Nippon Filcon Co., Ltd. (5942) AI Stock Analysis

• Market Cap: ¥12.33B
• Dividend Yield: 5.25%
• Average Volume (3M): 26.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -6.68%
• EPS Growth: -28.64%
• Country: JP
• Employees: 1,312
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -69.48
• Shares Outstanding: 22,167,212
• 10 Day Avg. Volume: 24,130
• 30 Day Avg. Volume: 26,766
• PEG Ratio: 0.06
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 166.40
• 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: 56 Neutral
• Price Target: ¥585.00 ▲(7.34% Upside)
• Action: Downgraded Date: 01/16/26
• Date: Action: Downgraded 01/16/26

Overall score reflects mixed financial performance—stable revenue and a solid balance sheet/cash generation, but a recent swing to net loss and uneven free cash flow. Technicals are supportive but stretched, and valuation is helped by a high dividend yield while negative P/E signals recent profitability weakness.

Positive Factors

Balance-sheet resilience

Moderate, stable leverage and steady assets/equity imply financial resilience. This capital structure supports funding of working capital, targeted capex, and contract fulfilment without immediate refinancing pressure, giving management flexibility to invest in product development or weather cyclical downturns.

Consistent operating cash generation

Consistent positive operating cash flow underpins liquidity and operational continuity. Reliable cash generation enhances the company's ability to meet supplier and payroll obligations, fund routine capex and maintain supply contracts, reducing reliance on external financing for normal growth and operations.

Stable revenue trend

A steady top line with modest multi-year growth reflects durable end-market demand and diversified product use across industries. Stable revenues from direct sales, long-term contracts and customized solutions support predictable cash flow and provide a platform for incremental margin improvement over time.

Negative Factors

Recent swing to net loss

A move from multi-year profits to a net loss is a structural red flag for earnings durability. If losses persist they can erode equity, limit reinvestment in R&D or capex, pressure dividend capacity and force cost-cutting or higher leverage, all of which impair long-term competitive positioning.

Volatile free cash flow

Uneven FCF conversion reduces predictability of internal funding for investments and returns. Intermittent negative FCF increases reliance on external funding in weak periods, constraining strategic initiatives and raising the risk that management must delay upgrades or pursue costly financing.

Earnings quality / margin pressure

Net loss despite positive operating profit suggests non-operating costs, financing expenses, or one-off charges are eroding returns. Such below-the-line pressures can persist and reduce return on equity, complicating recovery of margins and weakening the company's ability to generate sustainable shareholder value.

Nippon Filcon Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Filcon Co., Ltd. manufactures and sells industrial equipment, components, and solutions in Japan. The company offers industrial filters and conveyor belts, such as paper machine clothing; META-CAT systems for the recovery of precious metals and rare metals, and the removal of heavy metals; fibers and nonwoven fabrics; and industrial wire mesh products for use in screening, filtering, and conveying processes in the manufacture of various products. It also provides electronic components and photomasks, including high-precision parts to the customers in electronics, automotive, office equipment, medical equipment, and other fields; manufactures stepper reticles and aligner masks for use in semiconductors and LCD; and offers power generation equipment and constructs installation frames. In addition, it provides swimming pools for elementary and junior high schools, and other public entities, as well as for fitness clubs, hotels, and other private businesses; offers Gcon, a specific gravity concrete for use in a breakwater; and imports and sells insulating joints that prevent corrosion and gas leaks on natural gas pipelines. Further, the company leases real estate properties, such as stores, condominiums, parking lots, and other properties. The company was founded in 1916 and is headquartered in Inagi, Japan.

How the Company Makes Money

Nippon Filcon generates revenue primarily through the sale of its filtration products and systems. Its key revenue streams include direct sales to industrial clients, long-term supply contracts, and customized filtration solutions tailored to specific client needs. The company also benefits from partnerships with major manufacturers and distributors in the filtration and industrial sectors, which broaden its market reach and enhance its product offerings. Additionally, continuous innovation and development in filtration technologies contribute to its competitive edge and revenue growth.

Nippon Filcon Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: revenue has been broadly stable, the balance sheet shows moderate leverage and steadiness, and operating cash flow remains positive. However, profitability deteriorated sharply with a swing to a net loss in 2025 and free cash flow has been volatile, reducing confidence in near-term earnings quality.

Income Statement

Revenue has been broadly stable with modest growth in recent years (about +2% to +8% annually from 2022–2024), but profitability has weakened materially. After solid profits in 2021–2024 (net margin ~2%–5% where provided), the latest annual period (2025) swung to a net loss despite still-positive operating profit, signaling margin pressure and/or below-the-line headwinds. Overall, the top line is steady, but the recent earnings reversal reduces confidence in near-term earnings quality.

Balance Sheet

Leverage appears moderate and fairly stable: debt sits around ¥10–12B against ~¥22–23B of equity (debt-to-equity roughly ~0.45–0.49 where provided). Total assets and equity have also been relatively steady over time, suggesting balance-sheet resilience. The main drawback is weaker returns in the most recent year as earnings fell into a loss, which can pressure equity value creation if it persists.

Cash Flow

Operating cash flow is consistently positive across the period shown and improved in 2025 versus prior years, which supports liquidity and ongoing operations. However, free cash flow has been volatile—negative in 2022–2023, modestly positive in 2024–2025—implying uneven conversion of earnings into cash after investment needs. This mix points to decent cash generation capacity, but with variability that investors should monitor.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	27.84B	28.64B	27.99B	25.95B	24.78B
Gross Profit	9.55B	9.86B	9.34B	9.23B	8.56B
EBITDA	1.42B	2.99B	3.62B	3.14B	2.90B
Net Income	-726.15M	622.69M	1.27B	1.08B	1.08B
Balance Sheet
Total Assets	42.96B	43.22B	42.82B	43.48B	41.12B
Cash, Cash Equivalents and Short-Term Investments	5.19B	4.90B	4.45B	4.78B	4.45B
Total Debt	11.60B	11.03B	10.52B	11.02B	9.79B
Total Liabilities	20.40B	19.96B	19.67B	20.75B	19.22B
Stockholders Equity	22.18B	22.82B	22.76B	22.32B	21.58B
Cash Flow
Free Cash Flow	61.26M	254.11M	-517.44M	-813.70M	266.18M
Operating Cash Flow	2.99B	1.97B	1.79B	799.58M	2.14B
Investing Cash Flow	-2.44B	-1.01B	-513.39M	-1.11B	-1.73B
Financing Cash Flow	-345.46M	-579.06M	-1.64B	380.23M	38.48M

Nippon Filcon Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 545.00
• 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:5942, the sentiment is Positive. The current price of 545 is below the 20-day moving average (MA) of 574.45, below the 50-day MA of 567.92, and above the 200-day MA of 527.89, indicating a neutral trend. The MACD of 2.92 indicates Positive momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5942.

Nippon Filcon Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6488	79 Outperform	¥12.03B	10.27	―	2.82%	7.10%	18.03%
6490	76 Outperform	¥176.38B	11.03	―	2.50%	-2.46%	-10.72%
6498	72 Outperform	¥160.60B	13.19	10.28%	2.77%	2.74%	7.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6240	61 Neutral	¥35.74B	25.47	―	2.53%	6.56%	23.98%
5942	56 Neutral	¥12.33B	-14.04	―	5.25%	-6.68%	-28.64%
6495	52 Neutral	¥10.13B	42.22	―	1.65%	3.96%	―