Balance Sheet StrengthA debt-free balance sheet with steadily growing equity materially lowers insolvency and refinancing risk. This structural strength gives management durable financial flexibility to fund capex, absorb demand shocks, pursue opportunistic M&A, and sustain operations through cyclical steel-market downturns.

Improving Profitability And MarginsSharply higher 2025 revenue and materially improved margins point to stronger pricing, mix, or cost control versus the 2022 trough. If sustained, these improvements enhance operating leverage, boost returns on equity, and create durable cash generation capacity available for reinvestment or shareholder returns.

Recovering Cash GenerationRecent sequential improvement to positive operating and free cash flow (FCF near net income at ~0.88–0.94x) suggests the company can internally fund more of its needs. Persistently positive FCF supports sustainable capex, modest dividends, and reduces reliance on external financing over the medium term.

Bears Say

Cash-flow VolatilityHistoric swings between negative and positive cash flows indicate working-capital sensitivity and uneven conversion of earnings to cash. That instability can force ad hoc financing, restrict consistent reinvestment, and reduce predictability of shareholder distributions during weaker cycles.

Earnings And Revenue CyclicalityThe company's results show meaningful cycle exposure: revenue and margins fell in 2022 and margins fluctuated thereafter. In a capital‑intensive steel industry, cyclical demand and price swings can materially compress margins and returns, complicating long-term planning and requiring conservative financial buffers.

Concentrated 2025 GrowthA single-year revenue step-up raises sustainability questions: if growth reflects one-off contracts, inventory timing, or transient market factors, baseline revenue could revert. Reliance on concentrated year-over-year jumps increases forecasting risk and could leave margins exposed if volumes or pricing normalize.

7986 FAQ

What was NIHON ISK Co., Ltd.’s price range in the past 12 months?

NIHON ISK Co., Ltd. lowest stock price was ¥1371.00 and its highest was ¥2061.00 in the past 12 months.

What is NIHON ISK Co., Ltd.’s market cap?

NIHON ISK Co., Ltd.’s market cap is ¥3.31B.

When is NIHON ISK Co., Ltd.’s upcoming earnings report date?

NIHON ISK Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 74 days.

How were NIHON ISK Co., Ltd.’s earnings last quarter?

NIHON ISK Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥62.45 earnings per share for the quarter, beating the consensus estimate of N/A by ¥62.45.

Is NIHON ISK Co., Ltd. overvalued?

According to Wall Street analysts NIHON ISK Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NIHON ISK Co., Ltd. pay dividends?

NIHON ISK Co., Ltd. pays a Annually dividend of ¥30 which represents an annual dividend yield of 1.69%. See more information on NIHON ISK Co., Ltd. dividends here

What is NIHON ISK Co., Ltd.’s EPS estimate?

NIHON ISK Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NIHON ISK Co., Ltd. have?

NIHON ISK Co., Ltd. has 1,776,000 shares outstanding.

What happened to NIHON ISK Co., Ltd.’s price movement after its last earnings report?

NIHON ISK Co., Ltd. reported an EPS of ¥62.45 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.655%.

Which hedge fund is a major shareholder of NIHON ISK Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7986

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NIHON ISK Co., Ltd.

Nihon Isk Co.,Ltd. manufactures and sells fireproof and anti-theft vaults for commercial and households in Japan. It also manufactures and sells dental equipment and steel furniture. The company was formerly known as King Industrial Co., Ltd. and changed its name to Nihon Isk Co.,Ltd. in April 2014. Nihon Isk Co.,Ltd. was founded in 1919 and is headquartered in Tsukuba, Japan.