Nifco Inc. (7988) AI Stock Analysis

• Market Cap: ¥520.28B
• Dividend Yield: 1.6%
• Average Volume (3M): 224.60K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.91
• Revenue Growth: -5.16%
• EPS Growth: 200.96%
• Country: JP
• Employees: 10,226
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 107.04
• Shares Outstanding: 100,232,610
• 10 Day Avg. Volume: 201,910
• 30 Day Avg. Volume: 224,596
• PEG Ratio: 0.05
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 9.63
• 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): 381.75
• Revenue Forecast (FY): ¥358.30B

• Rating: 79 Outperform
• Price Target: ¥6,086.00 ▲(25.64% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Nifco Inc. scores well due to its strong financial performance, characterized by improved profitability, robust equity, and efficient cash flow management. The technical analysis supports a positive trend, and the valuation suggests the stock is attractively priced. These factors collectively contribute to a solid overall stock score.

Positive Factors

Balance Sheet Strength

Nifco's balance sheet shows a high equity ratio and improving debt-to-equity, signaling low financial leverage and strong capitalization. This durability supports investment, borrowing capacity and resilience through automotive cycles, reducing solvency risk over the medium term.

Cash Generation

The company converts profits into cash effectively, with robust operating cash flow and positive free cash flow growth. Reliable cash generation underpins capex funding, R&D/design-in support, dividends and debt repayment, improving long-term financial flexibility.

Recurring, Design-In Driven Revenue Model

Nifco’s business relies on design-ins and specification into vehicle platforms, creating recurring, multi-year shipment streams once adopted. This model yields predictable baseline revenues tied to customer programs and supports long-term planning and capacity utilization.

Negative Factors

Recent Top-Line Weakness

Reported revenue contraction indicates vulnerability to demand swings. A negative growth print suggests product mix or volume pressure that can persist across OEM cycles, limiting near-term reinvestment capacity and making margins dependent on volume recoveries.

Automotive Concentration / Cyclicality

Material exposure to automotive OEMs concentrates revenue on a cyclical sector sensitive to macro, production cuts and model cycles. Platform-dependent revenues amplify downside in downturns, increasing business volatility and tying growth to OEM capex and vehicle demand trends.

Earnings Volatility

Very large reported EPS growth versus a declining revenue trend signals profit variability, possibly from one-offs, margin swings or cost timing. This raises uncertainty about sustainable profitability and complicates forecasting of EBITDA and cash available for strategic initiatives.

Nifco Inc. Business Overview & Revenue Model

Company Description

Nifco Inc. manufactures and sells industrial plastic parts and components in Japan, rest of Asia, North America, and Europe. It offers automotive parts and components for use in fuel, engine, exterior, interiors, and electric powertrain. The company also offers household equipment, such as drawer closers, push latches, earthquake-proof latches, and door dampers; consumer electronics/office automation products that include dampers, free-stop hinges, magnet latches, and push latches; and fashion/sport products, such as side release buckles, cord locks, and other buckles. In addition, it manufactures and sells beds, as well as imports and sells furniture products. The company was formerly known as Japan Industry Fastener Inc. and changed its name to Nifco Inc. in December 1970. Nifco Inc. was incorporated in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nifco generates revenue primarily through the sale of its automotive components to major automobile manufacturers. The company's revenue model is based on long-term contracts and agreements with automotive OEMs (Original Equipment Manufacturers), which ensures a steady demand for its products. Key revenue streams include sales from plastic fasteners, clips, and other specialized components, which are essential for vehicle assembly. Additionally, Nifco benefits from economies of scale and operational efficiencies in production. Strategic partnerships with major automotive companies and ongoing investments in research and development also contribute to its earnings, enabling Nifco to innovate and introduce new products that meet evolving industry standards.

Nifco Inc. Financial Statement Overview

Summary

Nifco Inc. presents a solid financial profile with strong profitability, robust equity backing, and excellent cash generation capabilities. The income statement shows improved margins and revenue growth, the balance sheet reflects low leverage and high return on equity, and the cash flow statement indicates efficient cash conversion.

Income Statement

Nifco Inc. demonstrates a strong income statement with notable improvements in profitability metrics. The gross profit margin increased from prior years, indicating efficient cost management. The net profit margin and EBIT margin have also improved significantly, reflecting better operational efficiency. Moreover, the revenue growth rate shows a recovery trend after a previous dip, signaling positive momentum in sales performance.

Balance Sheet

The balance sheet of Nifco Inc. displays a robust financial position with an impressive equity ratio, indicating a strong asset base funded by equity. The debt-to-equity ratio has improved over the years, suggesting prudent leverage management. High return on equity highlights effective utilization of shareholder funds. Overall, the balance sheet reflects stability and low financial risk.

Cash Flow

Nifco Inc.'s cash flow statement shows a strong operating cash flow to net income ratio, suggesting efficient cash generation from operating activities. The free cash flow growth rate is positive, indicating increased cash available for growth and investment. The company's ability to convert income into cash is solid, reflecting strong cash flow management.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	352.44B	353.04B	371.64B	321.77B	283.78B	256.08B
Gross Profit	108.58B	107.20B	101.70B	85.84B	76.51B	70.86B
EBITDA	63.00B	67.59B	46.31B	50.27B	43.69B	41.58B
Net Income	45.76B	44.77B	18.25B	21.17B	22.96B	18.40B
Balance Sheet
Total Assets	356.21B	379.82B	380.40B	359.15B	333.07B	307.13B
Cash, Cash Equivalents and Short-Term Investments	128.83B	147.58B	150.93B	130.48B	113.70B	97.60B
Total Debt	25.27B	35.48B	50.89B	64.46B	70.39B	70.10B
Total Liabilities	81.11B	101.09B	133.35B	133.02B	132.19B	128.48B
Stockholders Equity	272.34B	274.97B	243.70B	223.55B	198.18B	176.47B
Cash Flow
Free Cash Flow	0.00	36.03B	38.46B	28.65B	22.13B	24.83B
Operating Cash Flow	0.00	54.22B	47.26B	37.26B	31.74B	39.92B
Investing Cash Flow	0.00	-23.89B	-8.13B	-11.53B	-9.48B	-12.57B
Financing Cash Flow	0.00	-35.15B	-26.02B	-17.42B	-13.52B	-20.27B

Nifco Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4844.00
• 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:7988, the sentiment is Positive. The current price of 4844 is below the 20-day moving average (MA) of 5135.25, below the 50-day MA of 5017.02, and above the 200-day MA of 4303.74, indicating a bullish trend. The MACD of 110.46 indicates Negative momentum. The RSI at 73.95 is Negative, neither overbought nor oversold. The STOCH value of 93.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7988.

Nifco Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7988	79 Outperform	¥520.28B	11.58	―	1.60%	-5.16%	200.96%
7282	75 Outperform	¥595.80B	13.50	8.26%	2.62%	1.44%	-0.92%
5991	74 Outperform	¥609.75B	14.07	―	2.60%	1.06%	-5.99%
6471	68 Neutral	¥688.52B	34.00	―	3.52%	1.43%	83.34%
3116	66 Neutral	¥571.83B	33.50	4.51%	3.42%	2.10%	-50.33%
6473	63 Neutral	¥684.10B	27.40	2.51%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nifco Inc. Corporate Events

Nifco Overhauls Board and Executive Lineup Ahead of June 2026 Shareholder Meeting

Nifco Inc. has announced a series of board and executive management changes to be implemented following its June 24, 2026 annual general meeting, including the reappointment of four directors and the addition of two new directors, one of whom, Han Sagong, leads Nifco Korea Inc., and another, external director Yuka Miyagawa, brings extensive experience from major Japanese technology and electronics companies. The company is also reshaping its executive officer lineup by appointing two new executive officers and retiring four incumbents, signaling a refreshed leadership structure that strengthens its international oversight through the elevation of its Korean operations head and broadens governance expertise via seasoned external appointments, which could influence Nifco’s strategic direction, operational integration across regions, and overall corporate governance framework.

The most recent analyst rating on (JP:7988) stock is a Buy with a Yen5885.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Holds Profits Steady Despite Slight Sales Dip, Affirms FY2025 Outlook and Dividend Plan

Nifco Inc. reported largely flat performance for the first nine months of the fiscal year ending March 31, 2026, with consolidated net sales edging down 0.6% year on year to ¥262.3 billion and operating profit slipping 0.4% to ¥37.7 billion, as stable earnings in both its industrial plastic parts and bedding and furniture segments offset slightly weaker sales. Profit attributable to owners of parent rose 2.2% to ¥28.5 billion, supported by a stronger equity base and a higher net assets ratio of 76.1%, while the company maintained its full-year forecast, projecting a modest decline in net sales and ordinary profit but a sharp 31.6% drop in full-year profit attributable to owners, and kept its planned annual dividend at ¥80 per share, signaling continued shareholder returns despite anticipated profit pressure.

The most recent analyst rating on (JP:7988) stock is a Buy with a Yen5885.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Completes ¥5 Billion Share Buyback Program on TSE

Nifco Inc. has completed a share buyback program authorized by its board on October 31, 2025, acquiring a total of 1,057,200 common shares for approximately 4,999,540,493 yen through purchases on the Tokyo Stock Exchange between November 4, 2025, and January 28, 2026. The latest tranche, executed from January 1 to January 28, 2026, saw the company repurchase 285,300 shares at a cost of 1,417,808,500 yen, effectively exhausting the approved budget and share limit, a move that is likely aimed at enhancing capital efficiency and shareholder returns by reducing the number of shares outstanding.

The most recent analyst rating on (JP:7988) stock is a Buy with a Yen5885.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Reports Progress on Ongoing ¥5 Billion Share Buyback Program

Nifco Inc. has reported the latest progress in its ongoing share buyback program, acquiring 116,900 of its own common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of approximately ¥581.8 million. This move forms part of a broader board-approved repurchase plan, authorized on October 31, 2025, that allows for the acquisition of up to 1.25 million shares or ¥5 billion in total; as of December 31, 2025, Nifco has cumulatively bought back 771,900 shares for about ¥3.58 billion, signaling a continued focus on capital policy and shareholder returns while still leaving capacity for further repurchases within the authorized limit.

The most recent analyst rating on (JP:7988) stock is a Buy with a Yen5171.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco to Cancel Treasury Shares Following Termination of Employee Stock Grant Trust

Nifco Inc. has decided to terminate its existing Stock Grant ESOP Trust incentive plan for employees after completing the delivery of all shares corresponding to previously granted points in November 2025. As part of winding down the scheme, the company will acquire the remaining 24,439 common shares held in the trust for no consideration on January 20, 2026, and cancel the same number of shares on January 30, 2026, reducing its total shares outstanding to 100,232,614 and effecting a modest share consolidation that could slightly enhance per-share metrics for existing shareholders.

The most recent analyst rating on (JP:7988) stock is a Buy with a Yen5171.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Inc. Addresses Compliance Violation by Subsidiary

Nifco Inc. announced that its subsidiary, Nifco Korea Inc., was involved in a violation of the Monopoly Regulation and Fair Trade Act of Korea related to automotive air vent transactions. Although initially subject to penalties, Nifco Korea Inc. successfully applied for a waiver by meeting the necessary requirements. The company has since enhanced its compliance measures and apologized to stakeholders, committing to prevent future occurrences.

The most recent analyst rating on (JP:7988) stock is a Buy with a Yen5171.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.