Nihon Seiko Co.,Ltd (5729) AI Stock Analysis

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Nihon Seiko Co.,Ltd

(TSE/TYO:5729)

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Rating:70Outperform

Price Target:JPY 1,515.00▲(5.06% Upside)

Action:reiterated

Date:11/07/26

The company's financial health is a major strength, with excellent profitability, a fortress-like balance sheet, and strong cash generation. This is significantly offset by extremely weak technicals, as the stock is in a pronounced downtrend with deeply oversold momentum indicators. The attractive valuation, featuring a very low P/E and high dividend yield, provides a partial cushion. The overall score reflects a fundamentally sound company under severe market pressure.

Positive Factors

Revenue and Profit ReboundThe latest period shows a substantial improvement in both sales and profitability, indicating stronger operating performance than in the preceding year. If maintained, this rebound can improve internal funding capacity, support investment in the metal-products business, and strengthen earnings resilience over the next several quarters.

Negative Factors

Earnings VolatilityThe wide variation in revenue growth and margins demonstrates that earnings performance has not been consistently stable. Such volatility can make future profitability harder to forecast and may reduce the durability of the latest rebound if operating conditions, pricing, or costs become less favorable.

Nihon Seiko Co.,Ltd (5729) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 14.14B
Dividend Yield: 6.07%
Average Volume (3M): 15.68K
Price to Earnings (P/E): 8.6
Beta (1Y): 0.90
Revenue Growth: 8.26%
EPS Growth: -68.31%
Country: Japan
Employees: 263
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals

Nihon Seiko Co.,Ltd Business Overview & Revenue Model

Company Description

Nihon Seiko Co., Ltd., a Tokyo-based company founded in 1935 and known as Nakase Kogyo Co., Ltd. until 1936, is a key Japanese producer and distributor of antimony products and various metal powders. Their diverse antimony-based offerings include ant...

How the Company Makes Money

The company primarily makes money by manufacturing and selling its metal products and related materials to customers (typically industrial users) and recognizing revenue from these product sales. Revenue is generally driven by shipment volume, produc...

Nihon Seiko Co.,Ltd Financial Statement Overview

Summary

Strong revenue growth (+31.4%) and net income more than doubling highlight excellent execution. Robust margins (18.8% gross, 14.9% operating) and a very healthy balance sheet with low debt (D/E 0.18) and high ROE (27.3%) are key strengths. Cash flow rebounded impressively with high conversion, though historical variability slightly tempers the score.

Income Statement

85Very Positive

Balance Sheet

92Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	38.06B	40.87B	25.18B	15.59B	15.92B	17.10B
Gross Profit	3.98B	7.67B	4.91B	1.79B	1.93B	3.28B
EBITDA	2.99B	6.74B	4.24B	1.23B	1.34B	2.72B
Net Income	1.64B	4.21B	2.46B	502.74M	481.85M	1.54B
Balance Sheet
Total Assets	22.59B	24.73B	21.01B	15.94B	14.00B	14.84B
Cash, Cash Equivalents and Short-Term Investments	5.55B	6.68B	2.13B	3.02B	2.28B	3.09B
Total Debt	2.42B	2.75B	4.00B	3.10B	2.09B	1.97B
Total Liabilities	6.96B	9.28B	9.08B	6.24B	4.60B	5.54B
Stockholders Equity	15.63B	15.45B	11.93B	9.70B	9.41B	9.30B
Cash Flow
Free Cash Flow	0	6.57B	-1.54B	-16.89M	-558.62M	-259.86M
Operating Cash Flow	0	7.62B	-919.23M	1.55B	184.83M	386.26M
Investing Cash Flow	0	-1.05B	-628.65M	-1.57B	-744.09M	-645.49M
Financing Cash Flow	0	-2.02B	645.28M	765.62M	-252.57M	-163.20M

Nihon Seiko Co.,Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price1442.00

Price Trends

50DMA1627.91Negative

100DMA1594.79Negative

200DMA1987.94Negative

Market Momentum

MACD-57.48Positive

RSI39.33Neutral

STOCH40.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5729, the sentiment is Negative. The current price of 1442.00 is below the 20-day moving average (MA) of 1529.80, below the 50-day MA of 1627.91, and below the 200-day MA of 1987.94, indicating a bearish trend. The MACD of -57.48 indicates Positive momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 40.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5729.

Nihon Seiko Co.,Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:5729 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5013	84Outperform	JPY 41.31B	8.94	―	3.82%	-0.92%	0.66%
JP:4025	74Outperform	JPY 45.86B	11.38	―	1.23%	8.56%	38.01%
JP:4463	71Outperform	JPY 29.46B	7.77	―	3.46%	10.62%	52.17%
JP:8158	71Outperform	JPY 31.73B	12.83	―	3.34%	6.03%	25.63%
JP:5729	70Outperform	JPY 15.20B	8.65	―	6.07%	8.26%	-68.31%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

* Basic Materials Sector Average

Performance Comparison

JP:5729 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5729	Nihon Seiko Co.,Ltd	1442.00	-1125.61	-43.84%
JP:4025	Taki Chemical Co., Ltd.	5270.00	1766.77	50.43%
JP:4463	Nicca Chemical Co., Ltd.	1881.00	448.04	31.27%
JP:5013	Yushiro Chemical Industry Co., Ltd.	3195.00	1014.39	46.52%
JP:8158	Soda Nikka Co., Ltd.	1469.00	492.80	50.48%

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: Nov 07, 2026

Nihon Seiko Co.,Ltd AI Stock Analysis