Nagase Brothers, Inc. (9733) AI Stock Analysis

• Market Cap: ¥67.94B
• Dividend Yield: 4.28%
• Average Volume (3M): 13.19K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.32
• Revenue Growth: 15.54%
• EPS Growth: 67.62%
• Country: JP
• Employees: 1,398
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 53.33
• Shares Outstanding: 30,445,227
• 10 Day Avg. Volume: 11,910
• 30 Day Avg. Volume: 13,190
• PEG Ratio: -0.99
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 7.09
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,460.00 ▲(5.26% Upside)

Nagase Brothers, Inc. demonstrates strong financial performance with consistent revenue growth and robust cash flow generation. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The stock's valuation is attractive, supported by a reasonable P/E ratio and a high dividend yield. These factors collectively contribute to a solid overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability and expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and debt reduction, which supports long-term growth.

Operational Efficiency

Efficient cost management through stable gross margins suggests effective operational controls, contributing to sustained profitability.

Negative Factors

Declining Return on Equity

A declining return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence.

Net Profit Margin Decline

Decreasing net profit margins suggest difficulties in maintaining profitability, which could hinder long-term financial performance.

Leverage Concerns

Moderate leverage levels can constrain financial flexibility, potentially limiting the company's ability to invest in growth opportunities.

Nagase Brothers, Inc. Business Overview & Revenue Model

Company Description

Nagase Brothers Inc. provides education services in Japan. It operates high schools, preparatory schools, junior high schools, business schools, elementary schools, and swimming schools; and offers entrance exam, online schools and english schools, as well as publishes reference books. Nagase Brothers Inc. was founded in 1971 and is headquartered in Musashino, Japan.

How the Company Makes Money

Nagase Brothers generates revenue through several key streams, including the sale of industrial chemicals and materials to various sectors such as manufacturing and construction. The company's revenue model is built on wholesale distribution and direct sales to manufacturers, leveraging established relationships with suppliers to maintain a competitive edge. Significant partnerships with major chemical manufacturers amplify its product offerings, allowing the company to cater to diverse customer needs. Additionally, Nagase Brothers may engage in value-added services such as logistics and technical support, further enhancing its revenue potential.

Nagase Brothers, Inc. Financial Statement Overview

Summary

Nagase Brothers, Inc. exhibits consistent revenue growth and efficient operations, as reflected in stable margins. The balance sheet shows a balanced leverage position, but there are concerns regarding declining return on equity. The cash flow statement indicates strong cash generation and improved free cash flow, highlighting financial stability. Overall, the company is well-positioned in the Education & Training Services industry, with room for improved profitability.

Income Statement

Nagase Brothers, Inc. has shown consistent revenue growth over the years, with a revenue growth rate of 4.28% in the latest year. The gross profit margin stands at 24.97% for the most recent year, indicating efficient cost management. However, the net profit margin has decreased from 4.91% to 3.54%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are relatively stable, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.96, indicating a moderate level of leverage. The return on equity has decreased from 11.78% to 6.27%, reflecting lower returns for shareholders. However, the equity ratio has improved slightly to 34.59%, showing a stronger equity position relative to total assets.

Cash Flow

Nagase Brothers, Inc. has improved its free cash flow significantly, with a growth rate of 238.34% over the past year. The operating cash flow to net income ratio is strong at 4.19, demonstrating robust cash generation relative to net income. The free cash flow to net income ratio also improved, indicating enhanced cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.83B	55.26B	52.99B	52.35B	49.41B	45.85B
Gross Profit	14.93B	13.80B	14.33B	15.01B	15.54B	15.26B
EBITDA	7.62B	7.03B	7.44B	8.89B	7.62B	6.21B
Net Income	2.35B	1.96B	2.60B	4.00B	3.44B	2.43B
Balance Sheet
Total Assets	86.74B	90.11B	88.29B	78.10B	76.56B	71.71B
Cash, Cash Equivalents and Short-Term Investments	15.37B	18.57B	26.47B	19.53B	21.47B	21.87B
Total Debt	30.69B	29.98B	35.64B	26.28B	28.95B	27.97B
Total Liabilities	57.04B	58.93B	59.52B	51.66B	53.45B	51.12B
Stockholders Equity	29.69B	31.17B	28.77B	26.45B	23.11B	20.59B
Cash Flow
Free Cash Flow	0.00	6.75B	1.99B	2.08B	3.73B	4.50B
Operating Cash Flow	0.00	8.20B	4.07B	4.68B	5.78B	6.34B
Investing Cash Flow	0.00	-7.78B	-1.95B	-2.85B	-5.54B	-1.33B
Financing Cash Flow	0.00	-8.31B	4.75B	-3.82B	-720.00M	-210.00M

Nagase Brothers, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2337.00
• 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:9733, the sentiment is Positive. The current price of 2337 is above the 20-day moving average (MA) of 2312.35, above the 50-day MA of 2140.74, and above the 200-day MA of 1938.81, indicating a bullish trend. The MACD of 55.59 indicates Positive momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 58.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9733.

Nagase Brothers, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9795	75 Outperform	¥40.17B	14.29	―	3.54%	4.95%	9.54%
9733	72 Outperform	¥67.94B	18.17	―	4.28%	15.54%	67.62%
4718	70 Outperform	¥43.86B	17.19	―	2.58%	7.41%	22.70%
9470	70 Outperform	¥44.78B	13.75	―	2.33%	7.30%	60.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%