Naikai Zosen Corporation (7018) AI Stock Analysis

• Market Cap: ¥9.51B
• Dividend Yield: 0.71%
• Average Volume (3M): 52.46K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.38
• Revenue Growth: -3.74%
• EPS Growth: -55.02%
• Country: JP
• Employees: 628
• Sector: Industrials
• Sector Strength: 91
• Industry: Aerospace & Defense
• EPS (TTM): 78.68
• Shares Outstanding: 2,253,000
• 10 Day Avg. Volume: 42,790
• 30 Day Avg. Volume: 52,460
• 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: ¥6,690.00
• Price Target Upside: 21.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥5,998.00 ▲(8.66%Upside)

Naikai Zosen Corporation's stock shows a balanced outlook. The primary strength lies in its valuation, with an attractive P/E ratio suggesting it may be undervalued. Technical analysis supports a cautiously optimistic view with long-term bullish trends, although short-term momentum is weak. Financial performance is mixed, with stable profitability but significant liquidity concerns that need addressing.

Naikai Zosen Corporation Business Overview & Revenue Model

Company Description

Naikai Zosen Corporation (7018) is a Japanese company primarily engaged in the shipbuilding industry. The company specializes in the design, construction, and repair of a wide range of vessels, including cargo ships, passenger ferries, and other marine structures. Naikai Zosen operates shipyards that are equipped with advanced technology to cater to both domestic and international clients in the maritime sector.

How the Company Makes Money

Naikai Zosen Corporation generates revenue through the construction and sale of various types of ships. This includes contracts with shipping companies for the building of new vessels, as well as repair and maintenance services for existing ships. The company may also engage in partnerships or joint ventures with other maritime firms to expand its service offerings. Key revenue streams include new shipbuilding projects, retrofitting services, and ongoing technical support and maintenance contracts. The company's ability to secure lucrative contracts and maintain strong relationships with clients and suppliers significantly contributes to its earnings.

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
EBITDA	1.81B	2.06B	3.44B	2.01B	1.27B	103.00M
Net Income	919.00M	1.02B	2.26B	737.00M	143.00M	-971.00M
Balance Sheet
Total Assets	43.67B	42.49B	43.82B	40.20B	36.81B	34.04B
Cash, Cash Equivalents and Short-Term Investments	12.94B	4.70B	14.80B	9.31B	16.28B	7.45B
Total Debt	5.56B	5.68B	8.96B	9.41B	9.71B	9.98B
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: Neutral
• Last Price: 5520.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7018, the sentiment is Neutral. The current price of 5520 is below the 20-day moving average (MA) of 5734.00, above the 50-day MA of 5405.70, and above the 200-day MA of 4661.33, indicating a neutral trend. The MACD of 33.88 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7018.

Naikai Zosen Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7014	79 Outperform	¥210.17B	8.01	28.11%	1.04%	17.94%	31.45%
7022	78 Outperform	¥9.55B	7.93		2.66%	7.08%	165.25%
7003	74 Outperform	¥259.50B	6.68	24.36%	0.78%	4.38%	55.40%
Sector *	71 Outperform	¥254.21B	13.40	8.49%	3.03%	6.33%	12.89%
7018	68 Neutral	¥9.51B	9.34		0.71%	-3.74%	-55.02%
6022	67 Neutral	¥3.26B	86.62		1.22%	-1.11%	2.09%
6018	62 Neutral	¥9.78B	18.23		2.32%	15.54%	-47.78%