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

• Market Cap: ¥17.18B
• Dividend Yield: 2.66%
• Average Volume (3M): 2.62K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.16
• 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: ¥2,999.00 ▲(11.82% Upside)

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

Consistent Revenue Growth

Revenue growth of ~9% year-over-year demonstrates durable demand for the company's metal-based building products and steady market traction. Sustained top-line expansion supports capacity utilization, long-term planning and investment, underpinning predictable cash flows and scalability over 2-6 months.

Strong Balance Sheet / Low Leverage

Very low leverage and a high equity ratio provide financial flexibility to invest, withstand cyclical downturns, and pursue strategic initiatives without heavy refinancing risk. Improved ROE indicates efficiency in capital use and supports sustainable shareholder returns over time.

Margin Expansion & Operational Efficiency

Improving gross and operating margins signal better cost control and production efficiency in manufacturing operations. Sustained margin expansion strengthens cash generation potential and competitive positioning by enabling reinvestment in product quality and process improvements over the medium term.

Negative Factors

Weakening Free Cash Flow

A notable drop in free cash flow from higher capex reduces discretionary funds for dividends, M&A or debt reduction. If higher investment does not swiftly translate into higher operating cash conversion, the company's ability to self-fund growth and absorb shocks could be constrained over the next several quarters.

Modest Profitability Levels

While margins and ROE are improving, absolute levels remain moderate, limiting internal capital generation and resilience versus peers. Persistent modest profitability can cap reinvestment capacity and make it harder to build durable competitive moats or fund aggressive growth without external financing.

Limited Scale & Market Liquidity

Small trading liquidity and a relatively compact organizational scale can reflect limited market presence and weaker bargaining power with large customers or suppliers. Structural scale constraints may slow market share gains and limit operational leverage as industry competition intensifies.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 2682.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5941, the sentiment is Positive. The current price of 2682 is below the 20-day moving average (MA) of 2692.40, above the 50-day MA of 2571.54, and above the 200-day MA of 2450.45, indicating a bullish trend. The MACD of 36.94 indicates Positive momentum. The RSI at 71.17 is Negative, neither overbought nor oversold. The STOCH value of 52.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
5951	82 Outperform	¥15.20B	9.12	―	2.30%	9.86%	119.10%
6484	81 Outperform	¥19.82B	8.36	―	3.46%	3.87%	5.89%
7955	76 Outperform	¥32.61B	9.96	―	3.56%	3.03%	160.39%
7981	72 Outperform	¥195.04B	13.10	―	3.41%	6.17%	61.39%
5941	70 Outperform	¥17.18B	9.76	―	2.66%	8.62%	11.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%