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

• Market Cap: ¥7.61B
• Dividend Yield: 2.88%
• Average Volume (3M): 28.30K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.25
• Revenue Growth: 1.08%
• EPS Growth: 82.69%
• Country: JP
• Employees: 330
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.76
• Shares Outstanding: 54,789,513
• 10 Day Avg. Volume: 20,210
• 30 Day Avg. Volume: 28,300
• PEG Ratio: -2.41
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 6.34
• 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: 59 Neutral
• Price Target: ¥143.00 ▲(2.88% 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 industrial machinery and equipment. The company caters to various sectors, including manufacturing, construction, and other industrial markets, offering a wide array of products such as machine tools, measuring instruments, and other precision equipment. Naito & Co., Ltd. is known for its extensive product lineup and its ability to provide tailored solutions to meet the specific needs of its clients.

How the Company Makes Money

Naito & Co., Ltd. generates revenue through the wholesale distribution of industrial machinery and equipment. The company's key revenue streams include sales of machine tools, measuring instruments, and precision equipment to industries such as manufacturing and construction. Naito & Co., Ltd. leverages its extensive network and industry expertise to source high-quality products and provide value-added services such as consultation and customization to meet client specifications. Significant partnerships with leading machinery and equipment manufacturers enhance its product offerings and contribute to its earnings by enabling access to a broad range of high-demand products.

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

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	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.92B	43.55B	44.46B	43.62B	39.15B
Gross Profit	5.33B	5.29B	5.46B	5.00B	4.23B
EBITDA	911.75M	858.00M	1.35B	870.00M	529.00M
Net Income	367.00M	314.00M	732.00M	448.00M	274.00M
Balance Sheet
Total Assets	17.42B	17.23B	17.19B	17.17B	16.45B
Cash, Cash Equivalents and Short-Term Investments	89.00M	113.00M	186.00M	186.00M	188.00M
Total Debt	354.00M	73.00M	356.00M	710.00M	458.00M
Total Liabilities	4.68B	4.31B	4.53B	4.95B	4.58B
Stockholders Equity	12.74B	12.91B	12.66B	12.22B	11.88B
Cash Flow
Free Cash Flow	0.00	1.08B	320.00M	-140.00M	1.27B
Operating Cash Flow	0.00	1.16B	442.00M	92.00M	1.85B
Investing Cash Flow	0.00	-158.00M	72.00M	-238.00M	-579.00M
Financing Cash Flow	0.00	-1.02B	-518.00M	141.00M	-1.27B

Naito & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 139 is above the 20-day moving average (MA) of 138.30, below the 50-day MA of 139.04, and above the 200-day MA of 130.10, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 52.05 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9932	76 Outperform	¥37.20B	17.91	―	2.25%	2.74%	4.90%
8147	74 Outperform	¥6.18B	12.05	―	1.84%	5.28%	-13.61%
8052	73 Outperform	¥50.16B	9.38	―	2.93%	16.06%	31.78%
8077	68 Neutral	¥6.36B	6.12	―	2.40%	3.90%	36.95%
7628	66 Neutral	¥25.86B	15.73	―	3.40%	0.49%	29.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7624	59 Neutral	¥7.61B	20.03	―	2.88%	1.08%	82.69%