Nipro (8086) AI Stock Analysis

• Market Cap: €221.81B
• Dividend Yield: 2.55%
• Average Volume (3M): 476.69K
• Price to Earnings (P/E): 43.4
• Beta (1Y): 0.46
• Revenue Growth: 8.46%
• EPS Growth: -50.45%
• Country: JP
• Employees: 38,117
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -9.07
• Shares Outstanding: 171,459,470
• 10 Day Avg. Volume: 349,550
• 30 Day Avg. Volume: 476,690
• PEG Ratio: 0.20
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €1,600.26
• Price Target Upside: 17.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Nipro's overall score reflects strong revenue growth but is tempered by high financial leverage and negative cash flow, which pose risks. The bearish technical indicators and high valuation further highlight the need for caution. Investors should monitor financial improvements and technical trends closely.

Nipro Business Overview & Revenue Model

Company Description

Nipro Corporation, together with its subsidiaries, engages in the medical devices, pharmaceuticals, and pharma packaging businesses. The company's Medical Device business develops, manufactures, and sells various disposable medical products comprising renal, intervention and anesthesiology, injection and infusion, dialysis, cardiopulmonary, diabetic, and cell cultures products; and sells artificial organ-related products, and generic and kit products. Its Pharmaceutical business provides pharmaceutical combination products, including dual chamber bags, pre-filled syringes, and half-type kits; and contract manufacturing services for orally administered drugs, injectables, and external preparations. The company's Pharma Packaging business offers glass vials, ampoules, syringes, and cartridges; glass tubes; glass forming machinery; glass bulbs for vacuum flasks; and other parts of pharmaceutical packaging, such as rubber plugs. Its Other business provides thermostable enzymes for clinical chemistry. The company also offers business management services. Nipro Corporation serves customers in Japan, the Americas, Europe, and rest of Asia. The company was founded in 1947 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nipro Corporation generates revenue through the sale of its medical devices, pharmaceuticals, and pharmaceutical packaging products. The company operates through various segments, with a significant portion of its revenue coming from medical-related products such as dialysis machines and disposables. Additionally, Nipro earns from its pharmaceutical division which produces injectable drugs and oral medications, and its pharma packaging segment which offers services and products for drug delivery systems. The company's global reach and partnerships with healthcare facilities and providers contribute to its revenue generation. Nipro also invests in research and development to enhance its product offerings and maintain competitive advantage in the healthcare industry.

Nipro Financial Statement Overview

Summary

Nipro shows strong revenue growth and stable profit margins, but high leverage and negative free cash flow are concerning. Improving profitability and cash flow sustainability is essential for enhanced financial stability.

Income Statement

Nipro has demonstrated a strong revenue growth trend, with a notable increase in total revenue from 545.199 billion to 626.932 billion over the TTM. Gross profit margin is healthy at 29.5% and net profit margin is moderate at 0.8% for TTM, indicating controlled costs but limited profitability. EBIT margin remains stable at 3.5%, while EBITDA margin is robust at 13.9%. The revenue growth rate has been positive, showcasing effective strategies in revenue generation.

Balance Sheet

Nipro's balance sheet reflects a solid equity base with stockholders' equity increasing to 233.241 billion. The debt-to-equity ratio is relatively high at 2.85, indicating significant leverage which could pose risks. Return on equity is modest at 2.2%, suggesting moderate returns for equity holders. The equity ratio stands at 20.4%, reflecting a stable financial structure with room for improvement in asset utilization.

Cash Flow

The cash flow statement indicates challenges with free cash flow, which has been consistently negative in recent periods, highlighting potential issues in cash generation relative to capital expenditures. Operating cash flow to net income ratio is unavailable for TTM, but the previous period showed a strong 6.57 ratio, suggesting operational efficiency historically. The absence of positive free cash flow to net income ratio in TTM is concerning for liquidity and reinvestment capabilities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
626.93B	586.78B	545.20B	494.79B	455.56B	442.52B
	Gross Profit
184.97B	171.32B	163.45B	149.27B	138.84B	134.21B
	EBIT
22.18B	22.34B	17.73B	23.88B	27.63B	26.42B
	EBITDA
87.02B	84.62B	66.47B	70.05B	70.25B	68.25B
	Net Income Common Stockholders
5.07B	11.11B	4.57B	13.46B	14.21B	-12.28B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.49B	99.67B	89.68B	95.34B	90.27B	95.92B
	Total Assets
1.15T	1.11T	1.03T	930.32B	854.40B	831.87B
	Total Debt
665.76B	635.69B	605.93B	564.85B	545.28B	541.32B
	Net Debt
580.27B	536.02B	516.25B	469.51B	455.01B	445.39B
	Total Liabilities
874.79B	840.03B	785.23B	730.46B	680.35B	670.63B
	Stockholders Equity
233.24B	232.66B	206.32B	185.24B	161.02B	148.78B
Cash Flow		Free Cash Flow
0.00	-21.33B	-74.44B	-11.59B	14.91B	-20.70B
	Operating Cash Flow
0.00	72.94B	10.39B	68.21B	66.09B	37.25B
	Investing Cash Flow
0.00	-87.08B	-71.74B	-78.43B	-45.07B	-58.27B
	Financing Cash Flow
0.00	22.14B	43.08B	10.30B	-22.06B	-4.57B

Nipro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1360.00
• 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:8086, the sentiment is Positive. The current price of 1360 is above the 20-day moving average (MA) of 1289.60, above the 50-day MA of 1308.50, and above the 200-day MA of 1341.80, indicating a bullish trend. The MACD of -3.33 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8086.

Nipro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6458	79 Outperform	¥94.48B	11.54		4.09%	8.37%	30.04%
8086	54 Neutral	€221.81B	43.38	2.07%	2.55%	8.46%	-50.45%
Sector *	52 Neutral	$5.21B	3.49	-43.30%	2.83%	14.70%	-0.24%

Nipro Corporate Events

Nipro Corporation Announces Leadership Changes to Drive Growth

Nipro Corporation announced a change in its leadership structure to strengthen management and support its growth objectives. Tsuyoshi Yamazaki will become the new President and Representative Director, bringing extensive experience in the company’s core business areas, while Yoshihiko Sano will transition to the role of Chairperson, continuing to contribute to the company’s strategic direction.