Nitto Seiko Co., Ltd. (5957) AI Stock Analysis

• Market Cap: ¥25.23B
• Dividend Yield: 2.84%
• Average Volume (3M): 60.63K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.87
• Revenue Growth: 7.69%
• EPS Growth: -0.40%
• Country: JP
• Employees: 1,912
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 12.39
• Shares Outstanding: 39,985,016
• 10 Day Avg. Volume: 63,300
• 30 Day Avg. Volume: 60,626
• PEG Ratio: 0.37
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 8.28
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥749.00 ▲(7.15% Upside)

Nitto Seiko Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue growth, solid profitability, and a stable balance sheet. The technical analysis presents a mixed picture, with positive momentum but caution due to near overbought conditions. The valuation is attractive, with a reasonable P/E ratio and a solid dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, ensuring long-term sustainability and competitive advantage.

Balance Sheet Health

A low debt-to-equity ratio reflects financial stability and low risk, providing the company with flexibility to invest in growth opportunities without significant financial strain.

Cash Generation Ability

Strong cash generation supports liquidity and operational flexibility, allowing the company to fund growth initiatives and withstand economic downturns.

Negative Factors

Earnings Decline

A decline in EPS growth suggests challenges in profitability, which could impact investor confidence and the company's ability to reinvest in its operations.

Moderate Profit Margins

Moderate profit margins indicate potential inefficiencies in operations, which could limit profitability and competitiveness in the long term.

Operational Efficiency

The need for operational efficiency improvements highlights potential areas for cost reduction and process optimization to enhance profitability.

Nitto Seiko Co., Ltd. Business Overview & Revenue Model

Company Description

Nitto Seiko Co., Ltd. (5957) is a Japanese company specializing in precision equipment manufacturing, primarily in the sectors of semiconductor production and industrial machinery. The company is renowned for its innovative products including precision cutting tools, measuring instruments, and various automation devices that enhance efficiency and precision in manufacturing processes. Nitto Seiko focuses on leveraging advanced technologies to cater to the needs of diverse industries such as electronics, automotive, and medical devices.

How the Company Makes Money

Nitto Seiko generates revenue through the sales of its core products, which include precision tools, measuring instruments, and automation systems. The company primarily targets the semiconductor and electronics sectors, where high precision and reliability are paramount. Key revenue streams include direct sales to manufacturers, partnerships with equipment suppliers, and long-term contracts with major clients in various industries. Nitto Seiko also benefits from continuous innovation and development of new technologies, which allows them to maintain a competitive edge and attract new customers. Additionally, the company may engage in strategic alliances and collaborations to enhance its market presence and expand its product offerings, contributing to sustained earnings.

Nitto Seiko Co., Ltd. Financial Statement Overview

Summary

Nitto Seiko Co., Ltd. exhibits a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is robust, characterized by low leverage and a high equity ratio, suggesting financial stability and low risk. Cash flow is healthy, ensuring liquidity and supporting growth initiatives. The company is well-positioned to capitalize on future opportunities while maintaining financial discipline.

Income Statement

The company demonstrates strong financial performance with consistent revenue growth, marked by a 5.2% increase in 2024. Gross profit margin remains robust at approximately 23.9%, indicating effective cost management. The net profit margin also improved to 4.7%, showcasing enhanced profitability. However, EBIT and EBITDA margins are moderate at 7.1% and 10.0%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.05, reflecting minimal leverage and financial risk. Return on equity stands at 6.4%, indicating efficient use of shareholder equity to generate profit. The equity ratio at 61.5% highlights a solid capital structure with substantial equity backing. Overall, the balance sheet indicates financial stability and low risk of insolvency.

Cash Flow

The cash flow performance is healthy, with a significant 39.9% growth in free cash flow from the previous year, driven by strong operating cash flow. The operating cash flow to net income ratio is 1.7, reflecting strong cash conversion. The free cash flow to net income ratio is robust at 1.3, indicating good cash generation relative to net income. The company maintains a positive cash flow outlook, ensuring liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.53B	47.07B	44.74B	44.02B	40.52B	32.90B
Gross Profit	11.67B	11.24B	10.18B	10.38B	10.29B	7.64B
EBITDA	4.84B	4.87B	4.41B	4.73B	5.01B	2.63B
Net Income	2.07B	2.20B	1.73B	1.83B	2.20B	764.91M
Balance Sheet
Total Assets	55.51B	55.60B	53.34B	53.41B	50.92B	46.22B
Cash, Cash Equivalents and Short-Term Investments	10.28B	10.73B	8.85B	9.10B	11.81B	9.29B
Total Debt	3.08B	1.56B	1.93B	3.00B	3.37B	3.74B
Total Liabilities	16.79B	17.01B	16.94B	18.91B	18.22B	16.36B
Stockholders Equity	34.41B	34.20B	32.40B	30.76B	29.25B	26.87B
Cash Flow
Free Cash Flow	0.00	2.75B	1.98B	-60.91M	2.72B	1.90B
Operating Cash Flow	0.00	3.71B	3.15B	999.18M	3.65B	3.37B
Investing Cash Flow	0.00	-899.13M	-1.19B	-1.99B	-993.11M	-3.16B
Financing Cash Flow	0.00	-1.43B	-2.07B	-1.30B	-704.99M	-871.93M

Nitto Seiko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 699.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5957, the sentiment is Positive. The current price of 699 is above the 20-day moving average (MA) of 690.40, above the 50-day MA of 661.58, and above the 200-day MA of 606.29, indicating a neutral trend. The MACD of 7.12 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5957.

Nitto Seiko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	76 Outperform	¥25.23B	12.05	―	2.84%	7.69%	-0.40%
5945	74 Outperform	¥21.28B	13.18	―	3.90%	1.33%	29.73%
6165	73 Outperform	¥11.27B	9.11	―	4.48%	5.57%	89.21%
5967	70 Outperform	¥14.52B	14.89	―	1.95%	-2.69%	6.29%
6157	70 Outperform	¥20.47B	16.48	―	3.92%	0.97%	-10.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6464	52 Neutral	¥15.91B	-8.81	―	6.78%	-11.46%	43.93%

Nitto Seiko Co., Ltd. Corporate Events

Nitto Seiko Reports Mixed Financial Results for Nine Months Ending September 2025

Nitto Seiko Co., Ltd. reported a slight increase in net sales for the nine months ending September 30, 2025, with a 5.8% rise compared to the previous year. However, the company faced a decline in ordinary profit and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite revenue growth. The company’s financial position remains stable with a slight improvement in the equity ratio. The forecast for the full year 2025 suggests continued growth in net sales and operating profit, though at a modest pace.

The most recent analyst rating on (JP:5957) stock is a Buy with a Yen792.00 price target. To see the full list of analyst forecasts on Nitto Seiko Co., Ltd. stock, see the JP:5957 Stock Forecast page.

Nitto Seiko Launches Shareholder Benefit Program to Boost Investment Appeal

Nitto Seiko Co., Ltd. has announced the introduction of a new shareholder benefit program aimed at expressing gratitude to shareholders, enhancing the attractiveness of its stock, and encouraging long-term investment. The program, which offers specialty products from Ayabe City and digital gift points, is designed to promote the company’s birthplace and strengthen shareholder relations, potentially impacting its market positioning positively.

The most recent analyst rating on (JP:5957) stock is a Buy with a Yen792.00 price target. To see the full list of analyst forecasts on Nitto Seiko Co., Ltd. stock, see the JP:5957 Stock Forecast page.