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

• Market Cap: ¥16.61B
• Dividend Yield: 3.79%
• Average Volume (3M): 51.46K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.55
• Revenue Growth: -0.03%
• EPS Growth: 84.08%
• Country: JP
• Employees: 2,184
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 23.84
• Shares Outstanding: 28,794,294
• 10 Day Avg. Volume: 34,500
• 30 Day Avg. Volume: 51,463
• PEG Ratio: 0.06
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 7.21
• 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: 69 Neutral
• Price Target: ¥704.00 ▲(20.34% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Nakabayashi Co., Ltd. scores a 69, driven by strong financial performance and attractive valuation. The company's improvements in profitability and cash flow management are significant strengths. However, technical indicators suggest a neutral to slightly bearish outlook, which tempers the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Management

Strong cash flow management indicates robust operational efficiency, ensuring the company can fund growth initiatives and manage debt effectively.

Profit Margin Improvement

Improved profit margins suggest enhanced operational efficiency and cost management, contributing to stronger long-term profitability.

Operational Efficiency

Increased EBIT margin reflects better operational efficiency, which can lead to sustainable profitability and competitive advantage.

Negative Factors

Earnings Volatility

Earnings volatility can pose risks to financial stability and investor confidence, potentially impacting long-term growth prospects.

Moderate Financial Stability

Moderate financial stability suggests potential constraints on financial flexibility, which could limit strategic investments and growth.

Historical Earnings Variability

Variability in earnings can lead to uncertainty in financial planning and may affect the company's ability to sustain growth initiatives.

Nakabayashi Co., Ltd. Business Overview & Revenue Model

Company Description

Nakabayashi Co., Ltd. engages in business process's solution, consumer-communication, office appliance, energy, and other businesses in Japan and internationally. Its business process's solution services comprise BPO, data printing, library solution, diary, temporary-employment, and contracted management of examination services. The company's consumer-communications products consists of notebooks, photo albums, files, storage boxes, gadget accessories, paper for printing, and child car seats; and office appliances include shredders, binding machines, wastepaper recycling, office furniture, wooden furniture, wagn for electronic charts, and intravenous drip stands. In addition, it is involved in the biomass and solar power generation activities; and agriculture business. The company was formerly known as Nakabayashi Bookbinding and Printing Co., Ltd. and changed its name to Nakabayashi Co., Ltd. in October 1970. Nakabayashi Co., Ltd. was founded in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nakabayashi Co., Ltd. generates revenue primarily through the sale of its diverse range of office supplies and stationery products. The company has established a strong distribution network that includes retail partnerships, online sales channels, and direct sales to businesses and educational institutions. Key revenue streams include traditional stationery products, such as notebooks and writing instruments, as well as technology-related products, including electronic stationery and organizational tools. Additionally, Nakabayashi benefits from partnerships with schools and corporate clients, providing customized solutions that cater to specific needs, thus enhancing its earnings potential. The company's commitment to innovation and quality also plays a crucial role in attracting and retaining customers, further contributing to its financial success.

Nakabayashi Co., Ltd. Financial Statement Overview

Summary

Nakabayashi Co., Ltd. exhibits a positive financial trajectory with improvements in profitability and cash flow management. The income statement shows a significant improvement in net profit margin and operational efficiency. The balance sheet reflects moderate financial stability, and cash flow performance is strong with robust operational cash generation. However, historical earnings volatility poses some risk.

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	62.91B	62.77B	61.04B	61.58B	63.12B	63.64B
Gross Profit	15.62B	15.34B	14.72B	14.84B	16.32B	17.02B
EBITDA	4.63B	4.02B	3.42B	1.65B	3.93B	4.76B
Net Income	2.43B	1.99B	876.00M	-666.00M	1.02B	1.55B
Balance Sheet
Total Assets	55.22B	56.58B	57.97B	57.70B	58.23B	57.11B
Cash, Cash Equivalents and Short-Term Investments	7.75B	7.74B	7.21B	7.87B	8.10B	6.47B
Total Debt	12.33B	13.58B	14.92B	15.69B	13.51B	12.45B
Total Liabilities	25.77B	27.20B	29.85B	30.82B	29.73B	29.07B
Stockholders Equity	28.80B	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: 585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 585 is below the 20-day moving average (MA) of 613.55, below the 50-day MA of 597.48, and above the 200-day MA of 555.93, indicating a bullish trend. The MACD of 10.12 indicates Negative momentum. The RSI at 74.10 is Negative, neither overbought nor oversold. The STOCH value of 85.15 is Negative, 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	83 Outperform	¥17.84B	8.66	―	3.62%	7.07%	79.18%
7805	77 Outperform	¥3.57B	7.45	―	1.93%	-1.00%	105.56%
7863	76 Outperform	¥2.92B	13.88	―	4.01%	-2.33%	-68.46%
7946	71 Outperform	¥2.55B	34.49	―	1.68%	3.07%	-32.45%
7987	69 Neutral	¥16.61B	8.50	―	3.79%	-0.03%	84.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.77B	19.83	―	2.72%	-1.30%	―