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

• Market Cap: ¥7.89B
• Dividend Yield: 2.78%
• Average Volume (3M): 17.78K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.26
• Revenue Growth: 1.08%
• EPS Growth: 82.69%
• Country: JP
• Employees: 330
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): -0.02
• Shares Outstanding: 54,789,513
• 10 Day Avg. Volume: 15,640
• 30 Day Avg. Volume: 17,780
• 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.

Positive Factors

Healthy EBITDA Margin

A healthy EBITDA margin indicates efficient operational management, which can support long-term profitability and competitive positioning.

Strong Balance Sheet

Low financial leverage and strong equity levels reduce risk and provide financial stability, enabling the company to withstand economic fluctuations.

Efficient Cash Conversion

Efficient cash conversion supports liquidity and ensures the company can fund operations and growth initiatives without relying heavily on external financing.

Negative Factors

Declining Revenue

Inconsistent revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term business sustainability.

Fluctuating Cash Flow

Volatility in cash flow can lead to financial instability, affecting the company's ability to invest in growth opportunities and manage liabilities effectively.

Decreased Return on Equity

A declining return on equity suggests the company may not be efficiently using its equity capital to generate profits, which could impact investor confidence and future capital raising.

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

Company Description

Naito & Co., Ltd. (7624) is a prominent player in the Japanese manufacturing sector, specializing in the production and distribution of high-quality electrical and electronic components. The company operates in various sectors, including automotive, industrial machinery, and consumer electronics. Naito & Co. is known for its innovative solutions and commitment to quality, offering a diverse range of products such as connectors, sensors, and power supply units that cater to both domestic and international markets.

How the Company Makes Money

Naito & Co., Ltd. generates revenue primarily through the sale of its electrical and electronic components to various industries, including automotive and consumer electronics. The company employs a business-to-business (B2B) model, establishing long-term contracts with manufacturers and OEMs (original equipment manufacturers) that require reliable components for their products. Key revenue streams include direct product sales, custom solutions, and after-sales support services. Additionally, Naito & Co. benefits from strategic partnerships with technology firms and suppliers, which enhance its product offerings and market reach, thereby contributing to its overall earnings. Market demand for high-tech components and the ongoing trend towards automation and electrification in various industries also positively impact the company's financial performance.

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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.92B	43.55B	44.06B	44.46B	43.62B	39.15B
Gross Profit	5.33B	5.29B	5.41B	5.46B	5.00B	4.23B
EBITDA	911.75M	858.00M	838.00M	1.35B	870.00M	529.00M
Net Income	367.00M	314.00M	345.00M	732.00M	448.00M	274.00M
Balance Sheet
Total Assets	17.42B	17.23B	17.78B	17.19B	17.17B	16.45B
Cash, Cash Equivalents and Short-Term Investments	89.00M	113.00M	138.00M	186.00M	186.00M	188.00M
Total Debt	354.00M	73.00M	876.00M	356.00M	710.00M	458.00M
Total Liabilities	4.68B	4.31B	4.95B	4.53B	4.95B	4.58B
Stockholders Equity	12.74B	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: 139.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 below the 20-day moving average (MA) of 139.90, above the 50-day MA of 138.96, and above the 200-day MA of 132.77, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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	¥30.24B	14.56	―	3.84%	2.74%	4.90%
8147	76 Outperform	¥6.76B	9.68	―	1.69%	11.54%	33.71%
8052	73 Outperform	¥54.53B	10.20	―	3.00%	16.06%	31.78%
7628	66 Neutral	¥29.30B	13.45	―	2.98%	-2.82%	48.74%
8077	64 Neutral	¥5.82B	5.89	―	2.55%	0.57%	8.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7624	59 Neutral	¥7.89B	24.41	―	2.78%	1.08%	82.69%