Nippon Seiki Co., Ltd. (7287) AI Stock Analysis

• Market Cap: ¥125.27B
• Dividend Yield: 3%
• Average Volume (3M): 97.20K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.08
• Revenue Growth: 1.77%
• EPS Growth: 117.03%
• Country: JP
• Employees: 13,291
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 52.89
• Shares Outstanding: 58,471,300
• 10 Day Avg. Volume: 90,470
• 30 Day Avg. Volume: 97,196
• PEG Ratio: 0.57
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -36.62
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,449.00 ▲(13.17% Upside)

Nippon Seiki Co., Ltd. receives a strong overall score driven by solid financial performance and robust technical indicators. The company's financial health is supported by consistent revenue growth and improved cash flow management. Technical analysis shows strong bullish momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock is fairly valued, with an attractive dividend yield providing additional appeal.

Positive Factors

Revenue Growth

Stable revenue growth indicates a consistent demand for the company's products, supporting long-term business sustainability and market presence.

Cash Flow Management

Significant improvement in cash flow highlights efficient cash management, providing the company with flexibility for investments and debt reduction.

Low Leverage

Low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities without significant debt burden.

Negative Factors

Profitability Margins

While improving, the net profit margin remains modest, indicating potential challenges in achieving higher profitability compared to industry peers.

Return on Equity

A modest ROE suggests the company may not be fully utilizing its equity base to generate high returns, which could impact investor appeal.

Competitive Margins

Margins below industry leaders indicate potential competitive pressures, which could affect the company's ability to maintain pricing power and profitability.

Nippon Seiki Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Seiki Co., Ltd. manufactures and sells instruments for automobiles, motorcycles, agricultural / construction machines, and boats in Japan, the Americas, Europe, and Asia. The company also provides sensors for automobiles, such as level, rotation, pressure, angle, and temperature sensor; household appliances, including displays, intercom systems, and wireless communication products, as well products which require waterproofing technology; office automation appliances comprising control panels for copiers, printers, facsimiles, and multi-functional products; and factory automation appliances, such as sequence controllers. In addition, it offers display products, which consists of passive liquid crystal display and organic light emitting diode; and manufactures and supplies gauges and displays for vehicles for the aftermarkets under the Defi brand name. Further, the company provides controllers for air-conditioning and household equipment, assemblies for factory automation, amusement units, high-density mounting boards, and electroluminescence panels and modules; PCB assemblies for amusements; and car inspection and maintenance services, as well as sells new and used automobiles. Additionally, it processes and sells resin materials; manufactures electronic sub-assemblies for instruments and remote controllers, and peripheral systems; develops and sells software products; and provides freight transportation, advertising agency, and computer services. The company also offers engages in the plastic injection molding; compounding and coloring of plastic; and trading activities. Nippon Seiki Co., Ltd. was founded in 1946 and is headquartered in Nagaoka, Japan.

How the Company Makes Money

Nippon Seiki generates revenue primarily through the sale of automotive displays and related technology to original equipment manufacturers (OEMs) in the automotive industry. The company has established long-term relationships with major automotive manufacturers, allowing it to secure significant contracts for the supply of its products. Key revenue streams include the production and sale of instrument panels, electronic displays, and vehicle information systems. Additionally, Nippon Seiki invests in research and development to innovate and enhance its product offerings, which helps maintain its competitive edge and attract new clients. Strategic partnerships with automotive companies and participation in joint development projects also contribute to its earnings, as they expand market reach and enhance product capabilities.

Nippon Seiki Co., Ltd. Financial Statement Overview

Summary

Nippon Seiki Co., Ltd. demonstrates stable profitability with a strong balance sheet and low leverage. However, significant challenges in cash flow management, with a negative free cash flow growth rate, could impact future financial flexibility.

Income Statement

Nippon Seiki Co., Ltd. shows a stable gross profit margin of around 14.6% in TTM, with a slight decline in revenue growth rate at -5%. The net profit margin is modest at 1.94%, indicating profitability but with room for improvement. The EBIT and EBITDA margins are healthy, suggesting efficient operations despite the revenue decline.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.17, indicating low leverage. Return on equity is modest at 2.8%, reflecting moderate profitability. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

The cash flow statement reveals challenges, with a significant negative free cash flow growth rate of -443.43% in TTM. Operating cash flow is positive, but the free cash flow to net income ratio is negative, indicating cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.24B	316.40B	312.36B	275.78B	223.62B	216.93B
Gross Profit	45.24B	46.34B	42.92B	38.63B	36.11B	32.84B
EBITDA	23.07B	24.72B	26.99B	18.82B	10.69B	17.69B
Net Income	6.63B	6.12B	5.30B	1.38B	-5.18B	517.00M
Balance Sheet
Total Assets	325.98B	332.10B	338.63B	355.95B	329.55B	315.19B
Cash, Cash Equivalents and Short-Term Investments	41.52B	35.30B	33.26B	85.16B	102.80B	112.43B
Total Debt	29.09B	37.22B	25.19B	79.14B	69.13B	69.77B
Total Liabilities	108.48B	111.86B	109.58B	149.50B	134.68B	128.66B
Stockholders Equity	214.04B	216.69B	221.54B	199.62B	186.26B	179.22B
Cash Flow
Free Cash Flow	6.35B	-1.85B	13.15B	-27.61B	-12.91B	525.00M
Operating Cash Flow	22.60B	15.27B	24.64B	-18.06B	-5.44B	10.60B
Investing Cash Flow	-3.05B	-8.31B	37.93B	19.71B	-7.52B	-13.01B
Financing Cash Flow	-10.27B	-4.75B	-59.58B	2.03B	-5.50B	4.88B

Nippon Seiki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2164.00
• 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:7287, the sentiment is Positive. The current price of 2164 is above the 20-day moving average (MA) of 2104.30, above the 50-day MA of 1933.98, and above the 200-day MA of 1520.17, indicating a bullish trend. The MACD of 61.64 indicates Positive momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 69.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7287.

Nippon Seiki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	85 Outperform	¥81.65B	6.71	―	5.00%	-5.89%	8.95%
7287	79 Outperform	¥125.27B	13.68	―	3.00%	1.77%	117.03%
7250	78 Outperform	¥183.56B	11.55	―	1.06%	3.62%	3.64%
7283	77 Outperform	¥145.65B	10.68	―	3.22%	0.29%	9.87%
7241	68 Neutral	¥95.56B	8.67	―	3.84%	-7.35%	43.31%
5988	66 Neutral	¥42.20B	49.93	―	5.45%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nippon Seiki Co., Ltd. Corporate Events

Nippon Seiki Reports No Progress in Share Buyback Program

Nippon Seiki Co., Ltd. announced the status of its share buyback program, which was resolved in May 2025. Despite the authorization to acquire up to 2 million shares, no shares were acquired during the specified period from November 1 to November 30, 2025. This indicates a lack of progress in the company’s share repurchase strategy, potentially impacting stakeholder expectations and market perceptions.

Nippon Seiki Reports Strong H1 Growth Driven by ASEAN and India Markets

Nippon Seiki Co., Ltd. reported a 2.5% increase in sales revenue and a substantial 52.3% rise in operating profit for the first half of the fiscal year ending March 2026. This growth was driven by strong sales of motorcycle instruments in ASEAN and India, despite a decrease in automobile instrument sales due to market stagnation in China and reduced head-up display sales in North America. The company maintained its interim dividend forecast and confirmed no changes to its full-year financial projections, signaling stable expectations for stakeholders.

Nippon Seiki Reports Robust Financial Growth in First Half of 2025

Nippon Seiki Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with revenue increasing by 2.5% and profit attributable to owners of the parent surging by 397.9% compared to the same period in the previous year. This financial upturn is indicative of the company’s strengthened market position and operational efficiency, likely benefiting stakeholders and enhancing its competitive edge in the industry.

Nippon Seiki Completes Treasury Share Disposal with Adjustments

Nippon Seiki Co., Ltd. has completed the payment procedures for the disposal of treasury shares through a third-party allotment to its Employee Stock Ownership Plan, initially resolved in July 2025. Due to a partial forfeiture of rights, the number of shares and total disposal value were adjusted, with the impact on the company’s financial results expected to be minimal.

Nippon Seiki Reports No Progress in Share Buyback Plan

Nippon Seiki Co., Ltd. announced that despite a resolution to acquire up to 2,000,000 shares of its own stock, no shares were acquired during the period from October 1 to October 31, 2025. This decision follows a board resolution from May 2025, allowing the company to repurchase shares as a strategic move to potentially enhance shareholder value and optimize capital structure, although no progress has been made as of the end of October 2025.

Nippon Seiki Announces Increased Interim Dividend

Nippon Seiki Co., Ltd. announced a decision by its Board of Directors to pay an interim dividend of 40 yen per share, with a record date of September 30, 2025, and an effective date of December 8, 2025. This marks an increase from the previous fiscal year’s interim dividend of 25 yen per share, reflecting the company’s strong financial performance and commitment to returning value to shareholders.