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Nippon Light Metal Holdings Co Ltd (JP:5703)
:5703
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Nippon Light Metal Holdings Co (5703) AI Stock Analysis

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JP:5703

Nippon Light Metal Holdings Co

(Berlin:5703)

Rating:76Outperform
Price Target:
¥1,826.00
▲(3.51%Upside)
Nippon Light Metal Holdings Co benefits from a strong valuation with an attractive P/E ratio and dividend yield. The financial performance is solid, with robust revenue growth and profitability, although there are opportunities to improve operational efficiencies and cash flow management. Technically, the stock shows strong upward momentum, though caution is advised due to nearing overbought conditions.

Nippon Light Metal Holdings Co (5703) vs. iShares MSCI Japan ETF (EWJ)

Nippon Light Metal Holdings Co Business Overview & Revenue Model

Company DescriptionNippon Light Metal Holdings Company, Ltd. manufactures and sells aluminum products and related products in Japan and internationally. The company operates in four segments: Alumina, Chemicals, and Ingot; Sheet and Extruded Products; Fabricated Products and Other; and Foil and Powder Products. The Alumina, Chemicals, and Ingot segment provides aluminum hydroxide, alumina, and various other chemicals for use in a range of fields, including as fire retardants, raw materials for ceramics, and industrial materials for the manufacture of pulp and paper; and aluminum ingots. The Sheet and Extruded Products segment offers aluminum sheets and extrusion products are used in various fields, such as for automotive parts and railway cars in the transport industry, thick sheets and related parts for semiconductor/liquid-crystal manufacturing equipment, and fabricated sheets for PC/tablet bodies in the electrical and electronics industry. The Fabricated Products and Other segment provides truck bodies; commercial refrigerator and freezer panels; fabricated aluminum products for infrastructure, including for civil engineering and construction; and anodized aluminum foil for aluminum electrolytic capacitors, automotive parts, and carbon products. The Aluminum Foil, Powder and Paste segment offers packaging materials for food and medical products, products for electronics, and aluminum powder and paste products. It serves the automotive; electrical machinery, electronics, and telecommunications; environment, safety, and energy; public facilities, landscaping, and architecture; transportation; and food and health, and industrial products markets. The company was incorporated in 2012 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNippon Light Metal Holdings Co., Ltd. generates revenue primarily through the manufacturing and sale of aluminum and aluminum-related products. Key revenue streams include the automotive sector, where it supplies lightweight components to enhance fuel efficiency and performance, and the construction industry, offering durable and sustainable building materials. The company also serves the electronics and packaging sectors, providing high-quality aluminum products for manufacturing and packaging solutions. Strategic partnerships and investments in research and development further support its earnings by fostering innovation and expanding its product offerings in global markets.

Nippon Light Metal Holdings Co Financial Statement Overview

Summary
Nippon Light Metal Holdings Co is performing well with strong revenue growth and profitability. The balance sheet is stable, but there is a need to improve operational efficiencies and manage cash flow better to ensure sustained financial health.
Income Statement
75
Positive
Nippon Light Metal Holdings Co has demonstrated consistent revenue growth with a notable improvement in net income over the past year. The gross profit margin and net profit margin are solid, reflecting efficient cost management. However, the EBIT and EBITDA margins reveal room for improvement in operational efficiency.
Balance Sheet
70
Positive
The company's balance sheet shows a stable equity base with a moderate debt-to-equity ratio, indicating prudent financial leverage. The equity ratio suggests a healthy proportion of shareholder equity relative to total assets. However, the company should monitor its debt levels to avoid potential risks.
Cash Flow
65
Positive
Cash flow analysis indicates a decrease in free cash flow due to higher capital expenditures. The operating cash flow to net income ratio is reasonable, but the declining free cash flow signals potential liquidity challenges. The company needs to enhance its cash conversion efficiency.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue550.18B523.72B516.95B486.58B432.57B
Gross Profit95.26B88.61B76.93B91.35B90.07B
EBITDA43.12B38.83B32.45B47.01B28.46B
Net Income12.38B9.04B7.20B16.76B3.37B
Balance Sheet
Total Assets544.31B543.19B526.20B532.60B506.95B
Cash, Cash Equivalents and Short-Term Investments34.71B35.21B31.30B45.19B61.23B
Total Debt168.83B161.32B163.57B155.41B146.23B
Total Liabilities293.83B305.10B305.44B311.69B299.85B
Stockholders Equity233.13B221.26B205.47B203.09B190.71B
Cash Flow
Free Cash Flow-7.98B14.11B-17.71B-19.36B15.26B
Operating Cash Flow12.06B38.04B695.00M1.49B41.94B
Investing Cash Flow-19.11B-23.93B-15.12B-18.02B-25.67B
Financing Cash Flow6.24B-11.05B85.00M-626.00M8.19B

Nippon Light Metal Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1764.00
Price Trends
50DMA
1632.16
Positive
100DMA
1565.41
Positive
200DMA
1534.03
Positive
Market Momentum
MACD
32.42
Negative
RSI
78.52
Negative
STOCH
86.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5703, the sentiment is Positive. The current price of 1764 is above the 20-day moving average (MA) of 1668.20, above the 50-day MA of 1632.16, and above the 200-day MA of 1534.03, indicating a bullish trend. The MACD of 32.42 indicates Negative momentum. The RSI at 78.52 is Negative, neither overbought nor oversold. The STOCH value of 86.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5703.

Nippon Light Metal Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€106.16B8.575.42%4.06%5.05%37.05%
62
Neutral
$10.37B10.131.50%2.95%2.32%-32.65%
€1.58B9.279.70%2.72%
€248.90M53.840.92%5.60%
€498.43M4.2914.23%1.74%
71
Outperform
¥97.57B9.04
4.03%0.58%-21.95%
64
Neutral
¥63.60B5.14
2.84%-4.57%-12.17%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5703
Nippon Light Metal Holdings Co
1,764.00
160.95
10.04%
DE:F4M
UACJ
34.40
10.14
41.80%
DE:7YB
Daiki Aluminium Industry Co., Ltd.
5.75
-1.22
-17.50%
DE:FUR
Furukawa Co., Ltd.
13.90
3.50
33.65%
JP:5440
Kyoei Steel Ltd.
2,235.00
411.69
22.58%
JP:5480
Nippon Yakin Kogyo Co., Ltd.
4,230.00
-222.48
-5.00%

Nippon Light Metal Holdings Co Corporate Events

Nippon Light Metal Holdings Reports Q1 2025 Financial Results
Jul 31, 2025

Nippon Light Metal Holdings Co. reported a 6.6% increase in net sales for the three months ended June 30, 2025, compared to the previous year. Despite this growth in sales, the company experienced a decline in ordinary profit by 6.5% and a slight decrease in profit attributable to owners of the parent by 1.1%. The company forecasts continued growth in net sales and profits for the fiscal year ending March 31, 2026, with a projected 7.2% increase in net sales and a 21.2% rise in profit attributable to owners of the parent. The announcement indicates a positive outlook for the company’s financial performance, although challenges remain in maintaining profit margins.

The most recent analyst rating on (JP:5703) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Nippon Light Metal Holdings Co stock, see the JP:5703 Stock Forecast page.

Nippon Light Metal Holdings Reports Strong Fiscal Year 2025 Results
May 15, 2025

Nippon Light Metal Holdings Co. reported a positive financial performance for the fiscal year ended March 31, 2025, with net sales increasing by 5.1% and operating profit rising by 19.5%. The company also announced an increase in annual dividends per share, reflecting a strong commitment to shareholder returns. These results indicate a robust operational performance and a solid financial position, enhancing its competitive stance in the industry.

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: May 27, 2025