Nippi Inc (7932) AI Stock Analysis

• Market Cap: ¥38.19B
• Dividend Yield: 3.76%
• Average Volume (3M): 11.64K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.47
• Revenue Growth: -2.97%
• EPS Growth: 18.38%
• Country: JP
• Employees: 627
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 198.10
• Shares Outstanding: 2,889,000
• 10 Day Avg. Volume: 10,270
• 30 Day Avg. Volume: 11,636
• PEG Ratio: -1.87
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 4.24
• 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
• EPS Forecast (FY): 938.9
• Revenue Forecast (FY): ¥48.00B

• Rating: 79 Outperform
• Price Target: ¥16,152.00 ▲(17.13% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Nippi Inc's overall stock score is driven by its strong financial performance and solid valuation metrics. The company's robust cash flow and stable financial management provide a strong foundation. Technical indicators support a positive outlook, with the stock trading above key moving averages. The absence of earnings call and corporate events data does not impact the score significantly.

Positive Factors

Strong cash generation

High operating cash conversion and 13% FCF growth indicate durable internal funding. Over 2–6 months this supports reinvestment in production, steady dividends or debt reduction, and cushions against demand volatility, preserving strategic flexibility.

Conservative balance sheet and low leverage

A strong equity base and low leverage provide long-term financial resilience. This reduces refinancing risk, supports capital spending or M&A when opportunities arise, and preserves credit flexibility through cyclical industry swings.

Stable gross and operating margins

Sustained gross and operating margins reflect persistent cost control and pricing power in collagen products. Margin stability underpins predictable cash generation and allows strategic investment in R&D or process improvements over multiple quarters.

Negative Factors

Recent revenue decline

A near-term revenue decline of ~4.7% signals weakening top-line momentum. If this trend persists, it could erode operating leverage, constrain reinvestment capacity and pressure margins, making it harder to translate strong cash metrics into growth over coming quarters.

Earnings per share contraction

Negative EPS growth near 5.5% suggests profitability headwinds or one-off impacts affecting returns to shareholders. Continued EPS contraction would limit ability to expand dividends or fund strategic initiatives without external capital, reducing long-term shareholder value.

Moderate return on equity

ROE around 6.2% points to modest effectiveness in converting equity into net income. Absent material revenue growth or margin expansion, such returns may lag peers, making it challenging to earn high shareholder returns over a multi-quarter horizon.

Nippi Inc Business Overview & Revenue Model

Company Description

Nippi,Incorporated, together with its subsidiaries, manufactures and sells collagen casings, gelatin and collagen peptides, cosmetics and functional foods, functional polymers, and life science products in Japan and internationally. The company offers collagen casings for use in various fields, including foods, medicines and pharmaceuticals, and cosmetics; gelatin, which is used in food products, pharmaceutical products, photo films, etc.; and leather products for the automotive industry. It also develops cosmetics and functional foods with collagen; offers Nippi Linker, a vinyl chloride resin, which is primarily used for electric wires and masking films; and provides Nippi V Foam, a foam made of vinyl chloride for welder processing that is used in cars, quilt products, and novelty goods. In addition, the company engages in real estate leasing activities; and provides life science products that include laminin, lab equipment and supplies, and reagents, as well as contract services and bovine spongiform encephalopathy test kits. The company was formerly known as The Japan Leather Mfg. Co., Ltd. and changed its name to Nippi,Incorporated in February 1974. Nippi,Incorporated was founded in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippi Inc. generates revenue primarily by manufacturing and selling collagen and collagen-derived products (e.g., collagen peptides/ingredients) to business customers. Key revenue streams are expected to come from (1) supplying collagen-based raw materials/ingredients for incorporation into customers’ finished goods (such as health/beauty-related products) and (2) sales of specialized collagen materials for industrial applications. Specific breakdown by segment, pricing model (spot vs. long-term supply), major customers, and significant partnerships are null.

Nippi Inc Financial Statement Overview

Summary

Nippi Inc exhibits strong financial health with consistent revenue and margin stability, improved leverage, and robust cash flow generation. The company’s conservative financial management is evident through its improved debt profile and steady equity base. While net income margins have slightly dipped, the overall performance is solid, indicating resilience in the competitive apparel sector.

Income Statement

Nippi Inc displays solid profitability with a consistent gross profit margin of approximately 27% in the latest year. The net profit margin has slightly declined, from 5.2% to 5%, indicating mild pressure on net income. However, the EBIT and EBITDA margins have remained stable, reflecting good operational efficiency. Revenue growth is modest but stable, with a slight 0.19% increase in the latest year, suggesting steady performance.

Balance Sheet

The company maintains a strong equity base, with an equity ratio of 56.8%, indicating financial stability. The debt-to-equity ratio has improved over the years, dropping to 0.27, showcasing a decrease in leverage and strengthening balance sheet health. Return on equity is lower at 6.17%, reflecting moderate profitability relative to shareholder investment.

Cash Flow

Nippi Inc has demonstrated strong cash generation capabilities, with a significant operating cash flow to net income ratio of 1.89, indicating efficient cash conversion. Free cash flow has grown by 13%, showing robust cash management and capacity for reinvestment or shareholder returns. The free cash flow to net income ratio is also high at 1.57, affirming strong cash flow relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	48.79B	49.14B	49.05B	44.81B	39.35B	35.59B
Gross Profit	13.42B	13.17B	12.73B	10.41B	9.89B	8.76B
EBITDA	4.88B	4.90B	5.15B	2.81B	3.13B	2.28B
Net Income	2.62B	2.46B	2.55B	1.17B	1.15B	4.22B
Balance Sheet
Total Assets	70.79B	70.17B	72.39B	69.56B	68.42B	69.41B
Cash, Cash Equivalents and Short-Term Investments	8.68B	8.93B	8.78B	7.01B	6.79B	7.67B
Total Debt	11.25B	10.69B	13.73B	15.28B	16.71B	18.52B
Total Liabilities	30.96B	29.60B	34.09B	34.48B	34.42B	36.44B
Stockholders Equity	39.05B	39.84B	37.62B	34.46B	33.41B	32.41B
Cash Flow
Free Cash Flow	0.00	3.87B	3.46B	1.62B	1.06B	-792.00M
Operating Cash Flow	0.00	4.65B	4.17B	2.67B	2.07B	2.76B
Investing Cash Flow	0.00	-815.00M	-580.00M	-821.00M	-917.00M	3.30B
Financing Cash Flow	0.00	-3.75B	-1.88B	-1.67B	-2.13B	-2.59B

Nippi Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13790.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7932, the sentiment is Negative. The current price of 13790 is below the 20-day moving average (MA) of 13996.50, below the 50-day MA of 13973.20, and above the 200-day MA of 12373.50, indicating a neutral trend. The MACD of -97.64 indicates Positive momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 13.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7932.

Nippi Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7932	79 Outperform	¥38.19B	17.42	―	3.76%	-2.97%	18.38%
4619	75 Outperform	¥49.76B	8.18	―	5.04%	-3.21%	27.18%
7840	75 Outperform	¥44.92B	13.60	―	2.97%	0.89%	-14.25%
7447	71 Outperform	¥50.35B	45.04	―	5.17%	3.48%	-6.35%
4931	62 Neutral	¥43.73B	10.10	―	2.53%	2.74%	-7.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3182	61 Neutral	¥48.53B	3.77	―	0.52%	20.97%	-56.39%