Japan Power Fastening Co., Ltd. (5950) AI Stock Analysis

• Market Cap: ¥2.73B
• Dividend Yield: 12.63%
• Average Volume (3M): 120.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 3.39%
• EPS Growth: -101.03%
• Country: JP
• Employees: 148
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.92
• Shares Outstanding: 18,688,540
• 10 Day Avg. Volume: 317,110
• 30 Day Avg. Volume: 120,943
• PEG Ratio: -0.02
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 89.67
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥209.00 ▲(10.00% Upside)

The overall stock score reflects financial challenges, with declining revenue and operational inefficiencies being significant concerns. However, the stock's attractive dividend yield and stable technical indicators provide some support. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow Improvement

Positive free cash flow indicates improved financial health, allowing for reinvestment and debt reduction, enhancing long-term stability.

Equity Position

An improved equity position strengthens the balance sheet, providing a buffer against financial volatility and supporting future growth initiatives.

Gross Profit Margin

A healthy gross profit margin suggests potential for profitability, indicating efficient production and pricing strategies in the long term.

Negative Factors

Declining Revenue

Revenue decline points to potential market share loss or demand issues, challenging the company's ability to sustain growth and profitability.

Operational Inefficiencies

Operational inefficiencies and cost management issues hinder profitability, requiring strategic adjustments to improve long-term financial performance.

Debt Reliance

High reliance on debt can limit financial flexibility and increase risk, necessitating careful management to avoid long-term financial strain.

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

Company Description

Japan Power Fastening Co.,Ltd. engages in the manufacture and sale of fasteners and related tools in Japan. It offers fasteners for metal, wooden, and cement-based building materials; and surface treatment for stainless steel. The company also manufactures and sells industrial riveting guns and rivets; and sells, rents, and manages real estate properties. Japan Power Fastening Co.,Ltd. was incorporated in 1951 and is headquartered in Minoh, Japan.

How the Company Makes Money

Japan Power Fastening Co., Ltd. generates revenue primarily through the sale of its fastener products to a diverse range of industries, including construction, automotive, and manufacturing. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers), distributors, and retail outlets. The company also benefits from long-term contracts and partnerships with major construction firms and automotive manufacturers, which provide a steady stream of income. Additionally, Japan Power Fastening Co., Ltd. invests in research and development to create new and innovative fastening solutions, allowing it to maintain a competitive edge and attract new customers. The company may also explore opportunities in international markets, further expanding its revenue potential.

Japan Power Fastening Co., Ltd. Financial Statement Overview

Summary

Japan Power Fastening Co., Ltd. faces financial challenges with declining revenue and persistent net losses, despite improvements in the balance sheet and cash flow. Operational inefficiencies and cost management issues are significant concerns.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.16B	5.04B	5.11B	5.35B	5.33B	5.31B
Gross Profit	1.21B	1.17B	1.07B	1.37B	1.35B	1.20B
EBITDA	219.87M	675.61M	83.66M	175.47M	2.32B	-132.60M
Net Income	109.13M	509.35M	-108.45M	40.22M	2.14B	-322.02M
Balance Sheet
Total Assets	5.63B	5.79B	7.46B	8.00B	8.08B	6.86B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.62B	2.14B	2.04B	2.22B	452.87M
Total Debt	2.05B	2.02B	2.68B	2.73B	2.84B	3.80B
Total Liabilities	3.42B	3.48B	4.09B	4.54B	4.82B	5.56B
Stockholders Equity	2.19B	2.28B	3.37B	3.46B	3.26B	1.31B
Cash Flow
Free Cash Flow	0.00	68.60M	240.70M	-201.11M	269.50M	116.30M
Operating Cash Flow	0.00	233.44M	257.53M	-159.07M	368.78M	342.59M
Investing Cash Flow	0.00	956.36M	485.59M	-649.51M	2.25B	194.79M
Financing Cash Flow	0.00	-1.77B	-119.43M	-209.15M	-919.96M	-605.23M

Japan Power Fastening Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 190.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5950, the sentiment is Negative. The current price of 190 is below the 20-day moving average (MA) of 192.73, below the 50-day MA of 193.70, and below the 200-day MA of 197.19, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5950.

Japan Power Fastening Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5962	76 Outperform	¥1.69B	13.82	―	2.78%	-6.93%	-63.68%
6380	69 Neutral	¥4.71B	29.70	―	0.99%	0.73%	56.28%
5952	66 Neutral	¥2.25B	13.79	―	2.75%	0.32%	19.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5950	61 Neutral	¥2.73B	-673.25	―	12.63%	3.39%	-101.03%
5969	60 Neutral	¥2.33B	75.11	―	2.52%	-2.79%	-88.80%
5990	54 Neutral	¥4.52B	-17.46	―	3.60%	-4.75%	-178.90%