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

• Market Cap: ¥7.28B
• Dividend Yield: 2.78%
• Average Volume (3M): 17.78K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.34
• Revenue Growth: 1.08%
• EPS Growth: 82.69%
• Country: JP
• Employees: 330
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 2.47
• Shares Outstanding: 54,789,513
• 10 Day Avg. Volume: 15,640
• 30 Day Avg. Volume: 17,780
• PEG Ratio: -2.95
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 19.42
• 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: 57 Neutral
• Price Target: ¥143.00 ▲(2.88% Upside)
• Action: Reiterated Date: 03/27/26
• Date: Action: Reiterated 03/27/26

The score is mainly supported by strong solvency and low leverage, but is held back by deteriorating revenue momentum and thin profitability, with mixed cash-flow consistency. Technical signals are mostly neutral with slightly negative momentum, while valuation looks demanding given the company’s recent operating weakness.

Positive Factors

Very low leverage / strong balance sheet

Near-zero debt and a stable equity base give the company durable financial resilience. Low leverage reduces refinancing and interest risk, preserves borrowing capacity for capex or working-capital needs, and allows the distributor to fund seasonal inventory swings without stressing liquidity over the next several quarters.

Negative Factors

Steep recent revenue decline

A sharp revenue decline erodes scale advantages and reduces the ability to spread fixed costs, weakening the core trading margins. Sustained top-line weakness over several quarters can impair supplier terms, diminish bargaining power, and constrain reinvestment capacity, increasing downside risk over the next 2–6 months.

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

Company Description

Naito & Co., Ltd., a trading company, engages in sale of cutting tools, mechanical tools, industrial devices, machine tools, and other products in Japan and internationally. The company's cutting tools include carbide tools, special steel tools, a...

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Naito & Co., Ltd., a trading company, engages in sale of cutting tools, mechanical tools, industrial devices, machine tools, and other products in Japan and internationally. The company's cutting tools include carbide tools, special steel tools, a...

How the Company Makes Money

The company primarily makes money by acting as a distributor/trading intermediary: it purchases industrial products and components from manufacturers and sells them to end users (manufacturers and other corporate customers), earning a gross margin...

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The company primarily makes money by acting as a distributor/trading intermediary: it purchases industrial products and components from manufacturers and sells them to end users (manufacturers and other corporate customers), earning a gross margin...

Naito & Co., Ltd. Financial Statement Overview

Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	43.77B	43.52B	43.55B	44.06B	44.46B	43.62B
Gross Profit	5.35B	5.24B	5.29B	5.41B	5.46B	5.00B
EBITDA	910.00M	405.00M	815.00M	801.00M	1.15B	829.00M
Net Income	380.00M	284.00M	314.00M	345.00M	732.00M	448.00M
Balance Sheet
Total Assets	16.70B	17.59B	17.28B	17.84B	17.24B	17.27B
Cash, Cash Equivalents and Short-Term Investments	116.00M	82.00M	113.00M	138.00M	186.00M	186.00M
Total Debt	296.00M	101.00M	73.00M	876.00M	356.00M	710.00M
Total Liabilities	3.84B	4.45B	4.36B	5.01B	4.58B	5.04B
Stockholders Equity	12.85B	13.14B	12.91B	12.83B	12.66B	12.22B
Cash Flow
Free Cash Flow	0.00	406.00M	1.08B	-84.00M	409.00M	87.00M
Operating Cash Flow	0.00	462.00M	1.16B	101.00M	442.00M	92.00M
Investing Cash Flow	0.00	-290.00M	-158.00M	-452.00M	72.00M	-238.00M
Financing Cash Flow	0.00	-190.00M	-1.02B	300.00M	-518.00M	141.00M

Naito & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 139.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 139 is above the 20-day moving average (MA) of 134.55, above the 50-day MA of 137.25, and above the 200-day MA of 135.16, indicating a bearish trend. The MACD of -1.42 indicates Negative momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7624.

Naito & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3176	78 Outperform	¥47.00B	5.27	―	3.87%	2.66%	-11.41%
8103	67 Neutral	¥32.05B	14.30	―	4.05%	-3.82%	18.03%
7628	66 Neutral	¥30.33B	12.14	―	2.98%	-2.82%	48.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9902	62 Neutral	¥71.88B	15.26	―	3.17%	5.95%	23.97%
9830	61 Neutral	¥157.93B	9.98	―	2.42%	9.74%	6.48%
7624	57 Neutral	¥7.28B	27.77	―	2.78%	1.08%	82.69%