Nansin Co., Ltd. (7399) AI Stock Analysis

• Market Cap: ¥4.07B
• Dividend Yield: 3.43%
• Average Volume (3M): 7.29K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.33
• Revenue Growth: 3.09%
• EPS Growth: 1166.05%
• Country: JP
• Employees: 413
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -7.96
• Shares Outstanding: 7,708,000
• 10 Day Avg. Volume: 4,400
• 30 Day Avg. Volume: 7,293
• PEG Ratio: 0.48
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -45.49
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥642.00 ▲(9.56% Upside)

Nansin Co., Ltd. shows strong financial stability with solid revenue growth and low leverage. However, the stock's technical indicators suggest a lack of strong momentum, and there are areas for improvement in profitability and cash flow conversion. The valuation is attractive with a reasonable P/E ratio and a good dividend yield, making it appealing for income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Nansin's products and effective market positioning, supporting long-term business expansion.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability, providing Nansin with flexibility to invest in growth opportunities.

Cost Management

Effective cost management leading to improved margins suggests operational efficiency, which can support sustainable profitability.

Negative Factors

Profitability Margins

Low net profit margins indicate challenges in converting revenue into profit, which could impact long-term financial performance if not addressed.

Cash Flow Conversion

Weak cash flow conversion can limit Nansin's ability to reinvest in the business and meet financial obligations, affecting growth prospects.

Return on Equity

A low ROE indicates that Nansin may not be efficiently using shareholder equity to generate profits, which could deter potential investors.

Nansin Co., Ltd. Business Overview & Revenue Model

Company Description

Nansin Co., Ltd. manufactures and sells casters, material handling equipment, rubber and plastic products, die-casting products, and molded products in Japan. It also offers general, industrial, medical, heavy duty, stem, and towing casters; and plastic and steel trolley. The company was formerly known as Nansin Rubber Industries Co., Ltd. and changed its name to Nansin Co., Ltd. in July 1987. Nansin Co., Ltd. was founded in 1932 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nansin Co., Ltd. generates revenue primarily through the sale of its electronic components and systems to OEMs (Original Equipment Manufacturers) and other industrial clients. The company's revenue model is built on high-volume production of semiconductor devices and circuit boards, which are essential in various applications ranging from consumer electronics to automotive systems. Key revenue streams include direct sales to manufacturers, long-term contracts with major clients, and partnerships with technology firms for research and development of innovative products. Additionally, Nansin benefits from economies of scale, allowing it to maintain competitive pricing while ensuring consistent profit margins. Strategic alliances with tech companies for co-development projects also contribute to its earnings by expanding its market reach and product offerings.

Nansin Co., Ltd. Financial Statement Overview

Summary

Nansin Co., Ltd. demonstrates solid revenue growth and a strong balance sheet with low leverage. However, profitability margins and cash flow performance suggest areas for improvement. The company should focus on enhancing operational efficiencies and cash conversion to further strengthen its financial position.

Income Statement

Nansin Co., Ltd. has shown consistent revenue growth with a 10% increase from 2024 to 2025. The gross profit margin improved to approximately 22.4%, indicating strong cost management. However, the net profit margin of 2.2% is relatively low, suggesting potential inefficiencies or high expenses that need addressing. EBIT and EBITDA margins also reflect moderate operational efficiency.

Balance Sheet

The balance sheet exhibits strong equity with an equity ratio of 81.3%, indicating financial stability and low leverage. The debt-to-equity ratio is low at 0.04, highlighting prudent debt management. Return on Equity (ROE) is modest at 1.8%, suggesting room for improvement in profitability.

Cash Flow

There is a notable decline in free cash flow from 2024 to 2025, primarily due to decreased operating cash flow. The operating cash flow to net income ratio is low, indicating potential issues in converting net income to cash. Despite this, the company maintains a healthy cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.94B	9.82B	8.92B	9.81B	9.20B	8.75B
Gross Profit	2.35B	2.20B	2.05B	2.18B	2.21B	2.58B
EBITDA	669.95M	579.46M	540.20M	1.04B	704.90M	913.43M
Net Income	325.66M	212.73M	155.81M	593.35M	178.50M	392.41M
Balance Sheet
Total Assets	14.14B	14.45B	15.78B	16.02B	15.81B	16.01B
Cash, Cash Equivalents and Short-Term Investments	3.34B	3.51B	4.71B	4.60B	5.42B	5.62B
Total Debt	260.32M	452.34M	1.93B	2.00B	1.98B	2.41B
Total Liabilities	2.47B	2.71B	4.31B	4.61B	4.70B	5.03B
Stockholders Equity	11.68B	11.74B	11.48B	11.41B	11.11B	10.98B
Cash Flow
Free Cash Flow	0.00	-83.08M	437.68M	-709.82M	317.13M	889.77M
Operating Cash Flow	0.00	112.33M	713.84M	-516.62M	390.39M	924.34M
Investing Cash Flow	0.00	194.41M	-321.96M	-240.42M	-112.02M	-116.96M
Financing Cash Flow	0.00	-1.61B	-338.05M	-119.02M	-570.01M	1.35B

Nansin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 586.00
• 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:7399, the sentiment is Positive. The current price of 586 is below the 20-day moving average (MA) of 586.75, above the 50-day MA of 578.82, and above the 200-day MA of 554.07, indicating a bullish trend. The MACD of 6.93 indicates Negative momentum. The RSI at 69.33 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7399.

Nansin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	76 Outperform	¥27.37B	13.12	―	2.76%	7.69%	-0.40%
7399	73 Outperform	¥4.07B	16.10	―	3.43%	3.09%	1166.05%
5966	67 Neutral	¥6.07B	13.91	―	3.24%	1.16%	-31.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5950	61 Neutral	¥2.73B	-673.25	―	12.63%	3.39%	-101.03%
5969	60 Neutral	¥2.33B	75.11	―	2.52%	-2.79%	-88.80%
5990	54 Neutral	¥4.52B	-17.46	―	3.60%	-4.75%	-178.90%