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

• Market Cap: ¥13.36B
• Dividend Yield: 4.64%
• Average Volume (3M): 28.57K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.47
• Revenue Growth: 2.82%
• EPS Growth: 127.54%
• Country: JP
• Employees: 2,184
• Sector: Industrials
• Sector Strength: 86
• Industry: Specialty Business Services
• EPS (TTM): 43.46
• Shares Outstanding: 28,794,294
• 10 Day Avg. Volume: 32,420
• 30 Day Avg. Volume: 28,570
• PEG Ratio: 0.12
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.02
• 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

• Rating: 72 Outperform
• 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. Business Overview & Revenue Model

Company Description

Nakabayashi 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 Money

Nakabayashi 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	62.73B	62.77B	61.04B	61.58B	63.12B	63.64B
Gross Profit	15.68B	15.34B	14.72B	14.84B	16.32B	17.02B
EBITDA	3.35B	4.02B	3.42B	1.65B	3.63B	4.42B
Net Income	1.51B	1.99B	876.00M	-666.00M	1.02B	1.55B
Balance Sheet
Total Assets	57.64B	56.58B	57.97B	57.70B	58.23B	57.11B
Cash, Cash Equivalents and Short-Term Investments	7.62B	7.74B	7.21B	7.87B	8.10B	6.47B
Total Debt	14.77B	13.58B	14.92B	15.69B	13.51B	12.45B
Total Liabilities	29.29B	27.20B	29.85B	30.82B	29.73B	29.07B
Stockholders Equity	27.67B	28.72B	27.44B	26.20B	26.86B	25.82B
Cash Flow
Free Cash Flow	0.00	1.95B	-451.00M	-1.63B	994.00M	695.00M
Operating Cash Flow	0.00	2.79B	1.33B	-87.00M	2.23B	2.41B
Investing Cash Flow	0.00	-396.00M	-1.13B	-1.33B	-283.00M	-518.00M
Financing Cash Flow	0.00	-1.97B	-1.42B	1.07B	-299.00M	-2.27B

Nakabayashi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 517.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	77 Outperform	¥15.44B	7.68		3.93%	10.75%	287.84%
7863	73 Outperform	¥2.89B	9.23		4.00%	-1.64%	-44.72%
7987	72 Outperform	¥13.36B	7.12		4.64%	2.82%	127.54%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
7946	70 Neutral	¥886.70M	14.49		2.61%	5.17%	-57.42%
7805	68 Neutral	¥3.43B	8.69		1.88%	-7.15%	39.05%
7916	60 Neutral	¥4.10B	58.17		3.73%	0.38%	24.47%

Nakabayashi Co., Ltd. Corporate Events

Nakabayashi Co., Ltd. Reports Strong Financial Performance for FY2025

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.