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NITCHO CORPORATION (2961) AI Stock Analysis

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JP:2961

NITCHO CORPORATION

(TSE/TYO:2961)

Select Model
Rating:66Neutral
Price Target:JPY 1,857.00â–²(14.63% Upside)
Action:reiterated
Date:10/24/26

The score is primarily shaped by mixed financial performance: strong solvency and improved profitability are offset by a significant 2025 cash flow reversal. Technicals add support due to an established uptrend, but overbought signals temper the outlook. Valuation and dividend yield are moderately favorable, helping stabilize the overall score.

Positive Factors
Low LeverageThe very low debt-to-equity range of about 0.05–0.09 gives the company a durable solvency buffer in a cyclical machinery industry. Conservative financing can reduce refinancing pressure, preserve capacity to fund operations, and help the business withstand demand volatility over coming quarters.
Negative Factors
Cash Flow ReversalThe sharp reversal to negative operating and free cash flow in 2025 is a material weakness because it reduces internally generated funding despite the low-debt balance sheet. Continued volatility could constrain investment flexibility and make earnings less dependable as a source of liquidity.

NITCHO CORPORATION (2961) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:2961+45.05%EWJ+16.64%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 6.97B
Dividend Yield
4.63%
Average Volume (3M)
2,440
Price to Earnings (P/E)
12.0
Beta (1Y)
-0.07
Revenue Growth
3.41%
EPS Growth
-11.74%
Country
Japan
Employees
532
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

NITCHO CORPORATION Business Overview & Revenue Model

Company Description

Nitcho Corporation, established in Tokyo, Japan, in 1947, specializes in providing comprehensive commercial kitchen solutions within the country. The company's extensive activities include the manufacturing, distribution, import, and export of variou...

NITCHO CORPORATION Financial Statement Overview

Summary

Mixed fundamentals: a very strong, low-leverage balance sheet supports resilience, and profitability improved versus 2022, but revenue and margins have been uneven. The biggest drag is the sharp deterioration in 2025 cash generation, with operating cash flow and free cash flow turning materially negative.

Income Statement

63Positive

Balance Sheet

82Very Positive

Cash Flow

44Neutral
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue19.02B18.12B18.44B17.64B15.47B17.06B
Gross Profit5.39B5.10B5.30B4.57B4.22B4.56B
EBITDA1.04B1.01B1.22B693.38M518.77M784.64M
Net Income572.22M601.13M700.23M332.27M205.93M436.86M
Balance Sheet
Total Assets11.40B13.28B14.59B13.99B12.74B12.54B
Cash, Cash Equivalents and Short-Term Investments2.75B3.49B4.58B4.52B3.07B3.35B
Total Debt208.61M404.92M375.77M411.65M517.12M392.28M
Total Liabilities4.07B5.80B7.55B7.47B6.42B6.70B
Stockholders Equity7.33B7.47B7.04B6.52B6.33B5.83B
Cash Flow
Free Cash Flow-887.46M-887.46M293.16M1.70B-474.67M1.00B
Operating Cash Flow-859.17M-859.17M429.40M1.95B-361.72M1.03B
Investing Cash Flow-10.28M-10.28M-136.24M-260.50M-81.56M-34.66M
Financing Cash Flow-222.90M-222.90M-237.97M-241.80M167.16M-207.72M

NITCHO CORPORATION Technical Analysis

Technical Analysis SentimentPositive
Last Price1620.00

Price Trends

50DMA1494.05Positive
100DMA1476.53Positive
200DMA1341.33Positive

Market Momentum

MACD52.60Negative
RSI57.57Neutral
STOCH35.04Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2961, the sentiment is Positive. The current price of 1620.00 is above the 20-day moving average (MA) of 1524.50, above the 50-day MA of 1494.05, and above the 200-day MA of 1341.33, indicating a bullish trend. The MACD of 52.60 indicates Negative momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 35.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2961.

NITCHO CORPORATION Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:2961 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6360JP:636073OutperformJPY 6.78B15.14―3.31%-5.27%28.28%
JP:6151JP:615169NeutralJPY 29.49B10.55―2.28%2.42%406.25%
JP:2961JP:296166NeutralJPY 7.32B11.97―4.63%3.41%-11.74%
JP:6408JP:640866NeutralJPY 6.62B3.58―2.26%-2.81%186.98%
JP:6203JP:620358NeutralJPY 25.24B31.06―0.98%-7.53%-13.28%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6155JP:615555NeutralJPY 5.92B82.82―1.84%-7.90%―

* General Sector Average

Performance Comparison

0%50%100%JP:2961JP:6151JP:6155JP:6203JP:6360JP:6408Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:2961 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2961NITCHO CORPORATION1620.00521.3847.46%
JP:6151Nitto Kohki Co., Ltd.1576.00-128.36-7.53%
JP:6155Takamatsu Machinery Co., Ltd.543.0079.3117.10%
JP:6203Howa Machinery, Ltd.2034.00680.8650.32%
JP:6360Tokyo Automatic Machinery Works, Ltd.4840.001461.6343.26%
JP:6408Ogura Clutch Co., Ltd.4425.00875.0524.65%
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: Oct 24, 2026