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

• Market Cap: ¥2.57B
• Dividend Yield: 12.63%
• Average Volume (3M): 120.94K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.37
• Revenue Growth: 3.39%
• EPS Growth: -101.03%
• Country: JP
• Employees: 148
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.84
• Shares Outstanding: 18,688,540
• 10 Day Avg. Volume: 317,110
• 30 Day Avg. Volume: 120,943
• PEG Ratio: 0.84
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -40.72
• 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: 45 Neutral
• Price Target: ¥188.00 ▼(-1.05% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by volatile financial performance, including recent net losses and negative free cash flow in 2025, despite a more manageable balance sheet. Technicals are broadly neutral and valuation is difficult to support due to the negative P/E, with only modest help from the dividend yield.

Positive Factors

Manageable leverage

Debt under 1.0x equity from 2021–2025 and a tangible equity base provide structural financial flexibility. This moderate leverage allows the company to fund maintenance capex, absorb cyclical downturns and pursue targeted investments over the next several months without immediate refinancing pressure.

Steady gross margins

Consistent gross margins in the low-to-mid 20% range indicate durable product economics and manufacturing / sourcing stability. A stable gross-margin floor supports long-term cash conversion potential and gives management room to focus on operating efficiencies and margin improvement even if volumes fluctuate.

Specialized fastening ecosystem

A focused product set (fastening systems, equipment, consumables and services) creates recurring consumable demand and higher switching costs for customers. This niche exposure in construction and civil engineering supports repeatable revenue streams and long-term customer relationships over months to years.

Negative Factors

Volatile profitability

Swinging to net losses in 2023 and again in 2025 demonstrates inconsistent operating performance and execution risk. Persistent earnings volatility undermines planning, reduces retained earnings available for reinvestment, and makes sustaining dividends or funding multi-quarter recovery plans more difficult.

Negative free cash flow

Free cash flow turning negative in 2025 and a sharp fall in operating cash indicate weak cash conversion. Negative FCF constrains reinvestment, may force external financing or cost cuts, and reduces the firm's ability to fund working capital or strategic initiatives without raising capital.

Revenue drifting down

Top-line drift lower across 2023–2025 signals limited pricing power or softer end-market demand. Structural revenue decline compresses the ability to leverage fixed costs, hampers scale economics, and makes it harder to restore sustainable margins and durable cash generation without a clear demand recovery or new growth initiatives.

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

Mixed and volatile fundamentals: revenue has drifted down recently, profitability swung to losses in 2023 and 2025, and 2025 free cash flow turned negative again. The balance sheet is more stable with manageable leverage, but uneven earnings and weak 2025 cash conversion reduce confidence.

Income Statement

Revenue has been broadly flat but drifting down in recent years (down in 2023–2025), suggesting limited pricing power and/or softer demand. Profitability is volatile: the company swung from a very strong 2021 to losses in 2023 and again in 2025, with 2025 showing near-breakeven operating profit but negative net income. Gross margin has been fairly steady in the low-to-mid 20% range, but operating profitability has not been consistent, which raises execution and earnings-quality concerns.

Balance Sheet

Leverage looks manageable versus equity in recent years, with debt running at under 1.0x equity from 2021–2025, a clear improvement from 2020 when leverage was much higher. The balance sheet base is reasonably supported by equity (roughly ~2.3B vs. ~5.6B assets in 2025), but returns on equity have been inconsistent (strong in 2021 and 2024, negative in 2023), reflecting uneven underlying profitability. Overall, the balance sheet is not overly stretched, but earnings volatility makes the leverage profile less comfortable than the ratios alone suggest.

Cash Flow

Cash generation has been choppy. Operating cash flow turned negative in 2022, recovered in 2023–2024, but fell sharply in 2025, and free cash flow flipped back to negative in 2025. The weak 2025 cash conversion (operating cash flow small relative to net results) and negative free cash flow point to higher working-capital needs and/or elevated spending, which reduces financial flexibility despite a more moderate leverage level.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.16B	5.06B	5.04B	5.11B	5.35B	5.33B
Gross Profit	1.21B	1.21B	1.17B	1.07B	1.37B	1.33B
EBITDA	87.30M	153.42M	39.19M	6.08M	210.66M	211.64M
Net Income	109.03M	-30.19M	509.35M	-108.45M	40.22M	2.14B
Balance Sheet
Total Assets	5.63B	5.62B	5.79B	7.46B	8.00B	8.08B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.38B	1.62B	2.14B	2.04B	2.22B
Total Debt	2.05B	1.98B	2.09B	2.74B	2.79B	2.94B
Total Liabilities	3.42B	3.30B	3.48B	4.09B	4.54B	4.82B
Stockholders Equity	2.19B	2.30B	2.28B	3.37B	3.46B	3.26B
Cash Flow
Free Cash Flow	0.00	-66.63M	85.17M	242.34M	-185.12M	347.40M
Operating Cash Flow	0.00	24.66M	233.44M	257.53M	-159.07M	368.78M
Investing Cash Flow	0.00	-103.76M	956.36M	485.59M	-649.51M	2.25B
Financing Cash Flow	0.00	-153.89M	-1.77B	-119.43M	-209.15M	-919.96M

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 above the 20-day moving average (MA) of 183.85, above the 50-day MA of 188.16, and below the 200-day MA of 191.46, indicating a bearish trend. The MACD of -2.79 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 69.74 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
6586	77 Outperform	¥1.45T	16.74	―	2.18%	-1.72%	31.58%
6877	74 Outperform	¥86.52B	7.58	―	3.85%	9.38%	8.88%
5851	72 Outperform	¥80.00B	4.08	6.66%	3.36%	3.80%	-15.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5967	61 Neutral	¥11.09B	12.57	―	2.20%	-2.69%	6.29%
5990	54 Neutral	¥4.61B	32.98	―	3.60%	-4.75%	-178.90%
5950	45 Neutral	¥2.57B	16.76	―	12.63%	3.39%	-101.03%