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Naito & Co., Ltd. (JP:7624)
:7624
Japanese Market
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Naito & Co., Ltd. (7624) AI Stock Analysis

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JP:7624

Naito & Co., Ltd.

(7624)

Rating:59Neutral
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. (7624) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNaito & 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 MoneyNaito & 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 mixed financial performance. The income statement shows moderate profitability with a healthy EBITDA margin, but a decline in revenue and net profit margin. The balance sheet is strong, with low financial leverage and consistent equity levels. Cash flow reflects substantial fluctuations, indicating potential risks in cash management.
Income Statement
62
Positive
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
68
Positive
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
55
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue43.55B44.06B44.46B43.62B39.15B
Gross Profit5.29B5.41B5.46B5.00B4.23B
EBITDA858.00M838.00M1.35B870.00M529.00M
Net Income314.00M345.00M732.00M448.00M274.00M
Balance Sheet
Total Assets17.23B17.78B17.19B17.17B16.45B
Cash, Cash Equivalents and Short-Term Investments113.00M138.00M186.00M186.00M188.00M
Total Debt73.00M876.00M356.00M710.00M458.00M
Total Liabilities4.31B4.95B4.53B4.95B4.58B
Stockholders Equity12.91B12.82B12.66B12.22B11.88B
Cash Flow
Free Cash Flow1.08B-293.00M320.00M-140.00M1.27B
Operating Cash Flow1.16B101.00M442.00M92.00M1.85B
Investing Cash Flow-158.00M-452.00M72.00M-238.00M-579.00M
Financing Cash Flow-1.02B300.00M-518.00M141.00M-1.27B

Naito & Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price132.00
Price Trends
50DMA
130.76
Positive
100DMA
127.35
Positive
200DMA
125.99
Positive
Market Momentum
MACD
0.38
Positive
RSI
51.43
Neutral
STOCH
44.44
Neutral
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 below the 20-day moving average (MA) of 132.15, above the 50-day MA of 130.76, and above the 200-day MA of 125.99, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥39.99B18.96
2.39%6.07%6.17%
75
Outperform
¥50.34B9.09
2.68%5.70%10.65%
75
Outperform
¥6.29B6.11
2.36%4.59%39.58%
73
Outperform
¥6.25B9.92
1.83%1.70%12.23%
65
Neutral
$11.14B15.765.26%2.01%3.16%-25.01%
63
Neutral
¥26.62B18.22
3.22%5.69%202.27%
59
Neutral
¥7.23B19.70
3.03%0.66%41.70%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7624
Naito & Co., Ltd.
132.00
-12.34
-8.55%
JP:7628
Ohashi Technica Inc.
2,104.00
271.66
14.83%
JP:8052
Tsubakimoto Kogyo Co., Ltd.
2,571.00
656.77
34.31%
JP:8077
TORQ, Inc.
254.00
39.57
18.45%
JP:8147
Tomita Co., Ltd.
1,205.00
-179.81
-12.98%
JP:9932
Sugimoto & Co., Ltd.
1,859.00
485.51
35.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025