NIHON SEIKAN K.K. (5905) AI Stock Analysis

• Market Cap: ¥1.70B
• Dividend Yield: 1.62%
• Average Volume (3M): 1.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -9.32%
• EPS Growth: -597.13%
• Country: JP
• Employees: 214
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 24.93
• Shares Outstanding: 1,392,000
• 10 Day Avg. Volume: 1,330
• 30 Day Avg. Volume: 1,153
• PEG Ratio: 0.03
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 3.65
• 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: 53 Neutral
• Price Target: ¥1,336.00 ▲(2.69% Upside)

The overall stock score of 53 reflects significant financial challenges, including declining revenue and profitability, which are partially offset by improved cash flow stability. Technical analysis shows short-term bullish momentum, but valuation metrics are concerning due to a negative P/E ratio. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Cash Flow Improvement

Improved operating cash flow enhances financial stability and provides the company with more flexibility to invest in growth opportunities.

Sustainability Focus

A focus on sustainability aligns with industry trends and can attract environmentally conscious clients, supporting long-term demand.

Product Innovation

Continuous investment in R&D can lead to new product lines and increased market share, driving future revenue growth.

Negative Factors

Declining Revenue

A decline in revenue indicates potential loss of market share or demand, which could impact long-term growth prospects.

Profitability Challenges

Negative profitability margins highlight operational inefficiencies and financial pressure, affecting the company's ability to generate profits.

Increased Leverage

Higher leverage can increase financial risk, limiting the company's ability to invest in growth and manage economic downturns.

NIHON SEIKAN K.K. Business Overview & Revenue Model

Company Description

Nihon Seikan k.k. manufactures and sells metal cans in Japan. It offers adhesive cans, art cans, welding cans, and other cans. The company also engages in real estate leasing business. Nihon Seikan k.k. was founded in 1914 and is based in Saitama, Japan.

How the Company Makes Money

NIHON SEIKAN generates revenue through the production and sale of a variety of metal packaging solutions, primarily for the food and beverage sector. The company's key revenue streams include direct sales of its metal containers to food manufacturers, beverage companies, and other industries requiring durable packaging solutions. Additionally, NIHON SEIKAN may engage in long-term contracts and partnerships with large clients, providing a steady income stream. The company also invests in research and development to create innovative packaging solutions that cater to market demands, which can lead to new product lines and increased market share. Factors contributing to its earnings include the growing demand for sustainable packaging solutions and the expansion of its client base in domestic and international markets.

NIHON SEIKAN K.K. Financial Statement Overview

Summary

NIHON SEIKAN K.K. faces challenging conditions with declining revenue and profitability, as evidenced by negative net income and shrinking margins. While the balance sheet remains stable, increased leverage poses a risk. The cash flow statement shows improvement, suggesting potential for recovery if operational and profitability issues are addressed.

Income Statement

The company experienced a decline in revenue and profitability. Revenue decreased by 8.08% from the previous year, driven by a significant drop in both gross and net profit margins. Gross profit margin fell to 6.68%, and net profit margin turned negative at -2.98% due to substantial losses in EBIT. These factors indicate financial pressure and potential operational inefficiencies.

Balance Sheet

The balance sheet remains moderately stable, though there are concerns. The debt-to-equity ratio increased slightly, indicating higher leverage and potential risk. Stockholders' equity reduced, affecting the equity ratio to 31.58%. However, the company's total assets showed some resilience, maintaining a balance between liabilities and equity.

Cash Flow

The cash flow statement shows improvement in operating cash flow with an increase of 131.61%, enhancing cash flow stability. The free cash flow turned positive, indicating better cash management. However, the high free cash flow to net income ratio of -1.54 reflects underlying profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.74B	11.26B	12.25B	10.92B	10.47B	10.98B
Gross Profit	630.88M	752.22M	1.65B	1.57B	1.49B	1.46B
EBITDA	562.52M	181.42M	901.35M	952.69M	839.40M	941.31M
Net Income	-441.62M	-335.32M	271.40M	289.83M	236.57M	297.05M
Balance Sheet
Total Assets	12.39B	12.97B	15.20B	13.94B	13.62B	14.56B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.90B	642.20M	660.52M	721.32M	718.60M
Total Debt	2.69B	3.11B	3.25B	2.92B	3.03B	2.94B
Total Liabilities	7.40B	7.95B	9.05B	7.93B	7.87B	8.36B
Stockholders Equity	4.06B	4.09B	5.23B	5.13B	4.91B	5.39B
Cash Flow
Free Cash Flow	0.00	517.89M	-399.24M	-126.18M	-111.49M	323.12M
Operating Cash Flow	0.00	896.17M	386.89M	459.77M	412.15M	551.21M
Investing Cash Flow	0.00	640.14M	-680.17M	-403.00M	-366.25M	2.44M
Financing Cash Flow	0.00	-277.15M	269.96M	-117.56M	-43.18M	-425.73M

NIHON SEIKAN K.K. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1301.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5905, the sentiment is Negative. The current price of 1301 is above the 20-day moving average (MA) of 1259.80, above the 50-day MA of 1265.52, and below the 200-day MA of 1343.00, indicating a bearish trend. The MACD of -3.03 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 65.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5905.

NIHON SEIKAN K.K. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3943	78 Outperform	¥12.05B	13.93	―	4.54%	4.38%	-12.68%
3954	76 Outperform	¥14.65B	12.15	―	1.20%	6.42%	-6.32%
3951	70 Outperform	¥19.45B	13.91	―	4.39%	5.06%	-15.22%
3946	68 Neutral	¥58.92B	8.01	―	3.50%	4.40%	47.13%
3953	63 Neutral	¥2.85B	-30.54	―	6.31%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5905	53 Neutral	¥1.70B	-5.74	―	1.62%	-9.32%	-597.13%