Nisshin Group Holdings Co., Ltd. (8881) AI Stock Analysis

• Market Cap: €28.60B
• Dividend Yield: 3.75%
• Average Volume (3M): 66.13K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.75
• Revenue Growth: -3.22%
• EPS Growth: 18.61%
• Country: JP
• Employees: 700
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 9.43
• Shares Outstanding: 46,951,260
• 10 Day Avg. Volume: 109,150
• 30 Day Avg. Volume: 66,130
• PEG Ratio: -5.20
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -4.34
• 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: €530.04
• Price Target Upside: -11.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥530.00 ▼(-11.37% Downside)

Nisshin Group Holdings Co., Ltd.'s overall stock score is influenced primarily by financial performance challenges, particularly in cash flow and profitability. The valuation component provides some positive offset with a low P/E ratio and robust dividend yield. Technical analysis suggests neutral momentum, with no immediate bullish or bearish signals.

Nisshin Group Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Nisshin Group Holdings Co., Ltd. (8881) is a prominent Japanese company primarily engaged in the food and agriculture sector. Established in 1900, the company operates through several subsidiaries and divisions, focusing on the production and distribution of flour, processed foods, and other agricultural products. Nisshin Group is recognized for its high-quality flour milling, innovative food products, and commitment to sustainability, serving both domestic and international markets.

How the Company Makes Money

Nisshin Group generates revenue primarily through the sale of flour and related products, which constitutes a significant portion of its earnings. The company operates flour mills across Japan and engages in the production of various food items, including ready-to-eat meals and baked goods. Additionally, Nisshin Group benefits from its international operations, exporting products and leveraging partnerships with global distributors. The company's revenue model is further supported by its focus on innovation and product development, enabling it to cater to changing consumer preferences and enhance its market share. Key revenue streams include direct sales to retailers, food service providers, and food manufacturers, along with investments in sustainable practices that reduce costs and improve efficiency.

Nisshin Group Holdings Co., Ltd. Financial Statement Overview

Summary

Nisshin Group Holdings Co., Ltd. faces challenges with declining revenues and profitability. Despite a strong equity base and moderate leverage, cash flow issues pose a significant risk. The company needs to improve its operational efficiency and cash generation to enhance financial health.

Income Statement

The income statement indicates a fluctuating revenue trend with recent declines. The gross profit margin has decreased over the years, suggesting increased cost pressures. Net profit margins have also decreased, indicating reduced profitability. The EBIT and EBITDA margins have slightly improved recently, but overall profitability remains a concern.

Balance Sheet

The balance sheet shows a strong equity base with a relatively low debt-to-equity ratio, indicating financial stability. However, the equity ratio has slightly decreased, reflecting a growing asset base supported by liabilities. Return on equity has been declining, which may signal challenges in generating returns from equity investments.

Cash Flow

Cash flow analysis reveals negative operating cash flows in recent years, raising concerns about cash generation from operations. The company has also experienced negative free cash flows, highlighting potential liquidity challenges. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.28B	76.24B	81.02B	82.35B	81.47B	80.82B
Gross Profit	11.21B	10.41B	10.62B	10.90B	12.35B	12.99B
EBITDA	6.44B	3.88B	3.89B	4.55B	5.61B	5.66B
Net Income	2.67B	2.06B	2.11B	2.76B	3.52B	3.42B
Balance Sheet
Total Assets	128.85B	133.39B	122.00B	120.93B	114.97B	107.46B
Cash, Cash Equivalents and Short-Term Investments	48.98B	54.34B	57.92B	60.94B	61.30B	57.87B
Total Debt	43.83B	44.31B	35.31B	32.41B	32.12B	29.24B
Total Liabilities	60.11B	64.22B	54.58B	55.12B	50.84B	45.89B
Stockholders Equity	67.58B	68.06B	67.20B	65.72B	64.03B	61.43B
Cash Flow
Free Cash Flow	0.00	-5.53B	-617.91M	609.99M	383.27M	11.86B
Operating Cash Flow	0.00	-5.42B	-374.81M	789.82M	840.14M	11.98B
Investing Cash Flow	0.00	2.99B	-1.68B	-541.63M	-2.48B	-7.28B
Financing Cash Flow	0.00	3.39B	-1.04B	-1.34B	1.85B	-1.09B

Nisshin Group Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 598.00
• 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:8881, the sentiment is Positive. The current price of 598 is above the 20-day moving average (MA) of 596.50, above the 50-day MA of 578.62, and above the 200-day MA of 524.53, indicating a bullish trend. The MACD of 9.41 indicates Positive momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 52.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8881.

Nisshin Group Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3452	76 Outperform	¥35.17B	7.47	―	3.38%	23.26%	17.95%
3276	74 Outperform	¥21.08B	11.28	―	4.44%	1.82%	16.62%
8860	70 Outperform	¥29.36B	5.96	―	4.17%	5.13%	-3.96%
8928	70 Outperform	¥23.10B	6.21	―	2.71%	-2.62%	-23.15%
8869	66 Neutral	¥23.28B	4.98	―	3.78%	23.26%	32.18%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8881	62 Neutral	€28.60B	10.69	4.24%	3.75%	-3.22%	18.61%

Nisshin Group Holdings Co., Ltd. Corporate Events

Nisshin Group Holdings Reports Strong Q1 2025 Financial Performance

Nisshin Group Holdings reported a significant improvement in its financial performance for the three months ended June 30, 2025, with net sales increasing by 16.5% year-on-year to ¥14,398 million. This positive trend is reflected in the company’s operating profit, which rose to ¥762 million, marking a substantial recovery from the previous year’s losses. The company’s financial position remains robust, with a slight increase in the equity-to-asset ratio, indicating strong shareholder equity. The forecast for the fiscal year ending March 31, 2026, predicts continued growth with a 10.2% increase in net sales and operating profit, suggesting a stable outlook for stakeholders.