Nakayamafuku Co., Ltd. (7442) AI Stock Analysis

• Market Cap: ¥8.12B
• Dividend Yield: 2.43%
• Average Volume (3M): 15.00K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.23
• Revenue Growth: 6.03%
• EPS Growth: N/A
• Country: JP
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 13.82
• Shares Outstanding: 20,214,480
• 10 Day Avg. Volume: 13,660
• 30 Day Avg. Volume: 15,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥453.00
• Price Target Upside: 9.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥453.00 ▲(9.42% Upside)

The overall stock score reflects a stable financial position with strong balance sheet metrics and fair valuation. However, cash flow challenges and neutral technical indicators suggest caution. The company's ability to improve cash flow management will be crucial for future growth.

Nakayamafuku Co., Ltd. Business Overview & Revenue Model

Company Description

Nakayamafuku Co.,Ltd. trades in a range of home-use products in Japan and internationally. The company is involved in the wholesale, import, and export of household metal ware, cooking appliances, lifestyle products, etc., as well as sanitary and storage products. It also manufactures and sells gardening products, furniture, fittings, and interior goods. The company offers its products through home centers and supermarkets, as well as internet. Nakayamafuku Co.,Ltd. was founded in 1925 and is based in Osaka, Japan.

How the Company Makes Money

Nakayamafuku Co., Ltd. generates revenue primarily through the wholesale distribution of construction materials and equipment. The company's key revenue streams include sales of metal products, building materials, and housing equipment to construction companies and contractors. Additionally, Nakayamafuku Co., Ltd. offers supplementary services like logistics and consulting, which contribute to its earnings. Strategic partnerships with manufacturers and suppliers also play a significant role in securing a steady supply of quality products, thus supporting the company's revenue generation efforts.

Nakayamafuku Co., Ltd. Financial Statement Overview

Summary

Nakayamafuku Co., Ltd. displays mixed financial performance with improved profitability but challenges in cash flow management. The income statement shows recovering revenue and margins, and the balance sheet is strong with low leverage and high equity ratios. However, cash flow statements highlight inefficiencies and negative free cash flow, presenting potential risks if not addressed.

Income Statement

The income statement shows a recovery in revenue from a dip in 2022, with growth to ¥40.9 billion in 2025 from ¥38.5 billion in 2024. However, gross profit margin has decreased from earlier periods, currently at 19.1%. Net profit margin improved significantly to 1.29% in 2025, after a low of 0.03% in 2024, indicating better profitability management. The EBIT and EBITDA margins have also shown signs of recovery, with EBIT margin reaching 0.38% and EBITDA margin at 3.26% in 2025, but remain lower compared to earlier years. These mixed results suggest moderate performance improvements with room for growth.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio at approximately 0.20 in 2025, indicating low leverage and financial stability. Return on equity (ROE) has improved to 2.35% in 2025, up from just 0.06% in 2024, showcasing better profitability on shareholders’ equity. The equity ratio remains robust at 68.3%, supporting the company's stability and low-risk profile. Overall, the company's balance sheet demonstrates solid financial health and low risk from debt.

Cash Flow

Cash flow statements indicate challenges, with free cash flow turning negative in 2025 at -¥551 million from a positive position in 2024. Operating cash flow to net income ratio dropped significantly to 0.08, indicating inefficiency in cash generation relative to net income. The free cash flow to net income ratio also turned negative, reflecting operational cash struggles. These factors suggest that while profitability has improved, cash generation and management need significant improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.95B	40.95B	38.59B	39.89B	42.72B	47.87B
Gross Profit	7.82B	7.82B	7.18B	7.91B	8.38B	9.76B
EBITDA	1.34B	1.34B	631.60M	1.40B	1.35B	1.94B
Net Income	526.29M	526.98M	14.44M	600.55M	568.03M	1.00B
Balance Sheet
Total Assets	32.80B	32.80B	32.89B	31.39B	31.04B	32.02B
Cash, Cash Equivalents and Short-Term Investments	7.25B	7.25B	6.44B	5.76B	5.00B	5.36B
Total Debt	4.44B	4.44B	3.34B	3.80B	4.21B	4.09B
Total Liabilities	10.39B	10.39B	10.46B	9.62B	9.77B	10.32B
Stockholders Equity	22.40B	22.40B	22.43B	21.77B	21.26B	21.70B
Cash Flow
Free Cash Flow	0.00	-551.22M	954.57M	677.57M	-8.84M	801.90M
Operating Cash Flow	0.00	43.84M	1.35B	739.22M	1.14B	1.45B
Investing Cash Flow	0.00	22.31M	57.12M	742.29M	-1.16B	403.81M
Financing Cash Flow	0.00	747.71M	-731.70M	-717.65M	-341.45M	-260.32M

Nakayamafuku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 414.00
• 50DMA: Positive
• 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:7442, the sentiment is Positive. The current price of 414 is below the 20-day moving average (MA) of 414.75, above the 50-day MA of 411.70, and above the 200-day MA of 382.23, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7442.

Nakayamafuku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3135	74 Outperform	9.37B	20.35	35.60%	―	30.32%	0.00%
7442	69 Neutral	¥8.12B	10.22		2.43%	6.03%	―
7695	63 Neutral	5.78B	222.08	5.37%	―	30.80%	-83.29%
3396	60 Neutral	5.66B	38.02	0.71%	1.75%	0.86%	0.00%
3556	51 Neutral	15.86B	693.13	-648.36%	―	-12.88%	0.00%
2769	40 Underperform	8.08B	-1.89	-226.87%	―	0.66%	-236.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%