NISSO PRONITY Co., Ltd. (3440) AI Stock Analysis

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NISSO PRONITY Co., Ltd.

(TSE/TYO:3440)

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Rating:54Neutral

Price Target:JPY 734.00▼(-5.41% Downside)

Action:reiterated

Date:10/22/26

The score is held back primarily by weakening profitability, rising leverage, and volatile cash-flow quality despite strong revenue growth. Technicals also point to a weak trend with negative momentum. Offsetting these risks, the stock looks relatively attractive on valuation with a low P/E and a high dividend yield.

Positive Factors

Improving gross marginThe improvement in gross margin during 2026 suggests that the company retained more value from its sales at the gross-profit level. Sustaining that progress could help offset other profitability pressures and create a path toward stronger operating results if cost and overhead performance also stabilize.

Negative Factors

Volatile cash conversionCash generation has been positive recently but remains inconsistent across the multi-year record. The 2026 free-cash-flow decline and prior negative years weaken confidence that accounting earnings will convert steadily into funding, while modest operating cash flow relative to debt limits balance-sheet support.

NISSO PRONITY Co., Ltd. (3440) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.42B
Dividend Yield: 5.41%
Average Volume (3M): 22.17K
Price to Earnings (P/E): 9.7
Beta (1Y): 0.83
Revenue Growth: -6.62%
EPS Growth: -43.28%
Country: Japan
Employees: 695
Sector: Industrials
Sector Strength: 63
Industry: Manufacturing - Metal Fabrication

NISSO PRONITY Co., Ltd. Business Overview & Revenue Model

Company Description

NISSO GROUP Co.,Ltd., together with its subsidiaries, engages in the planning, design, processing, manufacturing, and sale of various metal products in Japan. It operates through Metal Processing Business, Chemical Products Business, Construction Bus...

NISSO PRONITY Co., Ltd. Financial Statement Overview

Summary

Revenue growth is strong, but profitability has deteriorated meaningfully (net margin down to ~2.4% in 2026 and net income declining). Balance-sheet risk increased as leverage rose sharply (debt-to-equity ~1.31 in 2026) and ROE softened (~4.0%). Cash flow is positive in 2025–2026 but volatile and weakened in 2026, with modest operating cash flow relative to debt.

Income Statement

56Neutral

Balance Sheet

45Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	21.51B	21.51B	23.04B	17.69B	12.55B	7.37B
Gross Profit	5.77B	5.77B	5.62B	4.81B	2.69B	1.66B
EBITDA	1.65B	1.65B	2.15B	1.90B	806.70M	747.20M
Net Income	517.00M	517.00M	917.00M	1.09B	1.52B	154.63M
Balance Sheet
Total Assets	35.10B	35.10B	27.08B	22.41B	21.89B	14.48B
Cash, Cash Equivalents and Short-Term Investments	10.98B	10.98B	7.75B	6.15B	7.29B	5.75B
Total Debt	16.91B	16.91B	10.21B	7.21B	7.07B	3.13B
Total Liabilities	22.14B	22.14B	14.43B	10.35B	10.72B	4.75B
Stockholders Equity	12.96B	12.96B	12.65B	12.06B	11.16B	9.73B
Cash Flow
Free Cash Flow	0	1.59B	2.33B	-761.72M	290.97M	-1.77B
Operating Cash Flow	0	2.40B	2.92B	-186.66M	668.10M	-519.15M
Investing Cash Flow	0	-901.00M	-3.93B	-455.40M	-1.50B	-673.59M
Financing Cash Flow	0	2.21B	2.55B	-202.70M	2.15B	550.17M

NISSO PRONITY Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price776.00

Price Trends

50DMA835.42Negative

100DMA855.06Negative

200DMA888.75Negative

Market Momentum

MACD-21.83Positive

RSI43.08Neutral

STOCH51.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3440, the sentiment is Negative. The current price of 776.00 is below the 20-day moving average (MA) of 794.80, below the 50-day MA of 835.42, and below the 200-day MA of 888.75, indicating a bearish trend. The MACD of -21.83 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 51.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3440.

NISSO PRONITY Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:3440 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3447	86Outperform	JPY 12.61B	6.70	―	3.94%	9.58%	34.98%
JP:3449	71Outperform	JPY 56.92B	14.46	―	2.25%	22.43%	106.00%
JP:3441	65Neutral	JPY 6.72B	5.54	―	2.96%	43.40%	57.85%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:3440	54Neutral	JPY 4.53B	9.70	―	5.41%	-6.62%	-43.28%
JP:2962	38Underperform	JPY 14.25B	2519.05	―	―	11.41%	―
JP:5994	37Underperform	JPY 3.71B	-1.18	―	2.92%	3.08%	-260.66%

* Industrials Sector Average

Performance Comparison

JP:3440 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3440	NISSO PRONITY Co., Ltd.	776.00	-122.79	-13.66%
JP:2962	TECNISCO LTD.	1607.00	1142.00	245.59%
JP:3441	Sanno Co., Ltd.	1521.00	562.46	58.68%
JP:3447	Shinwa Co.,Ltd.	914.00	53.33	6.20%
JP:3449	TECHNOFLEX CORPORATION	3250.00	1456.77	81.24%
JP:5994	Fine Sinter Co., Ltd.	855.00	-1031.47	-54.68%

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 22, 2026

NISSO PRONITY Co., Ltd. AI Stock Analysis