Nihon Plast Co., Ltd. (7291) AI Stock Analysis

• Market Cap: ¥7.80B
• Dividend Yield: 4.3%
• Average Volume (3M): 41.09K
• Price to Earnings (P/E): 56.8
• Beta (1Y): 1.12
• Revenue Growth: -7.88%
• EPS Growth: -73.98%
• Country: JP
• Employees: 6,112
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 31.63
• Shares Outstanding: 19,410,000
• 10 Day Avg. Volume: 29,190
• 30 Day Avg. Volume: 41,093
• PEG Ratio: -1.15
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 2.47
• 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: 60 Neutral
• Price Target: ¥432.00 ▲(5.88% Upside)

Nihon Plast Co., Ltd. is currently navigating a challenging financial environment with declining revenue and profitability. The stock's high valuation and mixed technical indicators suggest caution. While the company benefits from strong cash flow generation, it must address profitability issues to improve its outlook.

Positive Factors

Cash Generation Ability

Strong cash generation relative to earnings indicates the company's ability to sustain operations and invest in growth, supporting long-term stability.

Stable Financial Position

A stable equity position provides a solid foundation for the company to leverage assets for growth and withstand financial challenges.

Diversified Revenue Model

Diversification across industries reduces dependency on a single market, enhancing resilience against sector-specific downturns and supporting sustainable growth.

Negative Factors

Declining Revenue

Declining revenue trends can impact the company's ability to invest in new opportunities and may signal weakening market demand or competitive pressures.

Profitability Challenges

Reduced profitability limits the company's capacity to reinvest in business operations and may affect long-term competitive positioning.

Decreased Free Cash Flow

A significant drop in free cash flow can constrain the company's ability to fund new projects or respond to market changes, impacting future growth potential.

Nihon Plast Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Plast Co., Ltd. (7291) is a Japanese company specializing in the production and distribution of high-quality plastic products. Operating primarily in the plastics manufacturing sector, the company focuses on creating innovative solutions for various industries, including automotive, electronics, and packaging. Nihon Plast is recognized for its commitment to sustainability, utilizing advanced technologies to develop eco-friendly materials and products that meet the evolving demands of its global clientele.

How the Company Makes Money

Nihon Plast Co., Ltd. generates revenue primarily through the sale of its plastic products across multiple industries. The company has a diversified revenue model, with key revenue streams including direct sales to manufacturers in the automotive and electronics sectors, as well as partnerships with packaging companies. Additionally, Nihon Plast benefits from long-term contracts with major clients, ensuring a steady flow of income. The company's focus on research and development allows it to introduce new products that cater to market trends, further enhancing its profitability. Strategic alliances and collaborations with other firms in related sectors also contribute to its earnings, enabling Nihon Plast to leverage synergies and expand its market reach.

Nihon Plast Co., Ltd. Financial Statement Overview

Summary

Nihon Plast Co., Ltd. is facing challenges with declining revenue and profitability metrics. Despite strong operational cash flow and a stable equity position, the company needs to focus on enhancing profitability and leveraging its cash flow to support growth.

Income Statement

Nihon Plast Co., Ltd. has shown fluctuating revenue trends with a recent decline in total revenue by 2.95% from the previous year. The gross profit margin for 2025 stands at 10.17%, indicating efficient cost management, though net profit margin has significantly dropped due to a drastic decrease in net income. The EBIT and EBITDA margins suggest operational challenges, impacting profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.72, indicative of balanced leverage. Return on equity has sharply declined, reflecting reduced profitability. The equity ratio of 41.26% highlights a stable financial position with sufficient equity backing assets, although there is room for improvement in leveraging assets to generate returns.

Cash Flow

Nihon Plast's operating cash flow to net income ratio is robust, illustrating strong cash generation relative to earnings. However, the free cash flow has decreased significantly by 70.48%, potentially impacting future investment capacity. The free cash flow to net income ratio indicates dependency on operational efficiencies to sustain cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.44B	120.59B	124.25B	103.36B	86.50B	83.06B
Gross Profit	12.48B	12.27B	12.47B	7.54B	6.58B	7.43B
EBITDA	6.43B	6.21B	9.49B	3.46B	-74.00M	4.87B
Net Income	136.00M	56.00M	2.48B	-3.60B	-8.02B	-1.04B
Balance Sheet
Total Assets	80.42B	83.71B	81.93B	81.45B	79.54B	74.54B
Cash, Cash Equivalents and Short-Term Investments	14.22B	14.94B	12.40B	11.65B	12.31B	10.60B
Total Debt	24.66B	24.75B	23.87B	30.72B	29.34B	20.96B
Total Liabilities	47.23B	49.17B	50.88B	55.23B	52.16B	41.63B
Stockholders Equity	33.19B	34.54B	31.06B	26.22B	27.38B	32.91B
Cash Flow
Free Cash Flow	0.00	2.56B	8.66B	187.00M	-5.48B	-1.30B
Operating Cash Flow	0.00	6.15B	11.48B	5.47B	1.31B	5.29B
Investing Cash Flow	0.00	-3.59B	-2.75B	-5.10B	-6.87B	-5.86B
Financing Cash Flow	0.00	-959.00M	-8.40B	-1.66B	6.38B	1.79B

Nihon Plast Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 408.00
• 50DMA: Negative
• 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:7291, the sentiment is Positive. The current price of 408 is below the 20-day moving average (MA) of 408.40, below the 50-day MA of 413.74, and above the 200-day MA of 365.12, indicating a neutral trend. The MACD of -2.53 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 55.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7291.

Nihon Plast Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7287	73 Outperform	¥106.63B	16.06	―	3.61%	1.77%	117.03%
7241	68 Neutral	¥84.19B	7.64	―	3.95%	-7.35%	43.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥7.80B	56.80	―	4.30%	-7.88%	-73.98%
7294	57 Neutral	¥22.19B	-1.79	―	3.14%	-8.99%	-62.26%
7277	56 Neutral	¥9.31B	-10.66	―	2.32%	-4.06%	―
7266	51 Neutral	¥16.66B	-64.43	―	3.11%	-8.63%	-55.68%