Nippon Light Metal Holdings Co (5703) AI Stock Analysis

• Market Cap: €134.39B
• Dividend Yield: 3.5%
• Average Volume (3M): 289.51K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.78
• Revenue Growth: 6.23%
• EPS Growth: 11.86%
• Country: JP
• Employees: 12,489
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 54.40
• Shares Outstanding: 61,993,750
• 10 Day Avg. Volume: 248,620
• 30 Day Avg. Volume: 289,510
• PEG Ratio: 0.20
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -11.78
• 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: €1,793.90
• Price Target Upside: -26.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,666.00 ▲(8.64% Upside)

Nippon Light Metal Holdings Co has a strong overall stock score driven by robust technical analysis and reasonable valuation. The financial performance is solid but could improve with better operational efficiencies and cash flow management. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for aluminum products and effective market positioning, supporting long-term business expansion.

Market Position

Strategic partnerships with key industry players ensure stable demand and long-term contracts, enhancing market presence and revenue stability.

Industry Trends

Growing demand for sustainable and lightweight materials aligns with industry trends, positioning the company for continued growth and innovation.

Negative Factors

Operational Efficiency

Operational inefficiencies and cash flow management issues could hinder profitability and growth, necessitating strategic improvements.

Free Cash Flow

Decreasing free cash flow due to high capital expenditures may limit liquidity and financial flexibility, impacting future investments.

Debt Levels

Moderate debt levels require careful monitoring to prevent financial strain and ensure long-term financial health and stability.

Nippon Light Metal Holdings Co Business Overview & Revenue Model

Company Description

Nippon 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 Money

Nippon Light Metal Holdings generates revenue primarily through the sale of aluminum products across several key sectors. Its revenue model is anchored in the manufacturing and distribution of aluminum materials, which are sold to industries such as automotive and construction, where demand for lightweight and durable materials is increasing. The company has established significant partnerships with major automotive manufacturers and construction firms, enabling consistent orders and long-term contracts that provide stable cash flow. Additionally, the company benefits from value-added services, including custom fabrication and recycling operations, which enhance profit margins. The global trend towards sustainability and lightweight materials further supports its revenue growth, as more industries seek to reduce weight and improve fuel efficiency in their products.

Nippon Light Metal Holdings Co Financial Statement Overview

Summary

Nippon Light Metal Holdings Co has shown strong revenue growth and profitability. The balance sheet is stable with a moderate debt-to-equity ratio, but there is a need for improved operational efficiencies and better cash flow management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	558.65B	550.18B	523.72B	516.95B	486.58B	432.57B
Gross Profit	96.56B	95.26B	88.61B	76.93B	91.35B	90.07B
EBITDA	41.65B	43.12B	38.83B	32.45B	47.01B	28.46B
Net Income	12.35B	12.38B	9.94B	7.20B	16.76B	3.37B
Balance Sheet
Total Assets	529.43B	544.31B	543.19B	526.20B	532.60B	506.95B
Cash, Cash Equivalents and Short-Term Investments	30.92B	34.71B	35.21B	31.30B	45.19B	61.23B
Total Debt	165.29B	168.83B	161.32B	163.57B	155.41B	146.23B
Total Liabilities	280.98B	293.83B	305.10B	305.44B	311.69B	299.85B
Stockholders Equity	231.34B	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: 2454.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2454 is above the 20-day moving average (MA) of 2280.80, above the 50-day MA of 2177.53, and above the 200-day MA of 1760.28, indicating a bullish trend. The MACD of 75.39 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 93.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5703	77 Outperform	€134.39B	10.28	5.71%	3.50%	6.23%	11.86%
5715	76 Outperform	€139.95B	9.20	11.58%	1.98%	9.81%	30.20%
5741	71 Outperform	€373.38B	26.09	6.36%	4.97%	11.31%	-25.76%
5480	71 Outperform	¥62.09B	6.14	―	5.14%	-9.28%	-7.18%
5440	70 Outperform	¥101.69B	9.11	―	3.92%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5702	59 Neutral	€44.15B	519.69	0.07%	5.08%	16.98%	-96.24%

Nippon Light Metal Holdings Co Corporate Events

Nippon Light Metal Holdings Reports Strong First Half Financial Performance

Nippon Light Metal Holdings Co. reported a significant improvement in its financial performance for the first half of the fiscal year ending March 31, 2026, with a 6.7% increase in net sales and a notable rise in operating and ordinary profits. The company’s strategic initiatives have resulted in a 13.8% increase in profit attributable to owners of the parent, reflecting strong operational efficiency and market positioning. The company also announced an increase in dividends, indicating confidence in its financial stability and commitment to shareholder returns.

The most recent analyst rating on (JP:5703) stock is a Hold with a Yen2281.00 price target. To see the full list of analyst forecasts on Nippon Light Metal Holdings Co stock, see the JP:5703 Stock Forecast page.