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

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JP:5161

Nishikawa Rubber Co., Ltd.

(TSE/TYO:5161)

Select Model
Rating:77Outperform
Price Target:JPY 4,427.00▲(24.18% Upside)
Action:upgraded
Date:08/17/26

The score is driven by attractive valuation (low-to-moderate P/E and high dividend yield) and positive technical momentum with the stock trading above key moving averages. Financial performance is supportive due to the strong earnings/margin rebound and conservative leverage, but the overall score is tempered by volatile free cash flow and only moderate cash conversion versus reported earnings.

Positive Factors
Profitability ReboundThe sharp improvement in net and operating margins indicates that Nishikawa has materially strengthened earnings power after the weak 2023 base. If margins remain near current levels, the company should have greater capacity to fund investment, support dividends, and withstand normal industry fluctuations.
Negative Factors
Modest Revenue GrowthThe current pace of top-line expansion is limited, which may constrain Nishikawa’s ability to grow earnings through volume alone. Sustained low growth places greater dependence on margin improvement, product mix, and cost control, making long-term profit expansion less predictable if those benefits fade.

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

-10%0%10%20%30%40%50%60%JP:5161+24.49%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 130.88B
Dividend Yield
5.16%
Average Volume (3M)
174.68K
Price to Earnings (P/E)
11.5
Beta (1Y)
0.92
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

Strong profitability rebound (2026 net margin ~9.0% vs ~1.2% in 2023) and a conservative balance sheet (2026 debt-to-equity ~0.28) support a solid financial profile. The main drag is inconsistent cash generation and weaker cash conversion (FCF ~56% of net income) with notable volatility across years.

Income Statement

76Positive

Balance Sheet

78Positive

Cash Flow

60Neutral
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 Price3565.00

Price Trends

50DMA3533.11Positive
100DMA3337.84Positive
200DMA3397.35Positive

Market Momentum

MACD43.09Positive
RSI48.58Neutral
STOCH16.49Positive

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 3565.00 is below the 20-day moving average (MA) of 3611.00, above the 50-day MA of 3533.11, and above the 200-day MA of 3397.35, indicating a neutral trend. The MACD of 43.09 indicates Positive momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 16.49 is Positive, 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:516177OutperformJPY 129.02B11.46―5.16%3.24%236.26%
JP:7282JP:728275OutperformJPY 623.03B10.6910.53%16.08%12.94%40.32%
JP:5162JP:516272OutperformJPY 3.32B21.86―2.80%4.21%―
JP:5101JP:510170OutperformJPY 1.13T7.9013.81%2.44%12.75%124.90%
JP:5110JP:511066NeutralJPY 555.24B9.028.66%3.98%4.82%―
JP:5189JP:518961NeutralJPY 6.53B4.51―4.44%15.09%127.88%
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.3565.00819.3429.84%
JP:5110Sumitomo Rubber Industries 2111.0017.700.85%
JP:7282Toyoda Gosei Co 1076.00334.5845.13%
JP:5101Yokohama Rubber Co 7090.001481.4826.41%
JP:5162Asahi Rubber Inc.786.00115.8317.28%
JP:5189Sakura Rubber Co., Ltd.3375.001131.4350.43%
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