Noritz (5943) AI Stock Analysis

• Market Cap: ¥83.40B
• Dividend Yield: 3.73%
• Average Volume (3M): 109.84K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.36
• Revenue Growth: 2.69%
• EPS Growth: 1.74%
• Country: JP
• Employees: 6,128
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -11.50
• Shares Outstanding: 48,554,930
• 10 Day Avg. Volume: 163,640
• 30 Day Avg. Volume: 109,840
• PEG Ratio: 0.04
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 47.98
• 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): 10,018.76
• Revenue Forecast (FY): ¥31.81T

• Rating: 56 Neutral
• Price Target: ¥1,978.00 ▼(-3.37% Downside)

Noritz's overall stock score is primarily influenced by its stable financial performance and strong balance sheet, which are offset by bearish technical indicators and a relatively high valuation. The lack of growth in revenue and profitability, combined with negative market momentum, suggests caution for potential investors.

Noritz Business Overview & Revenue Model

Company Description

Noritz Corporation (5943) is a leading Japanese manufacturer specializing in water heating and heating products. The company operates primarily in the HVAC sector, providing innovative solutions such as tankless water heaters, boilers, and related components. Noritz is recognized for its commitment to energy efficiency and environmental sustainability, catering to both residential and commercial markets with a diverse array of products designed to optimize heating and hot water supply.

How the Company Makes Money

Noritz generates revenue primarily through the sale of its core products, including tankless water heaters and boilers, which are both highly sought after in the residential and commercial sectors. The company benefits from a strong distribution network, partnering with various retailers, plumbing, and HVAC contractors to reach end consumers effectively. Additionally, Noritz may generate income from aftermarket services, including maintenance, repair, and parts sales. Factors contributing to its earnings include the increasing demand for energy-efficient heating solutions, government incentives for eco-friendly products, and a growing focus on reducing carbon footprints in heating practices.

Noritz Financial Statement Overview

Summary

Noritz demonstrates stable financial performance with a strong balance sheet, highlighted by a low debt-to-equity ratio and robust equity ratio. However, challenges in revenue growth and profitability, as well as room for improvement in cash retention, slightly dampen the overall financial outlook.

Income Statement

Noritz's income statement indicates stable revenue levels with minor fluctuations over the years. The gross profit margin is strong at approximately 31.2% TTM, showing good cost management. However, the net profit margin has decreased to 2.2% TTM from higher levels in previous years, indicating pressure on profitability. The EBIT and EBITDA margins have also experienced declines, highlighting challenges in operational efficiency. Revenue growth has been relatively flat, suggesting limited expansion in market presence.

Balance Sheet

Noritz maintains a solid balance sheet with a low debt-to-equity ratio of 0.03, reflecting minimal leverage and reduced financial risk. The equity ratio is robust at 59%, indicating a strong capital structure. Return on equity is modest at 3.3% TTM, suggesting that the company could improve its profitability relative to equity. The company’s liquidity position is healthy, with substantial cash reserves contributing to a negative net debt position.

Cash Flow

The cash flow statement reveals variability in operating cash flow, with a significant improvement from negative to positive territory in the latest year. The free cash flow growth rate is positive at 116.7% TTM, indicating better cash generation from operations after capital expenditures. However, the operating cash flow to net income ratio is 1.97, demonstrating efficient cash conversion. Free cash flow to net income ratio is 0.37, suggesting room for improvement in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	204.72B	202.20B	201.89B	210.97B	178.14B	183.86B
Gross Profit	64.20B	63.14B	63.83B	67.32B	57.19B	58.01B
EBITDA	14.92B	15.23B	11.06B	14.67B	15.39B	3.15B
Net Income	5.94B	4.38B	868.00M	4.80B	5.48B	-3.01B
Balance Sheet
Total Assets	209.36B	223.77B	207.77B	216.97B	194.53B	189.73B
Cash, Cash Equivalents and Short-Term Investments	29.29B	29.02B	26.14B	36.25B	43.53B	30.92B
Total Debt	3.64B	3.79B	2.53B	2.11B	849.00M	865.00M
Total Liabilities	78.66B	86.83B	81.11B	97.32B	78.34B	78.76B
Stockholders Equity	125.92B	132.07B	122.06B	115.35B	112.09B	107.27B
Cash Flow
Free Cash Flow	0.00	1.60B	-9.59B	-2.03B	11.82B	4.63B
Operating Cash Flow	0.00	8.62B	-1.87B	2.40B	15.45B	9.41B
Investing Cash Flow	0.00	-6.00B	-5.66B	-7.79B	-2.52B	-5.43B
Financing Cash Flow	0.00	-2.48B	-3.23B	-4.78B	-3.12B	-4.32B

Noritz Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2047.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5943, the sentiment is Neutral. The current price of 2047 is above the 20-day moving average (MA) of 1965.20, above the 50-day MA of 2004.42, and above the 200-day MA of 1862.60, indicating a neutral trend. The MACD of -43.07 indicates Positive momentum. The RSI at 41.20 is Neutral, neither overbought nor oversold. The STOCH value of 16.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5943.

Noritz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5929	68 Neutral	$862.10B	14.61	18.61%	2.87%	2.90%	36.64%
7943	66 Neutral	¥99.70B	53.04	―	4.22%	-0.58%	-46.15%
5930	66 Neutral	€134.69B	11.62	12.89%	3.30%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5332	62 Neutral	$623.83B	160.31	0.83%	2.55%	-0.03%	-89.02%
5943	56 Neutral	¥83.40B	32.76	2.01%	3.73%	2.69%	1.74%
5938	49 Neutral	$496.45B	53.42	1.44%	5.26%	0.68%	―

Noritz Corporate Events

Noritz Corporation Reports Resilient 2025 Q3 Performance

Noritz Corporation is a Japanese company specializing in the manufacturing and distribution of water heaters and kitchen appliances, with a focus on environmentally friendly products for both residential and commercial use.

Noritz Corporation Reports Improved Operating Income Amidst Market Challenges

Noritz Corporation reported its consolidated financial results for the first nine months of 2025, showing a slight increase in net sales and a significant improvement in operating income compared to the previous year. Despite challenges in the Chinese real estate market, the company achieved growth in its domestic business through the sale of eco-friendly water heaters and kitchen appliances, while its overseas business saw mixed results with strong performance in North America and Australia.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2173.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Cancels Share Exchange Resolution with Ogihara

Noritz Corporation has announced the cancellation of its board resolution for a partial share exchange with Ogihara MFG. Co., Ltd. due to procedural defects related to the unfiled Securities Registration Statement. The company plans to rectify this by preparing the necessary documentation to comply with financial regulations, which will allow them to proceed with the share exchange in the future.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Adjusts Growth Rate in Share Exchange with Ogihara

Noritz Corporation has made a correction to its earlier announcement regarding the partial share exchange with Ogihara MFG. Co., Ltd., which aims to make Ogihara a subsidiary. The correction involves an adjustment in the perpetual growth rate from a range of -0.5% to 0.5% to a new rate of 2.0%, potentially impacting the valuation and strategic positioning of the company.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz to Acquire Ogihara as Subsidiary in Strategic Share Exchange

Noritz Corporation has announced a partial share exchange to make Ogihara MFG.CO., Ltd. a subsidiary, as part of its Medium-Term Management Plan ‘V-plan 26.’ This strategic move aims to leverage Ogihara’s technological capabilities to enhance Noritz’s quality management systems, stabilize its supply structure, and support its long-term growth strategy, ultimately improving corporate value for both companies.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.