Nanyo Corp. (7417) AI Stock Analysis

• Market Cap: ¥20.59B
• Dividend Yield: 3.81%
• Average Volume (3M): 12.24K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.59
• Revenue Growth: -4.72%
• EPS Growth: -10.50%
• Country: JP
• Employees: 508
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 62.37
• Shares Outstanding: 13,230,140
• 10 Day Avg. Volume: 11,990
• 30 Day Avg. Volume: 12,243
• PEG Ratio: 1.70
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 5.13
• 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: 77 Outperform
• Price Target: ¥1,795.00 ▲(20.55% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Nanyo Corp. scores well due to its strong financial performance and attractive valuation. The company's low P/E ratio and high dividend yield make it appealing for value and income investors. Technical indicators support a positive outlook, with the stock trading above key moving averages and showing bullish momentum. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

Positive Factors

Balance sheet strength

Very low financial leverage and a high equity base reduce solvency risk and support capital flexibility. A 0.06 debt/equity and 62.3% equity ratio underpin the company's ability to fund operations, invest selectively, and withstand cyclical weakness without heavy refinancing needs.

Cash generation

Strong operating cash conversion (OCF/Net Income ~2.4) indicates durable cash generation from core activities. Consistent cash flow supports dividend capacity, working capital needs, and reinvestment, enhancing long-term financial resilience despite episodic capex.

Margin sustainability

Stable gross and operating margins reflect disciplined pricing and cost control as a distributor/solution provider. Sustained ~21% gross margin and healthy EBITDA margins suggest enduring operational efficiency and the ability to maintain profitability through normal industry cycles.

Negative Factors

Declining revenue and EPS

Negative top-line and EPS trends indicate pressure on demand or pricing within the core customer base. Over multiple quarters, declining revenue and EPS can erode margins, limit reinvestment capacity, and signal structural headwinds in end markets that may persist absent strategic shifts.

Recent negative FCF growth

While absolute free cash flow has improved historically, recent negative FCF growth driven by increased capex reduces near-term cash flexibility. Sustained higher investment without commensurate revenue pickup could constrain dividends or require balance sheet adjustments.

Slowing revenue growth / competition

Slowing revenue growth points to either market saturation in industrial distribution or intensifying competition. For a distributor, sustained revenue stagnation pressures scale economics and may necessitate margin-reducing customer wins or strategic expansion to regain structural growth.

Nanyo Corp. Business Overview & Revenue Model

Company Description

NANYO Corporation operates as a general machinery trading company in Japan and internationally. It operates through Industrial Machinery Business, Construction Machinery Business, and Other divisions. The Industrial Machinery Business division offers semiconductor production equipment, precision machineries, inspection equipment, electronic/conduction devices, labor saving machineries/equipment, logistics equipment, and environment-related equipment, as well as other industrial machineries. The Construction Machinery Business division provides various construction machineries, attachments, vehicles/trucks, compaction equipment, environment-related equipment, sewer pipes, and other products. The Other division manufactures and sells quarry machineries. The company also offers ultraviolet rays irradiation systems for dicing films removal, as well as a sewer pipe cleaning and drilling robot, a turning equipment for various purposes under the NANYO brand. NANYO Corporation was founded in 1950 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Nanyo Corp. generates revenue through multiple streams, primarily from the sale of its electronic components and materials. The company's core revenue comes from the production and sale of semiconductors, which are essential for a wide array of electronic devices. Additionally, Nanyo Corp. benefits from long-term contracts with major industry players in the technology and automotive sectors, ensuring a steady demand for its products. The company also engages in research and development partnerships with universities and tech firms, allowing it to stay at the forefront of technological advancements and expand its product offerings. Revenue is further supported by its investment in innovative manufacturing processes that enhance efficiency and reduce costs, thus improving profit margins.

Nanyo Corp. Financial Statement Overview

Summary

Nanyo Corp. presents a solid financial position with stable income statement metrics and a strong balance sheet characterized by low leverage and high equity. Cash flow management is robust, despite some fluctuations in free cash flow growth due to investment activities. Overall, the company demonstrates a balanced financial structure, with opportunities for growth and profitability improvements.

Income Statement

Nanyo Corp. shows consistent growth in its gross profit margin, maintaining healthy levels at around 21%. The net profit margin has been stable, with a slight increase to 5.6% in the most recent year. Revenue growth has slowed recently, indicating potential market saturation or increased competition. EBIT and EBITDA margins are solid, demonstrating efficient cost management and operational effectiveness.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio of 0.06, suggesting low financial leverage and reduced risk. Return on equity is strong at around 7.9%, indicating effective utilization of equity capital. The equity ratio stands at a stable 62.3%, highlighting a strong equity base relative to assets, which enhances financial stability.

Cash Flow

Nanyo Corp. exhibits strong operating cash flows, with a healthy operating cash flow to net income ratio of 2.4, suggesting efficient cash conversion. Free cash flow has improved significantly over the years, although the free cash flow growth rate has been negative recently due to higher capital expenditures. The free cash flow to net income ratio is favorable, indicating sound cash generation relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.38B	36.53B	37.99B	39.34B	34.82B	32.44B
Gross Profit	7.79B	7.66B	7.50B	7.38B	6.48B	5.66B
EBITDA	5.24B	5.35B	5.19B	5.20B	4.50B	3.54B
Net Income	2.04B	2.04B	1.99B	2.15B	1.74B	1.33B
Balance Sheet
Total Assets	39.34B	41.20B	42.89B	41.06B	37.31B	34.67B
Cash, Cash Equivalents and Short-Term Investments	7.97B	9.03B	7.18B	6.25B	7.98B	8.17B
Total Debt	2.83B	1.55B	1.81B	2.20B	1.77B	1.64B
Total Liabilities	13.77B	15.54B	18.19B	18.34B	16.43B	15.10B
Stockholders Equity	25.57B	25.66B	24.69B	22.72B	20.88B	19.57B
Cash Flow
Free Cash Flow	0.00	2.82B	3.00B	-790.00M	194.00M	2.50B
Operating Cash Flow	0.00	4.94B	5.25B	1.69B	2.73B	5.66B
Investing Cash Flow	0.00	-2.18B	-2.45B	-2.85B	-2.33B	-2.95B
Financing Cash Flow	0.00	-951.00M	-1.88B	-637.00M	-619.00M	-502.00M

Nanyo Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1489.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7417, the sentiment is Positive. The current price of 1489 is below the 20-day moving average (MA) of 1547.00, below the 50-day MA of 1504.36, and above the 200-day MA of 1349.71, indicating a bullish trend. The MACD of 21.32 indicates Negative momentum. The RSI at 64.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7417.

Nanyo Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7417	77 Outperform	¥20.59B	9.68	―	3.81%	-4.72%	-10.50%
8147	76 Outperform	¥7.52B	11.09	―	1.69%	11.54%	33.71%
9986	69 Neutral	¥15.15B	20.46	―	4.00%	-1.00%	-14.87%
8077	64 Neutral	¥5.50B	5.56	―	2.55%	0.57%	8.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	63 Neutral	¥26.53B	6.46	―	3.55%	12.31%	90.88%
7624	59 Neutral	¥7.89B	24.41	―	2.78%	1.08%	82.69%