NASU DENKI-TEKKO CO., LTD. (5922) AI Stock Analysis

• Market Cap: ¥23.71B
• Dividend Yield: 2.78%
• Average Volume (3M): 1.17K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.53
• Revenue Growth: 2.63%
• EPS Growth: -3.96%
• Country: JP
• Employees: 490
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 780.24
• Shares Outstanding: 1,200,000
• 10 Day Avg. Volume: 1,810
• 30 Day Avg. Volume: 1,166
• PEG Ratio: 4.36
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 35.42
• 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: 76 Outperform
• Price Target: ¥22,939.00 ▲(36.38% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

Score is led by strong financial performance (steady profitability and a solid balance sheet), supported by reasonable valuation (P/E ~11.2 and ~2.22% yield). Technicals are a meaningful risk factor due to extremely overbought momentum despite a clear uptrend.

Positive Factors

Sustained Profitability and Margins

Consistent gross margin and improving EBIT margin, with net margins near 8–9%, indicate durable operating economics in metal fabrication. Stable margins support predictable earnings, reinvestment capacity and the ability to sustain dividends and capital spending over the medium term.

Robust Balance Sheet and Moderate Leverage

A healthy equity ratio and moderate debt-to-equity provide financial flexibility to withstand industry cyclicality. This conservatism supports long-term investment, access to financing for capex or acquisitions, and lowers restructuring risk during downturns, bolstering resilience.

Stable Operating Cash Generation

Stable operating cash flow relative to net income shows the business converts profits into cash sustainably. Reliable cash generation underpins working-capital needs, funds maintenance capex and operational continuity, and provides a foundation for longer-term financial planning.

Negative Factors

Declining and Volatile Free Cash Flow

A declining and fluctuating free cash flow profile undermines the company’s ability to fund discretionary investments, pay consistent dividends or accelerate deleveraging. Persistent volatility raises uncertainty around capital allocation and long-term shareholder returns.

Stagnant to Slightly Declining Revenue

Moderate growth with recent slight decline implies limited organic expansion and potential market-share pressure. In a competitive metal fabrication industry, weak top-line momentum constrains scale benefits and long-term margin expansion unless addressed via new products or market diversification.

Slightly Eroding Return on Equity

A declining ROE signals decreasing efficiency in converting equity into profits, which can reflect margin pressure or increasing capital intensity. If the trend persists, it may reduce long-term shareholder returns and indicate the need for operational or strategic adjustments.

NASU DENKI-TEKKO CO., LTD. Business Overview & Revenue Model

Company Description

Nasu Denki-Tekko Co., Ltd. manufactures and sells steel towers, steel structures, transportation system materials, overhead wire hardware products, and underground wire materials in Japan. It designs, manufactures, and sells structures related to various infrastructure facilities, high-voltage power transmission towers, power plants, substation steel structures and frames, and communication towers, as well as various materials for removing utility poles; and a range of overhead wire materials, including power and communication overhead wire hardware, insulators, resin covers, various wire materials, and information and communication antenna supports. The company also designs, manufactures, and sells road information boards, signs, noise barrier posts, toll gate materials, tunnel related materials, and materials for railways and other new transportation systems; and prefabricated steel pipe poles for electric power, prefabricated steel pipe poles for communications, and various poles for disaster prevention. In addition, it offers surface treatments, such as high corrosion resistance plating, hot-dip galvanization, low-gloss treatment, and various types of painting services; and hot-dip zinc aluminum alloy plating services. Further, the company carries out various construction works, such as communication tower equipment construction, underground line equipment construction, road equipment construction, deterioration diagnosis, and recycling business of galvanized products; and offers hydrogen storage alloy systems. The company serves electric power, telecommunication, construction, highway, and railway companies, as well as other government agencies and ministry of land, infrastructure, transport, tourism, internal affairs, communications, and defense. The company was founded in 1929 and is headquartered in Shinjuku-ku, Japan.

How the Company Makes Money

The company generates revenue primarily through the sale of its electrical equipment and steel products. Key revenue streams include direct sales to industrial clients, contracts for large-scale construction projects, and ongoing maintenance and support services for its electrical machinery. Additionally, NASU DENKI-TEKKO may benefit from strategic partnerships with construction firms and energy companies, which can enhance its market reach and lead to long-term contracts. The company's reputation for quality and reliability in its products also plays a significant role in securing repeat business and referrals, contributing to its overall earnings.

NASU DENKI-TEKKO CO., LTD. Financial Statement Overview

Summary

Strong overall fundamentals driven by consistent profitability (stable gross margin and improving EBIT margin; net margin ~8–9%) and a robust balance sheet with healthy equity levels and moderate leverage. The main offset is weakening cash-flow quality, as free cash flow has declined and fluctuated.

Income Statement

NASU DENKI-TEKKO CO., LTD. demonstrates solid profitability with a consistent gross profit margin and improving EBIT margin. The company shows stability with a net profit margin of around 8-9% over recent years. Revenue growth is moderate, with a slight decline in the latest year, suggesting stable but stagnant top-line performance.

Balance Sheet

The balance sheet is robust with a healthy equity ratio, indicating strong financial stability. The debt-to-equity ratio is moderate, reflecting a balanced approach to leveraging. The company maintains a solid return on equity, though it has slightly declined, suggesting efficient use of shareholder capital.

Cash Flow

The cash flow statement shows a decline in free cash flow, with notable fluctuations over the years. The operating cash flow to net income ratio is relatively stable, indicating good cash generation from operations. However, the decline in free cash flow growth is a concern that needs addressing for future sustainability.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	23.59B	22.94B	23.33B	22.06B	22.96B	21.59B
Gross Profit	4.78B	4.88B	4.78B	4.61B	5.17B	4.08B
EBITDA	4.16B	4.58B	4.02B	3.81B	4.34B	2.75B
Net Income	1.96B	1.89B	1.85B	1.86B	2.57B	1.07B
Balance Sheet
Total Assets	43.61B	43.64B	44.23B	40.78B	40.43B	38.55B
Cash, Cash Equivalents and Short-Term Investments	7.12B	7.42B	8.86B	8.41B	8.79B	7.09B
Total Debt	3.64B	5.04B	6.02B	5.78B	6.56B	7.56B
Total Liabilities	14.16B	14.31B	16.95B	16.06B	17.46B	17.97B
Stockholders Equity	29.14B	29.02B	27.00B	24.47B	22.74B	20.38B
Cash Flow
Free Cash Flow	0.00	438.89M	676.61M	652.05M	3.05B	-1.07B
Operating Cash Flow	0.00	1.70B	3.21B	3.04B	4.03B	-655.32M
Investing Cash Flow	0.00	-1.75B	-2.66B	-2.33B	-1.06B	-487.22M
Financing Cash Flow	0.00	-1.30B	-2.75M	-1.03B	-1.13B	-977.22M

NASU DENKI-TEKKO CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16820.00
• 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:5922, the sentiment is Positive. The current price of 16820 is below the 20-day moving average (MA) of 19962.00, below the 50-day MA of 18590.00, and above the 200-day MA of 15500.85, indicating a bullish trend. The MACD of 501.00 indicates Positive momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5922.

NASU DENKI-TEKKO CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6998	78 Outperform	¥11.50B	7.66	―	3.48%	0.24%	20.23%
5922	76 Outperform	¥23.71B	5.39	―	2.78%	2.63%	-3.96%
5644	72 Outperform	¥15.36B	4.33	―	2.87%	2.38%	-5.80%
5994	69 Neutral	¥7.04B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥20.97B	3.53	―	4.33%	5.12%	―
2962	53 Neutral	¥9.03B	-73.23	―	―	-19.32%	-171.53%