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

• Market Cap: ¥10.46B
• Dividend Yield: 835.17%
• Average Volume (3M): 34.99K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.41
• Revenue Growth: -1.59%
• EPS Growth: -53.73%
• Country: JP
• Employees: 1,312
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 26.34
• Shares Outstanding: 22,167,212
• 10 Day Avg. Volume: 28,370
• 30 Day Avg. Volume: 34,993
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥529.00 ▲(8.62%Upside)

Nippon Filcon Co., Ltd. scores a 65, driven primarily by its solid financial performance and improved cash flow management. While profitability pressures exist, the company's dividend yield offers income appeal. However, current technical indicators suggest bearish momentum, and the P/E ratio points to potential overvaluation, tempering the overall assessment.

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

Company Description

Nippon Filcon Co., Ltd. (5942) is a Japanese company that specializes in manufacturing and supplying filtration products and related equipment. The company operates in sectors such as industrial filtration, electronics, and environment systems. Its core products include industrial filters, printed circuit boards, and environmental equipment designed to meet the needs of various industries, including automotive, electronics, and environmental management.

How the Company Makes Money

Nippon Filcon Co., Ltd. generates revenue primarily through the sale of its filtration products and related equipment. The company's key revenue streams include industrial filters that are used across a wide range of industries for separation and purification processes, as well as printed circuit boards used in electronics manufacturing. Additionally, Nippon Filcon offers environmental systems and solutions that cater to the growing demand for sustainable and eco-friendly industrial practices. The company may also engage in strategic partnerships and collaborations to enhance its market reach and technological advancements, 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
	EBIT
851.92M	924.94M	631.73M	1.79B	1.72B	658.89M
	EBITDA
3.01B	2.99B	3.62B	3.28B	2.90B	1.95B
	Net Income Common Stockholders
729.96M	622.69M	1.27B	1.08B	1.08B	-73.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.20B	4.90B	4.45B	4.78B	4.45B	3.97B
	Total Assets
42.91B	43.22B	42.82B	43.48B	41.12B	37.00B
	Total Debt
10.68B	11.03B	10.52B	11.02B	9.79B	9.16B
	Net Debt
6.48B	6.13B	6.07B	6.24B	5.34B	5.18B
	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: Negative
• Last Price: 487.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5942, the sentiment is Negative. The current price of 487 is below the 20-day moving average (MA) of 496.46, below the 50-day MA of 492.45, and below the 200-day MA of 493.86, indicating a bearish trend. The MACD of -2.19 indicates Positive momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 18.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	¥10.73B	8.03		5.73%	13.50%	63.21%
6322	71 Outperform	¥11.42B	9.30		3.16%	0.94%	3.05%
6149	69 Neutral	¥11.60B	20.19		2.58%	-10.39%	-43.57%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
5942	65 Neutral	¥10.46B	18.49		835.17%	-1.59%	-53.73%
6440	49 Neutral	¥10.69B	―		3.42%	-1.17%	63.91%