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Nakabayashi Co., Ltd. (JP:7987)
:7987
Japanese Market

Nakabayashi Co., Ltd. (7987) AI Stock Analysis

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JP

Nakabayashi Co., Ltd.

(7987)

Rating:72Outperform
Price Target:
¥571.00
▲(10.44%Upside)
Nakabayashi Co., Ltd. earns a solid overall stock score, driven primarily by its strong financial performance and attractive valuation. The company's improved profitability and cash flow management are significant strengths, while its valuation metrics provide an appealing investment case. Technical indicators suggest neutral momentum, representing a secondary consideration.

Nakabayashi Co., Ltd. (7987) vs. iShares MSCI Japan ETF (EWJ)

Nakabayashi Co., Ltd. Business Overview & Revenue Model

Company DescriptionNakabayashi Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of diversified products, including office supplies, furniture, consumer electronics, and related goods. Founded in 1923 and headquartered in Osaka, Japan, the company operates through various segments, catering to both domestic and international markets. Nakabayashi is well-known for its high-quality products, which include bookbinding materials, office furniture, filing supplies, and digital photo frames.
How the Company Makes MoneyNakabayashi Co., Ltd. generates revenue through the sale of its diverse product lines across multiple sectors. The company's primary revenue streams include the production and distribution of office supplies and furniture, which are sold to businesses, educational institutions, and consumers. Additionally, Nakabayashi capitalizes on the demand for consumer electronics by offering products such as digital photo frames. The company’s earnings are further supported by strategic partnerships and collaborations that enhance its market presence and distribution capabilities. Domestic sales within Japan constitute a significant portion of its revenue, although the company also aims to expand its footprint in international markets.

Nakabayashi Co., Ltd. Financial Statement Overview

Summary
Nakabayashi Co., Ltd. shows a positive financial trajectory with improvements in profitability and cash flow management. The income statement reflects better operational efficiency, while the balance sheet indicates moderate stability. Despite historical earnings volatility, the firm has enhanced its cash flow efficiency and profitability margins.
Income Statement
71
Positive
Nakabayashi Co., Ltd. has shown a strong recovery in its income statement metrics. The company achieved a gross profit margin of 24.4% and a significant improvement in net profit margin to 3.2% in 2025 from 1.4% in 2024. Revenue growth was moderate at 2.8%. Notably, EBIT margin improved from 0.8% in 2024 to 2.8% in 2025, indicating better operational efficiency. However, historical fluctuations in profitability highlight potential volatility.
Balance Sheet
65
Positive
The balance sheet of Nakabayashi Co., Ltd. reflects moderate financial stability with a debt-to-equity ratio of 0.47, and an equity ratio of 50.7% as of 2025, indicating a balanced capital structure. Return on equity improved to 6.9% from 3.2% in the previous year, showcasing enhanced profitability. Despite the improvement, the historical variability in net income suggests some degree of financial risk.
Cash Flow
78
Positive
Cash flow performance has been strong, with free cash flow growing significantly from negative in 2024 to positive in 2025. The operating cash flow to net income ratio of 1.4 indicates robust operational cash generation. Additionally, the company efficiently converted free cash flow to net income, reflecting sound cash management practices.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue62.73B62.77B61.04B61.58B63.12B63.64B
Gross Profit15.68B15.34B14.72B14.84B16.32B17.02B
EBITDA3.35B4.02B3.42B1.65B3.63B4.42B
Net Income1.51B1.99B876.00M-666.00M1.02B1.55B
Balance Sheet
Total Assets57.64B56.58B57.97B57.70B58.23B57.11B
Cash, Cash Equivalents and Short-Term Investments7.62B7.74B7.21B7.87B8.10B6.47B
Total Debt14.77B13.58B14.92B15.69B13.51B12.45B
Total Liabilities29.29B27.20B29.85B30.82B29.73B29.07B
Stockholders Equity27.67B28.72B27.44B26.20B26.86B25.82B
Cash Flow
Free Cash Flow0.001.95B-451.00M-1.63B994.00M695.00M
Operating Cash Flow0.002.79B1.33B-87.00M2.23B2.41B
Investing Cash Flow0.00-396.00M-1.13B-1.33B-283.00M-518.00M
Financing Cash Flow0.00-1.97B-1.42B1.07B-299.00M-2.27B

Nakabayashi Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price517.00
Price Trends
50DMA
513.64
Positive
100DMA
513.69
Positive
200DMA
508.93
Positive
Market Momentum
MACD
2.33
Negative
RSI
53.50
Neutral
STOCH
76.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7987, the sentiment is Positive. The current price of 517 is above the 20-day moving average (MA) of 512.10, above the 50-day MA of 513.64, and above the 200-day MA of 508.93, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7987.

Nakabayashi Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥15.44B7.68
3.93%10.75%287.84%
73
Outperform
¥2.89B9.23
4.00%-1.64%-44.72%
72
Outperform
¥13.36B7.12
4.64%2.82%127.54%
71
Outperform
¥254.55B13.008.49%3.09%6.31%12.77%
70
Neutral
¥886.70M14.49
2.61%5.17%-57.42%
68
Neutral
¥3.43B8.69
1.88%-7.15%39.05%
60
Neutral
¥4.10B58.17
3.73%0.38%24.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7987
Nakabayashi Co., Ltd.
517.00
-7.86
-1.50%
JP:7805
PRINTNET INC.
692.00
76.04
12.34%
JP:7811
Nakamoto Packs Co. Ltd.
1,731.00
144.35
9.10%
JP:7863
HIRAGA CO., LTD.
1,000.00
-11.34
-1.12%
JP:7916
Mitsumura Printing Co., Ltd.
1,340.00
-202.98
-13.16%
JP:7946
Koyosha Inc.
1,301.00
-233.80
-15.23%

Nakabayashi Co., Ltd. Corporate Events

Nakabayashi Co., Ltd. Reports Strong Financial Performance for FY2025
May 21, 2025

Nakabayashi Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showcasing a notable increase in net sales and profits. The company achieved a 2.8% rise in net sales to ¥62,767 million and a significant improvement in operating profit, which surged by 286.4% to ¥1,787 million. These results indicate a strong recovery and operational efficiency, positioning Nakabayashi favorably in its industry. The financial results reflect a robust performance with increased profitability, which could positively impact stakeholders and enhance the company’s market position.

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: Jun 27, 2025