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

Nippon Seiro Co., Ltd.

(TSE/TYO:5010)

Select Model

Rating:53Neutral

Price Target:JPY 300.00▲(1.35% Upside)

Action:reiterated

Date:08/18/26

The overall score of 53 reflects a tug-of-war between an extremely cheap valuation and strong cash generation against a weak technical outlook and a leveraged balance sheet. The most significant positive factor is the very low P/E ratio, while the most significant risk is the deeply overbought technical condition, which suggests the recent price surge may be unsustainable. The company's high debt levels add a layer of fundamental risk.

Positive Factors

Recent Cash GenerationPositive operating and free cash flow over three recent years indicates that reported profits have generally converted into funding for the business. The approximately ¥3.2B of 2025 free cash flow provides internally generated liquidity for operations and capital needs.

Negative Factors

High LeverageA debt-heavy capital structure reduces financial flexibility and leaves less room to absorb weaker profitability. High leverage can also increase the importance of refinancing and interest obligations, making the company more exposed when industrial conditions deteriorate.

Nippon Seiro Co., Ltd. (5010) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.85B
Dividend Yield: ―
Average Volume (3M): 231.77K
Price to Earnings (P/E): 3.7
Beta (1Y): 0.80
Revenue Growth: 0.41%
EPS Growth: 33.70%
Country: Japan
Employees: 272
Sector: General
Sector Strength: 55
Industry: Oil & Gas Refining & Marketing

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

Company Description

Founded in Tokyo, Japan, in 1929, Nippon Seiro Co., Ltd. operates globally, specializing in the production and sales of petroleum waxes, a variety of physically and chemically modified wax products, and fuel oil. Its comprehensive product portfolio i...

Nippon Seiro Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Cash flow is a bright spot (Score 70), with strong operating cash flow exceeding net income. However, the income statement (Score 55) shows modest profitability, and the balance sheet (Score 45) remains a concern due to high leverage, despite recent improvements.

Income Statement

55Neutral

Balance Sheet

45Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.33B	19.78B	22.05B	21.70B	38.46B	27.92B
Gross Profit	4.79B	3.55B	4.58B	1.96B	1.39B	3.56B
EBITDA	3.20B	2.04B	3.19B	5.00M	-1.09B	1.63B
Net Income	1.59B	697.00M	1.78B	-1.22B	-2.37B	444.00M
Balance Sheet
Total Assets	29.47B	27.28B	29.73B	30.00B	33.17B	33.57B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.83B	2.30B	1.83B	2.04B	1.60B
Total Debt	16.01B	16.00B	18.65B	20.53B	21.05B	18.29B
Total Liabilities	21.88B	20.90B	24.05B	26.21B	27.75B	25.82B
Stockholders Equity	7.58B	6.38B	5.67B	3.78B	5.39B	7.74B
Cash Flow
Free Cash Flow	0	3.19B	2.79B	471.00M	-1.98B	-29.00M
Operating Cash Flow	0	3.69B	2.94B	1.41B	-1.63B	666.00M
Investing Cash Flow	0	-596.00M	-149.00M	-495.00M	-339.00M	-680.00M
Financing Cash Flow	0	-2.73B	-2.37B	-1.11B	2.42B	198.00M

Nippon Seiro Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price296.00

Price Trends

50DMA301.68Negative

100DMA269.39Positive

200DMA257.06Positive

Market Momentum

MACD2.55Positive

RSI41.46Neutral

STOCH17.92Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5010, the sentiment is Neutral. The current price of 296.00 is below the 20-day moving average (MA) of 312.45, below the 50-day MA of 301.68, and above the 200-day MA of 257.06, indicating a neutral trend. The MACD of 2.55 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 17.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5010.

Nippon Seiro Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5010 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5019	76Outperform	JPY 1.85T	4.71	21.79%	2.42%	-2.72%	3087.62%
JP:5020	72Outperform	JPY 3.79T	5.49	20.51%	2.42%	2.30%	437.64%
JP:8131	71Outperform	JPY 144.42B	15.79	―	2.56%	-0.31%	-25.03%
JP:8132	67Neutral	JPY 73.34B	14.81	―	2.68%	-2.76%	56.84%
JP:8133	67Neutral	JPY 244.95B	10.18	―	3.22%	1.89%	46.71%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5010	53Neutral	JPY 6.08B	3.68	―	―	0.41%	33.70%

* General Sector Average

Performance Comparison

JP:5010 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5010	Nippon Seiro Co., Ltd.	296.00	109.00	58.29%
JP:5019	Idemitsu Kosan Co	1488.00	422.26	39.62%
JP:5020	Eneos Holdings, Inc.	1407.00	441.06	45.66%
JP:8131	Mitsuuroko Group Holdings Co., Ltd.	2566.00	497.40	24.05%
JP:8132	SINANEN HOLDINGS CO.LTD.	7090.00	762.00	12.04%
JP:8133	ITOCHU ENEX CO., LTD.	2141.00	411.77	23.81%

Nippon Seiro Co., Ltd. Corporate Events

Nippon Seiro Posts Sharp Profit Rebound and Raises 2026 Outlook

Aug 14, 2026

Nippon Seiro Co., Ltd. reported a strong rebound in performance for the six months ended June 30, 2026, with net sales rising 5.9% year on year to ¥9,954 million and operating profit surging more than threefold to ¥1,723 million. Profit att...

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 18, 2026

Nippon Seiro Co., Ltd. AI Stock Analysis