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

• Market Cap: ¥4.08B
• Dividend Yield: 1.78%
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.32
• Revenue Growth: 14.03%
• EPS Growth: -34.37%
• Country: JP
• Employees: 276
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 45.42
• Shares Outstanding: 2,130,000
• 10 Day Avg. Volume: 1,790
• 30 Day Avg. Volume: 2,103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 12.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,214.00 ▲(12.33% 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 solid financial performance with steady revenue growth and a strong equity position. However, profitability metrics like net profit margin and cash flow constraints indicate areas for improvement.

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	9.85B	9.85B	8.29B	8.02B	7.86B	8.47B
Gross Profit	1.22B	1.23B	1.22B	928.60M	1.03B	1.22B
EBITDA	808.44M	808.18M	743.52M	131.36M	308.89M	187.29M
Net Income	241.73M	241.95M	247.57M	-540.13M	-121.40M	-82.33M
Balance Sheet
Total Assets	16.14B	16.14B	15.36B	14.99B	14.99B	15.30B
Cash, Cash Equivalents and Short-Term Investments	2.67B	2.67B	2.71B	4.41B	4.34B	4.84B
Total Debt	1.26B	1.26B	1.22B	1.26B	1.24B	1.28B
Total Liabilities	4.91B	4.91B	4.62B	4.71B	4.13B	4.36B
Stockholders Equity	11.23B	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: 1971.00
• 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:7021, the sentiment is Positive. The current price of 1971 is above the 20-day moving average (MA) of 1928.90, above the 50-day MA of 1946.86, and above the 200-day MA of 1733.90, indicating a bullish trend. The MACD of 5.58 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.39 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	84 Outperform	¥4.74B	5.28		7.09%	-28.71%	-31.89%
7021	74 Outperform	¥4.08B	17.00		1.78%	14.03%	-34.37%
6396	73 Outperform	¥3.77B	7.64		1.46%	-4.62%	21.46%
6518	69 Neutral	¥4.43B	13.25		2.59%	-1.27%	72.61%
6334	68 Neutral	¥3.43B	13.61		1.33%	30.06%	-11.98%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
6467	59 Neutral	¥3.38B	58.34		1.62%	2.91%	-154.96%