Japan Power Fastening Co., Ltd. (5950) AI Stock Analysis

• Market Cap: ¥2.63B
• Dividend Yield: 2.72%
• Average Volume (3M): 249.34K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.33
• Revenue Growth: 2.38%
• EPS Growth: N/A
• Country: JP
• Employees: 148
• Sector: Industrials
• Sector Strength: 94
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -5.50
• Shares Outstanding: 18,688,540
• 10 Day Avg. Volume: 72,200
• 30 Day Avg. Volume: 249,343
• PEG Ratio: 0.38
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥222.00 ▲(20.65%Upside)

Japan Power Fastening Co., Ltd. faces financial challenges with negative margins and operational inefficiencies impacting profitability. Despite improvements in balance sheet strength and free cash flow, these issues weigh heavily on the stock's performance. The technical analysis indicates a bearish trend with weak momentum, further pressuring the stock's outlook. However, the low P/E ratio and reasonable dividend yield provide some valuation appeal, balancing out the negative aspects to some extent.

Japan Power Fastening Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Power Fastening Co., Ltd. (5950) is a Japanese company specializing in the manufacturing and distribution of fastening tools and related equipment. The company primarily operates within the construction, industrial, and automotive sectors, providing a wide range of products including nailers, staplers, screws, and other fastening solutions. With a focus on innovation and quality, Japan Power Fastening Co., Ltd. is committed to delivering reliable and efficient fastening systems to meet the diverse needs of its customers.

How the Company Makes Money

Japan Power Fastening Co., Ltd. generates revenue through the sale of its fastening tools and equipment. The company’s key revenue streams include direct sales to construction companies, industrial firms, and automotive manufacturers, as well as distribution partnerships with retailers and distributors in various regions. By maintaining a strong presence in both domestic and international markets, Japan Power Fastening Co., Ltd. leverages its reputation for quality and innovation to secure a steady flow of income. Additionally, the company may engage in partnerships or collaborations with other firms to expand its product offerings and strengthen its market position.

Japan Power Fastening Co., Ltd. Financial Statement Overview

Summary

Japan Power Fastening Co., Ltd. faces financial challenges with declining revenue and negative net and EBIT margins. Despite an improved equity position and positive free cash flow, operational inefficiencies and significant liabilities remain concerns.

Income Statement

The company experienced declining total revenue over recent years with a drop from 5,354M in 2022 to 5,040M in 2024. Despite a positive gross profit margin of 23.28% in 2024, the net and EBIT margins are negative due to the incurred net loss and negative EBIT, reflecting operational inefficiencies. While gross profit indicates some capacity for profitability, the consistent net losses and negative EBIT margin suggest struggles in cost management and operational execution.

Balance Sheet

The company has improved its equity position, with stockholders' equity increasing to 2,283M in 2024. The debt-to-equity ratio stands at 0.88, indicating a stable leverage position, though this shows a high reliance on debt. The equity ratio improved to 39.47%, suggesting a stronger financial footing. However, substantial liabilities and historical fluctuations in equity levels pose potential risks.

Cash Flow

The company has managed to generate positive free cash flow of 84M in 2024, reversing from negative cash flows in prior years. The operating cash flow to net income ratio is low at 0.46, indicating challenges in converting income to cash but a significant improvement from past performance. While free cash flow growth is a positive indicator, the consistency and sustainability of cash flows remain a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.04B	5.11B	5.35B	5.33B	5.31B
	Gross Profit
1.17B	1.07B	1.37B	1.35B	1.20B
	EBIT
-93.00M	-125.28M	85.44M	93.20M	-146.77M
	EBITDA
39.00M	83.66M	175.47M	2.32B	-132.60M
	Net Income Common Stockholders
509.00M	-108.45M	40.22M	2.14B	-322.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.62B	2.14B	2.04B	2.22B	452.87M
	Total Assets
5.79B	7.46B	8.00B	8.08B	6.86B
	Total Debt
2.02B	2.68B	2.73B	2.84B	3.80B
	Net Debt
396.00M	538.92M	689.11M	616.39M	3.35B
	Total Liabilities
3.48B	4.09B	4.54B	4.82B	5.56B
	Stockholders Equity
2.28B	3.37B	3.46B	3.26B	1.31B
Cash Flow		Free Cash Flow
68.60M	240.70M	-201.11M	269.50M	116.30M
	Operating Cash Flow
233.44M	257.53M	-159.07M	368.78M	342.59M
	Investing Cash Flow
956.36M	485.59M	-649.51M	2.25B	194.79M
	Financing Cash Flow
-1.77B	-119.43M	-209.15M	-919.96M	-605.23M

Japan Power Fastening Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 184.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5950, the sentiment is Negative. The current price of 184 is below the 20-day moving average (MA) of 194.50, below the 50-day MA of 211.84, and below the 200-day MA of 288.66, indicating a bearish trend. The MACD of -8.96 indicates Negative momentum. The RSI at 35.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5950.

Japan Power Fastening Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5952	75 Outperform	¥2.00B	14.19		2.94%	0.89%	6.55%
5962	72 Outperform	¥1.52B	6.69		3.15%	-1.56%	-24.77%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%
5969	65 Neutral	¥2.30B	28.76		2.52%	-3.66%	-72.39%
6380	60 Neutral	¥2.61B	25.95		1.60%	-0.66%	-32.76%
5950	58 Neutral	¥2.63B	6.20		2.72%	2.38%	―
5990	49 Neutral	¥4.53B	13.84		3.56%	-10.46%	-176.74%