Nakanishi Mfg. Co., Ltd. (5941) AI Stock Analysis

• Market Cap: ¥16.54B
• Dividend Yield: 2.66%
• Average Volume (3M): 2.62K
• Price to Earnings (P/E): 176.8
• Beta (1Y): 0.17
• Revenue Growth: 8.62%
• EPS Growth: 11.21%
• Country: JP
• Employees: 411
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 3.95
• Shares Outstanding: 6,306,000
• 10 Day Avg. Volume: 1,750
• 30 Day Avg. Volume: 2,623
• PEG Ratio: 0.46
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -11.33
• 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: ¥2,943.00 ▲(9.73% Upside)
• Action: Reiterated Date: 08/29/25
• Date: Action: Reiterated 08/29/25

Nakanishi Mfg. Co., Ltd. receives a solid overall score due to its strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, which could pose short-term risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Low Financial Leverage

Very low debt and a high equity ratio provide durable financial flexibility. This reduces refinancing and interest risk, supports capital allocation for capex or cyclical downturns, and underpins long-term solvency and investment capacity.

Improved Profitability Margins

Sustained gross and operating margin improvement indicates efficient production and cost control. Higher margins enhance resilience to input cost volatility and support long-term free cash generation potential if conversion from earnings to cash is maintained.

Recent Revenue Growth

Consistent year-over-year top-line growth reflects solid demand for its metal-based building and infrastructure products. Durable revenue expansion supports scale economics, reinvestment capacity, and the ability to sustain margin improvements over coming quarters.

Negative Factors

Declining Free Cash Flow

A notable drop in free cash flow from rising capex weakens internal funding for dividends, debt reduction, or growth. If sustained, this pressures liquidity and may force external financing or slower shareholder returns despite accounting profits.

Weaker Cash Conversion

Lower conversion of reported earnings into cash indicates working capital strain or collection timing shifts. Persistent weakness in cash conversion limits the company's ability to translate margin gains into usable cash, raising medium-term liquidity risk.

Cyclical End‑Market Exposure

Heavy exposure to construction and infrastructure makes revenues and margins sensitive to economic cycles and public infrastructure spending. This structural cyclicality can drive revenue volatility and requires conservative capital planning across downturns.

Nakanishi Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Nakanishi Mfg. Co., Ltd. manufactures and sells commercial kitchen equipment primarily in Japan. It offers rice cooking system, rice cooker, continuous rice washer, water conveyor oven, conveyor type fryer, and food slicer equipment. The company was founded in 1945 and is headquartered in Osaka-shi, Japan.

How the Company Makes Money

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Nakanishi Mfg. Co., Ltd. Financial Statement Overview

Summary

Nakanishi Mfg. Co., Ltd. demonstrates robust financial performance with strong revenue and profit growth, supported by efficient operations and low financial leverage. However, the decline in free cash flow and its impact on cash generation should be addressed to ensure sustainable growth.

Income Statement

Nakanishi Mfg. Co., Ltd. shows strong revenue growth with a 9.1% increase from 2024 to 2025. The gross profit margin for 2025 stands at 24.12%, indicating efficient production, while the net profit margin improved to 4.53%, reflecting better cost control. The EBIT and EBITDA margins also improved, suggesting enhanced operational efficiency.

Balance Sheet

The company maintains a healthy balance with a debt-to-equity ratio of 0.09 in 2025, indicating low leverage and financial stability. The equity ratio stands at 67.12%, showing strong equity financing. Return on equity improved to 8.84%, reflecting effective use of shareholder capital.

Cash Flow

The free cash flow declined significantly, showing a negative growth rate due to increased capital expenditures. The operating cash flow to net income ratio decreased, highlighting potential issues in cash generation from operations. However, the company maintains a positive operating cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.93B	36.60B	30.67B	30.07B	28.64B
Gross Profit	9.63B	8.55B	7.17B	7.40B	6.69B
EBITDA	3.28B	2.71B	1.81B	2.25B	1.93B
Net Income	1.81B	1.52B	803.18M	1.12B	931.26M
Balance Sheet
Total Assets	30.47B	29.10B	26.13B	25.88B	25.92B
Cash, Cash Equivalents and Short-Term Investments	3.00B	5.81B	2.20B	4.72B	3.49B
Total Debt	1.93B	744.25M	739.67M	1.24B	1.73B
Total Liabilities	10.02B	9.99B	8.51B	8.93B	9.54B
Stockholders Equity	20.45B	19.11B	17.63B	16.95B	16.38B
Cash Flow
Free Cash Flow	-1.40B	3.96B	-1.56B	1.94B	631.65M
Operating Cash Flow	544.47M	4.33B	-1.44B	2.41B	1.04B
Investing Cash Flow	-3.93B	-454.46M	-307.92M	-472.56M	-458.22M
Financing Cash Flow	574.12M	-266.50M	-780.77M	-710.32M	-698.41M

Nakanishi Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2682.00
• 50DMA: Negative
• 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:5941, the sentiment is Negative. The current price of 2682 is below the 20-day moving average (MA) of 2683.40, below the 50-day MA of 2691.52, and above the 200-day MA of 2488.54, indicating a neutral trend. The MACD of -13.79 indicates Positive momentum. The RSI at 38.46 is Neutral, neither overbought nor oversold. The STOCH value of 46.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5941.

Nakanishi Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6291	74 Outperform	¥13.19B	10.35	―	4.14%	10.34%	31.01%
5941	70 Outperform	¥16.54B	176.80	―	2.66%	8.62%	11.21%
5965	69 Neutral	¥14.40B	5.97	―	4.20%	―	―
7997	68 Neutral	¥1.62B	4.03	―	2.23%	-9.48%	-66.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3421	61 Neutral	¥26.27B	23.25	―	2.64%	0.20%	-26.61%
6897	50 Neutral	¥4.31B	-27.75	―	3.25%	-1.20%	-1136.47%