Naito & Co., Ltd. (7624) AI Stock Analysis

• Market Cap: ¥7.23B
• Dividend Yield: 3.03%
• Average Volume (3M): 39.84K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.24
• Revenue Growth: 0.66%
• EPS Growth: 41.70%
• Country: JP
• Employees: 330
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Distribution
• EPS (TTM): 0.98
• Shares Outstanding: 54,789,513
• 10 Day Avg. Volume: 56,970
• 30 Day Avg. Volume: 39,840
• PEG Ratio: 0.18
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.67
• 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: 59 Neutral
• Price Target: ¥143.00 ▲(8.33%Upside)

The overall stock score is primarily influenced by mixed financial performance and technical analysis suggesting an overbought condition despite bullish momentum. The valuation is moderate, with a fair P/E ratio and a decent dividend yield. Attention to financial efficiency and cash management is crucial for future stability.

Naito & Co., Ltd. Business Overview & Revenue Model

Company Description

Naito & Co., Ltd. (7624) is a Japanese company primarily engaged in the wholesale distribution of machine tools and industrial equipment. The company operates within the industrial machinery sector, supplying a variety of products that are essential for manufacturing and production processes across different industries. Naito & Co. is known for its comprehensive range of products, which include cutting tools, measuring instruments, and other related machinery components.

How the Company Makes Money

Naito & Co., Ltd. makes money primarily through the wholesale distribution of machine tools and industrial equipment. Its revenue model is based on purchasing products from manufacturers and selling them to industrial companies, factories, and other businesses that require these tools for their operations. Key revenue streams include the sale of cutting tools, precision measuring instruments, and various machinery components. The company may also engage in strategic partnerships with manufacturers to distribute their products, which can enhance its product offerings and market reach. Additionally, factors such as maintaining a strong inventory and providing value-added services like technical support and maintenance can contribute to its earnings.

Naito & Co., Ltd. Financial Statement Overview

Summary

Naito & Co., Ltd. demonstrates a mixed financial performance across the three verticals. The company exhibits strength in maintaining a stable equity position and effective cash conversion from operations. However, challenges persist with inconsistent revenue growth and declining profitability ratios, indicating areas for operational and strategic improvement. Financial stability is evident, but attention to operational efficiency and cash management is crucial for sustained growth.

Income Statement

The income statement indicates moderate profitability with a stable gross profit margin and a slight decline in net profit margin over the years. Revenue growth has been inconsistent, with a notable decrease in the most recent year. The EBITDA margin remains healthy, suggesting efficient operational management, but the declining EBIT margin suggests rising operating costs or decreased operational efficiency.

Balance Sheet

The balance sheet reflects strong equity levels with a favorable debt-to-equity ratio, indicating low financial leverage and reduced risk. The equity ratio shows a consistent proportion of equity to total assets, reinforcing financial stability. Return on equity has decreased, highlighting a potential area for improvement in generating returns from equity capital.

Cash Flow

Cash flow analysis reveals substantial fluctuations in free cash flow, with notable growth in the most recent year. The operating cash flow to net income ratio suggests efficient cash conversion from operating activities. However, the inconsistency in free cash flow growth indicates volatility in cash management and capital expenditure that could pose risks.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.73B	43.55B	44.06B	44.46B	43.62B	39.15B
Gross Profit	3.87B	5.29B	5.41B	5.46B	5.00B	4.23B
EBITDA	491.75M	858.00M	838.00M	1.35B	870.00M	529.00M
Net Income	190.00M	314.00M	345.00M	732.00M	448.00M	274.00M
Balance Sheet
Total Assets	18.15B	17.23B	17.78B	17.19B	17.17B	16.45B
Cash, Cash Equivalents and Short-Term Investments	126.00M	113.00M	138.00M	186.00M	186.00M	188.00M
Total Debt	884.00M	73.00M	876.00M	356.00M	710.00M	458.00M
Total Liabilities	5.40B	4.31B	4.95B	4.53B	4.95B	4.58B
Stockholders Equity	12.75B	12.91B	12.82B	12.66B	12.22B	11.88B
Cash Flow
Free Cash Flow	0.00	1.08B	-293.00M	320.00M	-140.00M	1.27B
Operating Cash Flow	0.00	1.16B	101.00M	442.00M	92.00M	1.85B
Investing Cash Flow	0.00	-158.00M	-452.00M	72.00M	-238.00M	-579.00M
Financing Cash Flow	0.00	-1.02B	300.00M	-518.00M	141.00M	-1.27B

Naito & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7624, the sentiment is Positive. The current price of 132 is above the 20-day moving average (MA) of 131.50, above the 50-day MA of 129.10, and above the 200-day MA of 126.80, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7624.

Naito & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9932	76 Outperform	¥38.08B	18.06		3.04%	6.07%	6.17%
8052	75 Outperform	¥46.49B	9.58		4.51%	5.70%	10.65%
8077	75 Outperform	¥5.99B	6.67		2.46%	4.59%	21.89%
8147	70 Outperform	¥6.28B	9.97		1.83%	1.70%	12.23%
Sector *	65 Neutral	$10.75B	15.65	5.18%	1.92%	3.09%	-27.41%
7628	63 Neutral	¥24.66B	16.89		3.45%	5.69%	202.27%
7624	59 Neutral	¥7.23B	19.70		3.03%	0.66%	41.70%