Nippon Pillar Packing Co., Ltd. (6490) AI Stock Analysis

• Market Cap: ¥111.84B
• Dividend Yield: 2.56%
• Average Volume (3M): 78.87K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.30
• Revenue Growth: -2.46%
• EPS Growth: -10.72%
• Country: JP
• Employees: 1,132
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 89.74
• Shares Outstanding: 25,042,406
• 10 Day Avg. Volume: 99,170
• 30 Day Avg. Volume: 78,870
• PEG Ratio: -0.40
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 10.85
• 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: 67 Neutral
• Price Target: ¥4,783.00 ▼(-1.28% Downside)

Nippon Pillar Packing Co., Ltd. receives a solid overall score driven by strong financial performance, which is the most significant factor. The valuation is attractive, offering a reasonable P/E ratio and dividend yield. However, technical analysis indicates bearish momentum, which weighs down the overall score.

Positive Factors

Financial Health

A low debt-to-equity ratio indicates strong financial leverage management, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Profitability

Strong profitability margins reflect efficient operations and pricing power, allowing the company to sustain earnings and reinvest in business expansion.

Cash Flow Generation

Efficient cash flow generation supports the company's ability to fund operations, pay dividends, and invest in future growth without relying heavily on external financing.

Negative Factors

Revenue Growth

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term expansion and market share.

EPS Growth

Negative EPS growth indicates declining profitability per share, which could affect investor confidence and the company's ability to attract capital.

Free Cash Flow Management

Lower free cash flow relative to net income suggests potential inefficiencies in capital expenditure management, which could limit the company's ability to invest in growth initiatives.

Nippon Pillar Packing Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Pillar Packing Co., Ltd. (6490) is a leading manufacturer of industrial packing materials, primarily serving the chemical, pharmaceutical, and food processing industries. The company specializes in the production of various types of packing products, including tower packing, filtration media, and custom packing solutions designed to enhance efficiency and performance in industrial processes. With a strong emphasis on innovation and quality, Nippon Pillar Packing is committed to providing high-performance products that meet the diverse needs of its global clientele.

How the Company Makes Money

Nippon Pillar Packing generates revenue through the sale of its packing products to various sectors, including chemicals, pharmaceuticals, and food processing. The company's revenue model is based on the direct sale of its products to manufacturers and industrial clients, often involving bulk orders and long-term contracts. Key revenue streams include standard packing solutions, custom-designed products tailored to specific client requirements, and maintenance or replacement services for existing installations. Additionally, strategic partnerships with major players in the manufacturing and industrial sectors enhance its market reach and contribute to consistent sales. The company's focus on quality and innovation also allows it to command premium pricing for its specialized products, further bolstering its earnings.

Nippon Pillar Packing Co., Ltd. Financial Statement Overview

Summary

Nippon Pillar Packing Co., Ltd. demonstrates strong financial health with robust profitability and growth in the income statement, prudent financial management in the balance sheet, and positive operational cash generation. The company is well-positioned for future growth, although there is room for improvement in free cash flow management.

Income Statement

Nippon Pillar Packing Co., Ltd. shows strong income statement performance with consistent revenue growth over the past years. Despite a slight dip in revenue from the previous year, the company maintains a healthy gross profit margin of approximately 38.7% and a net profit margin of 14.3% for the latest year. Additionally, EBIT and EBITDA margins are solid at 19.5% and 27.5%, respectively. The company has demonstrated resilience in maintaining profitability amidst fluctuating market conditions.

Balance Sheet

The balance sheet of Nippon Pillar Packing Co., Ltd. is robust, with a low debt-to-equity ratio of 0.16, indicating strong financial leverage management. The equity ratio remains high at 75.3%, reflecting a stable financial foundation. The return on equity stands at 11.2%, showcasing efficient utilization of shareholders' equity to generate profits. The company's asset base has consistently expanded, supporting operational growth.

Cash Flow

Cash flow analysis reveals positive trends, with a notable improvement in free cash flow from the previous year's deficit. The operating cash flow to net income ratio is 1.71, highlighting efficient cash flow generation from operations. However, the free cash flow to net income ratio is slightly lower at 0.86, suggesting some room for improvement in capital expenditure management. Overall, cash flow stability supports the company's operational and financial strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.39B	57.99B	58.60B	48.70B	40.67B	30.20B
Gross Profit	22.75B	22.43B	24.19B	21.25B	17.51B	10.56B
EBITDA	15.43B	15.92B	18.25B	16.55B	13.82B	6.90B
Net Income	8.31B	8.30B	10.78B	10.43B	8.29B	3.44B
Balance Sheet
Total Assets	95.75B	98.06B	98.83B	72.49B	64.99B	54.95B
Cash, Cash Equivalents and Short-Term Investments	21.67B	21.88B	17.89B	22.46B	21.16B	11.92B
Total Debt	11.75B	11.82B	12.67B	1.35B	350.00M	254.00M
Total Liabilities	22.41B	24.19B	28.89B	13.13B	12.33B	9.17B
Stockholders Equity	73.34B	73.86B	69.95B	59.37B	52.66B	45.78B
Cash Flow
Free Cash Flow	0.00	7.15B	-5.83B	3.58B	10.59B	2.51B
Operating Cash Flow	0.00	14.18B	5.64B	6.06B	11.95B	5.68B
Investing Cash Flow	0.00	-6.81B	-16.20B	-573.00M	-1.55B	-3.71B
Financing Cash Flow	0.00	-3.96B	5.32B	-2.79B	-1.71B	-2.24B

Nippon Pillar Packing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4845.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6490, the sentiment is Positive. The current price of 4845 is above the 20-day moving average (MA) of 4667.50, above the 50-day MA of 4726.70, and above the 200-day MA of 3982.99, indicating a bullish trend. The MACD of -6.16 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 50.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6490.

Nippon Pillar Packing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6455	78 Outperform	¥127.01B	11.70	―	2.25%	12.64%	34.19%
6333	72 Outperform	¥48.99B	11.16	―	3.95%	1.72%	101.76%
6340	71 Outperform	¥95.04B	10.76	―	2.62%	8.65%	-23.00%
6486	69 Neutral	¥138.92B	18.56	―	3.89%	1.70%	18.50%
6284	68 Neutral	¥90.58B	11.95	―	3.24%	18.70%	33.93%
6490	67 Neutral	¥111.84B	13.32	―	2.56%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nippon Pillar Packing Co., Ltd. Corporate Events

PILLAR Corporation Completes Share Buyback

PILLAR Corporation has completed the acquisition of 51,200 of its own shares, amounting to a total cost of 239,062,993 yen, through market purchases on the Tokyo Stock Exchange. This acquisition is part of a broader strategy approved by the Board of Directors to buy back up to 1,000,000 shares, which represents 4.3% of the total issued shares, excluding treasury shares. This move is likely aimed at optimizing capital structure and potentially enhancing shareholder value.

PILLAR Corporation Reports Stable Financial Performance Amid Slight Sales Decline

PILLAR Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decline in net sales by 1.3% to 28,161 million yen compared to the previous year. Despite the decrease in sales, the company experienced a 4.1% increase in profit attributable to owners of the parent, reaching 4,048 million yen. The equity ratio improved slightly to 75.8%, indicating a stable financial position. The company maintained its dividend forecast, reflecting confidence in its ongoing operations and market strategy.

Nippon Pillar Packing Reports Stable Financial Performance Amid Slight Sales Decline

Nippon Pillar Packing Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight decline in net sales by 1.3% and operating profit by 3.8% compared to the previous year. Despite these declines, the company achieved a 4.1% increase in profit attributable to owners of the parent, indicating improved efficiency or cost management. The company maintains a strong equity ratio of 75.8%, reflecting a stable financial position. The forecast for the full fiscal year ending March 31, 2026, anticipates a slight decrease in net sales and profits, but the company remains committed to maintaining its dividend payments.

PILLAR Corporation Advances Share Buyback Strategy

PILLAR Corporation has announced the acquisition of 66,600 of its own common shares, amounting to 317,347,492 yen, through market purchases on the Tokyo Stock Exchange during October 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 1,000,000 shares, reflecting a commitment to enhancing shareholder value and optimizing capital structure.

PILLAR Corporation Expands Global Reach with New Malaysian Subsidiary

PILLAR Corporation has announced the establishment of a new subsidiary in Malaysia, named PILLAR Malaysia Sdn. Bhd., as part of its strategy to strengthen its global supply network. This move aligns with the growing significance of Malaysia as a manufacturing hub in Asia, particularly in the semiconductor sector, and aims to boost the company’s competitiveness and responsiveness to market demands. The financial impact on the company’s results for the fiscal year ending March 31, 2026, is expected to be minimal.