Naikai Zosen Corporation (7018) AI Stock Analysis

• Market Cap: ¥9.60B
• Dividend Yield: 0.71%
• Average Volume (3M): 47.54K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.39
• Revenue Growth: -3.74%
• EPS Growth: -55.02%
• Country: JP
• Employees: 628
• Sector: Industrials
• Sector Strength: 85
• Industry: Aerospace & Defense
• EPS (TTM): 78.68
• Shares Outstanding: 2,253,000
• 10 Day Avg. Volume: 42,360
• 30 Day Avg. Volume: 47,536
• PEG Ratio: <0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.34
• 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: 70 Neutral
• Price Target: ¥6,070.00 ▲(7.24%Upside)

The overall stock score of 69.93 reflects a mixed outlook. Valuation is a strong point, with the stock appearing undervalued. Technical analysis also supports a positive near-term outlook. However, financial performance raises concerns, particularly related to cash flow and revenue declines, which are significant risks that need to be addressed for long-term stability.

Naikai Zosen Corporation Business Overview & Revenue Model

Company Description

Naikai Zosen Corporation engages in shipbuilding business in Japan. The company constructs ferries, container ships, product tankers, bulk carriers, general cargo ships, car carriers, refrigerated cargo ships, ro-ro ships, research vessels, investigation and patrol vessels, LPG/LAG/LEG tankers, chemical tankers, and others. It is also involved in the repair and remodeling of ships and governmental vessels. Naikai Zosen Corporation was founded in 1940 and is headquartered in Onomichi, Japan.

How the Company Makes Money

Naikai Zosen Corporation generates revenue primarily through the design, construction, and sale of ships. The company secures contracts with shipping companies, government entities, and other clients requiring maritime vessels. Revenue streams include the construction of new ships and the repair and retrofitting of existing vessels. Additionally, Naikai Zosen may engage in partnerships or joint ventures to expand its market reach and enhance its offerings. The company's earnings are influenced by the demand for new ships, the global economic environment, and advancements in shipbuilding technology.

Naikai Zosen Corporation Financial Statement Overview

Summary

Naikai Zosen Corporation's financial health shows a combination of strengths and weaknesses. The company maintains reasonable profitability margins, but the declining revenue and negative cash flows pose significant risks. The balance sheet is stable, yet liquidity issues could impact future flexibility. Addressing operational inefficiencies and enhancing cash flow management are crucial for sustainable growth.

Income Statement

The company shows a mixed performance with a declining revenue trend, dropping from 46.38 billion to 44.65 billion JPY in the latest year. However, profitability metrics like Gross Profit Margin (5.70%) and Net Profit Margin (2.28%) remain stable. The decline in EBIT and EBITDA margins indicates potential operational inefficiencies.

Balance Sheet

The balance sheet reflects moderate financial stability with a Debt-to-Equity Ratio of 0.52, indicating manageable leverage. The Equity Ratio is at 25.55%, suggesting a solid equity base. However, there is a notable decrease in cash reserves, highlighting potential liquidity concerns.

Cash Flow

The cash flow statement reveals significant issues, with negative Free Cash Flow and Operating Cash Flow in the latest year. Free Cash Flow has decreased dramatically, indicating potential cash management problems. The company may face challenges in sustaining operations without improving cash flow generation.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
45.15B	44.65B	46.38B	37.62B	33.03B	31.12B
	Gross Profit
2.89B	2.54B	4.38B	1.93B	1.62B	244.00M
	EBIT
1.67B	1.42B	3.18B	765.00M	462.00M	-891.00M
	EBITDA
1.81B	2.06B	3.44B	2.01B	1.27B	103.00M
	Net Income Common Stockholders
919.00M	1.02B	2.26B	737.00M	143.00M	-971.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.94B	4.70B	14.80B	9.31B	16.28B	7.45B
	Total Assets
43.67B	42.49B	43.82B	40.20B	36.81B	34.04B
	Total Debt
5.56B	5.68B	8.96B	9.41B	9.71B	9.98B
	Net Debt
-7.37B	978.00M	-5.85B	100.00M	-6.57B	2.54B
	Total Liabilities
33.17B	31.63B	34.08B	32.78B	30.02B	27.27B
	Stockholders Equity
10.50B	10.86B	9.74B	7.43B	6.79B	6.78B
Cash Flow		Free Cash Flow
0.00	-6.58B	5.96B	-7.88B	9.28B	-5.61B
	Operating Cash Flow
0.00	-5.38B	6.75B	-6.38B	10.78B	-4.10B
	Investing Cash Flow
0.00	-1.20B	-824.00M	-249.00M	-1.68B	-1.53B
	Financing Cash Flow
0.00	-3.44B	-528.00M	-359.00M	-278.00M	1.71B

Naikai Zosen Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5660.00
• 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:7018, the sentiment is Positive. The current price of 5660 is above the 20-day moving average (MA) of 5216.75, above the 50-day MA of 5056.50, and above the 200-day MA of 4418.14, indicating a bullish trend. The MACD of 100.44 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7018.

Naikai Zosen Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7018	70 Neutral	¥9.60B	9.43		0.71%	-3.74%	-55.02%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
MIESF		$1.70B	4.32	24.36%	<0.01%	―	―
8AF		€1.16B	7.14	28.05%	1.87%	―	―
7022	78 Outperform	¥9.28B	7.70		2.74%	7.08%	165.76%
6022	70 Neutral	¥2.47B	65.54		1.61%	-1.11%	2.08%
6018	62 Neutral	¥9.93B	18.50		2.27%	15.54%	-47.78%