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

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

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JP

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 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
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue32.73B43.55B44.06B44.46B43.62B39.15B
Gross Profit3.87B5.29B5.41B5.46B5.00B4.23B
EBITDA491.75M858.00M838.00M1.35B870.00M529.00M
Net Income190.00M314.00M345.00M732.00M448.00M274.00M
Balance Sheet
Total Assets18.15B17.23B17.78B17.19B17.17B16.45B
Cash, Cash Equivalents and Short-Term Investments126.00M113.00M138.00M186.00M186.00M188.00M
Total Debt884.00M73.00M876.00M356.00M710.00M458.00M
Total Liabilities5.40B4.31B4.95B4.53B4.95B4.58B
Stockholders Equity12.75B12.91B12.82B12.66B12.22B11.88B
Cash Flow
Free Cash Flow0.001.08B-293.00M320.00M-140.00M1.27B
Operating Cash Flow0.001.16B101.00M442.00M92.00M1.85B
Investing Cash Flow0.00-158.00M-452.00M72.00M-238.00M-579.00M
Financing Cash Flow0.00-1.02B300.00M-518.00M141.00M-1.27B

Naito & Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price132.00
Price Trends
50DMA
129.10
Positive
100DMA
126.41
Positive
200DMA
126.80
Positive
Market Momentum
MACD
1.01
Positive
RSI
57.11
Neutral
STOCH
16.67
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥38.08B18.06
3.04%6.07%6.17%
75
Outperform
¥46.49B9.58
4.51%5.70%10.65%
75
Outperform
¥5.99B6.67
2.46%4.59%21.89%
70
Outperform
¥6.28B9.97
1.83%1.70%12.23%
65
Neutral
$10.75B15.655.18%1.92%3.09%-27.41%
63
Neutral
¥24.66B16.89
3.45%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.
133.00
-11.53
-7.98%
JP:7628
Ohashi Technica Inc.
1,962.00
239.66
13.91%
JP:8052
Tsubakimoto Kogyo Co., Ltd.
2,431.00
357.74
17.25%
JP:8077
TORQ, Inc.
247.00
24.78
11.15%
JP:8147
Tomita Co., Ltd.
1,211.00
-218.15
-15.26%
JP:9932
Sugimoto & Co., Ltd.
1,783.00
559.59
45.74%
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