Nitto Fuji Flour Milling Co., Ltd. (2003) AI Stock Analysis

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Nitto Fuji Flour Milling Co., Ltd.

(TSE/TYO:2003)

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Rating:77Outperform

Price Target:JPY 2,269.00▲(10.68% Upside)

Action:reiterated

Date:11/10/26

The score is primarily supported by strong financial stability (very low leverage) and a positive price trend above key moving averages. Offsetting factors include recent margin compression and weaker cash conversion versus net income, while valuation is reasonable but not notably cheap despite a supportive ~3.5% dividend yield.

Positive Factors

Conservative Balance SheetExceptionally low leverage gives Nitto Fuji substantial financial flexibility and reduces the burden of interest or refinancing obligations. A growing equity base further strengthens resilience, allowing the company to sustain operations and pursue investment through changing business conditions.

Negative Factors

Margin CompressionRecent margin compression means revenue growth is converting into less operating profit than before, weakening the quality of earnings expansion. If this persists, it could constrain profitability, reduce returns on the company’s growing capital base, and limit operating leverage.

Nitto Fuji Flour Milling Co., Ltd. (2003) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 75.93B
Dividend Yield: 3.41%
Average Volume (3M): 27.37K
Price to Earnings (P/E): 20.7
Beta (1Y): 0.24
Revenue Growth: -0.06%
EPS Growth: 6.97%
Country: Japan
Employees: 799
Sector: Consumer Defensive
Sector Strength: 62
Industry: Agricultural Farm Products

Nitto Fuji Flour Milling Co., Ltd. Business Overview & Revenue Model

Company Description

Nitto Fuji Flour Milling Co.,Ltd. operates within Japan, specializing in the production and distribution of various milled grain products. Their core offerings include different types of wheat flour and bran. Beyond these, the company also supplies a...

How the Company Makes Money

Nitto Fuji Flour Milling makes money primarily by selling milled wheat flour to business customers, with revenue driven by sales volume, product mix (e.g., different flour grades tailored to end uses such as bread, noodles, or confectionery), and con...

Nitto Fuji Flour Milling Co., Ltd. Financial Statement Overview

Summary

Overall fundamentals are solid, led by an exceptionally conservative balance sheet (minimal leverage and a growing equity base). Income performance shows strong 2026 revenue growth but with margin compression and lower net income versus 2024–2025. Cash flow is positive again, but cash conversion is inconsistent, with operating cash flow covering only about half of net income in 2025–2026 and free cash flow below net income in the last three years.

Income Statement

74Positive

Balance Sheet

92Very Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	72.67B	72.78B	72.34B	72.60B	69.54B	59.34B
Gross Profit	16.93B	16.81B	17.21B	16.59B	15.93B	14.48B
EBITDA	5.71B	5.58B	6.94B	7.33B	7.11B	5.70B
Net Income	3.29B	3.32B	3.55B	4.24B	3.96B	3.71B
Balance Sheet
Total Assets	64.20B	63.74B	62.95B	64.24B	60.94B	55.87B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.18B	10.43B	9.80B	7.97B	9.81B
Total Debt	400.00M	400.00M	420.00M	400.00M	500.00M	503.00M
Total Liabilities	14.84B	13.63B	13.52B	14.56B	15.38B	14.11B
Stockholders Equity	49.28B	50.03B	49.35B	49.62B	45.50B	41.70B
Cash Flow
Free Cash Flow	0	3.06B	2.39B	3.21B	-377.00M	508.00M
Operating Cash Flow	0	4.67B	5.05B	6.50B	2.24B	2.17B
Investing Cash Flow	0	-903.00M	-2.19B	-2.98B	-2.82B	-1.56B
Financing Cash Flow	0	-2.59B	-2.28B	-1.69B	-1.49B	-1.44B

Nitto Fuji Flour Milling Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2050.00

Price Trends

50DMA1882.79Positive

100DMA1810.45Positive

200DMA1770.44Positive

Market Momentum

MACD40.48Negative

RSI66.35Neutral

STOCH89.18Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2003, the sentiment is Positive. The current price of 2050.00 is above the 20-day moving average (MA) of 1957.25, above the 50-day MA of 1882.79, and above the 200-day MA of 1770.44, indicating a bullish trend. The MACD of 40.48 indicates Negative momentum. The RSI at 66.35 is Neutral, neither overbought nor oversold. The STOCH value of 89.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2003.

Nitto Fuji Flour Milling Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:2003 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2003	77Outperform	JPY 75.60B	20.68	―	3.41%	-0.06%	6.97%
JP:1379	74Outperform	JPY 65.96B	10.73	―	2.64%	3.50%	17.03%
JP:9955	74Outperform	JPY 32.45B	15.59	―	0.95%	18.23%	-37.93%
JP:2292	69Neutral	JPY 86.15B	10.41	―	3.95%	7.88%	48.11%
JP:2004	63Neutral	JPY 127.33B	13.98	―	3.46%	4.20%	-6.67%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:2938	56Neutral	JPY 59.89B	21.32	―	0.68%	20.88%	34.54%

* Consumer Defensive Sector Average

Performance Comparison

JP:2003 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2003	Nitto Fuji Flour Milling Co., Ltd.	2050.00	409.68	24.98%
JP:1379	Hokuto Corporation	2085.00	240.19	13.02%
JP:2004	Showa Sangyo Co., Ltd.	3905.00	1011.46	34.96%
JP:2292	S Foods Inc.	2708.00	231.16	9.33%
JP:2938	Okamura Foods Co. Ltd.	1184.00	-3.14	-0.26%
JP:9955	Yonkyu Co., Ltd.	2645.00	98.97	3.89%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 10, 2026

Nitto Fuji Flour Milling Co., Ltd. AI Stock Analysis