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

• Market Cap: ¥31.14B
• Dividend Yield: 2.72%
• Average Volume (3M): 39.54K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.73
• Revenue Growth: 89.39%
• EPS Growth: 443.88%
• Country: JP
• Employees: 250
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 544.77
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥14,100.00 ▲(40.58% Upside)

Nihon Seiko Co., Ltd. scores well due to its strong valuation metrics, with a low P/E ratio and reasonable dividend yield. Financial performance is solid but requires attention to recent revenue and cash flow issues. Technical indicators suggest caution due to bearish momentum.

Positive Factors

Strong profitability and margins

Sustained strong gross and operating margins support durable cash generation and operational resilience across cycles. Robust EBIT/EBITDA margins indicate pricing power or cost discipline, enabling reinvestment, dividend capacity and competitive positioning in industrial materials over months.

High return on equity

A strong ROE combined with a healthy equity ratio signals efficient capital allocation and a solid capital structure. This durable strength reduces the need for dilutive financing, enhances shareholder returns potential, and provides a foundation for funding strategic initiatives over the medium term.

Historical revenue growth momentum

Material historical revenue growth reflects successful market penetration or product demand expansion, which can create scale economies and improve long-term margin sustainability. If maintained, this trend supports stronger cash generation and reinvestment capacity across the next several quarters.

Negative Factors

Recent revenue decline

A recent revenue decline interrupts growth momentum and can pressure margins and cash generation if persistent. For a cyclical chemicals/metal supplier, this may indicate weakening end-market demand or pricing pressure, requiring strategic response to restore durable top-line trends.

Weak operating cash flow / negative FCF

Declining operating cash flow and negative free cash flow undermine the company’s ability to fund capex, service debt, and sustain dividends from internal sources. This structural cash-generation weakness increases reliance on external financing and limits strategic flexibility over months.

Rising debt and lower cash reserves

Higher leverage paired with shrinking cash buffers reduces financial flexibility and raises refinancing and interest-rate risks. Over a medium-term horizon, this combination can constrain investment, amplify downside in downturns, and force prioritization between growth and liability management.

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 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. shows strong profitability and a stable financial position with healthy margins and effective equity utilization. However, recent revenue declines and cash flow challenges need strategic management to maintain growth.

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: Neutral
• Last Price: 10030.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 10030 is below the 20-day moving average (MA) of 12299.50, below the 50-day MA of 10969.60, and above the 200-day MA of 9131.04, indicating a neutral trend. The MACD of 539.31 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 28.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4040	77 Outperform	¥7.32B	6.31	―	1.96%	8.43%	2.99%
4093	77 Outperform	¥12.83B	11.54	―	3.89%	-3.00%	-29.83%
5729	71 Outperform	¥31.14B	6.06	―	2.72%	89.39%	443.88%
4366	71 Outperform	¥12.29B	14.22	―	1.81%	9.07%	―
6568	69 Neutral	¥9.41B	13.68	―	2.98%	-9.60%	-38.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	48 Neutral	¥13.27B	-10.19	-7.76%	―	-19.70%	-159.15%