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Nihon Seimitsu Co., Ltd. (JP:7771)
:7771
Japanese Market
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Nihon Seimitsu Co., Ltd. (7771) AI Stock Analysis

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JP:7771

Nihon Seimitsu Co., Ltd.

(7771)

Rating:67Neutral
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. (7771) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNihon 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 MoneyNihon 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
70
Positive
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
65
Positive
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
75
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue7.16B6.73B6.90B5.74B4.77B
Gross Profit1.50B1.42B1.44B1.24B660.85M
EBITDA279.64M710.09M482.01M138.73M-356.86M
Net Income-20.02M390.83M175.55M-128.17M-631.93M
Balance Sheet
Total Assets5.64B5.79B5.30B5.37B5.37B
Cash, Cash Equivalents and Short-Term Investments875.86M964.76M601.31M486.49M683.67M
Total Debt2.94B3.10B3.18B3.26B3.22B
Total Liabilities4.17B4.32B4.04B4.19B3.97B
Stockholders Equity1.47B1.47B1.26B1.18B1.40B
Cash Flow
Free Cash Flow139.16M415.51M200.83M-213.79M-384.56M
Operating Cash Flow253.04M475.57M217.71M-173.64M-305.47M
Investing Cash Flow-113.60M-62.79M-28.98M-42.64M-78.12M
Financing Cash Flow-207.55M-86.51M-83.18M28.54M581.38M

Nihon Seimitsu Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price86.00
Price Trends
50DMA
88.10
Positive
100DMA
79.02
Positive
200DMA
74.93
Positive
Market Momentum
MACD
0.85
Positive
RSI
52.00
Neutral
STOCH
14.65
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥1.92B23.29
4.08%8.57%-38.37%
67
Neutral
¥1.92B3.49
6.39%-105.12%
64
Neutral
£1.74B10.516.12%256.36%0.55%-33.64%
63
Neutral
¥25.44B33.32
2.37%0.20%58.93%
54
Neutral
¥2.74B37.41
0.22%7.20%34.29%
47
Neutral
¥6.13B
4.68%-1.35%64.68%
45
Neutral
¥8.32B
19.16%-1875.80%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7771
Nihon Seimitsu Co., Ltd.
86.00
9.00
11.69%
JP:7769
Rhythm Co., Ltd.
3,060.00
-666.71
-17.89%
JP:7794
EDP Corp.
580.00
-443.00
-43.30%
JP:7810
Crossfor Co. Ltd.
161.00
-34.65
-17.71%
JP:7872
Estelle Holdings Co., Ltd.
577.00
-49.43
-7.89%
JP:7878
Kohsai Co.Ltd.
1,231.00
110.62
9.87%
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: May 30, 2025