Nifco Inc. (7988) AI Stock Analysis

• Market Cap: ¥420.92B
• Dividend Yield: 1.75%
• Average Volume (3M): 224.60K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.89
• Revenue Growth: -4.69%
• EPS Growth: 171.87%
• Country: JP
• Employees: 10,226
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 103.28
• 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: ¥4,700.00
• Price Target Upside: 2.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥5,171.00 ▲(13.23% 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.

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 improved profitability and growth trajectory in its income statement, a robust balance sheet with strong equity backing and low leverage, and excellent cash flow management. These factors indicate a well-managed financial structure with 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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	50.27B	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: 4567.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4567 is above the 20-day moving average (MA) of 4502.90, above the 50-day MA of 4399.21, and above the 200-day MA of 3752.68, indicating a bullish trend. The MACD of 57.90 indicates Positive momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 59.54 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	―	¥420.92B	9.22	―	1.75%	-4.69%	171.87%
5991	―	¥582.50B	13.84	―	2.30%	3.38%	-3.92%
7282	―	$478.02B	12.60	7.16%	2.79%	-1.88%	-26.03%
3116	―	$421.68B	22.38	4.26%	3.56%	-1.03%	-64.10%
6471	―	¥373.27B	37.12	―	4.34%	-1.15%	-13.31%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6473	―	$487.53B	52.29	1.24%	3.62%	-1.82%	-72.16%

Nifco Inc. Corporate Events

Nifco Inc. Reports Progress in Treasury Stock Acquisition

Nifco Inc. has announced the ongoing acquisition of its own shares, with 746,000 common shares purchased at a total price of approximately 3 billion yen between August 1st and August 31st, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 1.5 million shares by October 30th, 2025, with the aim of enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:7988) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Nifco Inc. stock, see the JP:7988 Stock Forecast page.

Nifco Inc. Announces Share Buyback Plan to Enhance Capital Efficiency

Nifco Inc. announced a plan to acquire up to 1.5 million of its own shares, representing 1.56% of the total issued shares, with an acquisition budget capped at 5 billion yen. This move aims to enhance capital efficiency and provide financial flexibility in response to market changes, potentially impacting shareholder value and market perception.

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 Mixed Financial Results for Q1 FY2025

Nifco Inc. reported its consolidated financial results for the first quarter of fiscal year 2025, showing a slight decrease in net sales to 85,541 million yen, down 0.7% year-on-year. Despite this, the company achieved a 9.3% increase in operating profit, reaching 12,999 million yen. The results indicate a mixed performance with a notable decline in comprehensive income by 89.6%, while profit attributable to owners of the parent increased by 11.2%. The financial position remains strong with a net assets ratio of 76.5%, reflecting stability in the company’s operations. The forecast for FY2025 anticipates a slight decrease in net sales and ordinary profit but an increase in dividends per share, suggesting a focus on shareholder returns.

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. Completes Treasury Share Disposal with Adjustments

Nifco Inc. announced the completion of its payment procedures for the disposal of treasury shares to the Employee Stock Ownership Association, following a decision made in May 2025. The number of shares and total disposal value were adjusted due to partial forfeiture, impacting the company’s financial allocation and employee stock ownership structure.

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.