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

• Market Cap: ¥2.17B
• Dividend Yield: N/A
• Average Volume (3M): 55.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -18.74%
• EPS Growth: -1062.47%
• Country: JP
• Employees: 140
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -10.13
• Shares Outstanding: 17,393,505
• 10 Day Avg. Volume: 30,300
• 30 Day Avg. Volume: 55,383
• PEG Ratio: 0.04
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -18.13
• 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: 44 Neutral
• Price Target: ¥123.00 ▼(-2.38% Downside)

Nichiryoku Co., Ltd. receives a low overall stock score due to significant financial challenges, including declining revenue and profitability, negative cash flows, and high leverage risks. The technical analysis indicates neutral to bearish momentum, and the valuation is unattractive with a negative P/E ratio and no dividend yield. These factors collectively contribute to a cautious outlook for the stock.

Nichiryoku Co., Ltd. Business Overview & Revenue Model

Company Description

Nichiryoku Co., Ltd. (7578) is a Japanese company specializing in the manufacturing and distribution of health and wellness products, particularly focusing on dietary supplements and functional foods. The company operates primarily in the health sector and aims to enhance the quality of life for consumers through innovative and scientifically-backed nutritional solutions.

How the Company Makes Money

Nichiryoku Co., Ltd. generates revenue primarily through the sale of its health and wellness products, including dietary supplements and functional foods, which are marketed to both consumers and healthcare professionals. The company's revenue model includes direct sales through retail channels, online platforms, and partnerships with pharmacies and health stores. Key revenue streams are derived from product sales, subscription services for regular customers, and potential licensing agreements for proprietary formulations. Additionally, Nichiryoku may benefit from collaborations with healthcare institutions and research organizations, enhancing its product offerings and broadening its market reach.

Nichiryoku Co., Ltd. Financial Statement Overview

Summary

Nichiryoku Co., Ltd. shows a concerning financial performance with declining revenue, profitability, and negative cash flows. The company faces significant operational challenges, as evidenced by negative EBIT and EBITDA margins. While the balance sheet shows a solid equity base, high leverage poses financial risks. Urgent strategic measures are necessary to stabilize financial performance and improve cash flow generation.

Income Statement

Nichiryoku Co., Ltd. has experienced a significant decline in revenue and profitability, with a notable drop in net income from the previous year. The gross profit margin remains relatively stable, but the negative EBIT and EBITDA margins indicate operational inefficiencies. The company has faced challenges in maintaining revenue growth, and the current trajectory shows a concerning downward trend in income performance.

Balance Sheet

The company maintains a solid equity base compared to its total assets, indicated by a healthy equity ratio. However, the debt-to-equity ratio is moderately high, suggesting potential leverage risks. Despite these risks, the return on equity is negative due to the net loss, which impacts overall equity performance.

Cash Flow

Nichiryoku Co., Ltd. reports negative free cash flow, indicating cash outflows exceeding inflows from operations. The operating cash flow has turned negative, reflecting operational challenges. The free cash flow to net income ratio is unfavorable, suggesting inefficient cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.24B	2.85B	3.22B	2.98B	2.62B
Gross Profit	1.56B	1.99B	2.20B	2.14B	1.83B
EBITDA	-66.86M	400.30M	301.11M	338.13M	110.48M
Net Income	-271.01M	279.61M	118.06M	129.23M	-292.81M
Balance Sheet
Total Assets	7.48B	8.07B	8.91B	9.47B	9.74B
Cash, Cash Equivalents and Short-Term Investments	107.06M	282.91M	670.05M	1.13B	1.68B
Total Debt	2.22B	2.44B	3.30B	4.07B	4.84B
Total Liabilities	2.89B	3.21B	4.37B	5.15B	5.81B
Stockholders Equity	4.59B	4.86B	4.54B	4.31B	3.92B
Cash Flow
Free Cash Flow	-118.39M	77.73M	327.66M	311.24M	104.39M
Operating Cash Flow	-113.54M	90.71M	339.68M	336.86M	128.23M
Investing Cash Flow	152.50M	351.86M	280.52M	-181.00M	-662.91M
Financing Cash Flow	-214.80M	-829.71M	-663.15M	-521.76M	633.15M

Nichiryoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 126 is above the 20-day moving average (MA) of 125.25, below the 50-day MA of 127.54, and below the 200-day MA of 127.55, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7578.

Nichiryoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2485	74 Outperform	¥11.21B	9.25	―	4.32%	25.26%	65.66%
9160	72 Outperform	¥8.65B	9.58	―	―	11.07%	5.85%
9628	72 Outperform	¥31.27B	6.20	―	2.57%	55.72%	97.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	54 Neutral	¥2.10B	-7.58	―	3.71%	-2.06%	-109.18%
3041	49 Neutral	¥1.84B	43.10	―	1.15%	8.87%	47.52%
7578	44 Neutral	¥2.17B	―	―	―	-18.74%	-1062.47%