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

• Market Cap: ¥33.34B
• Dividend Yield: 1.98%
• Average Volume (3M): 50.89K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.53
• 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: 44,080
• 30 Day Avg. Volume: 50,893
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥16,519.00
• Price Target Upside: 20.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥16,519.00 ▲(20.93% Upside)

Nihon Seiko Co., Ltd. is well-positioned with strong technical momentum and an attractive valuation, despite recent financial challenges. The stock's undervaluation and strong market momentum are the most significant factors driving the score.

Nihon Seiko Co.,Ltd Business Overview & Revenue Model

Company Description

Nihon Seiko Co., Ltd. manufactures and sells antimony products and metal powders in Japan. It offers antimony trioxide, which is used as a flame-retardant additive for various plastics and rubbers, polyester polymerization catalysts, and solid lubricant in brake pads. The company also provides antimony metal for use in raw materials for semiconductors, film for optical memory disks, thermo-electron converters, storage batteries, bearing metals, hard lead castings, cable sheathing, typemetals, and sheet and pipe alloys; antimony metal powder for glass fining agents and alloys; antimony metal shots for alloys; and copper and antimony metal powder for electric detonators. In addition, it offers special treatment antimony trioxide; sodium antimonate for use in engineering plastics, and decolorization and fining of glasses; antimony trisulfide for use in friction materials, match box flints, fireworks, glass fining agents, powder for toys, and flash mixtures; and antimony pentasulfide for surface treatment of decorative trims and building materials. Further, the company provides antimony trichloride and antimony pentachloride for use as catalysts in fluorination, chlorination, and bromination of organic compounds, pigments, and semiconductor materials; and STEM series products that are mixtures of flame retardants for use in polyolefin plastics, such as PP and PE. Additionally, it manufactures and sells atomized metal powders of copper, tin, bronze, brass, silver, platinum, gold, stainless steel, nickel, nickel alloy, etc. The company was formerly known as Nakase Kogyo Co., Ltd. and changed its name to Nihon Seiko Co., Ltd. in 1936. Nihon Seiko Co., Ltd. was incorporated in 1935 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Seiko Co., Ltd. generates revenue through the sale of its non-ferrous metal products, with a particular focus on bismuth and its compounds that are used in diverse applications such as pharmaceuticals, cosmetics, and industrial materials. The company also earns income from its chemical products and recycling services, which involve recovering valuable metals from scrap materials. Key revenue streams include direct sales to industrial clients and partnerships with companies requiring specialized metal products. Additionally, the company's involvement in recycling contributes to its financial performance by reducing material costs and offering environmentally friendly solutions to its customers.

Nihon Seiko Co.,Ltd Financial Statement Overview

Summary

Nihon Seiko Co., Ltd. shows strong profitability with healthy margins and effective equity utilization. However, recent revenue declines and cash flow challenges require strategic management to maintain 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	25.18B	25.18B	15.59B	15.92B	17.10B	11.25B
Gross Profit	4.91B	4.91B	1.79B	1.93B	3.28B	2.12B
EBITDA	4.16B	4.24B	1.23B	1.34B	2.72B	1.61B
Net Income	2.46B	2.46B	502.74M	481.85M	1.54B	813.68M
Balance Sheet
Total Assets	20.94B	20.94B	15.87B	13.95B	14.84B	12.21B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.13B	3.02B	2.28B	3.09B	3.50B
Total Debt	4.00B	4.00B	3.10B	2.09B	1.97B	1.53B
Total Liabilities	9.00B	9.00B	6.17B	4.55B	5.54B	4.25B
Stockholders Equity	11.93B	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: 13660.00
• 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 13660 is above the 20-day moving average (MA) of 12525.02, above the 50-day MA of 10425.19, and above the 200-day MA of 6082.47, indicating a bullish trend. The MACD of 708.28 indicates Negative momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 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
4366	81 Outperform	¥10.74B	4.17	5.52%	1.60%	13.02%	―
5729	78 Outperform	¥33.34B	8.05	―	1.98%	86.79%	449.97%
6568	77 Outperform	¥9.07B	13.46	5.45%	2.83%	-3.57%	-47.05%
4093	74 Outperform	¥12.51B	10.08	7.03%	3.91%	-1.36%	-18.70%
4040	67 Neutral	¥6.60B	6.42	12.10%	2.12%	6.80%	-19.87%
4080	47 Neutral	¥13.11B	-7.89	-1.53%	―	-18.84%	-162.99%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%