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

• Market Cap: ¥2.56B
• Dividend Yield: 5.59%
• Average Volume (3M): 140.76K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.34
• Revenue Growth: 2.38%
• EPS Growth: N/A
• Country: JP
• Employees: 148
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -5.50
• Shares Outstanding: 18,688,540
• 10 Day Avg. Volume: 319,930
• 30 Day Avg. Volume: 140,763
• PEG Ratio: -0.48
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.32
• 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: 56 Neutral
• Price Target: ¥186.00 ▲(0.00%Upside)

The overall score is driven by a challenging financial performance with persistent losses and operational inefficiencies, combined with weak technical indicators. However, the attractive valuation provides a notable positive aspect, suggesting potential undervaluation.

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 tools and related equipment. The company primarily operates within the construction, industrial, and automotive sectors, providing a wide range of products including nailers, staplers, screws, and other fastening solutions. With a focus on innovation and quality, Japan Power Fastening Co., Ltd. is committed to delivering reliable and efficient fastening systems to meet the diverse needs of its customers.

How the Company Makes Money

Japan Power Fastening Co., Ltd. generates revenue through the sale of its fastening tools and equipment. The company’s key revenue streams include direct sales to construction companies, industrial firms, and automotive manufacturers, as well as distribution partnerships with retailers and distributors in various regions. By maintaining a strong presence in both domestic and international markets, Japan Power Fastening Co., Ltd. leverages its reputation for quality and innovation to secure a steady flow of income. Additionally, the company may engage in partnerships or collaborations with other firms to expand its product offerings and strengthen its market position.

Japan Power Fastening Co., Ltd. Financial Statement Overview

Summary

Japan Power Fastening Co., Ltd. is navigating through financial challenges with fluctuating revenue and profitability. While the company has strengthened its balance sheet and improved free cash flow, persistent losses and operational inefficiencies weigh on its financial health. Continued focus on cost management and operational efficiency will be crucial for improving profitability and sustaining growth.

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: Negative
• Last Price: 186.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 186 is below the 20-day moving average (MA) of 187.25, below the 50-day MA of 194.24, and below the 200-day MA of 283.42, indicating a bearish trend. The MACD of -3.19 indicates Positive momentum. The RSI at 37.43 is Neutral, neither overbought nor oversold. The STOCH value of 1.33 is Positive, 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	69 Neutral	¥1.54B	6.74		3.13%	-1.56%	-24.77%
5952	65 Neutral	¥1.89B	13.44		3.10%	0.89%	6.55%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
5969	63 Neutral	¥2.38B	29.72		2.43%	-3.66%	-72.39%
6380	60 Neutral	¥2.49B	24.83		1.67%	-0.66%	-32.76%
5950	56 Neutral	¥2.56B	6.03		5.59%	2.38%	―
5990	50 Neutral	¥4.51B	13.84		3.50%	-10.46%	-176.78%