Nanyo Corp. (7417) AI Stock Analysis

• Market Cap: ¥19.52B
• Dividend Yield: 3.81%
• Average Volume (3M): 12.24K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.56
• 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: ¥1,702.00 ▲(14.30% 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

Strong balance sheet

Minimal financial leverage (debt/equity 0.06) and a high equity ratio (62.3%) provide durable financial flexibility. This reduces refinancing risk, supports investment or dividend policy through cycles, and preserves optionality for strategic moves without stressing cash flows.

Solid operating cash generation

An OCF-to-net-income ratio of 2.4 demonstrates efficient cash conversion and sustained internal funding capacity. Persistent strong operating cash flow supports capex, working capital needs and distributions, lowering dependence on external financing over the medium term.

Stable margins and efficiency

Gross margin near 21% and stable net margins (~5.6%), plus solid EBIT/EBITDA, point to durable pricing power and cost control in distribution and services. These margins help absorb revenue volatility and underpin reliable earnings generation over time.

Negative Factors

Slowing revenue growth

Reported revenue contraction (-4.6%) indicates weakening top-line momentum. Sustained revenue declines can erode operating leverage, limit reinvestment capacity and reduce the upside from existing margins, challenging long-term growth without new market development.

Negative EPS trend

EPS growth is negative (~-4.1%), reflecting pressure on earnings that may be tied to lower sales or margin headwinds. Continued EPS contraction can reduce retained earnings, constrain dividend flexibility and signal deeper demand or execution issues.

Recent negative free cash flow growth

Although FCF levels improved historically, recent negative FCF growth driven by elevated capex raises capital intensity risk. If higher investment persists, it could pressure distributable cash and require sustained strong operating cash flow or external funding to maintain strategy.

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

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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	7.74B	7.66B	7.42B	7.19B	6.30B	5.50B
EBITDA	5.17B	5.06B	4.93B	4.92B	4.23B	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	2.11B	1.55B	1.81B	2.21B	1.78B	1.66B
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	3.29B	-750.00M	273.00M	2.52B
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: Negative
• Last Price: 1489.00
• 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:7417, the sentiment is Negative. The current price of 1489 is below the 20-day moving average (MA) of 1544.55, below the 50-day MA of 1528.72, and above the 200-day MA of 1378.27, indicating a neutral trend. The MACD of -4.72 indicates Positive momentum. The RSI at 43.32 is Neutral, neither overbought nor oversold. The STOCH value of 27.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7417.

Nanyo Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	79 Outperform	¥40.97B	8.57	―	1.78%	-0.94%	51.59%
7417	77 Outperform	¥19.52B	5.76	―	3.81%	-4.72%	-10.50%
8052	73 Outperform	¥54.03B	13.47	―	3.00%	16.06%	31.78%
8103	67 Neutral	¥32.86B	14.30	―	4.05%	-3.82%	18.03%
9902	64 Neutral	¥71.23B	15.26	―	3.17%	5.95%	23.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9830	61 Neutral	¥151.54B	9.98	―	2.42%	9.74%	6.48%