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Japan Power Fastening Co., Ltd. (JP:5950)
:5950
Japanese Market
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Japan Power Fastening Co., Ltd. (5950) AI Stock Analysis

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JP:5950

Japan Power Fastening Co., Ltd.

(5950)

Rating:64Neutral
Price Target:
¥206.00
▲(7.29%Upside)
The overall stock score of 64.2 reflects a balance between financial challenges and attractive valuation. While the company struggles with operational inefficiencies and declining revenues, its strong dividend yield and low P/E ratio present potential investment opportunities. Technical indicators show stable momentum, but the absence of earnings call data or notable corporate events leaves room for uncertainty.

Japan Power Fastening Co., Ltd. (5950) vs. iShares MSCI Japan ETF (EWJ)

Japan Power Fastening Co., Ltd. Business Overview & Revenue Model

Company DescriptionJapan Power Fastening Co., Ltd. (5950) is a Japanese company specializing in the manufacturing and distribution of fastening products and tools. The company operates in the industrial and construction sectors, providing a wide array of products such as nails, screws, and other fastening solutions. Their offerings are designed to meet the demands of various industries, ensuring durability and efficiency in fastening applications.
How the Company Makes MoneyJapan Power Fastening Co., Ltd. generates revenue primarily through the sale of its fastening products and tools to a diverse range of industries including construction, manufacturing, and automotive sectors. The company capitalizes on a robust distribution network to reach its customers, leveraging partnerships with distributors and retailers. Additionally, its focus on innovation and quality enhances its competitive edge, allowing it to maintain a steady demand for its products. Key revenue streams include direct sales to industrial clients and bulk orders from construction companies and hardware stores.

Japan Power Fastening Co., Ltd. Financial Statement Overview

Summary
The company's financial performance is challenged by declining revenues and persistent net losses, despite improved free cash flow and a stronger equity position. Operational inefficiencies and high reliance on debt remain key concerns.
Income Statement
45
Neutral
The company experienced declining total revenue over recent years with a drop from 5,354M in 2022 to 5,040M in 2024. Despite a positive gross profit margin of 23.28% in 2024, the net and EBIT margins are negative due to the incurred net loss and negative EBIT, reflecting operational inefficiencies. While gross profit indicates some capacity for profitability, the consistent net losses and negative EBIT margin suggest struggles in cost management and operational execution.
Balance Sheet
58
Neutral
The company has improved its equity position, with stockholders' equity increasing to 2,283M in 2024. The debt-to-equity ratio stands at 0.88, indicating a stable leverage position, though this shows a high reliance on debt. The equity ratio improved to 39.47%, suggesting a stronger financial footing. However, substantial liabilities and historical fluctuations in equity levels pose potential risks.
Cash Flow
62
Positive
The company has managed to generate positive free cash flow of 84M in 2024, reversing from negative cash flows in prior years. The operating cash flow to net income ratio is low at 0.46, indicating challenges in converting income to cash but a significant improvement from past performance. While free cash flow growth is a positive indicator, the consistency and sustainability of cash flows remain a concern.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.04B5.11B5.35B5.33B5.31B
Gross Profit1.17B1.07B1.37B1.35B1.20B
EBITDA675.61M83.66M175.47M2.32B-132.60M
Net Income509.35M-108.45M40.22M2.14B-322.02M
Balance Sheet
Total Assets5.79B7.46B8.00B8.08B6.86B
Cash, Cash Equivalents and Short-Term Investments1.62B2.14B2.04B2.22B452.87M
Total Debt2.02B2.68B2.73B2.84B3.80B
Total Liabilities3.48B4.09B4.54B4.82B5.56B
Stockholders Equity2.28B3.37B3.46B3.26B1.31B
Cash Flow
Free Cash Flow68.60M240.70M-201.11M269.50M116.30M
Operating Cash Flow233.44M257.53M-159.07M368.78M342.59M
Investing Cash Flow956.36M485.59M-649.51M2.25B194.79M
Financing Cash Flow-1.77B-119.43M-209.15M-919.96M-605.23M

Japan Power Fastening Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price192.00
Price Trends
50DMA
187.00
Positive
100DMA
210.23
Negative
200DMA
279.59
Negative
Market Momentum
MACD
0.89
Negative
RSI
64.17
Neutral
STOCH
79.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5950, the sentiment is Neutral. The current price of 192 is above the 20-day moving average (MA) of 184.85, above the 50-day MA of 187.00, and below the 200-day MA of 279.59, indicating a neutral trend. The MACD of 0.89 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 79.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5950.

Japan Power Fastening Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥2.15B15.27
2.73%0.89%6.55%
71
Outperform
¥2.43B30.30
2.39%-3.66%-72.39%
69
Neutral
¥1.56B6.83
3.09%-1.56%-24.77%
65
Neutral
$11.16B15.865.39%1.92%3.11%-24.90%
64
Neutral
¥2.81B6.64
12.69%2.38%
60
Neutral
¥4.60B13.84
3.51%-4.17%-175.55%
58
Neutral
¥2.56B25.45
1.63%-0.66%-32.76%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5950
Japan Power Fastening Co., Ltd.
197.00
-0.68
-0.34%
JP:5952
Amatei Incorporated
183.00
43.80
31.47%
JP:5962
Asaka Industrial Co., Ltd.
1,620.00
119.71
7.98%
JP:5969
Lobtex Co., Ltd.
1,254.00
-87.42
-6.52%
JP:5990
Super Tool Co., Ltd.
1,995.00
-81.11
-3.91%
JP:6380
Oriental Chain Mfg. Co., Ltd.
1,844.00
-56.47
-2.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025