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Nishikawa Rubber Co., Ltd. (5161) AI Stock Analysis

JP:5161

Nishikawa Rubber Co., Ltd.

(TSE/TYO:5161)

Select Model
Rating:87Outperform
Price Target:JPY 4,420.00â–²(16.93% Upside)
Action:reiterated
Date:08/17/26

The robust overall score is driven primarily by Nishikawa Rubber's highly compelling valuation, particularly its 5.35% dividend yield and low P/E ratio. Exceptionally strong profitability growth, disciplined debt management, and a clearly bullish technical trend across all major moving averages further solidify the stock's attractive profile.

Positive Factors
Profitability RecoveryThe substantial rebound in net and operating margins demonstrates that the business has regained meaningful earnings power after a weak period. If these improved margins hold, Nishikawa can generate more profit from its established automotive component revenue base and support internal investment.
Negative Factors
Volatile Free Cash FlowLarge swings in free cash flow reduce confidence in the consistency of Nishikawa's cash generation, even after the latest recovery. Uneven conversion can make capital allocation less predictable and may constrain the company's ability to sustain investment or shareholder distributions through weaker operating periods.

Nishikawa Rubber Co., Ltd. (5161) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:5161+38.10%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 135.23B
Dividend Yield
4.93%
Average Volume (3M)
174.06K
Price to Earnings (P/E)
12.1
Beta (1Y)
0.94
Revenue Growth
3.24%
EPS Growth
236.26%
Country
Japan
Employees
6,294
Sector
General
Sector Strength
55
Industry
Auto - Parts

Nishikawa Rubber Co., Ltd. Business Overview & Revenue Model

Company Description

Nishikawa Rubber Co., Ltd. is a global manufacturer and supplier specializing in a comprehensive range of rubber and sealing products. The company's extensive portfolio includes automotive solutions such as electrical component insulators and a wide...

Nishikawa Rubber Co., Ltd. Financial Statement Overview

Summary

The company demonstrates outstanding bottom-line growth and margin expansion, supported by a conservative balance sheet with a low debt-to-equity ratio of 0.28. While operations are slightly capital-intensive, the overall financial health remains highly stable.

Income Statement

88Very Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue123.29B122.14B120.64B117.90B98.17B84.50B
Gross Profit24.14B23.03B21.05B18.31B11.72B12.62B
EBITDA15.50B15.01B13.40B12.63B6.87B8.32B
Net Income11.44B10.96B3.96B5.04B2.11B2.10B
Balance Sheet
Total Assets146.94B147.37B138.40B137.73B126.13B115.63B
Cash, Cash Equivalents and Short-Term Investments52.03B54.03B49.92B45.36B42.70B38.98B
Total Debt25.59B26.16B20.16B20.20B26.30B21.93B
Total Liabilities55.53B55.03B46.67B50.22B50.59B43.16B
Stockholders Equity87.09B87.89B87.94B84.54B72.91B68.63B
Cash Flow
Free Cash Flow06.84B5.61B10.54B226.00M370.00M
Operating Cash Flow012.21B9.24B14.88B5.45B4.16B
Investing Cash Flow0-856.00M-4.34B-5.16B-4.68B-4.97B
Financing Cash Flow0-9.72B-2.88B-9.40B1.28B-897.00M

Nishikawa Rubber Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price3780.00

Price Trends

50DMA3500.81Positive
100DMA3289.34Positive
200DMA3381.98Positive

Market Momentum

MACD50.29Negative
RSI63.42Neutral
STOCH80.91Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5161, the sentiment is Positive. The current price of 3780.00 is above the 20-day moving average (MA) of 3522.75, above the 50-day MA of 3500.81, and above the 200-day MA of 3381.98, indicating a bullish trend. The MACD of 50.29 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5161.

Nishikawa Rubber Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5161 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5161JP:516187OutperformJPY 136.52B12.06―4.93%3.24%236.26%
JP:5110JP:511082OutperformJPY 509.12B8.238.66%4.34%4.82%―
JP:5101JP:510180OutperformJPY 990.38B6.9513.81%2.75%12.75%124.90%
JP:7282JP:728276OutperformJPY 576.56B9.7010.53%17.63%12.94%40.34%
JP:5162JP:516272OutperformJPY 3.55B27.47―2.81%2.35%―
JP:5189JP:518961NeutralJPY 6.85B5.34―4.34%17.43%176.28%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%40%60%JP:5161JP:5110JP:7282JP:5101JP:5162JP:5189Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:5161 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5161Nishikawa Rubber Co., Ltd.3780.001021.0237.01%
JP:5110Sumitomo Rubber Industries 1953.00182.7110.32%
JP:7282Toyoda Gosei Co 991.60267.7136.98%
JP:5101Yokohama Rubber Co 6365.00940.3017.33%
JP:5162Asahi Rubber Inc.771.00106.6716.06%
JP:5189Sakura Rubber Co., Ltd.3325.001104.3749.73%
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 17, 2026