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

• Market Cap: ¥16.61B
• 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: ¥2,948.00 ▲(9.92% 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

Revenue growth trend

A 9.1% year-over-year revenue increase indicates durable demand for core products and expanding business activity. Sustained top-line growth supports capacity utilization, incremental operating leverage and provides a foundation for reinvesting in product and market expansion over the next several quarters.

Margin and operational efficiency

Healthy gross margin and improving net, EBIT and EBITDA margins point to structural cost controls and effective pricing. Persistent margin expansion enhances cash generation potential per unit of revenue and signals competitive production efficiency that can sustain profitability across cycles.

Strong balance sheet / low leverage

Very low leverage and a high equity ratio provide financial flexibility to withstand downturns, fund capex or strategic initiatives, and limit refinancing risk. Improved ROE shows better capital deployment, supporting durable resilience and capacity for selective investment without stressing solvency.

Negative Factors

Decline in free cash flow

A marked drop in free cash flow, driven by higher capex, reduces internally available funds for dividends, deleveraging or M&A. If capex is front-loaded or underperforming, the company may face pressure to secure external funding or cut discretionary spending, weakening near-term financial flexibility.

EPS contraction

A steep decline in EPS growth signals pressure on per-share profitability that could stem from non-recurring charges, margin dilution, or share count effects. Persistent EPS contraction undermines shareholder returns and may limit the company's ability to support dividend increases or share repurchases.

Exposure to cyclical construction demand

Operating in construction and infrastructure materials ties revenue to macro and investment cycles, making sales and margins sensitive to economic downturns or government capex shifts. This structural cyclicality can produce volatile cash flows and requires conservative balance sheet and working capital management.

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

Nakanishi Mfg. Co., Ltd. generates revenue through the sale of its core products, which include dental handpieces, precision tools, and medical instruments. The company has established a diverse revenue model that includes direct sales, distribution partnerships, and OEM (Original Equipment Manufacturer) agreements with dental and medical institutions. Key revenue streams are driven by the increasing demand for advanced dental technology and precision tools in healthcare, alongside a strong focus on research and development to introduce new products. Additionally, strategic partnerships with dental clinics, hospitals, and educational institutions enhance its market reach and contribute to steady sales growth.

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 2707.30, below the 50-day MA of 2690.88, and above the 200-day MA of 2480.39, indicating a neutral trend. The MACD of -8.49 indicates Positive momentum. The RSI at 38.21 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 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	¥13.04B	10.35	―	4.14%	10.34%	31.01%
5941	70 Outperform	¥16.61B	176.80	―	2.66%	8.62%	11.21%
5965	69 Neutral	¥14.99B	5.97	―	4.20%	―	―
7997	68 Neutral	¥1.64B	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	¥26.75B	18.05	―	2.64%	0.20%	-26.61%
6897	50 Neutral	¥4.40B	-27.75	―	3.25%	-1.20%	-1136.47%