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

• Market Cap: ¥2.83B
• Dividend Yield: 12.63%
• Average Volume (3M): 55.64K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.36
• Revenue Growth: 4.35%
• EPS Growth: -68.73%
• Country: JP
• Employees: 148
• Sector: Industrials
• Sector Strength: 75
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -0.37
• Shares Outstanding: 18,688,540
• 10 Day Avg. Volume: 43,470
• 30 Day Avg. Volume: 55,636
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥211.00
• Price Target Upside: 6.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥211.00 ▲(6.57% Upside)

The overall stock score reflects a mixed outlook. Financial performance is a concern due to declining revenue and persistent losses, despite improvements in the balance sheet and cash flow. Technical analysis shows moderate bullish momentum, while valuation indicates a high dividend yield but a potentially overvalued stock. The absence of earnings call and corporate events data limits additional insights.

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

Company Description

Japan 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 Money

Japan 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

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

Japan Power Fastening Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 198.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 198 is above the 20-day moving average (MA) of 194.20, above the 50-day MA of 189.06, and below the 200-day MA of 275.87, indicating a neutral trend. The MACD of 2.36 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
5952	77 Outperform	¥2.12B	13.65		2.78%	1.63%	18.55%
5962	77 Outperform	¥1.56B	9.86		3.09%	-6.30%	-56.54%
5969	71 Outperform	¥2.47B	202.98		2.35%	-5.24%	-96.07%
6380	65 Neutral	¥2.73B	43.61		1.61%	3.83%	-60.31%
5950	63 Neutral	¥2.83B	29.73		12.63%	4.35%	-68.73%
Sector *	59 Neutral	AU$1.63B	11.13	-5.90%	3.58%	9.76%	6.86%
5990	54 Neutral	¥4.56B	13.84		3.54%	-4.17%	-175.55%