Nihon Seimitsu Co., Ltd. (7771) AI Stock Analysis

• Market Cap: ¥1.92B
• Dividend Yield: N/A
• Average Volume (3M): 478.13K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.51
• Revenue Growth: 6.39%
• EPS Growth: -105.12%
• Country: JP
• Employees: 1,626
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Luxury Goods
• EPS (TTM): -9.09
• Shares Outstanding: 22,238,298
• 10 Day Avg. Volume: 298,580
• 30 Day Avg. Volume: 478,133
• PEG Ratio: 0.93
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥104.00
• Price Target Upside: 20.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥104.00 ▲(20.93%Upside)

Nihon Seimitsu Co., Ltd.'s overall score is primarily driven by its positive technical momentum and moderate financial performance. However, profitability challenges and high leverage negatively impact its valuation, resulting in a balanced score. The lack of earnings call data and corporate events did not influence the score.

Nihon Seimitsu Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Seimitsu Co., Ltd. is a Japanese company primarily engaged in the manufacture and sale of precision machinery components. The company operates within the industrial sector, focusing on producing high-precision parts and components that cater to various industries, including automotive, electronics, and medical devices. With a commitment to quality and technological innovation, Nihon Seimitsu Co., Ltd. has established itself as a reliable supplier of precision products both domestically and internationally.

How the Company Makes Money

Nihon Seimitsu Co., Ltd. generates revenue through the sale of its precision machinery components to a diverse range of industries. The company's key revenue streams include supplying precision parts to automotive manufacturers, electronics companies, and medical device producers. By forging strong relationships and partnerships with major industrial clients, Nihon Seimitsu ensures a steady demand for its high-quality, precision-engineered components. The company's focus on technological advancements and maintaining stringent quality standards enhances its competitive edge and allows it to capture a significant market share within its areas of operation.

Nihon Seimitsu Co., Ltd. Financial Statement Overview

Summary

Nihon Seimitsu Co., Ltd. shows strong revenue growth and stable gross margins, but faces challenges with profitability due to a recent net loss. Despite this, the company maintains positive operating cash flow, which is a positive indicator of cash management. High leverage poses potential financial risks, needing strategic attention.

Income Statement

Nihon Seimitsu Co., Ltd. has shown a positive trend in revenue growth, with a recent year-over-year increase of 6.4%. The gross profit margin is fairly stable at approximately 21% in 2025, indicating efficient cost management. However, the net profit margin has turned negative in 2025 due to a net loss, reflecting challenges in converting revenue into profit. The EBIT margin is positive but modest at 3.85%, suggesting some operational efficiency but potential room for improvement.

Balance Sheet

The debt-to-equity ratio stands at 2.00, indicating a relatively high leverage which could pose risks in economic downturns. The return on equity has been negative due to the net loss, implying inefficiencies in generating returns for shareholders. However, the equity ratio of 26.06% demonstrates a decent level of financial stability with a significant portion of assets financed by equity.

Cash Flow

The company has shown resilience with a positive operating cash flow of 253 million JPY in 2025, despite a net loss. The free cash flow remains positive, albeit lower than previous years, highlighting effective cash management. However, the free cash flow to net income ratio is negative due to the net loss, indicating potential challenges in cash generation relative to profitability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.16B	6.73B	6.90B	5.74B	4.77B
Gross Profit	1.50B	1.42B	1.44B	1.24B	660.85M
EBITDA	279.64M	710.09M	482.01M	138.73M	-356.86M
Net Income	-20.02M	390.83M	175.55M	-128.17M	-631.93M
Balance Sheet
Total Assets	5.64B	5.79B	5.30B	5.37B	5.37B
Cash, Cash Equivalents and Short-Term Investments	875.86M	964.76M	601.31M	486.49M	683.67M
Total Debt	2.94B	3.10B	3.18B	3.26B	3.22B
Total Liabilities	4.17B	4.32B	4.04B	4.19B	3.97B
Stockholders Equity	1.47B	1.47B	1.26B	1.18B	1.40B
Cash Flow
Free Cash Flow	139.16M	415.51M	200.83M	-213.79M	-384.56M
Operating Cash Flow	253.04M	475.57M	217.71M	-173.64M	-305.47M
Investing Cash Flow	-113.60M	-62.79M	-28.98M	-42.64M	-78.12M
Financing Cash Flow	-207.55M	-86.51M	-83.18M	28.54M	581.38M

Nihon Seimitsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7771, the sentiment is Positive. The current price of 86 is below the 20-day moving average (MA) of 87.90, below the 50-day MA of 88.10, and above the 200-day MA of 74.93, indicating a bullish trend. The MACD of 0.85 indicates Positive momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 14.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7771.

Nihon Seimitsu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7878	78 Outperform	¥1.92B	23.29		4.08%	8.57%	-38.37%
7771	67 Neutral	¥1.92B	3.49		―	6.39%	-105.12%
Sector *	64 Neutral	£1.74B	10.51	6.12%	256.36%	0.55%	-33.64%
7769	63 Neutral	¥25.44B	33.32		2.37%	0.20%	58.93%
7810	54 Neutral	¥2.74B	37.41		0.22%	7.20%	34.29%
7872	47 Neutral	¥6.13B	―		4.68%	-1.35%	64.68%
7794	45 Neutral	¥8.32B	―		―	19.16%	-1875.80%