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

• Market Cap: ¥10.81B
• Dividend Yield: 5.57%
• Average Volume (3M): 28.74K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.41
• Revenue Growth: -2.54%
• EPS Growth: -54.58%
• Country: JP
• Employees: 1,312
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Machinery
• EPS (TTM): 15.04
• Shares Outstanding: 22,167,212
• 10 Day Avg. Volume: 27,790
• 30 Day Avg. Volume: 28,743
• PEG Ratio: 8.38
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.03
• 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: ¥529.00
• Price Target Upside: 5.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥547.00 ▲(8.75%Upside)

Nippon Filcon Co., Ltd. is characterized by strong financial management and stable revenue growth, which are the main strengths. The technical indicators suggest a neutral market view, providing no strong directional insights. Valuation metrics are mixed, with a high P/E ratio offset by a robust dividend yield. The absence of significant earnings call insights or corporate events leaves these factors neutral.

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

Company Description

Nippon Filcon Co., Ltd. (5942) is a Japanese company specializing in the manufacture and distribution of filtration products and systems. The company operates primarily in the industrial and environmental sectors, providing a range of products including wire mesh, filter cloths, and filtration equipment. Nippon Filcon serves various industries such as automotive, electronics, and chemical processing, offering solutions that enhance production efficiency and environmental protection.

How the Company Makes Money

Nippon Filcon Co., Ltd. generates revenue through the sale of its filtration products and systems. The company's key revenue streams include direct sales of filtration materials like wire mesh and filter cloths to industrial clients, as well as the provision of customized filtration systems tailored to specific client needs. Additionally, the company may engage in long-term contracts with businesses for regular supply and maintenance of filtration equipment. Strategic partnerships with manufacturers and industry players also play a role in expanding its market reach and boosting sales. Furthermore, Nippon Filcon's focus on innovation and quality helps maintain competitive pricing and customer loyalty, contributing to its overall earnings.

Nippon Filcon Co., Ltd. Financial Statement Overview

Summary

Nippon Filcon Co., Ltd. demonstrates a sound financial position with stable revenue growth and effective cash flow management. Profitability pressures are evident with declining net profit margins, yet operational efficiency remains intact. The balance sheet is well-balanced, though returns on equity have decreased. Cash flows indicate improved liquidity and financial health, positioning the company well for future growth.

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	28.96B	28.64B	27.99B	25.95B	24.78B	21.74B
Gross Profit	9.88B	9.54B	9.01B	9.23B	8.56B	7.43B
EBITDA	3.01B	2.99B	3.62B	3.28B	2.90B	1.95B
Net Income	729.96M	622.69M	1.27B	1.08B	1.08B	-73.95M
Balance Sheet
Total Assets	42.91B	43.22B	42.82B	43.48B	41.12B	37.00B
Cash, Cash Equivalents and Short-Term Investments	4.20B	4.90B	4.45B	4.78B	4.45B	3.97B
Total Debt	10.68B	11.03B	10.52B	11.02B	9.79B	9.16B
Total Liabilities	19.56B	19.96B	19.67B	20.75B	19.22B	17.33B
Stockholders Equity	22.90B	22.82B	22.76B	22.32B	21.58B	19.40B
Cash Flow
Free Cash Flow	856.69M	254.11M	-517.44M	-813.70M	266.18M	1.61B
Operating Cash Flow	856.69M	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: 503.00
• 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 503 is above the 20-day moving average (MA) of 493.00, above the 50-day MA of 496.88, and above the 200-day MA of 494.43, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 85.58 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
6322	82 Outperform	¥11.32B	9.22		3.18%	0.94%	3.26%
6393	75 Outperform	¥11.25B	8.42		5.47%	13.50%	63.21%
5942	71 Outperform	¥10.81B	27.20		5.57%	-2.54%	-54.58%
6149	69 Neutral	¥11.31B	19.70		2.60%	-10.39%	-43.57%
Sector *	58 Neutral	HK$14.16B	4.43	-3.01%	7.12%	3.67%	-54.16%
6440	58 Neutral	¥11.48B	―		3.42%	-1.17%	63.91%