Nitta Gelatin Inc. (4977) AI Stock Analysis

• Market Cap: ¥17.83B
• Dividend Yield: 2.34%
• Average Volume (3M): 79.72K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.82
• Revenue Growth: -9.40%
• EPS Growth: N/A
• Country: JP
• Employees: 946
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 34.43
• Shares Outstanding: 18,373,974
• 10 Day Avg. Volume: 66,280
• 30 Day Avg. Volume: 79,723
• PEG Ratio: -0.02
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 3.96
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,090.00 ▲(9.99% Upside)

Nitta Gelatin Inc. demonstrates strong financial recovery and attractive valuation metrics, which are the primary drivers of its stock score. The technical analysis presents a mixed picture, with some positive momentum indicators but neutral RSI. The absence of earnings call data and corporate events means these factors do not influence the score.

Nitta Gelatin Inc. Business Overview & Revenue Model

Company Description

Nitta Gelatin Inc. engages in the production and sale of edible gelatin, pharmaceutical gelatin, and photographic gelatin in Japan. The company manufactures and sells related products made from collagen for animal bones and skin, and fish scales and skin; and gelatin for applications in industrial sectors comprising food and pharmaceutical markets; collagen peptide, which is recognized as a bioactive compound and a material that has bioregulatory functions, produced using its proteolytic technology. It also manufactures other food materials; and stabilizers for confectionery, desserts, delicatessen items, chilled foods, etc. In addition, the company manufactures and sells collagen and medical gelatin for medical device manufacturers, research institutions, and others that are used as a biomaterial for artificial skin and bone. Nitta Gelatin Inc. was founded in 1918 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nitta Gelatin generates revenue through the production and sale of gelatin and collagen products, which are key ingredients in a variety of sectors. The company has multiple revenue streams, including direct sales to food manufacturers, pharmaceutical companies, and cosmetic brands. It also engages in long-term contracts with major clients, ensuring a steady income flow. Additionally, Nitta Gelatin invests in research and development to create specialized products tailored to specific market needs, enhancing its competitive edge. Strategic partnerships with industry players further bolster its market position, contributing to its overall earnings.

Nitta Gelatin Inc. Financial Statement Overview

Summary

Nitta Gelatin Inc. has exhibited a strong financial recovery, especially in profitability and cash flow metrics. While revenue growth is a concern, improved margins and reduced leverage contribute to a positive financial outlook.

Income Statement

Nitta Gelatin Inc. has shown a solid recovery in profitability metrics. The gross profit margin improved from 21.57% in 2024 to 25.72% in 2025, reflecting better cost management. The net profit margin turned positive in 2025 at 8.16%, compared to a negative margin in 2024, indicating a significant turnaround in profitability. Revenue growth was negative between 2024 and 2025 at -4.14%, which is a concern. However, the EBIT and EBITDA margins have improved, signaling enhanced operational efficiency.

Balance Sheet

The debt-to-equity ratio improved to 0.37 in 2025 from 0.54 in 2024, indicating reduced leverage and a healthier balance sheet. Return on equity improved to 15.27% in 2025 from negative in 2024, showing a positive return for equity holders. The equity ratio increased to 51.2% in 2025, reflecting a strong equity base relative to total assets. However, the company's total assets have remained relatively stable, suggesting limited growth in asset base.

Cash Flow

Free cash flow grew by 42.91% from 2024 to 2025, indicating strong cash generation capability. The operating cash flow to net income ratio improved significantly, suggesting efficient cash conversion. The free cash flow to net income ratio indicates robust cash generation relative to earnings, demonstrating effective cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.51B	38.74B	40.42B	39.19B	31.78B	30.55B
Gross Profit	10.11B	9.96B	8.29B	8.90B	7.00B	6.30B
EBITDA	5.82B	5.86B	1.86B	3.89B	3.18B	2.75B
Net Income	3.17B	3.16B	-1.85B	1.56B	726.00M	742.00M
Balance Sheet
Total Assets	40.24B	40.41B	39.96B	41.61B	37.41B	34.91B
Cash, Cash Equivalents and Short-Term Investments	4.79B	5.12B	4.08B	2.86B	3.05B	4.02B
Total Debt	6.20B	7.74B	9.80B	10.79B	8.32B	8.57B
Total Liabilities	14.63B	15.04B	17.69B	19.36B	16.85B	16.04B
Stockholders Equity	20.85B	20.69B	18.19B	19.10B	18.08B	16.79B
Cash Flow
Free Cash Flow	0.00	3.77B	2.64B	-2.70B	-285.00M	2.23B
Operating Cash Flow	0.00	5.18B	4.91B	-540.00M	1.04B	3.51B
Investing Cash Flow	0.00	-1.18B	-3.02B	-1.50B	-1.32B	-897.00M
Financing Cash Flow	0.00	-2.55B	-1.61B	1.82B	-762.00M	-31.00M

Nitta Gelatin Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 991.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4977, the sentiment is Neutral. The current price of 991 is below the 20-day moving average (MA) of 1000.85, below the 50-day MA of 994.11, and above the 200-day MA of 848.29, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4977.

Nitta Gelatin Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4231	―	¥20.15B	5.87	―	5.16%	3.11%	12.90%
4977	―	¥17.83B	5.59	―	2.34%	-9.40%	―
4064	―	¥20.05B	9.36	―	3.86%	11.19%	122.83%
4113	―	¥18.50B	11.13	―	3.27%	13.09%	89.45%
4409	―	¥16.36B	11.73	―	2.54%	4.46%	25.80%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4228	―	¥16.00B	―	―	3.67%	-0.45%	-3792.87%