Nitto Seimo Co., Ltd. (3524) AI Stock Analysis

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Nitto Seimo Co., Ltd.

(TSE/TYO:3524)

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Rating:57Neutral

Price Target:JPY 1,542.00▲(8.67% Upside)

Action:reiterated

Date:09/13/26

The overall score is constrained by weak financial health, primarily due to high debt and negative cash flows, which are significant risk factors. Positively, the stock's valuation is very compelling with a low P/E and high dividend yield, and technical trends are supportive in the short term. The primary risk is that the attractive valuation is a value trap stemming from the company's strained balance sheet.

Positive Factors

Revenue GrowthThe sharp acceleration in annual revenue growth indicates stronger recent demand, volume, pricing, or product mix than in the prior year. If maintained, this broader sales base can improve operating leverage and provide a stronger foundation for earnings over the next several quarters.

Negative Factors

High LeveragePersistently high and rising leverage limits financial flexibility because a larger share of the balance sheet depends on debt financing. It can constrain investment and capital allocation choices, while making shareholder returns more sensitive to earnings volatility and operating setbacks.

Nitto Seimo Co., Ltd. (3524) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.66B
Dividend Yield: 3.52%
Average Volume (3M): 3,846
Price to Earnings (P/E): 5.6
Beta (1Y): 0.38
Revenue Growth: 0.84%
EPS Growth: 40.45%
Country: Japan
Employees: 953
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Manufacturing - Textiles

Nitto Seimo Co., Ltd. Business Overview & Revenue Model

Company Description

Nitto Seimo Co., Ltd. engages in the manufacture and sale of knotless nets in Japan. The company provides trap nets, purse seine nets, fish farming nets, trawl nets, and laver cultivation nets; onshore-related products, including animal damage protec...

How the Company Makes Money

Nitto Seimo primarily makes money by selling seafood products generated through its processing operations. Revenue is driven by (1) product sales volume and (2) pricing/mix across its seafood product lineup, typically realized through distribution to...

Nitto Seimo Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Revenue growth and recovering net income are positives, but declining gross margins, high leverage (D/E 2.17), and volatile cash flows with negative operating and free cash flow in the latest year raise significant concerns about financial stability and debt servicing.

Income Statement

58Neutral

Balance Sheet

42Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2023	Apr 2022
Income Statement
Total Revenue	21.98B	22.10B	21.60B	19.30B	20.90B	18.37B
Gross Profit	4.07B	4.06B	4.04B	3.44B	3.80B	3.53B
EBITDA	1.49B	1.72B	1.67B	1.18B	1.44B	960.84M
Net Income	432.37M	680.23M	534.76M	50.79M	546.90M	190.50M
Balance Sheet
Total Assets	31.18B	31.94B	30.10B	28.22B	29.52B	27.57B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.40B	1.50B	1.17B	1.40B	1.17B
Total Debt	16.98B	17.58B	16.48B	15.45B	16.59B	14.86B
Total Liabilities	23.52B	23.69B	22.64B	21.76B	22.58B	21.23B
Stockholders Equity	7.50B	8.09B	7.29B	6.30B	6.77B	6.19B
Cash Flow
Free Cash Flow	0	-1.34B	397.52M	-472.93M	-715.29M	-2.78B
Operating Cash Flow	0	-96.84M	992.37M	1.09B	138.66M	978.04M
Investing Cash Flow	0	-1.24B	-644.67M	-1.67B	-906.20M	-3.80B
Financing Cash Flow	0	1.17B	-264.92M	547.22M	996.19M	2.99B

Nitto Seimo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1419.00

Price Trends

50DMA1467.18Negative

100DMA1458.64Negative

200DMA1481.11Negative

Market Momentum

MACD-17.43Positive

RSI32.96Neutral

STOCH24.27Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3524, the sentiment is Negative. The current price of 1419.00 is below the 20-day moving average (MA) of 1445.75, below the 50-day MA of 1467.18, and below the 200-day MA of 1481.11, indicating a bearish trend. The MACD of -17.43 indicates Positive momentum. The RSI at 32.96 is Neutral, neither overbought nor oversold. The STOCH value of 24.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3524.

Nitto Seimo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3524 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3109	68Neutral	JPY 12.54B	13.37	―	4.94%	25.31%	-6.13%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3524	57Neutral	JPY 3.66B	5.60	―	3.52%	0.84%	40.45%
JP:3600	56Neutral	JPY 2.42B	-38.98	-0.64%	2.81%	0.32%	56.41%
JP:3202	55Neutral	JPY 3.69B	28.19	―	2.46%	-0.32%	165.86%
JP:3529	53Neutral	JPY 17.55B	-13.18	―	―	-1.28%	-114.44%
JP:3409	42Neutral	JPY 2.62B	-17.02	―	―	9.42%	-43.60%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3524 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3524	Nitto Seimo Co., Ltd.	1419.00	-97.31	-6.42%
JP:3600	FUJIX	1780.00	207.40	13.19%
JP:3109	Shikibo Ltd.	1012.00	27.96	2.84%
JP:3202	Daitobo Co.,Ltd.	121.00	12.38	11.40%
JP:3409	Kitanihon Spinning Co., Ltd.	81.00	-69.00	-46.00%
JP:3529	Atsugi Co., Ltd.	1000.00	-128.00	-11.35%

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: Sep 13, 2026

Nitto Seimo Co., Ltd. AI Stock Analysis