Nippon Seiro Co., Ltd. (5010) AI Stock Analysis

• Market Cap: ¥3.73B
• Dividend Yield: N/A
• Average Volume (3M): 104.95K
• Price to Earnings (P/E): 2.2
• Beta (1Y): 1.33
• Revenue Growth: -2.37%
• EPS Growth: 114.12%
• Country: JP
• Employees: 268
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 7.12
• Shares Outstanding: 22,400,000
• 10 Day Avg. Volume: 72,290
• 30 Day Avg. Volume: 104,950
• PEG Ratio: <0.01
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.27
• 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: 68 Neutral
• Price Target: ¥204.00 ▲(7.94%Upside)

Nippon Seiro Co., Ltd. scores well due to its strong financial performance, especially in cash flow and profitability improvements. The low P/E ratio suggests the stock might be undervalued, offering a potential investment opportunity. Technical analysis indicates stable market conditions, but high financial leverage remains a significant risk factor that could impact future stability.

Nippon Seiro Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Seiro Co., Ltd. manufactures and sells petroleum waxes, physically and chemically converted wax products, and fuel oil in Japan and internationally. It offers paraffin wax, microcrystalline wax, oxidized and chemical wax, special wax, blended products comprising anti-ozonant wax, and wax emulsion, as well as Fischer-Tropsch wax. The company provides its products in slab, pellet, powder, and granule forms for use in various applications, such as hotmelt adhesives, paper cups, plastic lubricants, paper converting, rubber anti-ozonants, polishes, cosmetics and pharmaceuticals, candles, water proof corrugated paperboards, chlorinated paraffins, matches, rust prevention, plywood, textiles, electric insulation, modification of paraffin wax, laminations, chewing gums, water repellents, inks, binders, slip agents, ink additives, toners, release agents, rubbers and tires, polymer additive agents, and paraffin wax reformers. Nippon Seiro Co., Ltd. was founded in 1929 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Seiro Co., Ltd. generates revenue through the production and sale of its wax products. The company's key revenue streams include the sale of paraffin wax, microcrystalline wax, and other related products to various industries such as cosmetics, pharmaceuticals, and industrial manufacturing. Their products are essential in manufacturing processes and consumer goods, which ensures consistent demand. Additionally, Nippon Seiro may engage in strategic partnerships with distributors and manufacturers to expand its market reach and enhance its distribution network. The company also benefits from its ability to innovate and produce high-quality wax products that meet the specific needs of its diverse customer base.

Nippon Seiro Co., Ltd. Financial Statement Overview

Summary

Nippon Seiro Co., Ltd. demonstrates substantial improvements in profitability, cash flow, and equity returns. The income statement shows positive trends in gross and net profit margins, while cash flow performance is robust with a high free cash flow growth rate. However, the balance sheet reveals high leverage with a Debt-to-Equity Ratio of 3.29, which poses a risk if not managed carefully.

Income Statement

Nippon Seiro Co., Ltd. showed significant improvement in profitability with a Gross Profit Margin of 20.75% and a Net Profit Margin of 8.06% in 2024, recovering from negative margins in previous years. Revenue growth was modest at 1.57% from 2023 to 2024, but a positive EBIT Margin of 10.19% indicates better cost management and operational efficiency. Despite historical volatility in EBIT and EBITDA margins, the company is on a positive trajectory.

Balance Sheet

The balance sheet shows a high Debt-to-Equity Ratio of 3.29 in 2024, indicating significant leverage, which poses risk. However, Return on Equity improved to 31.30%, showcasing effective use of equity to generate profits. The Equity Ratio of 19.08% suggests moderate reliance on equity financing. Overall, the balance sheet reflects high financial leverage, which could be a risk if not managed carefully.

Cash Flow

Nippon Seiro Co., Ltd. exhibited strong cash flow performance with a Free Cash Flow Growth Rate of 492.15% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio of 1.66 reflects robust cash generation relative to net earnings. Additionally, the Free Cash Flow to Net Income Ratio of 1.57 indicates effective conversion of income to cash flow, highlighting strong operational cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.05B	21.70B	38.46B	27.92B	22.23B
	Gross Profit
4.58B	1.96B	1.39B	3.56B	359.00M
	EBIT
2.25B	-552.00M	-2.04B	587.00M	-2.08B
	EBITDA
3.19B	5.00M	-1.10B	1.63B	-1.67B
	Net Income Common Stockholders
1.78B	-1.22B	-2.37B	444.00M	-2.88B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.30B	1.83B	2.04B	1.60B	1.40B
	Total Assets
29.73B	30.00B	33.17B	33.57B	30.79B
	Total Debt
18.65B	20.53B	21.05B	18.29B	17.95B
	Net Debt
16.35B	18.69B	19.01B	16.69B	16.55B
	Total Liabilities
24.05B	26.22B	27.78B	25.83B	23.51B
	Stockholders Equity
5.67B	3.78B	5.39B	7.74B	7.28B
Cash Flow		Free Cash Flow
2.79B	471.00M	-1.98B	-29.00M	-3.77B
	Operating Cash Flow
2.94B	1.41B	-1.63B	666.00M	-2.37B
	Investing Cash Flow
-149.00M	-495.00M	-339.00M	-680.00M	-1.23B
	Financing Cash Flow
-2.37B	-1.11B	2.42B	198.00M	3.10B

Nippon Seiro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5010, the sentiment is Positive. The current price of 189 is above the 20-day moving average (MA) of 187.85, above the 50-day MA of 182.36, and below the 200-day MA of 240.81, indicating a neutral trend. The MACD of 1.44 indicates Negative momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5010.

Nippon Seiro Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8133	75 Outperform	¥191.56B	11.19		4.01%	-4.03%	23.24%
5010	68 Neutral	¥3.73B	2.23		―	-2.37%	114.12%
Sector *	58 Neutral	$7.43B	3.43	-4.49%	10.08%	0.81%	-49.42%
ACK		€132.85M	18.94	-6.69%	4.51%	―	―
5015	73 Outperform	¥19.70B	27.40		5.36%	13.42%	19.33%
5009	67 Neutral	¥9.75B	11.24		9.48%	10.39%	17.98%
8132	67 Neutral	¥66.25B	21.01		1.48%	-8.95%	―