Nippon Pallet Pool Co. (4690) AI Stock Analysis

• Market Cap: ¥3.25B
• Dividend Yield: 1.96%
• Average Volume (3M): 4.66K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.65
• Revenue Growth: -5.18%
• EPS Growth: 0.36%
• Country: JP
• Employees: 102
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 50.80
• Shares Outstanding: 1,620,000
• 10 Day Avg. Volume: 2,700
• 30 Day Avg. Volume: 4,656
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 70 Neutral
• Price Target: ¥2,148.00 ▲(6.55% Upside)

Nippon Pallet Pool Co. has a stable financial foundation with strong operational efficiency, but faces challenges in revenue growth and cash flow management. The stock's valuation is attractive, offering a low P/E ratio and a reasonable dividend yield. Technical indicators are mixed, with bearish momentum and potential oversold conditions. The absence of recent earnings call data and corporate events limits further insights.

Nippon Pallet Pool Co. Business Overview & Revenue Model

Company Description

Nippon Pallet Pool Co., Ltd. engages in the rental of a pallet pool system that enables corporate activities and supports physical distribution in Japan. Its pallet pool system is used for to transport various consumer and industrial goods, and raw materials. Nippon Pallet Pool Co., Ltd. was incorporated in 1972 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nippon Pallet Pool Co. generates revenue primarily through the rental and leasing of pallets and related logistics equipment. The company offers a comprehensive pallet pooling system, allowing clients to rent pallets as needed, reducing the need for companies to invest in their own pallet inventories. This model provides a cost-effective solution for businesses, as they only pay for the pallets they use. Revenue is bolstered by long-term contracts with companies in various industries, including manufacturing, retail, and food and beverage, which require consistent and reliable pallet supply chains. Additionally, Nippon Pallet Pool Co. may engage in partnerships with logistics and supply chain companies to expand its reach and enhance service offerings, contributing to its earnings.

Nippon Pallet Pool Co. Financial Statement Overview

Summary

Nippon Pallet Pool Co. has a stable financial position with strong EBITDA margins and conservative debt levels. However, challenges in revenue growth and free cash flow management could impact future profitability.

Income Statement

Nippon Pallet Pool Co. shows a mixed performance in its income statement. The company experienced a decline in total revenue from the previous year, indicating a negative revenue growth rate of -8.54%. The gross profit margin stood at 21.3%, and the net profit margin was 4.47%, both reflecting moderate profitability. The EBITDA margin was strong at 36.39%, showcasing operational efficiency. However, the EBIT margin was lower at 5.32%, suggesting potential operational cost pressures.

Balance Sheet

The balance sheet of Nippon Pallet Pool Co. is relatively stable, with a debt-to-equity ratio of 0.35, indicating conservative leverage. The return on equity (ROE) was 4.8%, which is moderate, and the equity ratio was 63.6%, reflecting strong equity financing and financial stability. The company maintains a healthy balance between debt and equity, with a focus on equity financing.

Cash Flow

Cash flow analysis reveals some challenges with a significant decline in free cash flow growth rate of -44.2%. The operating cash flow to net income ratio was favorable at 7.32, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio was lower at 2.92, suggesting potential issues with capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.92B	6.94B	7.58B	7.39B	7.09B	6.97B
Gross Profit	1.54B	1.54B	1.86B	2.07B	1.46B	1.54B
EBITDA	2.48B	2.52B	3.18B	3.19B	2.89B	3.02B
Net Income	317.16M	310.01M	527.49M	833.29M	272.85M	452.91M
Balance Sheet
Total Assets	9.89B	10.16B	11.20B	12.10B	10.36B	10.24B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.30B	1.61B	897.49M	898.84M	1.01B
Total Debt	2.11B	2.26B	2.92B	3.56B	3.14B	3.34B
Total Liabilities	3.44B	3.70B	4.86B	6.27B	5.30B	5.32B
Stockholders Equity	6.45B	6.46B	6.34B	5.84B	5.06B	4.91B
Cash Flow
Free Cash Flow	0.00	906.29M	1.62B	-486.70M	41.96M	743.10M
Operating Cash Flow	0.00	2.27B	3.21B	3.17B	2.75B	2.95B
Investing Cash Flow	0.00	-1.38B	-1.42B	-3.61B	-2.72B	-2.17B
Financing Cash Flow	0.00	-1.20B	-1.08B	446.28M	-141.66M	-511.31M

Nippon Pallet Pool Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2016.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4690, the sentiment is Positive. The current price of 2016 is above the 20-day moving average (MA) of 2006.55, above the 50-day MA of 1980.96, and above the 200-day MA of 1748.50, indicating a bullish trend. The MACD of 13.91 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 76.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4690.

Nippon Pallet Pool Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7923	―	¥4.52B	7.39	―	1.97%	6.34%	-10.00%
7131	―	¥4.35B	9.13	―	1.43%	10.54%	40.97%
3944	―	¥2.52B	7.07	―	2.10%	0.63%	31.77%
4690	―	¥3.25B	11.65	―	1.96%	-5.18%	0.36%
3953	―	¥2.82B	―	―	6.19%	2.82%	-140.06%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7800	―	¥1.92B	―	―	3.99%	2.11%	-43.39%

Nippon Pallet Pool Co. Corporate Events

Nippon Pallet Pool Co. Reports Positive Profit Growth Amid Slight Sales Decline

Nippon Pallet Pool Co., Ltd. reported its non-consolidated financial results for the three months ending June 30, 2025, showing a slight decline in net sales by 0.6% year-on-year. However, the company experienced growth in operating profit, ordinary profit, and profit, with increases of 1.1%, 10.5%, and 11.1% respectively. The company’s financial position remains strong with a high equity-to-asset ratio of 65.2%. The forecast for the fiscal year ending March 31, 2026, indicates an expected increase in net sales by 6.7% and a significant rise in profits, reflecting a positive outlook for the company’s future performance.