NIHON ISK Co., Ltd. (7986) AI Stock Analysis

• Market Cap: ¥3.03B
• Dividend Yield: 1.69%
• Average Volume (3M): 1.89K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.11
• Revenue Growth: 1.09%
• EPS Growth: 2.37%
• Country: JP
• Employees: 281
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 66.94
• Shares Outstanding: 1,776,000
• 10 Day Avg. Volume: 2,740
• 30 Day Avg. Volume: 1,886
• PEG Ratio: 0.33
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 7.72
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,961.00 ▲(10.04% Upside)

The score is driven primarily by solid financial resilience (notably a debt-free balance sheet) and attractive valuation (low P/E). Offsetting these positives are meaningful operating volatility (sharp 2024 revenue decline) and uneven cash-flow consistency, while technicals are only moderately supportive.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet enhances financial resilience, reducing refinancing and interest-rate risks, and providing stability in volatile markets.

Equity Growth

Consistent equity growth indicates strong capital management and supports the company's ability to invest in growth opportunities.

Profitability Improvement

Improved profitability margins reflect efficient operations and cost management, enhancing long-term earnings potential despite revenue volatility.

Negative Factors

Revenue Volatility

Significant revenue decline raises concerns about demand stability and predictability, impacting long-term strategic planning and investment.

Cash Flow Inconsistency

Inconsistent cash flow generation limits the company's ability to fund operations and growth initiatives, posing risks to financial health.

Operating Volatility

Operating volatility makes financial performance unpredictable, challenging management's ability to deliver consistent results and strategic objectives.

NIHON ISK Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Nihon ISK Co., Ltd. generates revenue through the sale of its industrial valves and equipment to businesses across multiple sectors. The company's primary revenue streams include direct sales to industrial clients, partnerships with distributors, and long-term supply agreements with key customers. Its earnings are significantly bolstered by its reputation for producing durable and efficient products, which leads to repeat business and customer loyalty. Additionally, Nihon ISK may engage in strategic collaborations or joint ventures that enhance its market reach and product offerings.

NIHON ISK Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet strength (zero debt, rising equity, ~10% ROE in 2024) supports resilience, but results are uneven: 2024 revenue fell sharply (~-38.7% YoY) and cash-flow conversion has been inconsistent (negative FCF in 2022–2023, only a rebound in 2024).

Income Statement

Profitability is healthy and improved versus 2022: 2024 gross margin ~29%, EBIT margin ~8.8%, and net margin ~7.3%, with net income rising to ~¥434M from ~¥181M in 2022. However, the top line is volatile—revenue grew in 2021 and 2023, but fell sharply in 2024 (about -38.7% YoY), which raises questions about demand stability and makes earnings less predictable.

Balance Sheet

The balance sheet is very conservative with zero debt across the periods provided (debt-to-equity at 0.0), reducing refinancing and interest-rate risk. Equity has steadily grown (to ~¥4.28B in 2024 from ~¥3.14B in 2019), and returns on equity are solid (~10% in 2024), though still sensitive to earnings swings given the revenue volatility.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in most years and free cash flow rebounded to ~¥311M in 2024 after being negative in 2023 and 2022, with 2024 free cash flow close to net income (~94%). The key weakness is inconsistency (negative free cash flow in 2022–2023) and relatively low operating cash flow compared with profitability in 2024 (operating cash flow to net income around ~0.76x), suggesting working-capital or timing headwinds.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.02B	5.90B	5.71B	5.25B	5.52B	5.00B
Gross Profit	1.76B	1.73B	1.67B	1.35B	1.65B	1.44B
EBITDA	576.24M	597.00M	645.20M	217.77M	520.73M	385.50M
Net Income	386.20M	433.58M	375.18M	181.37M	332.47M	263.51M
Balance Sheet
Total Assets	6.24B	6.21B	5.88B	5.44B	5.52B	5.37B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.17B	979.75M	1.22B	1.49B	1.49B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.75B	1.85B	1.87B	1.73B	1.88B	2.03B
Stockholders Equity	4.42B	4.28B	3.94B	3.66B	3.58B	3.29B
Cash Flow
Free Cash Flow	0.00	310.94M	-186.97M	-164.60M	63.44M	372.28M
Operating Cash Flow	0.00	329.33M	378.64M	-30.53M	84.77M	448.58M
Investing Cash Flow	0.00	-22.67M	-501.20M	-138.88M	-24.94M	-63.36M
Financing Cash Flow	0.00	-116.18M	-113.58M	-108.67M	-55.82M	-115.28M

NIHON ISK Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1782.00
• 50DMA: Negative
• 100DMA: Positive
• 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:7986, the sentiment is Neutral. The current price of 1782 is above the 20-day moving average (MA) of 1780.85, above the 50-day MA of 1771.79, and above the 200-day MA of 1645.55, indicating a neutral trend. The MACD of 1.63 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 19.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7986.

NIHON ISK Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5697	79 Outperform	¥4.78B	8.51	―	2.84%	4.52%	82.92%
7986	71 Outperform	¥3.03B	6.51	―	1.69%	1.09%	2.37%
5458	64 Neutral	¥3.13B	13.45	―	4.03%	-1.76%	-28.08%
5609	63 Neutral	¥4.06B	11.58	―	3.62%	-4.20%	-11.70%
5986	63 Neutral	¥4.41B	12.18	―	2.11%	-1.86%	7.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5973	56 Neutral	¥3.45B	24.91	―	2.96%	6.61%	13.49%