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Nankai Plywood Co., Ltd. (JP:7887)
:7887
Japanese Market

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

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JP:7887

Nankai Plywood Co., Ltd.

(7887)

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Outperform 76 (OpenAI - 5.2)
Rating:76Outperform
Price Target:
¥12,566.00
▲(37.03% Upside)
Action:ReiteratedDate:01/14/26
The score is driven primarily by strong financial stability (high equity ratio, low leverage) and attractive valuation (low P/E). Technicals are supportive with a strong uptrend and positive MACD, but overbought signals (RSI > 70) temper the overall rating due to higher near-term reversal risk.
Positive Factors
Strong balance sheet
A 75.15% equity ratio and very low leverage (D/E 0.17) give the company durable financial flexibility. This supports investment in operations, buffers cyclical housing demand swings and reduces refinancing risk, enabling steady strategic spending without raising leverage.
Negative Factors
Free cash flow still a focus area
Although free cash flow has improved, it remains uneven, limiting longer-term capital allocation flexibility. Persistent FCF constraints could restrict sustained dividend growth, capacity investments or strategic M&A unless conversion trends continue improving over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
A 75.15% equity ratio and very low leverage (D/E 0.17) give the company durable financial flexibility. This supports investment in operations, buffers cyclical housing demand swings and reduces refinancing risk, enabling steady strategic spending without raising leverage.
Read all positive factors

Nankai Plywood Co., Ltd. (7887) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Nankai Plywood Co.,Ltd. manufactures and sells interior building materials in Japan. It offers storage, floor, and ceiling materials; and stairs, slide doors, fittings, and other products. The company was founded in 1942 and is headquartered in Ta...
How the Company Makes Money
Nankai Plywood generates revenue primarily through the manufacture and sale of interior building-material products used in homes. Its core earnings come from selling wood-based interior components and related housing materials (e.g., interior fixt...

Nankai Plywood Co., Ltd. Financial Statement Overview

Summary
Overall fundamentals are solid: revenue is growing and profitability remains healthy, supported by improving EBITDA margin. The balance sheet is strong with a high equity ratio (75.15%) and low leverage (D/E 0.17). Cash generation is positive, though free cash flow improvement and some margin/efficiency variability keep the score below the top tier.
Income Statement
78
Positive
Balance Sheet
75
Positive
Cash Flow
72
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue25.50B24.92B23.77B23.06B21.93B19.41B
Gross Profit7.46B6.98B6.68B6.52B7.62B6.71B
EBITDA2.90B1.89B2.66B1.69B3.10B1.85B
Net Income535.81M101.13M948.71M1.59B1.41B501.57M
Balance Sheet
Total Assets32.24B32.49B32.25B31.35B27.66B24.03B
Cash, Cash Equivalents and Short-Term Investments2.63B3.31B3.51B2.99B3.33B2.56B
Total Debt4.07B4.85B4.66B5.67B2.66B1.33B
Total Liabilities8.08B8.02B8.23B8.86B6.81B4.53B
Stockholders Equity24.10B24.41B23.99B22.46B20.85B19.50B
Cash Flow
Free Cash Flow0.00564.48M1.76B-3.12B-250.08M79.72M
Operating Cash Flow0.002.46B3.41B-1.59B1.89B1.33B
Investing Cash Flow0.00-1.98B-1.63B-1.93B-1.86B-1.05B
Financing Cash Flow0.00-672.18M-1.30B2.99B867.56M473.86M

Nankai Plywood Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price9170.00
Price Trends
50DMA
10864.40
Negative
100DMA
9536.10
Positive
200DMA
8133.95
Positive
Market Momentum
MACD
-95.14
Positive
RSI
36.19
Neutral
STOCH
22.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7887, the sentiment is Neutral. The current price of 9170 is below the 20-day moving average (MA) of 11314.00, below the 50-day MA of 10864.40, and above the 200-day MA of 8133.95, indicating a neutral trend. The MACD of -95.14 indicates Positive momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 22.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7887.

Nankai Plywood Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥10.49B3.041.66%8.56%2690.35%
76
Outperform
¥183.06B11.814.91%6.35%14.05%
75
Outperform
¥35.28B3.813.56%3.03%160.39%
72
Outperform
¥179.37B8.203.41%6.17%61.39%
66
Neutral
¥9.39B3.192.65%1.11%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
46
Neutral
¥10.92B8.824.41%2.78%-88.37%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7887
Nankai Plywood Co., Ltd.
10,850.00
4,940.00
83.59%
JP:7822
Eidai Co., Ltd.
247.00
39.25
18.89%
JP:7898
Wood One Co., Ltd.
1,005.00
38.95
4.03%
JP:7955
Cleanup Corporation
983.00
321.82
48.67%
JP:7981
Takara Standard Co., Ltd
2,867.00
1,118.77
63.99%
JP:8130
Sangetsu Corporation
3,145.00
297.34
10.44%
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: Jan 14, 2026