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

• Market Cap: ¥2.14B
• Dividend Yield: N/A
• Average Volume (3M): 981.27K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.57
• Revenue Growth: -1.41%
• EPS Growth: -155.66%
• Country: JP
• Employees: 1,626
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Luxury Goods
• EPS (TTM): -1.99
• Shares Outstanding: 22,238,298
• 10 Day Avg. Volume: 324,060
• 30 Day Avg. Volume: 981,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥126.00
• Price Target Upside: 29.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥126.00 ▲(29.90% Upside)

The overall stock score is driven by strong technical indicators suggesting bullish momentum, despite financial challenges such as high leverage and negative profitability. The valuation is impacted by the negative P/E ratio, reflecting current financial difficulties.

Positive Factors

Revenue Growth

The company's ability to grow revenue by 6.4% YoY indicates strong demand for its precision components, enhancing its market position and supporting long-term growth prospects.

Cash Flow Management

Positive operating cash flow demonstrates effective cash management, providing the company with the liquidity needed to invest in growth opportunities and manage financial obligations.

Market Position

The company's strong market position as a reliable supplier in multiple industries enhances its competitive advantage and supports sustained demand for its products.

Negative Factors

High Leverage

High leverage can increase financial risk, especially during economic downturns, potentially impacting the company's ability to invest in growth and maintain financial stability.

Profitability Challenges

Negative profitability indicates challenges in converting revenue into profit, which can hinder the company's ability to reinvest in business operations and sustain long-term growth.

Negative Return on Equity

Negative return on equity suggests inefficiencies in generating returns for shareholders, potentially impacting investor confidence and the company's ability to attract new investment.

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 positive cash flow, but faces challenges with profitability and high leverage. The net loss and high debt levels indicate financial risks that need addressing.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.16B	7.16B	6.73B	6.90B	5.74B	4.77B
Gross Profit	1.50B	1.50B	1.43B	1.44B	1.24B	660.85M
EBITDA	279.64M	279.64M	710.09M	482.01M	138.73M	-361.24M
Net Income	-20.28M	-20.02M	390.83M	175.55M	-128.17M	-631.93M
Balance Sheet
Total Assets	5.64B	5.64B	5.79B	5.30B	5.37B	5.37B
Cash, Cash Equivalents and Short-Term Investments	875.86M	875.86M	964.76M	601.31M	486.49M	683.67M
Total Debt	2.94B	2.94B	3.10B	3.18B	3.26B	3.22B
Total Liabilities	4.17B	4.17B	4.32B	4.04B	4.19B	3.97B
Stockholders Equity	1.47B	1.47B	1.47B	1.26B	1.18B	1.40B
Cash Flow
Free Cash Flow	0.00	139.16M	415.51M	200.83M	-213.79M	-384.56M
Operating Cash Flow	0.00	253.04M	475.57M	217.71M	-173.64M	-305.47M
Investing Cash Flow	0.00	-113.60M	-62.79M	-28.98M	-42.64M	-78.12M
Financing Cash Flow	0.00	-207.55M	-86.51M	-83.18M	28.54M	581.38M

Nihon Seimitsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.00
• 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 97 is below the 20-day moving average (MA) of 103.25, above the 50-day MA of 94.50, and above the 200-day MA of 79.52, indicating a neutral trend. The MACD of 1.65 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 15.08 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
7769	76 Outperform	¥27.62B	13.54		2.18%	-2.63%	148.45%
7878	72 Outperform	¥1.92B	23.29		4.02%	8.57%	-38.37%
7771	69 Neutral	¥2.14B	3.49		―	-1.41%	-155.66%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
7872	56 Neutral	¥6.36B	―		4.52%	-1.15%	47.80%
7810	54 Neutral	¥2.76B	37.41		0.22%	7.20%	34.29%
7794	41 Neutral	¥8.18B	―		―	-24.62%	-747.64%