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

• Market Cap: ¥29.89B
• Dividend Yield: 2.72%
• Average Volume (3M): 39.54K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.62
• Revenue Growth: 89.39%
• EPS Growth: 443.88%
• Country: JP
• Employees: 250
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 413.13
• 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: 70 Outperform
• Price Target: ¥13,475.00 ▲(34.35% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by solid underlying profitability/financial stability but tempered by recent revenue and cash flow weakness. Technicals are mixed (pullback/neutral momentum), while valuation is a clear positive due to a low P/E and decent dividend yield.

Positive Factors

High profitability and margins

Sustained healthy gross, net, EBIT and EBITDA margins indicate durable operational efficiency and pricing power in its manufacturing niche. Strong margins support reinvestment, dividend capacity and resilience through cycles, enabling long-term competitiveness and cash generation.

Healthy capital structure and ROE

A reasonable debt-to-equity ratio and healthy equity ratio provide financial flexibility for capital spending and downturns. Combined with solid ROE, this capital structure supports sustained investment and limits refinancing risk, strengthening long-term stability.

Proven growth history and prior FCF strength

Historical episodes of strong free cash flow, alongside prior multi-period revenue and EPS growth, show the company can convert operational gains into cash. This track record suggests potential to rebound cash generation and fund strategic initiatives over the medium term.

Negative Factors

Recent revenue decline

A recent drop in revenue signals weakening end-market demand or lost volume, which can erode scale economics and pressure margins. In a cyclical industrial materials business, sustained revenue weakness would impair reinvestment capacity and long-term growth prospects.

Declining operating cash flow and negative FCF

Falling operating cash flow and negative free cash flow reduce the firm's ability to self-fund capex, service debt or sustain shareholder returns. Persisting low cash conversion versus reported profits weakens financial flexibility and raises financing risk over coming quarters.

Rising debt and lower cash reserves

Higher leverage combined with shrinking cash buffers elevates liquidity and refinancing risk, especially if cash generation remains weak. Increased interest burden and tighter covenants could constrain strategic choices and force defensive measures over the medium term.

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

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Nihon Seiko Co.,Ltd Financial Statement Overview

Summary

Profitability and operating margins are strong and ROE is solid, but the most recent revenue decline plus weaker cash generation (declining operating cash flow and negative free cash flow) and rising debt/cash decline reduce confidence.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	21.01B	15.94B	14.00B	14.84B	12.31B
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	9.08B	6.24B	4.60B	5.54B	4.35B
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: 10030.00
• 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 10030 is below the 20-day moving average (MA) of 11969.50, below the 50-day MA of 12038.00, and below the 200-day MA of 10278.28, indicating a bullish trend. The MACD of 250.46 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 65.94 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
4025	79 Outperform	¥38.25B	9.83	―	0.13%	9.78%	40.00%
5013	76 Outperform	¥40.23B	5.81	―	3.53%	-3.45%	30.52%
7925	71 Outperform	¥33.09B	15.24	―	3.45%	4.17%	23.25%
5729	70 Outperform	¥29.89B	6.07	―	2.72%	89.39%	443.88%
4463	66 Neutral	¥26.50B	10.33	―	3.53%	6.99%	-0.30%
8158	64 Neutral	¥23.12B	9.61	―	3.99%	1.66%	-31.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%