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

• Market Cap: ¥21.16B
• Dividend Yield: 3.31%
• Average Volume (3M): 40.32K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.83
• Revenue Growth: 7.59%
• EPS Growth: 12.32%
• Country: JP
• Employees: 1,912
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 6.69
• Shares Outstanding: 39,985,016
• 10 Day Avg. Volume: 38,050
• 30 Day Avg. Volume: 40,316
• PEG Ratio: -0.59
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -299.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• 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. Business Overview & Revenue Model

Company Description

Nitto 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 Money

Nitto 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
47.07B	44.74B	44.02B	40.52B	32.90B
	Gross Profit
11.24B	10.18B	10.38B	10.29B	7.64B
	EBIT
3.33B	2.61B	2.93B	3.25B	1.30B
	EBITDA
4.73B	4.41B	4.73B	5.01B	2.63B
	Net Income Common Stockholders
2.20B	1.73B	1.83B	2.20B	764.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.73B	8.85B	9.10B	11.81B	9.29B
	Total Assets
55.60B	53.34B	53.41B	50.92B	46.22B
	Total Debt
1.56B	1.93B	3.00B	3.37B	3.74B
	Net Debt
-9.02B	-6.92B	-6.10B	-8.05B	-5.54B
	Total Liabilities
17.01B	16.94B	18.91B	18.22B	16.36B
	Stockholders Equity
34.20B	32.40B	30.76B	29.25B	26.87B
Cash Flow		Free Cash Flow
2.75B	1.98B	-60.91M	2.72B	1.90B
	Operating Cash Flow
3.71B	3.15B	999.18M	3.65B	3.37B
	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 Price: 573.00
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5945	74 Outperform	¥19.38B	11.64		4.32%	11.71%	54.61%
5957	73 Outperform	¥21.16B	10.63		3.31%	7.59%	12.32%
5967	71 Outperform	¥11.28B	10.08		4.24%	10.47%	48.78%
6157	70 Outperform	¥17.12B	13.50		4.37%	3.18%	2.22%
6165	68 Neutral	¥10.01B	10.88		5.33%	6.46%	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
6464	46 Neutral	¥14.32B	17.68		5.67%	-7.91%	46.90%

Nitto Seiko Co., Ltd. Corporate Events

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

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

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

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

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.