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Nippon Light Metal Holdings Co Ltd (JP:5703)
:5703
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Nippon Light Metal Holdings Co (5703) AI Stock Analysis

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JP:5703

Nippon Light Metal Holdings Co

(5703)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
¥3,255.00
▲(27.10% Upside)
Action:Reiterated
Date:08/17/26
The score is driven by attractive valuation (low P/E and decent dividend yield) and constructive technical momentum (price above key moving averages with positive MACD). These positives are offset by only moderate underlying financial strength due to inconsistent cash generation and several negative free-cash-flow years, which increases execution and flexibility risk.
Positive Factors
Revenue and profit recovery
Sustained revenue growth alongside a strong recovery in EBIT and net income indicates improving demand, operating execution and earnings capacity. Continued profit improvement would strengthen the group’s ability to fund investment and absorb industry volatility.
Negative Factors
Volatile free cash flow
Repeated negative or weak free-cash-flow periods indicate that accounting profits have not consistently converted into cash. Working-capital swings or reinvestment demands could constrain debt reduction, dividends and investment during weaker operating conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profit recovery
Sustained revenue growth alongside a strong recovery in EBIT and net income indicates improving demand, operating execution and earnings capacity. Continued profit improvement would strengthen the group’s ability to fund investment and absorb industry volatility.
Read all positive factors

Nippon Light Metal Holdings Co (5703) vs. iShares MSCI Japan ETF (EWJ)

Nippon Light Metal Holdings Co Business Overview & Revenue Model

Company Description
Established in 2012 and headquartered in Tokyo, Japan, Nippon Light Metal Holdings Company, Ltd. is an international manufacturer and supplier of aluminum and related goods. The company's operations are strategically structured into four main divi...
How the Company Makes Money
The company makes money primarily through its subsidiaries by selling aluminum-related materials and processed products. Key revenue streams include: (1) sales of upstream aluminum materials (including alumina- and aluminum-related materials) to i...

Nippon Light Metal Holdings Co Financial Statement Overview

Summary
Income statement and balance sheet show an improving trajectory (steady revenue growth and meaningful EBIT/net income recovery, with manageable leverage and rising equity). The main drag is cash-flow quality: operating and free cash flow have been volatile with multiple negative free-cash-flow years, including negative FCF despite positive earnings in 2025.
Income Statement
63
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue614.71B585.47B550.18B523.72B516.95B486.58B
Gross Profit108.54B101.53B95.26B88.61B76.93B91.35B
EBITDA55.70B49.82B43.12B38.83B32.45B47.01B
Net Income19.63B15.59B12.38B9.04B7.20B16.76B
Balance Sheet
Total Assets567.77B556.32B544.31B544.10B526.20B532.60B
Cash, Cash Equivalents and Short-Term Investments38.50B33.14B34.71B35.21B31.30B45.19B
Total Debt174.36B166.05B173.74B161.32B168.74B160.93B
Total Liabilities294.63B288.38B293.83B305.10B305.44B311.69B
Stockholders Equity253.45B248.69B233.13B222.16B205.47B203.09B
Cash Flow
Free Cash Flow6.93B5.47B-7.98B16.00B-15.82B-17.16B
Operating Cash Flow11.54B25.62B12.06B38.04B695.00M1.49B
Investing Cash Flow-5.92B-18.08B-19.11B-23.93B-15.12B-18.02B
Financing Cash Flow4.71B-9.77B6.24B-11.05B85.00M-626.00M

Nippon Light Metal Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2561.00
Price Trends
50DMA
2842.94
Positive
100DMA
2936.20
Positive
200DMA
2792.56
Positive
Market Momentum
MACD
53.10
Positive
RSI
53.36
Neutral
STOCH
22.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5703, the sentiment is Positive. The current price of 2561 is below the 20-day moving average (MA) of 3017.25, below the 50-day MA of 2842.94, and below the 200-day MA of 2792.56, indicating a neutral trend. The MACD of 53.10 indicates Positive momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5703.

Nippon Light Metal Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
¥186.32B9.448.00%2.66%10.03%59.52%
66
Neutral
¥99.82B9.902.64%17.71%109.91%
62
Neutral
¥414.87B5.5221.69%2.46%28.03%425.01%
59
Neutral
¥75.01B13.627.24%2.97%13.46%560.67%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
47
Neutral
¥100.17B31.640.66%-8.39%-32.87%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5703
Nippon Light Metal Holdings Co
3,010.00
920.92
44.08%
JP:5741
UACJ
2,240.00
689.39
44.46%
JP:5702
Daiki Aluminium Industry Co., Ltd.
1,852.00
739.05
66.41%
JP:3036
ALCONIX Corporation
3,300.00
1,193.82
56.68%
JP:5726
OSAKA Titanium Technologies Co., Ltd.
2,722.00
-40.97
-1.48%

Nippon Light Metal Holdings Co Corporate Events

Nippon Light Metal Posts Strong Q1 and Raises Full-Year Outlook
Aug 3, 2026
Nippon Light Metal Holdings reported a sharp improvement in its first-quarter performance for the fiscal year ending March 31, 2027, with net sales rising 21.3% year on year to ¥166.3 billion. Operating profit more than doubled to ¥10.6 ...
Nippon Light Metal Lifts Profit Outlook and Dividends on Strong Aluminum Demand
Aug 3, 2026
Nippon Light Metal Holdings revised its first-half and full-year forecasts for the fiscal year ending March 31, 2027, projecting higher profits on the back of strong demand for secondary alloy ingots and thick aluminum sheets for semiconductor equ...
Nippon Light Metal Moves to Integrate Domestic Aluminum Extrusion Business with Kobe Steel
Aug 3, 2026
Nippon Light Metal Holdings has reported its first-quarter results for the fiscal year ending March 2027 and reaffirmed full-year forecasts while advancing a major strategic restructuring of its aluminum extrusion business. The company has entered...
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