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Nitta Gelatin Inc. (4977) AI Stock Analysis

JP:4977

Nitta Gelatin Inc.

(TSE/TYO:4977)

Select Model
Rating:83Outperform
Price Target:JPY 1,455.00â–²(22.47% Upside)
Action:reiterated
Date:08/11/26

Nitta Gelatin's strong financial performance, characterized by robust profitability, a solid balance sheet, and healthy cash flow, is the primary driver of the score. The attractive valuation, with a low P/E ratio and decent dividend yield, further supports a positive outlook. Technical indicators are mixed but show a long-term uptrend, providing a neutral-to-positive bias. The overall score of 83 reflects a favorable investment profile with some short-term technical headwinds.

Positive Factors
Margin Recovery & ProfitabilityA material rebound in gross and operating margins (gross margin rose ~20.5% to 28.9%, operating margin to 12.3%) indicates structural cost or mix improvements. Sustained higher margins support durable profitability, internal reinvestment capacity, and resilience to demand swings over the next several quarters.
Negative Factors
Mixed/Weak Revenue GrowthTop-line stagnation means earnings recovery has relied more on margin restoration than volume or market share gains. Without clearer, sustained revenue growth the company remains exposed to demand cycles and limited scale benefits, constraining durable earnings expansion.

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

-10%0%10%20%30%40%50%JP:4977+23.56%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 21.64B
Dividend Yield
3.20%
Average Volume (3M)
33.16K
Price to Earnings (P/E)
6.5
Beta (1Y)
0.72
Revenue Growth
3.46%
EPS Growth
5.52%
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...

How the Company Makes Money

Nitta Gelatin makes money primarily by manufacturing and selling collagen-derived ingredients—most notably gelatin and collagen peptides—to business customers. Revenue is generated through (1) product sales of gelatin used as a gelling/binding/stabil...

Nitta Gelatin Inc. Financial Statement Overview

Summary

Nitta Gelatin exhibits robust financial health with strong profitability (gross margin 28.9%, EBIT margin 12.3%), a conservative capital structure (debt/equity 0.25), and improving cash flow generation (FCF ¥4.53B). The company has recovered from a temporary loss, showing consistent margin expansion and efficient capital management.

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 Price1188.00

Price Trends

50DMA1179.76Positive
100DMA1226.78Negative
200DMA1231.97Negative

Market Momentum

MACD-0.39Negative
RSI52.85Neutral
STOCH58.78Neutral

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 1188.00 is above the 20-day moving average (MA) of 1177.85, above the 50-day MA of 1179.76, and below the 200-day MA of 1231.97, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 58.78 is Neutral, 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:497783OutperformJPY 21.51B6.46―3.20%3.46%5.52%
JP:4187JP:418780OutperformJPY 96.59B10.1016.64%1.90%17.54%90.80%
JP:4362JP:436272OutperformJPY 59.00B12.37―3.88%-4.92%2.95%
JP:4369JP:436966NeutralJPY 98.79B16.16―1.15%12.47%7.08%
JP:4078JP:407865NeutralJPY 64.26B15.50―4.58%-0.23%-25.47%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4182JP:418250NeutralJPY 690.98B-22.68-4.71%2.96%2.69%-173.16%

* 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 '26
JP:4977 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4977Nitta Gelatin Inc.1188.00227.5223.69%
JP:4182Mitsubishi Gas Chemical Company 3543.00763.3827.46%
JP:4187Osaka Organic Chemical Industry Ltd.4360.00592.0315.71%
JP:4078Sakai Chemical Industry Co., Ltd.3495.00768.3628.18%
JP:4362Nippon Fine Chemical Co., Ltd.2658.00269.0711.26%
JP:4369Tri Chemical Laboratories Inc.3040.0078.132.64%

Nitta Gelatin Inc. Corporate Events

Nitta Gelatin Lifts Q1 Sales and Earnings as Balance Sheet Strengthens

Aug 7, 2026

Nitta Gelatin Inc. reported consolidated net sales of ¥9.89 billion for the first quarter ended June 2026, an 8.3% increase from a year earlier, while operating profit slipped 5.5% to ¥1.18 billion and ordinary profit edged up 1.8% to &#165...

Nitta Gelatin Boosts Profitability and Strengthens Balance Sheet in FY2026

May 14, 2026

Nitta Gelatin Inc. reported consolidated net sales of ¥38.0 billion for the fiscal year ended March 31, 2026, down 1.8% from the previous year, but significantly improved profitability with operating profit up 18.7% to ¥4.66 billion and ord...

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: Aug 11, 2026