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Nitta Gelatin Inc. (4977) AI Stock Analysis

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JP:4977

Nitta Gelatin Inc.

(TSE/TYO:4977)

Select Model
Rating:81Outperform
Price Target:JPY 1,379.00â–²(14.25% Upside)
Action:reiterated
Date:11/12/26

The company's financial health is excellent, marked by a pristine balance sheet, high profitability, and strong cash flows. This is complemented by a highly attractive valuation with a very low P/E ratio and a substantial dividend yield. The primary offset is a mixed technical picture, where short-term momentum is positive but the stock remains in a longer-term downtrend, warranting caution.

Positive Factors
Profitability RecoveryThe sharp recovery in net and operating profitability shows that the business has restored earnings power after the 2024 loss. Higher gross and operating margins can support internal reinvestment and strengthen resilience over the next several quarters, provided margins remain normalized.
Negative Factors
Uneven Revenue MomentumThe inconsistent top-line trend means recent earnings improvement has relied more on margin normalization than on sustained demand expansion. Without stronger revenue growth, future profit gains may be harder to compound and could depend disproportionately on maintaining or further improving operating margins.

Nitta Gelatin Inc. (4977) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:4977+11.99%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 21.98B
Dividend Yield
3.15%
Average Volume (3M)
30.99K
Price to Earnings (P/E)
6.6
Beta (1Y)
0.74
Revenue Growth
4.14%
EPS Growth
-71.43%
Country
Japan
Employees
851
Sector
Basic Materials
Sector Strength
61
Industry
Chemicals - Specialty

Nitta Gelatin Inc. Business Overview & Revenue Model

Company Description

Established in Osaka, Japan, in 1918, Nitta Gelatin Inc. is a leading manufacturer and supplier primarily focused on gelatin and collagen products. The company's operations encompass the production and distribution of edible, pharmaceutical, and phot...

Nitta Gelatin Inc. Financial Statement Overview

Summary

Strong profitability with expanding margins, a conservative debt-to-equity ratio of 0.25, and robust free cash flow generation. The company has decisively recovered from a prior loss, demonstrating effective cost control and operational efficiency.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

88Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue38.80B38.05B38.74B40.42B39.19B31.78B
Gross Profit11.01B10.98B9.96B8.29B8.90B7.00B
EBITDA6.10B6.30B5.86B1.86B3.89B3.18B
Net Income3.35B3.28B3.16B-1.85B1.56B726.00M
Balance Sheet
Total Assets44.10B42.87B40.41B39.96B41.61B37.41B
Cash, Cash Equivalents and Short-Term Investments6.21B6.49B5.12B4.08B2.86B3.05B
Total Debt4.91B5.96B7.74B9.80B10.79B8.32B
Total Liabilities13.24B13.24B15.04B17.69B19.36B16.84B
Stockholders Equity25.15B24.25B20.69B18.19B19.10B18.08B
Cash Flow
Free Cash Flow2.39B4.53B3.77B2.64B-2.70B-285.00M
Operating Cash Flow3.51B6.48B5.18B4.91B-540.00M1.04B
Investing Cash Flow-1.97B-5.09B-1.18B-3.02B-1.50B-1.32B
Financing Cash Flow-1.68B-2.39B-2.55B-1.61B1.82B-762.00M

Nitta Gelatin Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price1207.00

Price Trends

50DMA1179.53Positive
100DMA1221.93Negative
200DMA1230.67Negative

Market Momentum

MACD4.40Negative
RSI57.97Neutral
STOCH89.62Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4977, the sentiment is Positive. The current price of 1207.00 is above the 20-day moving average (MA) of 1185.00, above the 50-day MA of 1179.53, and below the 200-day MA of 1230.67, indicating a neutral trend. The MACD of 4.40 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4977.

Nitta Gelatin Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4977 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4977JP:497781OutperformJPY 21.82B6.56―3.15%4.14%-71.43%
JP:4362JP:436277OutperformJPY 55.87B11.86―4.10%-4.92%2.95%
JP:4187JP:418773OutperformJPY 95.92B9.9316.64%1.94%17.54%90.80%
JP:4078JP:407866NeutralJPY 61.60B21.68―4.78%1.45%-60.28%
JP:4369JP:436962NeutralJPY 93.53B15.18―1.23%12.47%7.08%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4182JP:418249NeutralJPY 669.14B28.233.51%3.15%8.87%―

* Basic Materials Sector Average

Performance Comparison

0%50%100%JP:4977JP:4182JP:4187JP:4078JP:4362JP:4369Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4977 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4977Nitta Gelatin Inc.1207.00103.079.34%
JP:4182Mitsubishi Gas Chemical Company 3338.00768.0429.89%
JP:4187Osaka Organic Chemical Industry Ltd.4285.00477.7312.55%
JP:4078Sakai Chemical Industry Co., Ltd.3350.00505.6517.78%
JP:4362Nippon Fine Chemical Co., Ltd.2515.00-93.02-3.57%
JP:4369Tri Chemical Laboratories Inc.2855.0039.591.41%
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: Nov 12, 2026