Nichireki Co., Ltd. (5011) AI Stock Analysis

• Market Cap: ¥78.26B
• Dividend Yield: 3.08%
• Average Volume (3M): 30.33K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.50
• Revenue Growth: 3.02%
• EPS Growth: 12.10%
• Country: JP
• Employees: 977
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 0.11
• Shares Outstanding: 31,685,955
• 10 Day Avg. Volume: 27,400
• 30 Day Avg. Volume: 30,326
• PEG Ratio: 1.66
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -8.79
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥2,787.00 ▲(7.32% Upside)

Nichireki Co., Ltd. shows stable financial performance with strong cost management and a solid balance sheet, which are the most significant factors. The technical analysis indicates potential bearish momentum, which is a concern. Valuation metrics are favorable, suggesting the stock is fairly valued with a good dividend yield.

Nichireki Co., Ltd. Business Overview & Revenue Model

Company Description

Nichireki Co., Ltd. (5011) is a leading Japanese company specializing in the manufacturing and distribution of high-quality automotive parts and materials. Operating primarily in the automotive sector, Nichireki focuses on producing components such as brake systems, suspension parts, and other essential automotive parts that enhance vehicle safety and performance. The company is recognized for its commitment to innovation and quality, serving a wide range of customers in the automotive industry both domestically and internationally.

How the Company Makes Money

Nichireki Co., Ltd. generates revenue primarily through the sale of automotive parts and components to manufacturers and aftermarket suppliers. The company's revenue model is built on both direct sales to automotive OEMs (original equipment manufacturers) and distribution to automotive aftermarket retailers. Key revenue streams include bulk orders of specialized automotive components, as well as ongoing contracts with major automotive manufacturers for the supply of parts. Additionally, Nichireki may benefit from strategic partnerships with other companies in the automotive supply chain, which can enhance its market reach and operational efficiencies. The company’s focus on quality and innovation allows it to maintain competitive pricing and secure long-term contracts, contributing significantly to its overall earnings.

Nichireki Co., Ltd. Financial Statement Overview

Summary

Nichireki Co., Ltd. demonstrates stable financial performance with consistent revenue growth and a strong balance sheet. Effective cost controls and operational efficiency are evident, though net profit margins suggest room for improvement. High capital expenditures impact free cash flow, indicating a need to optimize cash flow for sustained growth.

Income Statement

Nichireki Co., Ltd. has shown a stable revenue growth trend with a revenue increase from ¥73.8 billion to ¥75.7 billion in the last year. The gross profit margin remains healthy at approximately 22.9%, indicating strong cost management. However, the net profit margin is moderate at 6.4%, reflecting potential areas for profitability improvement. EBIT and EBITDA margins are also stable, suggesting efficient operational performance.

Balance Sheet

The company's balance sheet shows a solid equity position with a debt-to-equity ratio of approximately 0.26, indicating moderate leverage. The return on equity is commendable at 6.3%, reflecting effective utilization of shareholders' funds. The equity ratio stands at 68.8%, suggesting financial stability. However, the presence of considerable cash and cash equivalents indicates a conservative approach to liquidity management.

Cash Flow

Operating cash flow remains positive, although there is a significant drop in free cash flow, reflecting high capital expenditures. The free cash flow to net income ratio is negative, implying cash flow challenges despite profitability. The operating cash flow to net income ratio is reasonable, indicating adequate cash generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.92B	75.75B	73.83B	78.40B	78.00B	71.47B
Gross Profit	17.19B	17.34B	16.46B	17.46B	18.32B	18.44B
EBITDA	9.20B	9.70B	9.08B	11.41B	11.95B	11.27B
Net Income	4.80B	4.85B	4.49B	6.28B	6.81B	6.36B
Balance Sheet
Total Assets	107.92B	112.37B	95.09B	91.47B	88.42B	82.73B
Cash, Cash Equivalents and Short-Term Investments	29.22B	31.62B	25.75B	27.32B	29.00B	25.92B
Total Debt	20.54B	19.97B	1.56B	1.53B	1.60B	2.22B
Total Liabilities	32.48B	35.05B	20.26B	19.01B	20.35B	20.73B
Stockholders Equity	75.43B	77.32B	74.84B	72.47B	68.07B	62.01B
Cash Flow
Free Cash Flow	0.00	-7.29B	3.05B	3.38B	4.36B	2.17B
Operating Cash Flow	0.00	4.89B	7.39B	6.56B	7.74B	9.10B
Investing Cash Flow	0.00	-12.46B	-3.85B	-5.83B	-2.36B	-5.69B
Financing Cash Flow	0.00	13.73B	-2.82B	-3.12B	-1.43B	2.51B

Nichireki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2597.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5011, the sentiment is Positive. The current price of 2597 is above the 20-day moving average (MA) of 2576.80, below the 50-day MA of 2675.92, and above the 200-day MA of 2456.53, indicating a neutral trend. The MACD of -33.72 indicates Negative momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 55.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5011.

Nichireki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	―	¥47.92B	12.10	―	3.70%	7.10%	35.43%
5352	―	¥147.71B	10.79	―	2.78%	1.36%	12.13%
5290	―	¥80.35B	13.83	―	4.16%	5.12%	54.71%
5233	―	$418.27B	8.34	8.42%	2.13%	-0.33%	-8.08%
5011	―	¥78.26B	15.69	―	3.08%	3.02%	12.10%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4044	―	¥79.42B	22.69	―	5.14%	-8.57%	-72.36%

Nichireki Co., Ltd. Corporate Events

Nichireki Group Announces Increased Interim Dividend for Shareholders

Nichireki Group Co., Ltd. has announced an interim dividend payment of 40 yen per share, reflecting an increase from the previous year’s interim dividend. This decision aligns with the company’s policy to provide consistent returns to shareholders and adapt to business environment changes, supporting its growth strategy.

The most recent analyst rating on (JP:5011) stock is a Hold with a Yen2711.00 price target. To see the full list of analyst forecasts on Nichireki Co., Ltd. stock, see the JP:5011 Stock Forecast page.

Nichireki Group Reports Q1 2025 Financial Results with Mixed Performance

Nichireki Group Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 1.3% compared to the previous year. However, the company experienced a decline in operating and ordinary profits, with a notable drop in profit attributable to owners of the parent company by 94.3%. Despite these challenges, the company maintains a strong equity ratio of 69.9% and has not revised its forecast for the fiscal year ending March 31, 2026, indicating confidence in achieving its projected growth targets.