Nihon Flush Co., Ltd. (7820) AI Stock Analysis

• Market Cap: ¥20.20B
• Dividend Yield: 4.41%
• Average Volume (3M): 27.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -4.00%
• EPS Growth: -386.52%
• Country: JP
• Employees: 1,418
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 13.72
• Shares Outstanding: 25,060,000
• 10 Day Avg. Volume: 28,690
• 30 Day Avg. Volume: 27,426
• PEG Ratio: 0.02
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 9.17
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥829.00 ▲(1.59% Upside)

The overall stock score of 55 reflects significant financial challenges, including declining revenues and negative profitability. Technical analysis shows mixed signals, with some positive momentum but no strong trends. The valuation is hampered by negative earnings, though the high dividend yield offers some investor appeal.

Positive Factors

Cash Flow Generation

Despite profitability challenges, the company's ability to generate positive cash flow indicates operational efficiency and provides financial flexibility.

Balance Sheet Health

A strong equity base and low leverage enhance financial stability, reducing risk and providing a solid foundation for future growth.

Dividend Yield

A high dividend yield offers attractive returns to investors, potentially supporting stock price stability and investor confidence despite earnings challenges.

Negative Factors

Revenue Decline

A significant decline in revenue growth reflects challenges in maintaining market share and competitiveness, impacting long-term business sustainability.

Negative Profitability

Negative profitability indicates operational inefficiencies and challenges in cost management, which could hinder future investments and growth opportunities.

Declining Equity

A decline in equity suggests potential erosion of shareholder value and financial health, which may limit the company's ability to fund future growth initiatives.

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

Company Description

Nihon Flush Co., Ltd. manufactures and sells interior products in Japan. It offers various indoor and flash doors, storage systems, and construction materials. The company was founded in 1964 and is headquartered in Komatsushima, Japan.

How the Company Makes Money

Nihon Flush Co., Ltd. generates revenue through the sale of its core products, which include various models of flush toilets, bidets, and bathroom accessories. The company operates on a business-to-consumer (B2C) model, selling directly to consumers as well as through partnerships with retailers and distributors. Key revenue streams include direct sales, wholesale distribution, and collaborations with construction firms and contractors for large-scale projects. Additionally, the company may benefit from licensing agreements or partnerships that enhance its product offerings or expand its market reach, contributing to its overall earnings.

Nihon Flush Co., Ltd. Financial Statement Overview

Summary

Nihon Flush Co., Ltd. faces financial headwinds with declining revenues and negative profitability. Despite a stable balance sheet with low leverage, the negative net income and declining equity pose risks. Positive cash flow generation provides some cushion, but the company needs to address revenue and profit challenges.

Income Statement

The income statement reveals a troubling decline in financial performance. The company experienced a substantial drop in total revenue from 2024 to 2025, with a decrease in gross profit margin due to reduced gross profits. Net profit margin has turned negative, indicating the company is currently unprofitable. The EBIT and EBITDA margins have also shown declines, with EBITDA particularly weak. Revenue growth has been negative over the past year, reflecting significant challenges in maintaining sales levels.

Balance Sheet

The balance sheet displays moderate stability with a strong equity base. The debt-to-equity ratio remains low, suggesting conservative use of debt financing. However, there is a slight decrease in stockholders' equity over the past year. The equity ratio is strong, indicating a solid proportion of total assets funded by equity. Return on equity has turned negative, aligning with the negative net income, which poses concerns over the company's profitability.

Cash Flow

The cash flow statement highlights mixed performance. Operating cash flow has increased, showcasing improved operational efficiency. However, free cash flow growth is moderate. The operating cash flow to net income ratio is distorted due to negative net income, while the free cash flow to net income ratio similarly reflects this challenge. Despite these concerns, the company maintains positive free cash flow, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.89B	23.98B	25.90B	27.33B	33.09B	28.88B
Gross Profit	5.48B	5.62B	6.31B	7.02B	9.39B	9.14B
EBITDA	-2.07B	-1.76B	2.47B	3.36B	5.99B	5.14B
Net Income	-2.90B	-2.79B	1.33B	1.88B	3.84B	3.30B
Balance Sheet
Total Assets	39.66B	42.31B	44.95B	43.60B	42.35B	35.17B
Cash, Cash Equivalents and Short-Term Investments	9.03B	10.45B	8.73B	8.83B	7.73B	7.30B
Total Debt	2.53B	2.03B	2.10B	1.29B	1.52B	1.83B
Total Liabilities	10.28B	11.27B	12.15B	10.73B	11.70B	10.34B
Stockholders Equity	28.64B	30.21B	31.59B	31.62B	29.49B	23.97B
Cash Flow
Free Cash Flow	0.00	1.99B	1.49B	2.05B	1.01B	867.67M
Operating Cash Flow	0.00	2.54B	1.70B	2.41B	1.50B	2.12B
Investing Cash Flow	0.00	-1.19B	-1.56B	-933.65M	-2.35B	-1.59B
Financing Cash Flow	0.00	-938.70M	-2.17B	-1.13B	-1.14B	481.26M

Nihon Flush Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 816.00
• 50DMA: Negative
• 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:7820, the sentiment is Negative. The current price of 816 is below the 20-day moving average (MA) of 831.05, below the 50-day MA of 822.06, and above the 200-day MA of 800.09, indicating a neutral trend. The MACD of -1.78 indicates Positive momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of 31.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7820.

Nihon Flush Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7871	80 Outperform	¥18.73B	11.37	―	3.03%	0.27%	7.57%
7949	77 Outperform	¥44.09B	16.14	―	3.91%	3.70%	12.26%
5940	74 Outperform	¥9.98B	4.22	―	2.86%	2.56%	17.52%
1972	74 Outperform	¥27.32B	12.79	―	7.75%	8.01%	13.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	55 Neutral	¥20.20B	-6.32	―	4.41%	-4.00%	-386.52%
5932	52 Neutral	¥19.07B	-6.22	―	4.08%	1.03%	-92.80%

Nihon Flush Co., Ltd. Corporate Events

Nihon Flush Co., Ltd. Reports Financial Growth Amidst Slight Sales Decline

Nihon Flush Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight decline in net sales by 1.8% compared to the previous year. However, the company experienced significant growth in operating profit and profit attributable to owners, with increases of 79.7% and 32.2% respectively, indicating improved operational efficiency. The company maintains a strong equity-to-asset ratio, though total assets have slightly decreased. The forecast for the fiscal year ending March 31, 2026, anticipates a notable increase in net sales and profits, suggesting positive future performance.