Nitchitsu Co., Ltd. (7021) AI Stock Analysis

• Market Cap: ¥5.12B
• Dividend Yield: 1.63%
• Average Volume (3M): 1.65K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.31
• Revenue Growth: 11.40%
• EPS Growth: -67.55%
• Country: JP
• Employees: 276
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.74
• Shares Outstanding: 2,130,000
• 10 Day Avg. Volume: 1,540
• 30 Day Avg. Volume: 1,653
• PEG Ratio: 9.41
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -23.43
• 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: 66 Neutral
• Price Target: ¥2,374.00 ▲(5.60% Upside)

Nitchitsu Co., Ltd. shows a solid financial foundation with strong revenue growth and a stable balance sheet, which are the most significant factors in its score. Technical analysis indicates a positive trend but lacks strong momentum. Valuation metrics suggest the stock may be overvalued, which slightly offsets the positive financial performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, which can support long-term expansion and stability.

Financial Stability

A high equity ratio suggests robust financial health, providing the company with the ability to withstand economic downturns and invest in growth opportunities.

Cash Generation

Strong cash generation supports operational flexibility and the ability to reinvest in the business, enhancing long-term growth prospects.

Negative Factors

Profitability Challenges

Low net profit margins indicate potential inefficiencies or high costs, which could limit the company's ability to generate sustainable profits over time.

Cash Flow Constraints

Negative free cash flow can restrict the company's ability to invest in growth initiatives and may necessitate external financing, impacting financial flexibility.

Earnings Decline

A decline in earnings per share suggests potential operational challenges or market pressures, which could affect investor confidence and future growth.

Nitchitsu Co., Ltd. Business Overview & Revenue Model

Company Description

Nitchitsu Co., Ltd. (7021) is a Japan-based company primarily engaged in the manufacturing and sale of various electronic components and materials. The company operates in several sectors, including the production of semiconductors, electronic devices, and specialized materials for industrial applications. Nitchitsu focuses on innovative solutions that cater to the needs of the electronics industry, providing high-quality products that support advancements in technology.

How the Company Makes Money

Nitchitsu Co., Ltd. generates revenue through the production and sale of its electronic components and materials. The company's primary revenue streams include the sale of semiconductors, which are essential for various electronic devices, as well as specialized materials used in industrial applications. Nitchitsu has established significant partnerships with major technology firms and manufacturers, which help to facilitate steady demand for its products. Additionally, the company invests in research and development to create innovative solutions that meet emerging market needs, further enhancing its revenue potential.

Nitchitsu Co., Ltd. Financial Statement Overview

Summary

Nitchitsu Co., Ltd. demonstrates a solid financial foundation with steady revenue growth and strong equity. While profitability metrics suggest room for improvement, the company effectively manages its debt levels. Cash flow challenges are evident, but operational cash generation remains strong. Overall, the company is well-positioned but should focus on enhancing profitability and cash flow stability.

Income Statement

Nitchitsu Co., Ltd. has shown a consistent increase in revenue over the past few years, with a revenue growth rate of 18.85% in the latest year. The gross profit margin stands at 12.44%, indicating efficient cost management. However, the net profit margin is relatively low at 2.46%, suggesting room for improvement in profitability. The EBIT margin is 2.74%, and the EBITDA margin is 8.20%, reflecting moderate operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 69.61%, indicating financial stability. The debt-to-equity ratio is low at 0.11, which minimizes financial risk. Return on equity is modest at 2.15%, highlighting potential for increased shareholder returns.

Cash Flow

Cash flow analysis reveals a challenging picture with a negative free cash flow, though there is a significant improvement in operating cash flow. The operating cash flow to net income ratio is 3.58, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is negative, suggesting cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.02B	9.85B	8.29B	8.02B	7.86B	8.47B
Gross Profit	1.26B	1.23B	1.22B	928.60M	1.03B	1.22B
EBITDA	828.67M	808.18M	743.52M	131.36M	308.89M	187.29M
Net Income	227.97M	241.95M	247.57M	-540.13M	-121.40M	-82.33M
Balance Sheet
Total Assets	16.69B	16.14B	15.36B	14.99B	14.99B	15.30B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.67B	2.71B	4.41B	4.34B	4.84B
Total Debt	1.17B	1.26B	1.22B	1.26B	1.24B	1.28B
Total Liabilities	5.28B	4.91B	4.62B	4.71B	4.13B	4.36B
Stockholders Equity	11.41B	11.23B	10.73B	10.28B	10.86B	10.94B
Cash Flow
Free Cash Flow	0.00	-143.64M	-1.44B	-311.55M	-410.82M	583.28M
Operating Cash Flow	0.00	866.32M	-515.64M	241.20M	58.36M	950.06M
Investing Cash Flow	0.00	-877.36M	-895.23M	-137.04M	-496.27M	-101.58M
Financing Cash Flow	0.00	-30.99M	-288.90M	-33.92M	-60.45M	-92.69M

Nitchitsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2248.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7021, the sentiment is Positive. The current price of 2248 is below the 20-day moving average (MA) of 2287.00, above the 50-day MA of 2146.81, and above the 200-day MA of 1865.48, indicating a neutral trend. The MACD of -5.26 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 47.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7021.

Nitchitsu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6360	79 Outperform	¥5.12B	6.99	―	6.63%	-30.65%	-46.85%
6396	72 Outperform	¥3.87B	7.83	―	1.46%	-6.39%	-3.86%
6518	69 Neutral	¥4.62B	8.45	―	2.36%	9.07%	―
6334	68 Neutral	¥4.17B	12.90	―	1.18%	12.31%	138.05%
7021	66 Neutral	¥5.12B	21.30	―	1.63%	11.40%	-67.55%
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%