Nifco Inc. (7988) AI Stock Analysis

• Market Cap: ¥467.38B
• Dividend Yield: 1.61%
• Average Volume (3M): 224.60K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.88
• Revenue Growth: -5.16%
• EPS Growth: 200.96%
• Country: JP
• Employees: 10,226
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 91.24
• Shares Outstanding: 100,257,050
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥5,171.00 ▲(3.86% Upside)

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

Cash Generation

Efficient cash generation from operations enhances Nifco's ability to reinvest in growth and innovation, supporting long-term sustainability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing Nifco to withstand economic fluctuations and invest in strategic opportunities.

Profitability Improvements

Enhanced profitability through improved margins indicates effective cost management and operational efficiency, supporting sustained earnings growth.

Negative Factors

Revenue Decline

While there are signs of recovery, the recent revenue decline poses a risk to growth momentum, potentially impacting future earnings if not addressed.

Industry Dependence

Heavy reliance on the automotive industry exposes Nifco to sector-specific risks, such as changes in demand or regulatory shifts, which could impact long-term stability.

Revenue Growth Challenges

The negative revenue growth trend indicates challenges in maintaining sales momentum, which could hinder Nifco's ability to capitalize on market opportunities.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: 4979.00
• 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:7988, the sentiment is Positive. The current price of 4979 is above the 20-day moving average (MA) of 4847.20, above the 50-day MA of 4658.58, and above the 200-day MA of 3938.34, indicating a bullish trend. The MACD of 92.68 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 61.85 is Neutral, 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	¥467.38B	9.95	―	1.61%	-5.16%	200.96%
7282	74 Outperform	¥514.35B	11.23	8.26%	2.59%	1.44%	-0.92%
5991	74 Outperform	¥505.22B	12.65	―	2.65%	1.06%	-5.99%
3116	74 Outperform	¥446.78B	21.64	4.51%	3.44%	2.10%	-50.33%
6473	70 Outperform	¥561.38B	29.19	2.51%	3.12%	0.44%	-11.36%
6471	66 Neutral	¥464.39B	25.81	―	3.58%	1.43%	83.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nifco Inc. Corporate Events

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.

Nifco Inc. Advances Share Buyback Program

Nifco Inc. announced the ongoing acquisition of its own shares, with 655,000 shares acquired at a total price of approximately 3 billion yen between November 4th and November 30th, 2025. This move is part of a broader plan authorized by the Board of Directors to acquire up to 1,250,000 shares, reflecting the company’s strategic initiative to enhance shareholder value and optimize capital structure.

Nifco Inc. Announces Share Buyback to Boost Financial Flexibility

Nifco Inc. announced its decision to acquire up to 1,250,000 of its own shares, representing 1.32% of the total issued shares, with a maximum acquisition cost of 5 billion yen. This move aims to enhance capital efficiency and provide flexibility in financial policy amidst changing business conditions, potentially impacting its market positioning and shareholder value.

Nifco Inc. Reports Stable Profits Amid Slight Sales Decline

Nifco Inc. reported a slight decline in net sales for the first half of FY2025, with figures showing a 1.8% decrease compared to the previous year. Despite this, the company maintained stable operating and ordinary profits, with a notable increase in profit attributable to owners of the parent by 20.1%. The financial results indicate a robust financial position with a high net assets ratio, and the company has announced a dividend increase, reflecting confidence in its future performance.

Nifco Inc. Completes Share Repurchase Program

Nifco Inc. has completed the acquisition of its own shares, as authorized by its Board of Directors. The company acquired 358,900 shares at a total cost of 1,615,284,200 yen, marking the completion of its share repurchase program initiated in July 2025. This strategic move is part of Nifco’s efforts to enhance shareholder value and optimize its capital structure, potentially impacting its market positioning and stakeholder interests.