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Nippon Seiki Co., Ltd. (JP:7287)
:7287
Japanese Market

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

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JP

Nippon Seiki Co., Ltd.

(7287)

Rating:80Outperform
Price Target:
¥1,573.00
▲(11.09%Upside)
The overall score is driven by strong technical analysis showing bullish momentum and a robust financial performance with improved profitability margins. Valuation factors also support the score, with a reasonable P/E ratio and attractive dividend yield. The main risk is the negative free cash flow, which could impact future investments.

Nippon Seiki Co., Ltd. (7287) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNippon Seiki Co., Ltd. is a Japanese company that specializes in the design, manufacture, and sale of a range of precision instrument products. The company primarily operates in the automotive sector, producing instrument clusters, head-up displays, and other vehicular systems. Additionally, Nippon Seiki extends its expertise to consumer electronics and industrial equipment, offering high-quality displays and control systems.
How the Company Makes MoneyNippon Seiki Co., Ltd. generates revenue through the sale of its precision instruments and systems primarily to the automotive industry, which constitutes a significant portion of its income. The company collaborates with major automotive manufacturers to integrate their products into vehicles, ensuring a steady demand for their instrument clusters and head-up displays. Additionally, Nippon Seiki diversifies its revenue streams by supplying precision instruments and displays to the consumer electronics and industrial equipment sectors. Strategic partnerships and a strong focus on innovation and quality contribute to the company's ability to maintain competitive pricing and robust sales, driving its earnings.

Nippon Seiki Co., Ltd. Financial Statement Overview

Summary
Nippon Seiki Co., Ltd. demonstrates strong financial health with revenue growth and improved profitability margins. Although leverage increased slightly, the balance sheet remains robust with high equity levels. However, negative free cash flow presents a concern for future investment capabilities.
Income Statement
78
Positive
Nippon Seiki Co., Ltd. has shown positive revenue growth from 2024 to 2025, with a growth rate of 1.29%. The gross profit margin improved to 14.64% in 2025 from 13.74% in 2024, indicating efficient cost management. The net profit margin increased to 1.93% in 2025 from 1.70% in 2024, showing improved profitability. EBIT and EBITDA margins also improved, reflecting enhanced operational efficiency.
Balance Sheet
82
Very Positive
The company's debt-to-equity ratio decreased from 0.11 in 2024 to 0.17 in 2025, indicating a slight increase in leverage but still maintaining a strong capital structure. The return on equity improved to 2.82% in 2025 from 2.39% in 2024, showcasing better utilization of shareholder equity. The equity ratio remained strong at 65.24% in 2025, reflecting a stable financial position with a high proportion of equity financing.
Cash Flow
65
Positive
Operating cash flow decreased from 24.64 billion JPY in 2024 to 15.27 billion JPY in 2025, which is concerning. The free cash flow turned negative in 2025, signaling cash constraints. However, the operating cash flow to net income ratio remains strong at 2.49, suggesting that cash earnings are still robust relative to accounting profits.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue316.40B312.36B275.78B223.62B216.93B
Gross Profit46.34B42.92B38.63B36.11B32.84B
EBITDA24.72B26.99B18.82B10.69B17.69B
Net Income6.12B5.30B1.38B-5.18B517.00M
Balance Sheet
Total Assets332.10B338.63B355.95B329.55B315.19B
Cash, Cash Equivalents and Short-Term Investments35.30B33.26B85.16B102.80B112.43B
Total Debt37.22B25.19B79.14B69.13B69.77B
Total Liabilities111.86B109.58B149.50B134.68B128.66B
Stockholders Equity216.69B221.54B199.62B186.26B179.22B
Cash Flow
Free Cash Flow-1.85B13.15B-27.61B-12.91B525.00M
Operating Cash Flow15.27B24.64B-18.06B-5.44B10.60B
Investing Cash Flow-8.31B37.93B19.71B-7.52B-13.01B
Financing Cash Flow-4.75B-59.58B2.03B-5.50B4.88B

Nippon Seiki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1416.00
Price Trends
50DMA
1269.52
Positive
100DMA
1193.66
Positive
200DMA
1150.66
Positive
Market Momentum
MACD
25.24
Positive
RSI
68.45
Neutral
STOCH
73.85
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 1416 is above the 20-day moving average (MA) of 1374.40, above the 50-day MA of 1269.52, and above the 200-day MA of 1150.66, indicating a bullish trend. The MACD of 25.24 indicates Positive momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 73.85 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥75.67B6.09
5.68%-1.56%-5.87%
80
Outperform
¥81.97B13.50
3.53%1.29%20.18%
75
Outperform
¥81.84B5.88
3.85%-0.59%-20.66%
70
Outperform
¥72.54B11.68
0.74%-11.15%-51.63%
70
Outperform
¥108.06B8.05
4.38%7.29%13.03%
63
Neutral
¥58.82B34.15
5.89%-1.86%-55.23%
62
Neutral
$16.72B10.85-7.48%3.11%1.66%-24.52%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7287
Nippon Seiki Co., Ltd.
1,416.00
-7.65
-0.54%
JP:5970
G-Tekt Corporation
1,761.00
-94.37
-5.09%
JP:5988
PIOLAX, Inc.
1,798.00
-469.30
-20.70%
JP:7241
Futaba Industrial Co., Ltd.
810.00
-44.38
-5.19%
JP:7250
Pacific Industrial Co., Ltd.
1,351.00
-133.80
-9.01%
JP:7283
Aisan Industry Co., Ltd.
1,705.00
352.86
26.10%

Nippon Seiki Co., Ltd. Corporate Events

Nippon Seiki Co., Ltd. Reports Modest Revenue Growth and Increased Dividends
May 21, 2025

Nippon Seiki Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in revenue by 1.3% to 316,397 million yen. Despite a decline in profit before tax by 32.9%, the company saw a 13% rise in operating profit and a 15.5% increase in profit attributable to owners of the parent. The company plans to increase its annual cash dividend per share to 50 yen and forecasts further financial growth in the upcoming fiscal year, with a projected revenue of 320,000 million yen and a 30.7% rise in profit attributable to owners of the parent.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025