Noritz (5943) AI Stock Analysis

• Market Cap: $83.01B
• Dividend Yield: 0.02%
• Average Volume (3M): 74.75K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.44
• Revenue Growth: 3.21%
• EPS Growth: N/A
• Country: JP
• Employees: 6,128
• Sector: Industrials
• Sector Strength: 87
• Industry: Construction
• EPS (TTM): 30.99
• Shares Outstanding: 48,554,930
• 10 Day Avg. Volume: 74,410
• 30 Day Avg. Volume: 74,746
• PEG Ratio: -1.13
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.58
• 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: 67 Neutral
• Price Target: ¥2,096.00 ▲(11.91%Upside)

Noritz's overall score reflects a solid balance sheet with low leverage and effective cost management, although profitability and revenue growth remain concerns. Technical indicators suggest strong upward momentum but caution due to overbought signals. The valuation presents a fair P/E ratio with a good dividend yield, contributing positively to investor returns.

Noritz Business Overview & Revenue Model

Company Description

Noritz Corporation engages in the development, manufacture, and sale of household appliances and equipment, and related services worldwide. The company offers heating ventilation and air conditioning (HVAC) equipment, such as water heaters, hydronic heating systems, gas fan heaters, gas co-generation systems, water tank units for use with fuel cells, solar water heaters, and industrial-use photovoltaic power generation systems. It also provides kitchen appliances, including built-in and counter-top gas stoves, gas ovens, and range hoods. In addition, the company offers product repair, installation, after-sales, and regulatory compliance and safety inspection services. Noritz Corporation was incorporated in 1951 and is headquartered in Kobe, Japan.

How the Company Makes Money

Noritz makes money primarily through the sale of its water heating products, targeting both residential and commercial customers. Its revenue streams include direct sales of water heaters and related equipment, as well as installation and maintenance services. The company also benefits from partnerships with distributors and retailers, enhancing its market reach. Additionally, Noritz invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge in the industry. The company's focus on energy-efficient and environmentally friendly products aligns with global trends, contributing positively to its earnings.

Noritz Financial Statement Overview

Summary

Noritz demonstrates a stable financial performance with strengths in maintaining a strong balance sheet and effective cost management. However, challenges in revenue growth and profitability due to declining net profit margins and operational efficiency are notable. Improvement in cash flow is positive, but cash retention could be better.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
202.20B	201.89B	210.97B	178.14B	183.86B
	Gross Profit
63.14B	63.83B	67.32B	57.19B	58.01B
	EBIT
2.40B	3.84B	6.89B	4.05B	4.76B
	EBITDA
15.23B	11.06B	13.78B	8.89B	11.89B
	Net Income Common Stockholders
4.38B	868.00M	4.80B	5.48B	-3.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.02B	26.14B	36.25B	43.53B	30.92B
	Total Assets
223.77B	207.77B	216.97B	194.53B	189.73B
	Total Debt
3.79B	2.53B	2.11B	849.00M	865.00M
	Net Debt
-25.23B	-23.61B	-34.14B	-42.58B	-29.96B
	Total Liabilities
86.83B	81.11B	97.32B	78.34B	78.76B
	Stockholders Equity
132.07B	122.06B	115.35B	112.09B	107.27B
Cash Flow		Free Cash Flow
1.60B	-9.59B	-2.03B	11.82B	4.63B
	Operating Cash Flow
8.62B	-1.87B	2.40B	15.45B	9.41B
	Investing Cash Flow
-6.00B	-5.66B	-7.79B	-2.52B	-5.43B
	Financing Cash Flow
-2.48B	-3.23B	-4.78B	-3.12B	-4.32B

Noritz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1873.00
• 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:5943, the sentiment is Positive. The current price of 1873 is below the 20-day moving average (MA) of 1894.00, above the 50-day MA of 1797.76, and above the 200-day MA of 1756.36, indicating a bullish trend. The MACD of 26.09 indicates Positive momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5943.

Noritz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5943	67 Neutral	$83.01B	15.67	4.31%	0.02%	3.21%	―
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
JSGCF		$3.28B	249.67	0.35%	0.04%	―	―
SNWAF		$7.36B	19.93	18.79%	0.01%	―	―
TOTDF		$4.33B	53.79	2.34%	2.62%	―	―
7VK		€902.89M	11.59	12.17%	3.49%	―	―
7943	71 Outperform	¥109.84B	38.10		3.80%	3.98%	-64.82%

Noritz Corporate Events

Noritz Advances Share Repurchase Program

Noritz Corporation has announced the progress of its share repurchase program, which was approved by its Board of Directors in February 2025. As of May 31, 2025, the company has repurchased 216,300 shares at a cost of 400,604,200 yen, with the aim to acquire up to 1,400,000 shares by the end of the year. This move is part of a strategic effort to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:5943) stock is a Sell with a Yen1550.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Announces Leadership Change to Boost Corporate Governance

Noritz Corporation announced a change in its leadership structure, appointing Masayuki Takenaka as the new President and Representative Director, effective July 1, 2025. This strategic move aims to enhance corporate governance and business execution by establishing a dual leadership system, potentially strengthening the company’s market position and operational efficiency.

The most recent analyst rating on (JP:5943) stock is a Sell with a Yen1550.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Corporation Reports Strong First Quarter 2025 Results Amid Global Challenges

Noritz Corporation reported a strong start to 2025, with significant increases in net sales and income despite challenges in the Chinese market and global economic uncertainties. The company is in the second year of its Medium-Term Management Plan ‘V-plan 26,’ aiming for sustainable growth by enhancing its domestic product offerings and restructuring overseas operations, particularly in North America and China.

The most recent analyst rating on (JP:5943) stock is a Sell with a Yen1550.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Advances Share Repurchase Program

Noritz Corporation announced the progress of its share repurchase program, having acquired 183,200 shares at a cost of 312,593,770 yen between April 1 and April 30, 2025. This initiative is part of a broader plan approved in February 2025 to repurchase up to 1,400,000 shares, aiming to enhance shareholder value and optimize capital structure.

Noritz Corporation Updates on Share Repurchase Progress

Noritz Corporation announced the progress of its share repurchase program, which was resolved at the Board of Directors’ meeting in February 2025. As of March 31, 2025, the company has acquired 154,700 of its common shares at a total cost of 278,657,530 yen, with plans to continue purchasing up to 1,400,000 shares by the end of the year. This move is part of Noritz’s strategy to enhance shareholder value and optimize its capital structure.