net Income	3.35B	3.25B	2.59B	3.09B	3.18B	1.82B
Balance Sheet
Total Assets	55.14B	55.88B	53.40B	54.05B	51.23B	46.07B
Cash, Cash Equivalents and Short-Term Investments	16.07B	17.07B	15.24B	14.66B	15.64B	13.78B
Total Debt	363.00M	272.00M	460.00M	671.00M	380.00M	644.00M
Total Liabilities	14.02B	13.98B	13.91B	16.45B	15.78B	13.10B
Stockholders Equity	40.45B	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: Negative
• Last Price: 1084.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5659, the sentiment is Negative. The current price of 1084 is below the 20-day moving average (MA) of 1096.85, below the 50-day MA of 1088.14, and below the 200-day MA of 1209.04, indicating a bearish trend. The MACD of -5.28 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 40.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	77 Outperform	¥21.38B	10.74		3.48%	7.59%	12.32%
5659	75 Outperform	¥33.50B	10.23		5.17%	4.52%	25.35%
5945	74 Outperform	¥19.59B	11.76		4.28%	11.71%	54.61%
5658	74 Outperform	¥15.15B	13.92		3.80%	-1.07%	-14.27%
6157	70 Outperform	¥18.84B	14.86		3.97%	3.18%	2.22%
Sector *	66 Neutral	€2.68B	18.98	9.08%	2.90%	-1.49%	-31.62%
6480	65 Neutral	¥38.18B	37.97		3.50%	-1.21%	-62.52%

Nippon Seisen Co., Ltd. Corporate Events

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.

Nippon Seisen Announces Board and Auditor Changes

Nippon Seisen Co., Ltd. announced a planned change in its board of directors and auditors, effective June 27, 2025, pending approval at the upcoming shareholders’ meeting. This strategic move involves the appointment of new directors and auditors, including both internal promotions and external appointments, which could influence the company’s governance and operational strategies.

Nippon Seisen Details Parent Company Relationship with Daido Steel

Nippon Seisen Co., Ltd. announced its relationship with its parent company, Daido Steel Co., Ltd., which holds a 50.63% voting stake. This relationship positions Nippon Seisen within the Daido Steel group, with significant business interactions but no financial loans or guarantees. The announcement also highlights the integration of personnel between the companies, with shared directors and seconded employees, reflecting a strong operational synergy.

Nippon Seisen Co., Ltd. Reports Strong Financial Growth for FY 2025

Nippon Seisen Co., Ltd. reported a notable increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 4.5% and operating profit increasing by 29.4% compared to the previous year. The company’s strategic initiatives and operational efficiencies have contributed to improved profitability, enhancing its market position and providing positive implications for stakeholders.