tiprankstipranks
Trending News
More News >
Nitto Seiko Co., Ltd. (JP:5957)
:5957
Japanese Market

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

Compare
1 Followers

Top Page

JP

Nitto Seiko Co., Ltd.

(5957)

Rating:73Outperform
Price Target:
¥635.00
▲(10.82%Upside)
The overall stock score is driven primarily by strong financial performance, characterized by consistent revenue growth and financial stability. Technical analysis presents mixed signals, with some bearish momentum but no strong overbought or oversold conditions. The valuation is favorable with a low P/E ratio and a solid dividend yield, making the stock attractive for value and income investors.

Nitto Seiko Co., Ltd. (5957) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNitto Seiko Co., Ltd. is a Japanese company specializing in the manufacturing and distribution of precision machinery components. Established in 1938, the company operates across several sectors, including fasteners, assembly systems, and measuring instruments. Its core products include industrial fasteners, automated assembly systems, and specialized measuring equipment, catering to diverse industries such as automotive, electronics, and construction.
How the Company Makes MoneyNitto Seiko Co., Ltd. generates revenue primarily through the sale of its fasteners and assembly systems, which are essential components in various manufacturing and construction processes. The company's automated assembly systems are particularly valuable to industries seeking to enhance production efficiency and accuracy. Additionally, Nitto Seiko's measuring instruments contribute to its income by providing precise measurement solutions for quality control in manufacturing processes. The company may also benefit from strategic partnerships and collaborations with other firms in the industrial sector, although specific partnerships are not detailed in the available information.

Nitto Seiko Co., Ltd. Financial Statement Overview

Summary
The company exhibits strong financial performance with consistent revenue growth and solid profitability margins, highlighted by a 5.2% increase in revenue and a robust gross profit margin of 23.9%. The balance sheet indicates minimal leverage and financial stability with a low debt-to-equity ratio of 0.05 and a high equity ratio of 61.5%. Cash flow is healthy, ensuring liquidity and operational flexibility.
Income Statement
85
Very Positive
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
87
Very Positive
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
78
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
47.07B44.74B44.02B40.52B32.90B
Gross Profit
11.24B10.18B10.38B10.29B7.64B
EBIT
3.33B2.61B2.93B3.25B1.30B
EBITDA
4.73B4.41B4.73B5.01B2.63B
Net Income Common Stockholders
2.20B1.73B1.83B2.20B764.91M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.73B8.85B9.10B11.81B9.29B
Total Assets
55.60B53.34B53.41B50.92B46.22B
Total Debt
1.56B1.93B3.00B3.37B3.74B
Net Debt
-9.02B-6.92B-6.10B-8.05B-5.54B
Total Liabilities
17.01B16.94B18.91B18.22B16.36B
Stockholders Equity
34.20B32.40B30.76B29.25B26.87B
Cash FlowFree Cash Flow
2.75B1.98B-60.91M2.72B1.90B
Operating Cash Flow
3.71B3.15B999.18M3.65B3.37B
Investing Cash Flow
-899.13M-1.19B-1.99B-993.11M-3.16B
Financing Cash Flow
-1.43B-2.07B-1.30B-704.99M-871.93M

Nitto Seiko Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price573.00
Price Trends
50DMA
568.76
Positive
100DMA
578.17
Negative
200DMA
578.29
Negative
Market Momentum
MACD
0.55
Negative
RSI
56.10
Neutral
STOCH
72.46
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 573 is above the 20-day moving average (MA) of 564.60, above the 50-day MA of 568.76, and below the 200-day MA of 578.29, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 56.10 is Neutral, neither overbought nor oversold. The STOCH value of 72.46 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥19.38B11.64
4.32%11.71%54.61%
73
Outperform
¥21.16B10.63
3.31%7.59%12.32%
71
Outperform
¥11.28B10.08
4.24%10.47%48.78%
70
Outperform
¥17.12B13.50
4.37%3.18%2.22%
68
Neutral
¥10.01B10.88
5.33%6.46%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
46
Neutral
¥14.32B17.68
5.67%-7.91%46.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5957
Nitto Seiko Co., Ltd.
577.00
23.55
4.26%
JP:5945
Tenryu Saw Manufacturing Co., Ltd.
1,904.00
106.22
5.91%
JP:5967
TONE Co. Ltd.
487.00
-48.24
-9.01%
JP:6157
NS Tool Co., Ltd.
690.00
-217.39
-23.96%
JP:6165
Punch Industry Co., Ltd.
368.00
-70.51
-16.08%
JP:6464
Tsubaki Nakashima Co., Ltd
356.00
-378.84
-51.55%

Nitto Seiko Co., Ltd. Corporate Events

Nitto Seiko Co., Ltd. Announces Strategic Plan for Sustainable Growth
May 13, 2025

Nitto Seiko Co., Ltd. has announced a strategic plan to enhance corporate value by focusing on cost of capital and stock price. The company aims to improve its financial metrics such as ROIC and ROE through sales expansion and profit margin improvements. Additionally, it plans to optimize capital allocation, strengthen investor relations, and enhance governance practices to address challenges related to its stock price and profitability.

Nitto Seiko Reports 8% Sales Growth Amid Profit Decline
May 13, 2025

Nitto Seiko Co., Ltd. reported an 8.0% increase in net sales for the first quarter of fiscal year 2025, driven by strong demand for precision screws in new game consoles and automotive applications. Despite improved profitability in certain segments, overall profit declined by 17.5% due to M&A-related expenses in India, impacting the company’s financial performance.

Nitto Seiko Reports Q1 2025 Financial Results with Mixed Performance
May 13, 2025

Nitto Seiko Co., Ltd. reported its consolidated financial results for the first quarter of 2025, showing an 8% increase in net sales compared to the previous year. However, the company experienced a decline in operating and ordinary profits, with a significant drop in profit attributable to owners of the parent. Despite these challenges, the company forecasts a full-year increase in net sales and profits, indicating a positive outlook for the remainder of the year.

Nitto Seiko Acquires Vulcan Forge and Vulcan Cold Forge
Mar 14, 2025

Nitto Seiko Co., Ltd. has completed the acquisition of Vulcan Forge Private Limited and Vulcan Cold Forge Private Limited, converting them into its subsidiaries. This strategic move is expected to enhance Nitto Seiko’s operations and market positioning, although the financial impact is still under review.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.