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Nippon Light Metal Holdings Co
(5703)
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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)
Market Cap
¥186.32B
Dividend Yield2.66%
Average Volume (3M)311.13K
Price to Earnings (P/E)9.4
Beta (1Y)0.93
Revenue Growth10.03%
EPS Growth59.52%
CountryJP
Employees12,123
SectorGeneral
Sector StrengthN/A
IndustryAluminum
Share Statistics
EPS (TTM)318.74
Shares Outstanding61,993,750
10 Day Avg. Volume198,270
30 Day Avg. Volume311,130
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)0.69
Price to Sales (P/S)0.29
P/FCF Ratio31.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)261.36
Revenue Forecast (FY)¥635.47B
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
63
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 614.71B | 585.47B | 550.18B | 523.72B | 516.95B | 486.58B |
| Gross Profit | 108.54B | 101.53B | 95.26B | 88.61B | 76.93B | 91.35B |
| EBITDA | 55.70B | 49.82B | 43.12B | 38.83B | 32.45B | 47.01B |
| Net Income | 19.63B | 15.59B | 12.38B | 9.04B | 7.20B | 16.76B |
Balance Sheet | ||||||
| Total Assets | 567.77B | 556.32B | 544.31B | 544.10B | 526.20B | 532.60B |
| Cash, Cash Equivalents and Short-Term Investments | 38.50B | 33.14B | 34.71B | 35.21B | 31.30B | 45.19B |
| Total Debt | 174.36B | 166.05B | 173.74B | 161.32B | 168.74B | 160.93B |
| Total Liabilities | 294.63B | 288.38B | 293.83B | 305.10B | 305.44B | 311.69B |
| Stockholders Equity | 253.45B | 248.69B | 233.13B | 222.16B | 205.47B | 203.09B |
Cash Flow | ||||||
| Free Cash Flow | 6.93B | 5.47B | -7.98B | 16.00B | -15.82B | -17.16B |
| Operating Cash Flow | 11.54B | 25.62B | 12.06B | 38.04B | 695.00M | 1.49B |
| Investing Cash Flow | -5.92B | -18.08B | -19.11B | -23.93B | -15.12B | -18.02B |
| Financing Cash Flow | 4.71B | -9.77B | 6.24B | -11.05B | 85.00M | -626.00M |
Nippon Light Metal Holdings Co Technical Analysis
Positive
2561.00
Price Trends
2842.94
Positive
2936.20
Positive
2792.56
Positive
Market Momentum
53.10
Positive
53.36
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥186.32B | 9.44 | 8.00% | 2.66% | 10.03% | 59.52% | |
66 Neutral | ¥99.82B | 9.90 | ― | 2.64% | 17.71% | 109.91% | |
62 Neutral | ¥414.87B | 5.52 | 21.69% | 2.46% | 28.03% | 425.01% | |
59 Neutral | ¥75.01B | 13.62 | 7.24% | 2.97% | 13.46% | 560.67% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | ¥100.17B | 31.64 | ― | 0.66% | -8.39% | -32.87% |
* General Sector Average
JP:5703
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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.