Nichiryoku Co., Ltd. (7578) AI Stock Analysis

• Market Cap: ¥2.17B
• Dividend Yield: N/A
• Average Volume (3M): 140.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -24.95%
• EPS Growth: -140.34%
• Country: JP
• Employees: 140
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Personal Products & Services
• EPS (TTM): -6.49
• Shares Outstanding: 17,393,505
• 10 Day Avg. Volume: 52,760
• 30 Day Avg. Volume: 140,796
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ―

Nichiryoku Co., Ltd. shows financial stability with strong profitability and cash generation, yet struggles with revenue decline and high debt levels. Technical indicators highlight a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest cautious investor sentiment.

Nichiryoku Co., Ltd. Business Overview & Revenue Model

Company Description

Nichiryoku Co., Ltd. (7578) is a Japan-based company primarily engaged in the provision of services related to the management and operation of cemeteries and funeral services. The company operates in two main sectors: cemetery management and funeral services. Its core products and services include the sale of cemetery plots, the provision of funeral services, and the offering of related memorial products.

How the Company Makes Money

Nichiryoku Co., Ltd. generates revenue by selling cemetery plots and providing funeral services. The company manages and operates cemeteries, offering plots for sale to individuals and families seeking burial sites. Additionally, Nichiryoku offers comprehensive funeral services, which can include planning and conducting funeral ceremonies, providing memorial products, and offering support services to bereaved families. By combining the sale of physical cemetery plots with the provision of funeral services, the company leverages cross-selling opportunities to enhance its revenue streams. Significant factors contributing to its earnings include the cultural importance of traditional burial practices in Japan and the company's ability to offer a wide range of services that meet the needs of its clients during emotionally sensitive times.

Nichiryoku Co., Ltd. Financial Statement Overview

Summary

Nichiryoku Co., Ltd. presents a mixed financial picture. Strong profitability metrics are overshadowed by declining revenue. The balance sheet shows improvement in leverage but remains risky due to high debt. Cash flow generation is healthy, yet a decline in free cash flow suggests potential limitations on future investments.

Income Statement

Nichiryoku Co., Ltd. showed a decline in Total Revenue from the previous year, indicating a negative revenue growth rate. The Gross Profit Margin and Net Profit Margin are strong, reflecting the company's ability to manage costs effectively, but the decline in revenue is a concern. Despite this, the company maintains a healthy EBIT and EBITDA margin, which suggests operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio improved over the last year, indicating a reduction in leverage. Stockholders' Equity increased, which positively impacts the Equity Ratio, showcasing a stable financial position. However, the company still carries a significant amount of debt, which could pose risks in fluctuating market conditions.

Cash Flow

Nichiryoku has a strong Operating Cash Flow to Net Income Ratio, demonstrating effective cash generation relative to net income. However, Free Cash Flow declined from the previous year, which could impact future growth investments. The company has managed to maintain a positive free cash flow, indicating prudent cash management despite the challenges.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.85B	3.22B	2.98B	2.62B	3.17B
	Gross Profit
1.99B	2.20B	2.14B	1.83B	2.03B
	EBIT
284.61M	221.92M	291.23M	109.52M	171.66M
	EBITDA
400.30M	301.11M	338.13M	250.48M	392.17M
	Net Income Common Stockholders
279.61M	118.06M	129.23M	-292.81M	140.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
282.91M	670.05M	1.13B	1.68B	1.67B
	Total Assets
8.07B	8.91B	9.47B	9.74B	9.26B
	Total Debt
2.44B	3.30B	4.07B	4.84B	4.98B
	Net Debt
2.16B	2.63B	2.94B	3.16B	4.00B
	Total Liabilities
3.21B	4.37B	5.15B	5.81B	6.02B
	Stockholders Equity
4.86B	4.54B	4.31B	3.92B	3.24B
Cash Flow		Free Cash Flow
77.73M	327.66M	311.24M	104.39M	215.72M
	Operating Cash Flow
90.71M	339.68M	336.86M	128.23M	250.39M
	Investing Cash Flow
351.86M	280.52M	-181.00M	-662.91M	328.92M
	Financing Cash Flow
-829.71M	-663.15M	-521.76M	633.15M	-488.98M

Nichiryoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7578, the sentiment is Positive. The current price of 124 is above the 20-day moving average (MA) of 122.95, above the 50-day MA of 123.64, and below the 200-day MA of 142.66, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7578.

Nichiryoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9735	74 Outperform	$2.39T	20.76	8.55%	1.88%	3.91%	7.86%
4666	72 Outperform	¥307.79B	16.45	25.23%	0.28%	12.91%	-3.97%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
7578	54 Neutral	¥2.17B	―		―	-24.95%	-140.34%