Nichidai Corporation (6467) AI Stock Analysis

• Market Cap: ¥3.13B
• Dividend Yield: 1.64%
• Average Volume (3M): 9.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -3.20%
• EPS Growth: -226.19%
• Country: JP
• Employees: 649
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -27.62
• Shares Outstanding: 9,053,300
• 10 Day Avg. Volume: 10,450
• 30 Day Avg. Volume: 9,706
• PEG Ratio: 2.30
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -40.24
• 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: 56 Neutral
• Price Target: ¥377.00 ▲(7.71% Upside)

Nichidai Corporation's overall stock score is primarily influenced by its stable financial performance, despite concerns about profitability and cash flow. Technical analysis indicates a neutral trend with some bearish momentum, while valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage risk indicates financial stability and provides a solid foundation for future growth and investment.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and enhance product adoption, supporting long-term business sustainability.

Operational Efficiency

Improved operational efficiency through better cost management enhances profitability potential, contributing to stronger financial performance over time.

Negative Factors

Low Net Profit Margin

A low net profit margin suggests challenges in translating revenue into profit, which may hinder the company's ability to generate shareholder value.

Negative Free Cash Flow

Negative free cash flow indicates potential cash management issues, which could limit the company's ability to invest in growth opportunities or manage debt.

Profitability Concerns

Significant negative EPS growth highlights profitability challenges, potentially impacting investor confidence and the company's ability to reinvest in its operations.

Nichidai Corporation Business Overview & Revenue Model

Company Description

Nichidai Corporation develops, manufactures, and sells precision-forged dies and related forged products in Japan and internationally. The company involved in the development, manufacture, and sale of precision forged dies that are used for the manufacture of automotive parts; and the production and sale of precision forged products components, as well as assembly of precision parts. In addition, its products include precision dies, such as press and former dies; formed products comprising cross joints, inner races, hypoid pinion gears, bevel gears, helical gears, and scrolls; and die-sets, including hydraulic enclosing's with pantograph system die-sets, gas pressure enclosed die-sets, and hydraulic back pressure die-sets. Further, the company develops and manufactures sintered wire mesh filters that are used in petrochemical, pharmaceutical, and food industries as well as rockets. The company sells its products through distributors. Nichidai Corporation was founded in 1959 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Nichidai Corporation generates revenue through the sale of its industrial machinery and automation systems, which are tailored to meet the specific needs of its clients in various industries. Key revenue streams include direct sales of equipment, ongoing maintenance and support services, and potentially recurring revenue from long-term service contracts. The company may also benefit from partnerships with other firms in the manufacturing sector, helping to expand its market reach and enhance its product offerings. Additionally, Nichidai Corporation's ability to innovate and adapt to market trends, such as the increasing demand for smart manufacturing solutions, contributes significantly to its earnings.

Nichidai Corporation Financial Statement Overview

Summary

Nichidai Corporation demonstrates stability with a strong balance sheet and improving income statement metrics. However, the low net profit margin and recent negative free cash flow raise concerns about profitability and cash management. Continued focus on enhancing operational efficiency and profitability, alongside prudent capital expenditure, will be key to sustaining financial health.

Income Statement

Nichidai Corporation has shown a steady recovery with an increase in revenue from ¥11.3 billion to ¥11.6 billion in the last year, marking a 2.47% growth. The gross profit margin remains stable at around 20%, indicating consistent cost management. Notably, EBIT and EBITDA margins have improved to 1.32% and 6.72%, respectively, reflecting better operational efficiency compared to previous years. However, the net profit margin is low at 0.49%, suggesting room for improvement in profitability.

Balance Sheet

The balance sheet of Nichidai Corporation reflects a strong equity base with an equity ratio of 72.24%, indicating financial stability and low leverage risk. The debt-to-equity ratio stands at 0.18, showcasing prudent debt management. Return on equity is modest at 0.52%, suggesting potential for enhanced shareholder returns with improved profitability.

Cash Flow

Nichidai Corporation's cash flow shows a dip in free cash flow, turning negative at ¥-82.55 million, which is concerning. The operating cash flow to net income ratio is strong at 13.50, indicating good cash generation relative to net income. However, the negative free cash flow growth rate highlights the need for careful capital expenditure management to ensure sustainable cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.75B	11.60B	11.32B	10.85B	12.30B	10.82B
Gross Profit	2.22B	2.32B	2.18B	1.99B	2.34B	1.61B
EBITDA	644.05M	779.58M	634.69M	308.71M	314.61M	594.33M
Net Income	-76.65M	56.48M	44.99M	-484.71M	-619.35M	-170.68M
Balance Sheet
Total Assets	14.84B	15.17B	15.19B	15.37B	15.33B	15.66B
Cash, Cash Equivalents and Short-Term Investments	2.89B	3.00B	3.27B	4.11B	4.06B	3.43B
Total Debt	1.97B	1.99B	2.00B	2.22B	2.06B	1.42B
Total Liabilities	4.05B	4.00B	4.29B	4.07B	3.89B	3.49B
Stockholders Equity	10.60B	10.96B	10.44B	10.15B	10.36B	11.02B
Cash Flow
Free Cash Flow	0.00	-82.55M	58.58M	-256.30M	124.35M	130.15M
Operating Cash Flow	0.00	762.28M	740.55M	208.38M	699.45M	781.18M
Investing Cash Flow	0.00	-891.82M	-491.62M	-467.24M	-586.67M	-650.87M
Financing Cash Flow	0.00	-376.19M	-1.13B	89.89M	504.36M	-260.09M

Nichidai Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 350.00
• 50DMA: Negative
• 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:6467, the sentiment is Positive. The current price of 350 is above the 20-day moving average (MA) of 345.65, below the 50-day MA of 358.10, and below the 200-day MA of 355.76, indicating a neutral trend. The MACD of -3.06 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 72.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6467.

Nichidai Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	74 Outperform	¥3.00B	9.55	―	4.45%	4.73%	9.23%
6396	72 Outperform	¥3.87B	7.83	―	1.46%	-6.39%	-3.86%
6334	68 Neutral	¥4.17B	12.90	―	1.18%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6467	56 Neutral	¥3.13B	―	―	1.64%	-3.20%	-226.19%
6166	51 Neutral	¥2.87B	15.77	―	―	-7.98%	-52.68%
6218	47 Neutral	¥3.28B	―	―	1.95%	-14.00%	-216.77%