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

• Market Cap: ¥4.11B
• Dividend Yield: 3.43%
• Average Volume (3M): 7.29K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.31
• Revenue Growth: 3.09%
• EPS Growth: 1166.05%
• Country: JP
• Employees: 413
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 35.08
• 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: ¥712.00 ▲(21.50% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Very strong balance sheet / low leverage

An equity ratio of 81.3% and debt-to-equity of 0.04 signal durable financial resilience and low interest burden. This structural strength gives long-term flexibility to fund capex, absorb downturns, and pursue strategic investments without reliance on costly debt.

Consistent revenue growth

A reported 10% year-on-year revenue gain demonstrates persistent end-market demand and execution of the business model. Sustainable top-line growth provides runway to scale operations, invest in productivity, and improve margins over the medium term.

Improving gross margin

An improvement in gross margin to ~22.4% points to stronger cost control or pricing power at the product level. That structural uplift supports durability of operating profits and creates room to absorb SG&A while pursuing operational improvements.

Negative Factors

Low net profit margin

A net margin of 2.2% indicates weak bottom-line conversion despite revenue growth. Persistently low net profitability limits retained earnings for reinvestment, constrains capacity to build shareholder value, and makes results sensitive to cost inflation or demand shocks.

Declining free cash flow and weak cash conversion

A decline in free cash flow driven by lower operating cash flow and a low OCF-to-net-income ratio suggests issues converting accounting profits into spendable cash. Structural cash conversion weakness can limit capex, dividends, and reduce optionality over time.

Low return on equity / modest operational returns

An ROE around 1.8% signals that the company earns minimal returns on its equity base. Even with low leverage, poor capital efficiency and only moderate operating margins may hinder long-term shareholder returns unless management materially improves profitability or reallocates capital.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 586.00
• 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:7399, the sentiment is Negative. The current price of 586 is below the 20-day moving average (MA) of 623.20, below the 50-day MA of 615.20, and above the 200-day MA of 574.75, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 47.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7399.

Nansin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6157	77 Outperform	¥21.89B	14.20	―	3.31%	0.97%	-10.47%
6586	77 Outperform	¥1.42T	16.74	―	2.18%	-1.72%	31.58%
7399	73 Outperform	¥4.11B	4.17	―	3.43%	3.09%	1166.05%
6136	72 Outperform	¥235.48B	13.29	7.86%	2.55%	0.57%	4.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥111.43B	17.03	2.64%	2.30%	-4.11%	46.76%
5967	61 Neutral	¥11.16B	12.57	―	2.20%	-2.69%	6.29%