Nippo Ltd. (9913) AI Stock Analysis

• Market Cap: ¥26.87B
• Dividend Yield: 2.8%
• Average Volume (3M): 6.18K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.40
• Revenue Growth: 2.59%
• EPS Growth: 2.00%
• Country: JP
• Employees: 2,830
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 37.84
• Shares Outstanding: 9,127,338
• 10 Day Avg. Volume: 2,630
• 30 Day Avg. Volume: 6,180
• PEG Ratio: -3.18
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 18.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,260.00 ▲(16.01% Upside)

Nippo Ltd. scores well due to its strong financial performance, characterized by consistent revenue growth and a robust balance sheet. The technical analysis suggests a neutral to slightly bearish trend, while the valuation indicates the stock is fairly priced with a reasonable dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Balance Sheet Strength

Low leverage and a ~51% equity ratio provide durable financial resilience, lowering liquidity and refinancing risk during downturns. Strong ROE indicates effective capital use, supporting the company's ability to fund capex, pursue strategic initiatives, and maintain investment-grade financial flexibility over months.

Revenue and Gross Margin Stability

Consistent top-line growth with healthy gross margins signals enduring product demand and cost management. Stable operating margins reflect a resilient business model that can sustain reinvestment and deliver recurring operating cash, supporting medium-term competitiveness and capacity to scale profitably.

Operating Cash Conversion

Strong conversion of earnings into operating cash (OCF/net income ~1.98) demonstrates reliable cash generation, underpinning dividend payments, capex and debt servicing. This durable cash-producing ability enhances financial optionality despite fluctuations in reported earnings.

Negative Factors

Free Cash Flow Decline

A >50% drop in FCF growth materially reduces retained cash for investments and returns, indicating either heavy capex or working-capital strain. Persistently weaker FCF constrains self-funding of growth and dividends, potentially forcing external financing and raising long-term execution risk.

Low Net Profit Margin

A low ~3.1% net margin leaves limited buffer against cost inflation or pricing pressure, reducing retained earnings for reinvestment. Over the medium term, such thin profitability increases sensitivity to input cost shifts and limits the company's ability to accelerate growth without margin improvement.

Modest Revenue and EPS Growth

Revenue and EPS growth around ~2-2.6% signal slow organic expansion, which can limit long-term earnings compounding and shareholder value creation. Without acceleration via new products, market share gains or efficiency improvements, growth may not outpace inflation or competitive pressures over the next several quarters.

Nippo Ltd. Business Overview & Revenue Model

Company Description

Nippo Ltd., together with its subsidiaries, manufactures and trades in industrial materials and plastic molded product in Japan and internationally. The company operates through three segments: Electronics, Mobility, and Medical/Precision Equipment. The Electronics segment offers solid and liquid plastic materials, such as semiconductor sealants, polyimide plastic, heat-radiating plastic, and adhesives; functional films, which include dicing films, die attach films, anistropic conduction films, and temporary fastening tape; PCB materials, photosensitive dry films, and solder materials; oxygen and moisture free packaging materials; and jigs and tools, such as inspection parts, wafer grinding carriers, vespel polyimide materials, teflon coatings, and various metal surface treatments. This segment also offers foamed thermal insulation for piping, plastic three-way valves, and joints, insulating materials, ion-exchange resins, assembled units, IC cards and tags, and radio-frequency identification devices. The Medical/Precision Equipment segment offers disposable products, such as waste fluid bag units and drug administration units; medical device components; cupsaneler waste box for urine sample cups; and precision components for printers, wristwatches, and instant cameras. The Mobility segment offers power train components, body system components, electrical system components, aluminum casting, machined metal parts, processed plastic parts, and surface treatments for automakers and automobile parts makers. It also operates contracted design, products for trucks, and products for plastic models. Nippo Ltd. was founded in 1940 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Nippo Ltd. generates revenue through multiple streams, primarily by selling construction materials such as ready-mixed concrete, asphalt, and related infrastructure solutions to contractors, builders, and government projects. The company capitalizes on long-term contracts with clients in the public and private sectors, ensuring a steady demand for its products. Additionally, Nippo Ltd. benefits from strategic partnerships with construction firms and engineering companies, which enhance its market reach and project participation. The company's focus on sustainability and innovative construction solutions also opens up new revenue opportunities, such as eco-friendly building materials and technology-driven construction services.

Nippo Ltd. Financial Statement Overview

Summary

Nippo Ltd. demonstrates strong financial performance with consistent revenue growth and stable profitability margins. The balance sheet is robust with low leverage and effective equity utilization. However, cash flow management presents challenges, particularly in capital investments.

Income Statement

Nippo Ltd. has demonstrated consistent revenue growth, with a noticeable increase of 7.08% from 2024 to 2025. The gross profit margin remains strong at 16.19% for 2025, indicating efficient production cost management. The net profit margin stood at 3.11% in 2025, slightly decreasing from the previous year, which suggests room for improvement in cost controls. EBIT and EBITDA margins are stable, reflecting a healthy operating performance.

Balance Sheet

The balance sheet of Nippo Ltd. shows a solid equity base with an equity ratio of 50.89% in 2025, highlighting financial stability and low leverage. The debt-to-equity ratio is favorable at 0.19, indicating conservative borrowing practices. Return on Equity (ROE) is strong at 8.44%, showcasing effective utilization of equity to generate profits. Overall, the company maintains a robust balance sheet with a healthy liquidity position.

Cash Flow

Nippo Ltd.'s operating cash flow to net income ratio is 1.98 in 2025, suggesting strong cash generation relative to earnings. However, the free cash flow growth rate decreased significantly by 51.69% from the previous year, reflecting potential challenges in capital investment management. The free cash flow to net income ratio is 0.82, indicating adequate cash generation to cover net income, but highlighting the need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.16B	44.89B	41.92B	38.89B	35.49B	39.98B
Gross Profit	7.45B	7.56B	7.17B	6.81B	5.90B	5.14B
EBITDA	3.16B	3.15B	3.46B	3.15B	2.71B	1.33B
Net Income	1.46B	1.40B	1.46B	1.27B	1.03B	12.00M
Balance Sheet
Total Assets	32.95B	32.48B	30.75B	28.67B	26.09B	24.70B
Cash, Cash Equivalents and Short-Term Investments	6.32B	6.23B	5.68B	4.91B	4.58B	2.94B
Total Debt	4.69B	2.80B	2.79B	3.71B	4.08B	3.70B
Total Liabilities	17.42B	15.94B	15.96B	16.15B	15.72B	15.71B
Stockholders Equity	15.52B	16.53B	14.79B	12.53B	10.36B	8.99B
Cash Flow
Free Cash Flow	0.00	1.15B	2.37B	1.65B	1.21B	550.00M
Operating Cash Flow	0.00	2.77B	3.68B	2.98B	2.24B	1.59B
Investing Cash Flow	0.00	-1.68B	-1.56B	-1.61B	-291.00M	-438.00M
Financing Cash Flow	0.00	-1.07B	-1.64B	-1.38B	-272.00M	-2.27B

Nippo Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2810.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9913, the sentiment is Positive. The current price of 2810 is below the 20-day moving average (MA) of 2826.30, above the 50-day MA of 2772.46, and above the 200-day MA of 2629.76, indicating a bullish trend. The MACD of 29.54 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 89.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9913.

Nippo Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.89B	13.08	―	2.89%	6.15%	2.98%
6958	76 Outperform	¥36.95B	14.54	―	3.75%	2.98%	-56.70%
6626	73 Outperform	¥27.32B	8.55	―	1.78%	4.47%	12.28%
6874	72 Outperform	¥23.80B	10.50	―	2.84%	8.78%	16.25%
9913	71 Outperform	¥26.87B	18.90	―	2.80%	2.59%	2.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥37.67B	34.83	―	1.95%	6.10%	―

Nippo Ltd. Corporate Events

Nippo Ltd. Reports Mixed Financial Results for First Half of 2025

Nippo Ltd. reported a slight increase in net sales for the six months ended September 30, 2025, with a notable improvement in operating profit by 12.8% year-on-year. Despite the positive growth in profits, the company’s comprehensive income showed a negative trend, and the equity-to-asset ratio decreased, indicating potential challenges in financial stability.

The most recent analyst rating on (JP:9913) stock is a Buy with a Yen2842.00 price target. To see the full list of analyst forecasts on Nippo Ltd. stock, see the JP:9913 Stock Forecast page.