Nippon Light Metal Holdings Co Ltd (JP:5703)
:5703
Want to see JP:5703 full AI Analyst Report?
Top Page
Nippon Light Metal Holdings Co
(5703)
Select Model
Select Model
Rating:67Neutral
Price Target:
¥3,385.00
▲(32.17% Upside)
Action:Downgraded
Date:05/16/26
The score is driven primarily by improving financial results but constrained by inconsistent cash-flow and periods of negative free cash flow. Technicals are supportive with price above major moving averages and positive MACD, while valuation is notably attractive due to a low P/E and a moderate dividend yield.
Positive Factors
Vertical integration across aluminum value chain
Nippon Light Metal’s coverage of smelting, processing, rolled/extruded products, fabricated components and engineering creates durable downstream capture of value. This diversified model spreads risk across end markets (transportation, construction, packaging) and supports stable revenue mix and potential margin uplift from value-added goods over time.
Negative Factors
Inconsistent cash generation and volatile free cash flow
Multiple negative FCF years and wide swings in operating cash flow highlight quality-of-earnings and working-capital risks. Even with reported profits, inconsistent cash conversion constrains the company’s ability to fund growth, pay dividends, reduce debt reliably, or absorb shocks—weakening long-term financial predictability.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration across aluminum value chain
Nippon Light Metal’s coverage of smelting, processing, rolled/extruded products, fabricated components and engineering creates durable downstream capture of value. This diversified model spreads risk across end markets (transportation, construction, packaging) and supports stable revenue mix and potential margin uplift from value-added goods over time.
Read all positive factors
Nippon Light Metal Holdings Co (5703) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥188.80B
Dividend Yield3.02%
Average Volume (3M)289.51K
Price to Earnings (P/E)11.0
Beta (1Y)0.98
Revenue Growth6.41%
EPS Growth26.63%
CountryJP
Employees12,489
SectorGeneral
Sector StrengthN/A
IndustryAluminum
Share Statistics
EPS (TTM)209.78
Shares Outstanding61,993,750
10 Day Avg. Volume248,620
30 Day Avg. Volume289,510
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)0.69
Price to Sales (P/S)0.29
P/FCF Ratio31.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)256.66
Revenue Forecast (FY)¥580.90B
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 Pro...
How the Company Makes Money
The company makes money primarily through its operating subsidiaries by selling aluminum and aluminum-processed products and related services. Key revenue streams typically include: (1) Materials and processing sales—revenue from supplying aluminu...
Nippon Light Metal Holdings Co Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 560.89B | 585.47B | 550.18B | 523.72B | 516.95B | 486.58B |
| Gross Profit | 97.36B | 101.53B | 95.26B | 88.61B | 76.93B | 91.35B |
| EBITDA | 43.47B | 46.82B | 43.12B | 38.83B | 32.45B | 47.01B |
| Net Income | 12.96B | 15.59B | 12.38B | 9.04B | 7.20B | 16.76B |
Balance Sheet | ||||||
| Total Assets | 529.43B | 556.32B | 544.31B | 544.10B | 526.20B | 532.60B |
| Cash, Cash Equivalents and Short-Term Investments | 30.92B | 33.14B | 34.71B | 35.21B | 31.30B | 45.19B |
| Total Debt | 165.29B | 166.05B | 173.74B | 161.32B | 168.74B | 160.93B |
| Total Liabilities | 280.98B | 288.38B | 293.83B | 305.10B | 305.44B | 311.69B |
| Stockholders Equity | 231.34B | 248.69B | 233.13B | 222.16B | 205.47B | 203.09B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.47B | -7.98B | 16.00B | -15.82B | -17.16B |
| Operating Cash Flow | 0.00 | 25.62B | 12.06B | 38.04B | 695.00M | 1.49B |
| Investing Cash Flow | 0.00 | -18.08B | -19.11B | -23.93B | -15.12B | -18.02B |
| Financing Cash Flow | 0.00 | -9.77B | 6.24B | -11.05B | 85.00M | -626.00M |
Nippon Light Metal Holdings Co Technical Analysis
Positive
2561.00
Price Trends
2876.62
Positive
2805.08
Positive
2431.92
Positive
Market Momentum
53.00
Negative
57.79
Neutral
64.25
Neutral
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 2561 is below the 20-day moving average (MA) of 2953.00, below the 50-day MA of 2876.62, and above the 200-day MA of 2431.92, indicating a bullish trend. The MACD of 53.00 indicates Negative momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 64.25 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥561.18B | 10.74 | 6.36% | 1.91% | 18.32% | 47.04% | |
67 Neutral | ¥188.80B | 10.96 | 6.34% | 3.02% | 6.41% | 26.63% | |
62 Neutral | ¥72.78B | 15.13 | 0.07% | 4.88% | 10.45% | 451.58% | |
59 Neutral | ¥73.70B | 14.12 | ― | 2.98% | 11.53% | 17.06% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ¥81.36B | 35.50 | ― | 1.38% | -9.56% | -63.67% | |
47 Neutral | ¥188.25B | 58.58 | 5.78% | 1.49% | -6.28% | -23.60% |
* General Sector Average
JP:5703
Nippon Light Metal Holdings Co
3,050.00
1,499.41
96.70%
JP:5727
Toho Titanium Company
2,645.00
1,608.19
155.11%
JP:5741
UACJ
3,030.00
1,834.69
153.49%
JP:5702
Daiki Aluminium Industry Co., Ltd.
1,797.00
915.44
103.84%
JP:3036
ALCONIX Corporation
2,439.00
795.60
48.41%
JP:5726
OSAKA Titanium Technologies Co., Ltd.
2,211.00
754.45
51.80%
Nippon Light Metal Holdings Co Corporate Events
Nippon Light Metal Sets 2035 Vision and Launches 2026 Medium-term Plan
May 15, 2026
Nippon Light Metal Holdings has set out a long-term “2035 Vision” to become a global leading company in circular value creation, emphasizing a closed-loop supply chain and co-creation with partners and society. As part of this roadmap,...
Nippon Light Metal Lifts Profit, Strengthens Balance Sheet and Ups Dividend
May 15, 2026
Nippon Light Metal Holdings reported consolidated net sales of ¥585.5 billion for the year ended March 31, 2026, up 6.4% year on year, with operating profit rising 17.9% to ¥25.6 billion and profit attributable to owners of parent climbi...
Nippon Light Metal Completes Governance Reforms After Quality Misconduct
Mar 9, 2026
Nippon Light Metal Holdings has completed the implementation phase of a three-year program to prevent a recurrence of past quality-related misconduct, shifting from a decentralized governance model to a more centralized structure that consolidates...
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.