Nippon Seisen Co., Ltd. (5659) AI Stock Analysis

• Market Cap: ¥34.92B
• Dividend Yield: 4.9%
• Average Volume (3M): 29.52K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.83
• Revenue Growth: 2.25%
• EPS Growth: 0.39%
• Country: JP
• Employees: 870
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 10.30
• Shares Outstanding: 31,265,190
• 10 Day Avg. Volume: 32,410
• 30 Day Avg. Volume: 29,516
• PEG Ratio: 0.47
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 11.86
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,253.00 ▲(9.62% Upside)

Nippon Seisen Co., Ltd. demonstrates strong financial health with consistent growth and solid margins, contributing significantly to the overall score. The valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical analysis indicates stable price trends but lacks strong momentum signals. The absence of earnings call and corporate events data did not impact the score.

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

Company Description

Nippon Seisen Co.,Ltd. manufactures and sells stainless steel wires in Japan and internationally. Its stainless-steel wires include spring, micro, cold heading, shaft, weaving, and high-alloy/titanium wires for use in used in vehicles, aircraft, office automation appliances, electric appliances, medical instruments, commodities, and leisure goods, as well as screws, steel nettings, etc. The company also offers filament yarn, cloth, tape/belt, felt, knit, sleeve, chop, and other metal fibers under the NASLON brand name. In addition, it provides filters, such as metal filters, including NASLON filters, NPM filters, EXCEL PORE, FINE MET, and re-washable systems for synthetic fiber, film, resin, nuclear and thermal power generation, petroleum refining, medical, and other applications; and semiconductor gas filters for process and bulk gases, component protection, integrated gas panels, and diffusers. Further, the company offers straight bars; flat, angular, precise, and other shaped wires; palladium alloy roll-plated hydrogen separation membrane for high purity hydrogen gas production and purification; high-strength copper-alloy wire for optical pickup and camera module; duplex stainless-steel wire for corrosion resistant springs, ropes, fasteners, wire mesh, etc.; and co-based alloy for medical use. The company was formerly known as The Sanshin Special Wire Manufacturing Company and changed its name to Nippon Seisen Co.,Ltd. in October 1956. Nippon Seisen Co.,Ltd. was incorporated in 1951 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nippon Seisen generates revenue through the production and sale of its specialty chemicals and materials. The company has a diversified revenue model that includes the manufacturing of synthetic fibers for textiles, which are sold to clothing manufacturers, and chemical products for industrial applications. Key revenue streams include sales to the automotive sector, where its products are used in various components, and the electronics industry, where specialized materials are essential. Significant partnerships with major industrial players and a focus on research and development contribute to its earnings, allowing the company to stay competitive and meet the evolving needs of its customers.

Nippon Seisen Co., Ltd. Financial Statement Overview

Summary

Nippon Seisen Co., Ltd. exhibits strong financial performance with consistent revenue and profit growth, solid margins, and a robust balance sheet. The company's prudent debt management and high equity ratio underscore financial stability. While cash flow has shown improvement, historical fluctuations suggest the need for cautious cash management.

Income Statement

Nippon Seisen Co., Ltd. has demonstrated consistent revenue growth with a notable increase of 4.52% from 2024 to 2025. The gross profit margin is robust at 17.34%, indicating effective cost management. The net profit margin improved to 6.95%, showcasing enhanced profitability. EBIT and EBITDA margins are 9.55% and 13.67% respectively, reflecting strong operational efficiency. However, revenue growth has been moderate, and there were fluctuations in past revenue levels.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio of 0.01, underscoring financial prudence. Return on equity (ROE) is a healthy 7.89%, indicating effective utilization of shareholder funds. The equity ratio stands at 73.74%, reflecting financial stability and low reliance on external debt. The overall balance sheet suggests strong solvency and effective capital management.

Cash Flow

The free cash flow grew significantly by 61.26% from 2024 to 2025, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.45, demonstrating adequate cash conversion from profits. The free cash flow to net income ratio is 1.01, indicating efficient cash management. However, past volatility in free cash flow suggests potential fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.48B	46.75B	44.73B	49.05B	44.80B	34.11B
Gross Profit	7.41B	8.11B	7.06B	7.63B	7.94B	5.52B
EBITDA	5.58B	6.39B	5.40B	5.96B	6.36B	4.13B
Net Income	2.74B	3.25B	2.59B	3.09B	3.18B	1.82B
Balance Sheet
Total Assets	55.70B	55.88B	53.40B	54.05B	51.23B	46.07B
Cash, Cash Equivalents and Short-Term Investments	16.63B	17.07B	15.24B	14.66B	15.64B	13.78B
Total Debt	324.00M	272.00M	460.00M	671.00M	380.00M	644.00M
Total Liabilities	14.41B	13.98B	13.91B	16.45B	15.78B	13.10B
Stockholders Equity	40.60B	41.21B	38.89B	37.05B	34.96B	32.56B
Cash Flow
Free Cash Flow	0.00	3.30B	2.04B	-157.00M	2.69B	2.43B
Operating Cash Flow	0.00	4.72B	4.68B	1.86B	4.47B	3.96B
Investing Cash Flow	0.00	-1.34B	-2.82B	-1.78B	-1.70B	-1.79B
Financing Cash Flow	0.00	-1.71B	-1.54B	-1.05B	-1.34B	-702.00M

Nippon Seisen Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1143.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5659, the sentiment is Positive. The current price of 1143 is above the 20-day moving average (MA) of 1108.55, above the 50-day MA of 1109.17, and below the 200-day MA of 1155.10, indicating a neutral trend. The MACD of 5.90 indicates Negative momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 91.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5659.

Nippon Seisen Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5659	74 Outperform	¥34.92B	12.50	―	4.90%	2.25%	0.39%
5945	74 Outperform	¥21.63B	13.39	―	3.79%	4.22%	6.68%
5957	74 Outperform	¥23.67B	11.20	―	3.06%	8.60%	9.08%
6157	70 Outperform	¥18.94B	14.47	―	3.83%	3.38%	-2.80%
6480	70 Outperform	¥46.97B	22.80	―	3.24%	5.34%	79.88%
5658	69 Neutral	¥17.91B	16.98	―	2.69%	-3.36%	-18.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nippon Seisen Co., Ltd. Corporate Events

Nippon Seisen Reports Decline in Q1 2025 Financial Performance

Nippon Seisen Co., Ltd. reported a decline in its financial performance for the three months ending June 30, 2025, with net sales slightly decreasing by 2.3% and significant drops in operating and ordinary profits by over 59%. The company’s comprehensive income also fell sharply by 79.3% compared to the previous year. Despite these results, the company maintains a strong equity-to-asset ratio of 72.9%, indicating a stable financial position. The forecast for the fiscal year ending March 31, 2026, anticipates further declines in sales and profits, reflecting ongoing challenges in the market.