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

• Market Cap: ¥1.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.55
• Revenue Growth: 6.39%
• EPS Growth: -105.12%
• Country: JP
• Employees: 1,626
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Luxury Goods
• EPS (TTM): -9.09
• Shares Outstanding: 22,238,298
• 10 Day Avg. Volume: 549,410
• 30 Day Avg. Volume: 1,395,490
• PEG Ratio: <0.01
• Price to Book (P/B): 1.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥104.00 ▲(23.81%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. (7771) is a Japanese company specializing in the precision machinery sector. The company is known for manufacturing and selling a range of precision components and equipment, primarily focusing on the production of precision springs and other related products. These components are essential in various industries, including automotive, electronics, and telecommunications, where precision and reliability are critical.

How the Company Makes Money

Nihon Seimitsu Co., Ltd. generates revenue primarily through the manufacturing and sale of precision springs and components. The company's key revenue streams include supplying these precision products to industries such as automotive, electronics, and telecommunications, which require high-quality, reliable parts for their operations. The company may also engage in partnerships and collaborations with other firms to enhance its production capabilities and expand its market reach. Additionally, any advancements in technology or innovation within the precision machinery sector can contribute to the company's earnings by allowing it to offer enhanced or new products to its clients.

Nihon Seimitsu Co., Ltd. Financial Statement Overview

Summary

Nihon Seimitsu Co., Ltd. demonstrates a strong financial trajectory with revenue and profitability improvements, particularly in recent periods. The balance sheet remains stable with manageable leverage, although the equity position could be strengthened. Cash flow inconsistencies pose potential risks, underscoring the importance of generating sustainable operating cash flows.

Income Statement

Nihon Seimitsu Co., Ltd. has shown commendable financial performance with a consistent increase in revenue over the years, highlighted by a strong revenue growth rate from 2022 to TTM. The company exhibits a robust gross profit margin and improving net profit margins, indicating operational efficiency and profitability. However, fluctuations in EBIT and EBITDA margins suggest some operational challenges.

Balance Sheet

The company's balance sheet reflects a stable position with a moderate debt-to-equity ratio suggesting a balanced approach to leverage. The return on equity has improved, demonstrating effective use of shareholder funds. Nonetheless, the equity ratio is on the lower side, indicating reliance on liabilities for asset financing, which could pose risks if earnings do not continue to grow.

Cash Flow

Cash flow analysis reveals challenges, with inconsistent operating cash flow trends and free cash flow variations over the periods. The lack of operating cash flow in the TTM period is concerning, although past periods show improvements. The free cash flow to net income ratio indicates operational efficiency, but the absence of current free cash flow data limits comprehensive analysis.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	7.11B	6.73B	6.90B	5.74B	4.77B	6.69B
Gross Profit	1.58B	1.42B	1.44B	1.24B	660.85M	1.13B
EBITDA	692.16M	710.09M	482.01M	138.73M	-356.86M	-215.24M
Net Income	466.35M	390.83M	175.55M	-128.17M	-631.93M	-543.00M
Balance Sheet
Total Assets	5.95B	5.79B	5.30B	5.37B	5.37B	5.67B
Cash, Cash Equivalents and Short-Term Investments	1.07B	964.76M	601.31M	486.49M	683.67M	483.00M
Total Debt	3.02B	3.10B	3.18B	3.26B	3.22B	2.80B
Total Liabilities	4.37B	4.32B	4.04B	4.19B	3.97B	557.00K
Stockholders Equity	1.58B	1.47B	1.26B	1.18B	1.40B	1.85B
Cash Flow
Free Cash Flow	0.00	415.51M	200.83M	-213.79M	-384.56M	6.00M
Operating Cash Flow	0.00	475.57M	217.71M	-173.64M	-305.47M	79.00M
Investing Cash Flow	0.00	-62.79M	-28.98M	-42.64M	-78.12M	493.00M
Financing Cash Flow	0.00	-86.51M	-83.18M	28.54M	581.38M	-486.00M

Nihon Seimitsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 84 is below the 20-day moving average (MA) of 84.95, above the 50-day MA of 83.46, and above the 200-day MA of 73.72, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, 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	72 Outperform	¥1.56B	18.86		5.01%	8.57%	-38.37%
7771	67 Neutral	¥1.85B	3.49		―	6.39%	-105.12%
7769	63 Neutral	¥26.06B	34.36		2.31%	0.20%	58.93%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
7810	54 Neutral	¥2.90B	37.41		0.20%	7.20%	34.29%
7872	49 Neutral	¥6.09B	―		4.71%	-1.35%	64.68%
7794	46 Neutral	¥7.97B	―		―	19.16%	-1875.80%