Nankai Plywood Co., Ltd. (7887) AI Stock Analysis

• Market Cap: ¥6.79B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.15K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.39
• Revenue Growth: 7.48%
• EPS Growth: 10.02%
• Country: JP
• Employees: 1,810
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 504.85
• Shares Outstanding: 1,009,580
• 10 Day Avg. Volume: 1,130
• 30 Day Avg. Volume: 1,150
• 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: ¥6,460.00
• Price Target Upside: -8.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥6,460.00 ▼(-8.11% Downside)

Nankai Plywood Co., Ltd. achieves a solid overall stock score, driven by robust financial performance and positive technical indicators. The company's revenue growth and financial stability are key strengths, while technical analysis confirms a bullish trend. However, the high P/E ratio suggests the stock may be overvalued, which slightly tempers the overall score.

Nankai Plywood Co., Ltd. Business Overview & Revenue Model

Company Description

Nankai Plywood Co., Ltd. (7887) is a Japanese company primarily engaged in the manufacture and distribution of plywood and wood-related products. The company operates in the construction and housing sectors, supplying high-quality plywood and other wood materials for building and interior design purposes. Nankai Plywood is known for its innovation in wood processing technologies, ensuring sustainable practices and quality products that meet diverse customer needs.

How the Company Makes Money

Nankai Plywood Co., Ltd. generates revenue through the production and sale of plywood and wood-related products. The company's key revenue streams include the sale of its products to the construction industry, building contractors, and retailers who supply to homeowners and businesses. Additionally, Nankai Plywood may have partnerships with construction firms and distributors that help extend its market reach. The company focuses on maintaining competitive pricing, quality assurance, and sustainable sourcing to drive sales and profitability.

Nankai Plywood Co., Ltd. Financial Statement Overview

Summary

Nankai Plywood Co., Ltd. exhibits strong revenue growth and financial stability. The income statement shows improving margins and growth, while the balance sheet highlights low leverage. Cash flow generation is sound, though there is room for improving free cash flow. Overall, the company is well-positioned to sustain growth with continued operational efficiencies.

Income Statement

Nankai Plywood Co., Ltd. demonstrates strong revenue growth with a consistent upward trend, highlighted by a recent 4.82% increase from the previous year. The gross profit margin remains robust, although the net profit margin has experienced some fluctuation, currently at a healthy level. The EBITDA margin shows improvement, indicating effective cost management. However, a slight decline in EBIT margin suggests room for operational efficiency enhancements.

Balance Sheet

The company's balance sheet is solid with a high equity ratio of 75.15%, ensuring financial stability. The debt-to-equity ratio is manageable at 0.17, reflecting prudent leverage use. Return on equity is modest, indicating potential for enhancing shareholder returns. Overall, the company maintains a strong equity position, although there is scope for improving asset utilization.

Cash Flow

Cash flow analysis reveals a positive trend in operating cash flow, indicating strong cash generation capability. The free cash flow has improved but remains a focus area for further enhancement. The operating cash flow to net income ratio is favorable, supporting earnings quality. Despite positive trends, the company should continue to focus on optimizing capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.92B	24.92B	23.77B	23.06B	21.93B	19.41B
Gross Profit	6.98B	6.98B	6.68B	6.52B	7.62B	6.71B
EBITDA	2.35B	1.89B	2.66B	1.69B	3.10B	1.85B
Net Income	100.27M	101.13M	948.71M	1.59B	1.41B	501.57M
Balance Sheet
Total Assets	32.49B	32.49B	32.25B	31.35B	27.66B	24.03B
Cash, Cash Equivalents and Short-Term Investments	3.31B	3.31B	3.51B	2.99B	3.33B	2.56B
Total Debt	4.21B	4.21B	4.66B	5.67B	2.39B	1.33B
Total Liabilities	8.02B	8.02B	8.23B	8.86B	6.81B	4.53B
Stockholders Equity	24.41B	24.41B	23.99B	22.46B	20.85B	19.50B
Cash Flow
Free Cash Flow	0.00	564.48M	1.76B	-3.12B	-250.08M	79.72M
Operating Cash Flow	0.00	2.46B	3.41B	-1.59B	1.89B	1.33B
Investing Cash Flow	0.00	-1.98B	-1.63B	-1.93B	-1.86B	-1.05B
Financing Cash Flow	0.00	-672.18M	-1.30B	2.99B	867.56M	473.86M

Nankai Plywood Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7030.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7887, the sentiment is Positive. The current price of 7030 is above the 20-day moving average (MA) of 6713.50, above the 50-day MA of 6309.00, and above the 200-day MA of 5692.89, indicating a bullish trend. The MACD of 202.47 indicates Negative momentum. The RSI at 72.10 is Negative, neither overbought nor oversold. The STOCH value of 85.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7887.

Nankai Plywood Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7807	80 Outperform	¥4.05B	6.71		1.49%	0.28%	-27.08%
7791	75 Outperform	¥3.66B	8.03		3.72%	15.75%	44.95%
7898	74 Outperform	¥8.29B	4.05		2.70%	0.90%	―
7887	72 Outperform	¥6.79B	12.69		2.13%	7.48%	10.02%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
7822	56 Neutral	¥11.71B	418.24		3.77%	0.89%	-99.30%
9827	55 Neutral	¥7.87B	65,979.38		5.63%	-1.39%	-99.93%