Nifco Inc. (7988) AI Stock Analysis

• Market Cap: ¥331.18B
• Dividend Yield: 2.27%
• Average Volume (3M): 272.79K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.90
• Revenue Growth: -5.01%
• EPS Growth: 153.39%
• Country: JP
• Employees: 10,226
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): 175.29
• Shares Outstanding: 100,257,050
• 10 Day Avg. Volume: 286,900
• 30 Day Avg. Volume: 272,793
• PEG Ratio: -2.52
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.11
• 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: ¥4,352.00
• Price Target Upside: 26.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: ¥3,848.00 ▲(11.99%Upside)

Nifco Inc.'s strong financial performance is the primary driver of its overall stock score, reflecting its solid financial structure and growth potential. The valuation metrics suggest potential undervaluation, offering a good entry point for investors. Technical analysis provides a mixed view, with some positive momentum indicators balanced by neutral signals.

Nifco Inc. Business Overview & Revenue Model

Company Description

Nifco Inc. (7988) is a Japanese company primarily engaged in the manufacture and sale of industrial plastic parts and components. It operates in the automotive, home appliance, and construction sectors, providing high-quality fastening products, molded parts, and other precision components. The company is known for its innovation in plastic technology, offering solutions that enhance efficiency and performance in various applications.

How the Company Makes Money

Nifco Inc. generates revenue through the production and sale of industrial plastic components, primarily catering to the automotive industry. The company’s core revenue streams involve supplying fasteners and precision-engineered parts to major automobile manufacturers. Additionally, Nifco serves the home appliance and construction industries with its advanced plastic solutions. Strategic partnerships with automotive companies and continuous investment in research and development to innovate new products are significant factors contributing to its earnings. The company's global manufacturing and distribution network also plays a crucial role in its business operations.

Nifco Inc. Financial Statement Overview

Summary

Nifco Inc. presents a solid financial profile with strong profitability, a robust balance sheet, and excellent cash generation capabilities. Improvements in profit margins, equity ratio, and cash flow growth highlight effective management and potential for sustainable growth.

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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	361.88B	353.04B	371.64B	321.77B	283.78B	256.08B
Gross Profit	108.15B	107.20B	101.70B	85.84B	76.51B	70.86B
EBITDA	48.50B	67.59B	46.31B	48.53B	43.69B	41.58B
Net Income	22.76B	44.77B	18.25B	21.17B	22.96B	18.40B
Balance Sheet
Total Assets	362.92B	379.82B	380.40B	359.15B	333.07B	307.13B
Cash, Cash Equivalents and Short-Term Investments	143.47B	147.58B	150.93B	130.48B	113.70B	97.60B
Total Debt	42.55B	35.48B	50.89B	64.46B	70.39B	70.10B
Total Liabilities	108.13B	101.09B	133.35B	133.02B	132.19B	128.48B
Stockholders Equity	251.53B	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: 3436.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 3436 is above the 20-day moving average (MA) of 3360.40, above the 50-day MA of 3408.68, and below the 200-day MA of 3551.29, indicating a neutral trend. The MACD of 5.94 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 35.34 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
7282	77 Outperform	$380.90B	10.48	6.71%	3.67%	-1.06%	-28.59%
5991	77 Outperform	¥352.31B	7.29		0.73%	4.53%	31.50%
7988	74 Outperform	¥331.18B	7.64		2.27%	-5.01%	153.39%
6473	69 Neutral	¥395.95B	30.82	1.72%	4.02%	-0.38%	-65.61%
6471	68 Neutral	¥317.34B	31.56		4.88%	0.99%	24.85%
Sector *	67 Neutral	¥251.91B	13.52	6.48%	2.72%	5.20%	-11.34%
3116	66 Neutral	¥387.09B	22.12	3.66%	4.15%	0.03%	-69.96%

Nifco Inc. Corporate Events

Nifco Inc. Unveils New Management Structure

Nifco Inc. has announced a new management structure following its General Shareholders Meeting and subsequent Board of Directors meeting. Key appointments include Michihiro Fukuo as Director and Head of R&D, and Satoshi Yamahata as a new external Director. These changes are expected to enhance the company’s strategic direction and operational efficiency, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (JP:7988) stock is a Hold with a Yen3500.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Inc. Announces Treasury Stock Disposal for Employee Incentive Scheme

Nifco Inc. has announced a strategic move to dispose of 115,000 shares of its treasury stock through a third-party allotment to the Nifco Employee Stock Ownership Association. This initiative is part of a newly introduced incentive scheme aimed at enhancing employee motivation and increasing the company’s medium- to long-term shareholder value. By granting special incentives to employees, Nifco seeks to strengthen its market position and align employee interests with company growth, potentially benefiting stakeholders through improved operational performance.

The most recent analyst rating on (JP:7988) stock is a Hold with a Yen3500.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Inc. Launches Special Incentive Scheme to Boost Employee Motivation and Shareholder Value

Nifco Inc. has introduced a ‘Special Incentive Scheme’ aimed at enhancing employee motivation and increasing shareholder value over the medium to long term. The scheme involves granting company shares to employees through the Nifco Employee Stock Ownership Association, encouraging participation in company management and aligning employee interests with those of shareholders. This initiative is expected to foster greater employee engagement and potentially improve company performance by aligning employee and shareholder interests.

The most recent analyst rating on (JP:7988) stock is a Hold with a Yen3500.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Inc. Reports Significant Profit Increase for FY2025

Nifco Inc. reported a significant increase in net profit for the fiscal year ending March 31, 2025, attributed to strong performance in its industrial plastic parts and components business. The company also benefited from the resolution of liquidating a consolidated subsidiary, which clarified the timing of reversal of temporary differences on future deductions, leading to the recording of deferred tax assets and contributing to the profit increase.

Nifco Inc. Reports FY2024 Financial Results and Strategic Subsidiary Changes

Nifco Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decrease in net sales by 5% to 353,038 million yen, while operating profit increased by 12% to 49,200 million yen. The company also announced changes in its subsidiaries, with the exclusion of Nifco Germany GmbH and Nifco KTW America Corporation due to business transfers, indicating a strategic shift in its operational focus.

Nifco Inc. Announces Change in Certified Public Accountant

Nifco Inc. announced a change in its certified public accountant, transitioning from KPMG AZSA LLC to Deloitte Tohmatsu LLC, effective after the upcoming shareholders meeting on June 24, 2025. This strategic decision is aimed at bringing a fresh perspective to the company’s audits and ensuring global auditing standards are met, which could enhance the company’s operational integrity and stakeholder confidence.