Strong Equity And Low LeverageA high equity ratio (69.6%) and very low debt-to-equity (0.11) provide durable financial resilience. This capital structure reduces refinancing risk, supports investment in R&D and capex, and preserves supplier/partner confidence, enabling the company to withstand industry cycles and fund strategic initiatives over the medium term.

Robust Operating Cash GenerationAn operating cash flow to net income ratio of 3.58 signals the business converts reported profit into cash effectively. That sustained cash generation underpins working capital needs, debt service and operational stability. Over 2-6 months this strength can fund near-term investments or smooth cyclical demand even if free cash flow remains challenged.

Consistent Revenue Growth And Solid Gross MarginNearly 19% revenue growth with a 12.44% gross margin indicates sustained demand and effective cost control at the production level. This combination supports scalable operations and potential margin expansion as fixed costs are leveraged, reinforcing long-term cash flow prospects and competitive positioning in electronic components markets.

Bears Say

Low Net Profit MarginA net margin of 2.46% limits the company’s ability to translate revenue growth into durable shareholder returns and retained earnings. Persistently thin bottom-line profitability constrains reinvestment, dividend capacity and the buffer against cost shocks, meaning structural margin improvement is needed to secure long-term financial health.

Negative Free Cash FlowNegative free cash flow indicates capital expenditures and other cash outlays exceed operating cash after adjustments. This persistent cash drain can force reliance on external funding or reduce flexibility for strategic investments, making the company more vulnerable to demand downturns and limiting long-term operational optionality.

Material EPS DeclineA roughly 73% decline in EPS signals significant earnings volatility or one-off impacts that erode profitability. Such a sharp EPS contraction undermines confidence in sustainable earnings power, weakens retained capital accumulation, and highlights structural profitability or cost issues that must be addressed to improve long-term returns.

7021 FAQ

What was Nitchitsu Co., Ltd.’s price range in the past 12 months?

Nitchitsu Co., Ltd. lowest stock price was ¥1491.00 and its highest was ¥3255.00 in the past 12 months.

What is Nitchitsu Co., Ltd.’s market cap?

Nitchitsu Co., Ltd.’s market cap is ¥4.84B.

When is Nitchitsu Co., Ltd.’s upcoming earnings report date?

Nitchitsu Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 86 days.

How were Nitchitsu Co., Ltd.’s earnings last quarter?

Nitchitsu Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥3.46 earnings per share for the quarter, beating the consensus estimate of N/A by ¥3.46.

Is Nitchitsu Co., Ltd. overvalued?

According to Wall Street analysts Nitchitsu Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nitchitsu Co., Ltd. pay dividends?

Nitchitsu Co., Ltd. pays a Semiannually dividend of ¥18 which represents an annual dividend yield of 1.64%. See more information on Nitchitsu Co., Ltd. dividends here

What is Nitchitsu Co., Ltd.’s EPS estimate?

Nitchitsu Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nitchitsu Co., Ltd. have?

Nitchitsu Co., Ltd. has 2,130,000 shares outstanding.

What happened to Nitchitsu Co., Ltd.’s price movement after its last earnings report?

Nitchitsu Co., Ltd. reported an EPS of ¥3.46 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.318%.

Which hedge fund is a major shareholder of Nitchitsu Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7021

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Nitchitsu Co., Ltd.

Nitchitsu Co., Ltd. manufactures and sells industrial machinery in Japan. The company designs and manufactures marine equipment, air preheating machines, and other general industrial machinery; installs, constructs, and supervises machinery; and manufactures plant-related equipment. It also purchases and sells silica sand, gravel, sand, and crushed stone; and manufactures and sells purified silica powder, etc. In addition, the company engages in the leasing of office buildings; and manufacture and sale of heat-resistant paints; and processing and sale of natural rubber products. Nitchitsu Co., Ltd. was incorporated in 1950 and is headquartered in Tokyo, Japan.