Nagaileben Co., Ltd. (7447) AI Stock Analysis

• Market Cap: ¥70.02B
• Dividend Yield: 2.61%
• Average Volume (3M): 47.53K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.59
• Revenue Growth: 2.96%
• EPS Growth: -6.25%
• Country: JP
• Employees: 500
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Manufacturers
• EPS (TTM): 32.52
• Shares Outstanding: 35,736,000
• 10 Day Avg. Volume: 70,070
• 30 Day Avg. Volume: 47,533
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 73 Outperform
• Price Target: ―

Nagaileben Co., Ltd. presents a strong financial profile with excellent profitability, zero debt, and robust cash flow. However, recent revenue declines and bearish technical indicators suggest caution. The stock's moderate valuation and attractive dividend yield provide a balanced investment case. While the company is financially sound, potential investors should consider the current market sentiment and technical signals before investment.

Nagaileben Co., Ltd. Business Overview & Revenue Model

Company Description

Nagaileben Co., Ltd. produces and sells medical clothing in Japan. It offers hospital, clinic, and operation room wear products. The company was founded in 1915 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nagaileben Co., Ltd. generates revenue through the design, manufacture, and sale of healthcare and medical wear. Its key revenue streams include direct sales to hospitals, clinics, and other medical institutions, as well as partnerships with distributors and retailers who sell their products. The company focuses on product differentiation through the use of advanced materials and functional designs that cater to the specific needs of healthcare professionals, which in turn helps to maintain a competitive edge and secure long-term contracts with medical institutions. Additionally, Nagaileben may also engage in licensing agreements or collaborations with other companies to expand its product offerings and market reach.

Nagaileben Co., Ltd. Financial Statement Overview

Summary

Nagaileben Co., Ltd. demonstrates a solid financial foundation with strong profitability, robust equity, and effective cash management. While recent revenue declines pose a concern, the company's strong margins and zero debt position provide a buffer against potential market fluctuations. The healthy cash reserves and consistent free cash flow indicate readiness for strategic investments or downturns, making it a financially sound entity within the apparel manufacturing industry.

Income Statement

Nagaileben Co., Ltd. shows strong profitability with a consistent gross profit margin averaging around 42-45% over the years. However, revenue has declined in recent periods, with a drop from 2023 to 2024. The net profit margin remains solid, averaging over 16%, indicating efficient cost management. Despite a recent revenue decline, the company maintains healthy EBIT and EBITDA margins, reflecting robust operational efficiency.

Balance Sheet

The balance sheet is strong with a high equity ratio, averaging over 90%, indicating minimal debt reliance. The company has zero debt, resulting in a favorable debt-to-equity ratio. Return on equity is commendable, reflecting good returns for shareholders. The company's high cash reserves also enhance its financial stability and liquidity position.

Cash Flow

Cash flow analysis shows consistent free cash flow generation, with growth from 2023 to 2024. The operating cash flow covers net income comfortably, indicating effective cash management. While there was a dip in operating cash flow in 2022, the recovery in 2023 and 2024 suggests a positive trend. The free cash flow to net income ratio is strong, underscoring the company's ability to generate cash from operations.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	16.41B	17.18B	17.75B	17.56B	17.07B
Gross Profit	7.03B	7.55B	7.88B	8.06B	7.81B
EBITDA	4.27B	4.94B	5.75B	5.61B	5.36B
Net Income	2.82B	3.23B	3.78B	3.65B	3.47B
Balance Sheet
Total Assets	46.73B	47.38B	47.35B	46.43B	44.93B
Cash, Cash Equivalents and Short-Term Investments	26.35B	27.16B	28.56B	27.88B	25.65B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	4.03B	4.16B	5.09B	4.40B	4.81B
Stockholders Equity	42.70B	43.21B	42.26B	42.03B	40.12B
Cash Flow
Free Cash Flow	2.12B	1.53B	3.33B	4.20B	3.46B
Operating Cash Flow	2.29B	1.81B	3.44B	4.45B	3.63B
Investing Cash Flow	-1.77B	3.42B	-471.43M	-3.26B	575.62M
Financing Cash Flow	-2.93B	-2.94B	-3.20B	-1.97B	-3.03B

Nagaileben Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2306.00
• 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:7447, the sentiment is Positive. The current price of 2306 is above the 20-day moving average (MA) of 2229.75, above the 50-day MA of 2096.88, and above the 200-day MA of 2081.47, indicating a bullish trend. The MACD of 60.57 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 83.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7447.

Nagaileben Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3104	77 Outperform	¥69.45B	14.54		2.06%	15.29%	87.17%
3201	74 Outperform	¥91.97B	11.31		2.84%	7.01%	11.28%
7447	73 Outperform	¥70.02B	26.70		2.61%	2.96%	-6.25%
3580	69 Neutral	¥32.25B	12.06		3.31%	7.46%	1.54%
3109	66 Neutral	¥12.75B	14.53		4.88%	1.93%	-1.93%
Sector *	61 Neutral	$17.23B	11.51	-5.97%	3.09%	1.37%	-15.81%
3529	55 Neutral	¥19.15B	20.09		―	3.72%	-160.46%

Nagaileben Co., Ltd. Corporate Events

Nagaileben Co., Ltd. Advances Share Buyback Plan

Nagaileben Co., Ltd. has announced the ongoing acquisition of its own shares, as resolved in a Board of Directors meeting on February 28, 2025. As of April 30, 2025, the company has acquired 390,400 shares, with a total cost of ¥774,302,100, through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan to acquire up to 600,000 shares by May 31, 2025, indicating a strategic effort to enhance shareholder value.

Nagaileben Reports Increased Sales but Declining Profits for H1 2025

Nagaileben Co., Ltd. reported its consolidated financial results for the six months ending February 28, 2025, showing a 6.1% increase in net sales compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite increased sales. The company maintains a strong equity-to-asset ratio, reflecting financial stability, and has announced no changes to its cash dividend forecast for the fiscal year ending August 31, 2025.

Nagaileben Co., Ltd. Announces Share Buyback Progress

Nagaileben Co., Ltd. has announced the acquisition of its own shares, acquiring 181,500 common shares at a total cost of ¥359,194,900 through market purchases on the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to acquire up to 600,000 shares, reflecting the company’s strategic decision to enhance shareholder value and optimize capital structure.