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

• Market Cap: ¥11.45B
• Dividend Yield: 5.25%
• Average Volume (3M): 26.77K
• Price to Earnings (P/E): 20.1
• 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): 17.54
• Shares Outstanding: 22,167,212
• 10 Day Avg. Volume: 24,130
• 30 Day Avg. Volume: 26,766
• PEG Ratio: -0.32
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 39.17
• 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: 71 Outperform
• Price Target: ¥547.00 ▲(1.86% Upside)

Nippon Filcon Co., Ltd. shows a strong financial position with effective cash flow management and stable revenue growth. The technical analysis indicates a generally positive long-term trend, though short-term momentum is lacking. The valuation is mixed, with a high P/E ratio offset by an attractive dividend yield.

Positive Factors

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, supporting long-term stability.

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for products, which supports sustainable business expansion and competitive advantage.

Operational Efficiency

Stable operational efficiency reflects effective cost management and productivity, which are crucial for maintaining profitability and competitive positioning.

Negative Factors

Net Profit Margin Decline

A declining net profit margin suggests challenges in profitability, which could impact future earnings and shareholder returns if not addressed.

Decreased Return on Equity

Lower ROE indicates reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence and capital attraction.

Revenue Growth Challenges

Negative revenue growth challenges highlight potential market or operational issues, which could hinder long-term business expansion and competitiveness.

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

Nippon Filcon Co., Ltd. demonstrates stable revenue growth and effective cash flow management. Despite declining net profit margins, operational efficiency remains intact. The balance sheet is well-balanced, though returns on equity have decreased. Cash flows indicate improved liquidity and financial health.

Income Statement

Nippon Filcon Co., Ltd. has shown consistent revenue growth with a revenue increase of 2.33% from 2023 to 2024. The gross profit margin remains strong at 34.43% in 2024. However, the net profit margin has decreased to 2.17% due to a drop in net income, signaling pressure on profitability despite rising revenues. The EBIT and EBITDA margins are moderate at 3.23% and 10.44%, respectively, indicating stable operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.48, reflecting balanced leverage. The return on equity (ROE) has decreased to 2.73% in 2024, highlighting challenges in generating returns for shareholders. The equity ratio is healthy at 52.82%, suggesting a solid equity foundation supporting the company's financial stability.

Cash Flow

Free cash flow has improved significantly from -517 million JPY in 2023 to 254 million JPY in 2024, indicating better cash management. Operating cash flow to net income ratio is robust at 3.17, showcasing strong cash generation relative to net income. The free cash flow to net income ratio is 0.41, reflecting the company's ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.03B	28.64B	27.99B	25.95B	24.78B	21.74B
Gross Profit	9.38B	9.86B	9.34B	9.23B	8.56B	7.43B
EBITDA	2.73B	2.99B	3.62B	3.14B	2.90B	1.48B
Net Income	512.05M	622.69M	1.27B	1.08B	1.08B	-93.29M
Balance Sheet
Total Assets	42.65B	43.22B	42.82B	43.48B	41.12B	37.00B
Cash, Cash Equivalents and Short-Term Investments	4.77B	4.90B	4.45B	4.78B	4.45B	3.97B
Total Debt	11.36B	11.03B	10.52B	11.02B	9.79B	9.16B
Total Liabilities	19.40B	19.96B	19.67B	20.75B	19.22B	17.33B
Stockholders Equity	22.91B	22.82B	22.76B	22.32B	21.58B	19.40B
Cash Flow
Free Cash Flow	0.00	254.11M	-517.44M	-813.70M	266.18M	1.61B
Operating Cash Flow	0.00	1.97B	1.79B	799.58M	2.14B	2.98B
Investing Cash Flow	0.00	-1.01B	-513.39M	-1.11B	-1.73B	-1.30B
Financing Cash Flow	0.00	-579.06M	-1.64B	380.23M	38.48M	-1.28B

Nippon Filcon Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 537.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 537 is above the 20-day moving average (MA) of 526.00, above the 50-day MA of 532.63, and above the 200-day MA of 504.03, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 93.36 is Negative, 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
6393	76 Outperform	¥12.86B	9.57	―	6.70%	7.96%	43.37%
6322	74 Outperform	¥11.50B	9.05	―	3.14%	2.32%	1.94%
6392	72 Outperform	¥16.04B	9.44	―	3.09%	5.78%	6.00%
5942	71 Outperform	¥11.45B	20.07	―	5.25%	-6.68%	-28.64%
6149	68 Neutral	¥13.81B	7.57	―	2.13%	8.09%	109.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6440	62 Neutral	¥14.44B	10.31	―	―	-2.84%	―