Nihon Seiko Co.,Ltd (5729) AI Stock Analysis

• Market Cap: ¥35.39B
• Dividend Yield: 1.87%
• Average Volume (3M): 39.54K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.58
• Revenue Growth: 86.79%
• EPS Growth: 449.97%
• Country: JP
• Employees: 250
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 803.84
• Shares Outstanding: 2,605,900
• 10 Day Avg. Volume: 50,390
• 30 Day Avg. Volume: 39,543
• PEG Ratio: 0.01
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -7.82
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥17,545.00 ▲(21.08% Upside)

Nihon Seiko Co., Ltd. is well-positioned with strong technical momentum and attractive valuation metrics. While financial performance is solid, attention is needed on recent revenue and cash flow challenges. The lack of earnings call data and corporate events does not impact the score.

Nihon Seiko Co.,Ltd Business Overview & Revenue Model

Company Description

Nihon Seiko Co., Ltd (5729) is a prominent Japanese company specializing in the manufacturing and distribution of precision instruments and components. The company operates primarily in the electronics and semiconductor sectors, providing high-quality products such as precision metal parts, tools, and equipment used in various industrial applications. With a strong focus on innovation and technological advancement, Nihon Seiko aims to meet the evolving demands of its clients across multiple industries.

How the Company Makes Money

Nihon Seiko generates revenue through the production and sale of precision instruments and components utilized in electronics and semiconductor manufacturing. The company’s key revenue streams include the sale of metal parts and tools to various industries, particularly in the automotive and electronics sectors. Additionally, Nihon Seiko may engage in partnerships with other technology firms to co-develop specialized products, enhancing its market reach and customer base. Factors contributing to its earnings include a robust demand for high-precision components, advancements in manufacturing technology, and a growing global market for electronics.

Nihon Seiko Co.,Ltd Financial Statement Overview

Summary

Nihon Seiko Co., Ltd. exhibits strong profitability with healthy margins and effective equity utilization. However, recent revenue declines and cash flow challenges require strategic management to maintain growth and financial stability.

Income Statement

Nihon Seiko Co., Ltd. has demonstrated strong growth in revenue and profitability over the years. The gross profit margin is healthy, and the net profit margin has shown significant improvement, indicating enhanced efficiency and cost management. The EBIT and EBITDA margins are robust, reflecting solid operational performance. However, the company experienced a decline in revenue in the most recent period, which requires attention.

Balance Sheet

The company's balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, indicating balanced leverage. The return on equity is strong, showcasing effective use of shareholder funds. The equity ratio is also healthy, indicating a solid capital structure. However, the increase in debt levels and a decrease in cash reserves could pose potential risks if not managed carefully.

Cash Flow

Cash flow management shows potential challenges, with a recent decline in operating cash flow and negative free cash flow, signaling liquidity concerns. The ratio of operating cash flow to net income is below expectations, suggesting inefficiencies in cash generation compared to reported profits. Despite this, the company has previously demonstrated strong free cash flow growth, which indicates the ability to rebound.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.11B	25.18B	15.59B	15.92B	17.10B	11.25B
Gross Profit	7.47B	4.91B	1.79B	1.93B	3.28B	2.12B
EBITDA	6.60B	4.24B	1.23B	1.34B	2.72B	1.61B
Net Income	4.15B	2.46B	502.74M	481.85M	1.54B	813.68M
Balance Sheet
Total Assets	22.90B	20.94B	15.87B	13.95B	14.84B	12.21B
Cash, Cash Equivalents and Short-Term Investments	1.98B	2.13B	3.02B	2.28B	3.09B	3.50B
Total Debt	4.69B	4.00B	3.10B	2.09B	1.97B	1.53B
Total Liabilities	9.33B	9.00B	6.17B	4.55B	5.54B	4.25B
Stockholders Equity	13.57B	11.93B	9.70B	9.41B	9.30B	7.97B
Cash Flow
Free Cash Flow	0.00	-1.54B	-16.89M	-558.62M	-259.86M	896.55M
Operating Cash Flow	0.00	-919.23M	1.55B	184.83M	386.26M	1.39B
Investing Cash Flow	0.00	-628.65M	-1.57B	-744.09M	-645.49M	-486.15M
Financing Cash Flow	0.00	645.28M	765.62M	-252.57M	-163.20M	-321.53M

Nihon Seiko Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14490.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5729, the sentiment is Positive. The current price of 14490 is above the 20-day moving average (MA) of 13405.12, above the 50-day MA of 12353.93, and above the 200-day MA of 6795.16, indicating a bullish trend. The MACD of 796.26 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 52.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5729.

Nihon Seiko Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5729	79 Outperform	¥35.39B	8.55	―	1.87%	86.79%	449.97%
4093	77 Outperform	¥12.30B	9.89	―	3.99%	-1.36%	-18.70%
6568	77 Outperform	¥9.14B	13.56	―	2.83%	-3.57%	-47.05%
4366	72 Outperform	¥9.87B	11.19	―	1.73%	13.02%	―
4040	67 Neutral	¥6.44B	6.25	―	2.18%	6.80%	-19.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	46 Neutral	€12.59B	7.54	-10.10%	―	-18.84%	-162.99%