Nippon Light Metal Holdings Co (5703) AI Stock Analysis

• Market Cap: ¥98.11B
• Dividend Yield: 6.31%
• Average Volume (3M): 182.78K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.84
• Revenue Growth: 5.05%
• EPS Growth: 37.08%
• Country: JP
• Employees: 12,489
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Aluminum
• EPS (TTM): 46.54
• Shares Outstanding: 61,993,750
• 10 Day Avg. Volume: 158,160
• 30 Day Avg. Volume: 182,783
• PEG Ratio: -0.22
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.11
• 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: 76 Outperform
• Price Target: ¥1,826.00 ▲(13.21%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 Business Overview & Revenue Model

Company Description

Nippon Light Metal Holdings Co., Ltd. is a leading Japanese company in the non-ferrous metal sector, primarily focusing on the production and processing of aluminum products. The company operates through several segments, including the Aluminum Ingot and Chemicals segment, the Aluminum Sheet and Extrusions segment, the Fabricated Products and Others segment, and the Aluminum Foil, Powder, and Paste segment. Nippon Light Metal Holdings serves a diverse range of industries such as automotive, electronics, construction, and packaging, providing materials that are essential for manufacturing and industrial applications.

How the Company Makes Money

Nippon Light Metal Holdings Co., Ltd. generates revenue primarily through the manufacture and sale of aluminum-based products. Its key revenue streams include the sale of aluminum ingots, sheets, extrusions, and fabricated products. The company benefits from its strong presence in both domestic and international markets, serving a broad array of industries that require high-quality aluminum materials. Additionally, Nippon Light Metal Holdings engages in strategic partnerships and collaborations that enhance its market reach and operational efficiency. Factors contributing to its earnings include its technological expertise, efficient production capabilities, and the ability to adapt to market demand for eco-friendly and lightweight materials.

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

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

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

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.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
539.96B	550.18B	523.72B	516.95B	486.58B	432.57B
	Gross Profit
93.36B	95.26B	88.61B	76.93B	91.35B	90.07B
	EBIT
21.00B	21.74B	18.19B	7.54B	22.20B	24.19B
	EBITDA
41.43B	43.12B	38.83B	32.45B	47.01B	28.46B
	Net Income Common Stockholders
13.05B	12.38B	9.04B	7.20B	16.76B	3.37B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.44B	34.71B	35.21B	31.30B	45.19B	61.23B
	Total Assets
560.90B	544.31B	543.19B	526.20B	532.60B	506.95B
	Total Debt
180.48B	168.83B	161.32B	163.57B	155.41B	146.23B
	Net Debt
143.03B	134.12B	126.23B	132.26B	110.22B	85.00B
	Total Liabilities
314.54B	293.83B	305.10B	305.44B	311.69B	299.85B
	Stockholders Equity
228.92B	233.13B	221.26B	205.47B	203.09B	190.71B
Cash Flow		Free Cash Flow
0.00	-7.98B	14.11B	-17.71B	-19.36B	15.26B
	Operating Cash Flow
0.00	12.06B	38.04B	695.00M	1.49B	41.94B
	Investing Cash Flow
0.00	-19.11B	-23.93B	-15.12B	-18.02B	-25.67B
	Financing Cash Flow
0.00	6.24B	-11.05B	85.00M	-626.00M	8.19B

Nippon Light Metal Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1613.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1613 is above the 20-day moving average (MA) of 1609.45, above the 50-day MA of 1518.50, and above the 200-day MA of 1517.94, indicating a neutral trend. The MACD of 18.72 indicates Positive momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 19.48 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	81 Outperform	€80.05B	4.32	14.23%	0.91%	6.88%	19.10%
5440	77 Outperform	¥84.61B	7.84		6.16%	0.58%	-21.95%
5703	76 Outperform	¥98.11B	7.92	5.42%	6.31%	5.05%	37.08%
5741	68 Neutral	€223.49B	8.25	9.70%	3.24%	11.87%	103.91%
5480	64 Neutral	¥58.01B	4.69		1.04%	-4.57%	-12.16%
5702	51 Neutral	€38.72B	54.71	0.92%	6.29%	14.13%	-78.53%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

Nippon Light Metal Holdings Co Corporate Events

Nippon Light Metal Holdings Reports Strong Fiscal Year 2025 Results

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.