Fine Sinter Co., Ltd. (5994) AI Stock Analysis

• Market Cap: ¥7.91B
• Dividend Yield: 1.27%
• Average Volume (3M): 74.32K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.65
• Revenue Growth: 6.41%
• EPS Growth: N/A
• Country: JP
• Employees: 2,098
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 161.10
• Shares Outstanding: 4,420,000
• 10 Day Avg. Volume: 32,670
• 30 Day Avg. Volume: 74,323
• PEG Ratio: 0.26
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -2.06
• 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: 69 Neutral
• Price Target: ¥2,124.00 ▲(69.65% Upside)

The overall stock score is primarily driven by strong technical analysis indicators, suggesting bullish momentum. However, financial performance concerns, particularly ongoing net losses and negative free cash flow, weigh down the score. The valuation appears attractive with a low P/E ratio, but this may reflect market skepticism about profitability. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Fine Sinter's products across various industries, supporting long-term business expansion.

Operational Improvements

Improved EBIT and EBITDA margins reflect enhanced operational efficiency, which can lead to better profitability and competitive positioning.

Stable Balance Sheet

A stable balance sheet with moderate leverage and a healthy equity ratio provides financial stability, supporting long-term strategic initiatives.

Negative Factors

Persistent Net Losses

Ongoing net losses indicate challenges in achieving profitability, which can hinder reinvestment in growth and innovation.

Negative Free Cash Flow

Negative free cash flow suggests difficulties in generating cash after capital expenditures, potentially limiting financial flexibility.

Negative Return on Equity

A negative return on equity indicates inefficiencies in generating returns on shareholder investments, affecting long-term shareholder value.

Fine Sinter Co., Ltd. Business Overview & Revenue Model

Company Description

Fine Sinter Co., Ltd. (5994) is a leading manufacturer in the advanced materials sector, specializing in the production of sintered metal components. The company serves various industries, including automotive, electronics, and industrial machinery, providing high-quality products that meet specific customer requirements. Its core offerings include precision-engineered sintered parts, which are known for their durability and performance, making them essential for various applications in modern technology and manufacturing.

How the Company Makes Money

Fine Sinter Co., Ltd. generates revenue primarily through the sale of its sintered metal products to a diverse range of industries. The company's revenue model is based on direct sales to manufacturers and businesses that require high-performance components. Key revenue streams include bulk orders from automotive manufacturers, electronics companies, and industrial equipment producers. Additionally, Fine Sinter benefits from long-term contracts and partnerships with major industry players, which provide a stable income source. The company's commitment to innovation and quality also allows it to command premium pricing for its products, further enhancing its profitability.

Fine Sinter Co., Ltd. Financial Statement Overview

Summary

Fine Sinter Co., Ltd. shows some strengths in revenue growth and operational improvements reflected in EBIT and EBITDA margins. However, persistent net losses and negative free cash flow highlight ongoing challenges. The balance sheet is relatively stable with moderate leverage, but the negative return on equity points to profitability concerns. Overall, the financial health of the company is mixed, with some positive operational trends offset by profitability challenges.

Income Statement

The gross profit margin has remained relatively stable, showing a slight increase from the previous year. However, the company has been experiencing net losses over the past few years, despite a consistent revenue growth rate. The EBIT and EBITDA margins have improved, indicating better operational efficiency, but the negative net profit margin remains a concern.

Balance Sheet

The company has a moderate debt-to-equity ratio, which suggests a balanced approach to leveraging debt. However, the return on equity is negative due to ongoing losses. The equity ratio is healthy, indicating that a substantial portion of the company's assets are financed by equity.

Cash Flow

The free cash flow has been negative in recent years, reflecting challenges in generating cash after capital expenditures. However, the operating cash flow has improved, and the operating cash flow to net income ratio is positive, indicating some capacity to cover net losses with cash generated from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.23B	42.72B	42.39B	39.67B	38.96B	34.64B
Gross Profit	6.14B	5.39B	5.37B	3.44B	4.59B	3.87B
EBITDA	4.65B	4.25B	3.38B	919.29M	4.76B	4.21B
Net Income	173.18M	-206.54M	-593.46M	-2.66B	208.22M	-225.05M
Balance Sheet
Total Assets	47.26B	47.84B	50.20B	49.20B	51.05B	49.75B
Cash, Cash Equivalents and Short-Term Investments	4.69B	4.42B	4.15B	4.52B	5.97B	6.15B
Total Debt	17.75B	18.26B	18.06B	17.44B	16.32B	17.10B
Total Liabilities	30.42B	30.84B	31.69B	30.93B	30.16B	30.16B
Stockholders Equity	13.96B	14.10B	15.64B	14.56B	17.20B	17.14B
Cash Flow
Free Cash Flow	0.00	-1.69B	-738.23M	-1.92B	922.16M	-843.13M
Operating Cash Flow	0.00	814.56M	4.74B	1.83B	4.19B	3.25B
Investing Cash Flow	0.00	-544.50M	-5.16B	-3.69B	-3.35B	-4.08B
Financing Cash Flow	0.00	8.82M	-155.21M	305.18M	-1.36B	2.27B

Fine Sinter Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1252.00
• 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:5994, the sentiment is Positive. The current price of 1252 is below the 20-day moving average (MA) of 1801.50, below the 50-day MA of 1526.46, and above the 200-day MA of 1008.67, indicating a bullish trend. The MACD of 98.77 indicates Positive momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 47.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5994.

Fine Sinter Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5922	81 Outperform	¥18.25B	10.07	―	2.86%	2.63%	-3.96%
5603	76 Outperform	¥4.18B	4.58	―	4.79%	-0.27%	59.50%
5994	69 Neutral	¥7.91B	4.10	―	1.27%	6.41%	―
6138	68 Neutral	¥2.69B	7.48	―	2.80%	3.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5858	62 Neutral	¥3.33B	10.80	―	0.85%	15.18%	-10.95%
5852	54 Neutral	¥20.24B	-8.25	―	4.53%	5.12%	―