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

• Market Cap: ¥4.00B
• Dividend Yield: 1.86%
• Average Volume (3M): 1.80K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.40
• Revenue Growth: 14.03%
• EPS Growth: -34.37%
• Country: JP
• Employees: 276
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Machinery
• EPS (TTM): 45.42
• Shares Outstanding: 2,130,000
• 10 Day Avg. Volume: 2,290
• 30 Day Avg. Volume: 1,796
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,214.00
• Price Target Upside: 14.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,214.00 ▲(14.77% Upside)

Nitchitsu Co., Ltd. scores well due to strong technical indicators and a solid financial foundation. While profitability and cash flow constraints are areas for improvement, the company's financial stability and positive market momentum are significant strengths.

Nitchitsu Co., Ltd. Business Overview & Revenue Model

Company Description

Nitchitsu Co., Ltd. (7021) is a Japanese company primarily engaged in the manufacturing and sale of advanced electronic components and systems. The company operates within the electronics sector, focusing on high-performance materials and components for various applications in industries such as telecommunications, automotive, and industrial automation. Nitchitsu is known for its innovative solutions, including semiconductor materials, electronic circuit materials, and other specialized electronic parts that cater to the evolving demands of modern technology.

How the Company Makes Money

Nitchitsu Co., Ltd. generates revenue through multiple streams, primarily from the production and sale of electronic components and materials. The company's key revenue sources include the sale of semiconductor materials, which are used in the manufacturing of electronic devices, and electronic circuit materials that cater to various industrial applications. Additionally, Nitchitsu engages in partnerships and collaborations with major technology firms, which enhance its market reach and product offerings. The company's focus on research and development allows it to innovate and introduce new products, thereby driving sales growth. Furthermore, Nitchitsu capitalizes on global market demand for electronic components, which provides a steady income stream as industries increasingly rely on advanced electronics.

Nitchitsu Co., Ltd. Financial Statement Overview

Summary

Nitchitsu Co., Ltd. demonstrates strong revenue growth and operational efficiency, supported by a stable financial structure with low leverage. However, profitability fluctuations and negative free cash flow highlight areas for improvement. The company stands at a strategic point where optimizing capital expenditures and enhancing net income stability could significantly boost financial health.

Income Statement

Nitchitsu Co., Ltd. has shown consistent revenue growth with a notable increase in gross profit margin, indicating efficient cost management. Despite a positive revenue trajectory, net profit margin has fluctuated, suggesting pressure on bottom-line profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency, yet the impact of non-operational factors on net income remains a concern.

Balance Sheet

The balance sheet is robust with a strong equity base and a low debt-to-equity ratio, highlighting financial stability and low leverage risk. The equity ratio is solid, reinforcing the company's strong asset base relative to liabilities. Return on equity has been inconsistent, indicating challenges in translating equity into net income. Overall, the balance sheet displays a healthy financial position with potential for improved returns.

Cash Flow

Cash flow from operations has improved recently, suggesting better cash generation capabilities. However, free cash flow remains negative due to high capital expenditures, posing challenges for liquidity. The operating cash flow to net income ratio suggests that cash earnings are more robust than accounting profits. Despite challenges, the cash flow statement indicates potential for future improvement with effective capital management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.85B	8.29B	8.02B	7.86B	8.47B
Gross Profit	1.23B	1.22B	928.60M	1.03B	1.22B
EBITDA	808.18M	743.52M	131.36M	308.89M	187.29M
Net Income	241.95M	247.57M	-540.13M	-121.40M	-82.33M
Balance Sheet
Total Assets	16.14B	15.36B	14.99B	14.99B	15.30B
Cash, Cash Equivalents and Short-Term Investments	2.67B	2.71B	4.41B	4.34B	4.84B
Total Debt	1.26B	1.22B	1.26B	1.24B	1.28B
Total Liabilities	4.91B	4.62B	4.71B	4.13B	4.36B
Stockholders Equity	11.23B	10.73B	10.28B	10.86B	10.94B
Cash Flow
Free Cash Flow	-143.64M	-1.44B	-311.55M	-410.82M	583.28M
Operating Cash Flow	866.32M	-515.64M	241.20M	58.36M	950.06M
Investing Cash Flow	-877.36M	-895.23M	-137.04M	-496.27M	-101.58M
Financing Cash Flow	-30.99M	-288.90M	-33.92M	-60.45M	-92.69M

Nitchitsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1929.00
• 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:7021, the sentiment is Positive. The current price of 1929 is below the 20-day moving average (MA) of 1959.65, above the 50-day MA of 1906.80, and above the 200-day MA of 1694.63, indicating a neutral trend. The MACD of 5.14 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 11.47 is Positive, 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	81 Outperform	¥4.20B	4.68		7.62%	-28.71%	-31.89%
7021	74 Outperform	¥4.00B	16.63		1.86%	14.03%	-34.37%
6396	73 Outperform	¥3.59B	7.27		1.65%	-4.62%	21.46%
6334	68 Neutral	¥3.45B	13.70		1.32%	30.06%	-11.98%
6518	60 Neutral	¥4.38B	13.12		2.61%	-1.27%	72.61%
6467	59 Neutral	¥3.29B	58.34		1.65%	2.91%	-154.96%
Sector *	58 Neutral	HK$14.00B	5.72	-2.78%	5.72%	2.33%	-57.85%