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

Japan Power Fastening Co., Ltd.

(TSE/TYO:5950)

Select Model

Rating:47.3Neutral

Price Target:JPY 142.00▼(-6.58% Downside)

Action:reiterated

Date:08/06/26

The overall score is weighed down primarily by weak financial performance and a very demanding valuation: revenue stagnation, profit volatility, recent losses, and collapsing cash flows raise sustainability concerns, while an exceptionally high P/E ratio looks difficult to justify against these fundamentals. Technical indicators are neutral to slightly positive, offering some balance but no strong upside signal, and modest dividend income provides limited support, leaving the stock in a cautious, below-average rating range.

Positive Factors

Manageable leverageDebt running below 1x equity across 2021–2025 signals a conservative capital structure and provides financial flexibility. A reasonable equity base relative to assets supports capacity to fund operations or absorb shocks without immediate refinancing, aiding medium-term stability and investment optionality.

Negative Factors

Declining revenue trendA multi-year drift lower in revenue through 2023–2025 signals weaker end-market demand or waning pricing power. Persistent top-line decline erodes scale, compresses operating leverage, and reduces headroom for reinvestment, making it harder to restore consistent profit levels over the medium term.

Japan Power Fastening Co., Ltd. (5950) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.09B
Dividend Yield: 1.64%
Average Volume (3M): 27.63K
Price to Earnings (P/E): 55.7
Beta (1Y): 0.26
Revenue Growth: -3.28%
EPS Growth: -59.02%
Country: Japan
Employees: 142
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

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

Company Description

Japan Power Fastening Co.,Ltd. manufactures and distributes a comprehensive range of fasteners and related tools across Japan. Its offerings encompass fastening products suitable for metal, timber, and cement-based building materials, as well as prov...

How the Company Makes Money

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Japan Power Fastening Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak overall: revenue is flat to declining, net margins have swung from very high to losses, and 2025 shows a net loss with volatile EBIT, while deleveraging and modest gross margin resilience offer only limited offsetting strengths.

Income Statement

42Neutral

Balance Sheet

58Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.99B	5.06B	5.04B	5.11B	5.35B	5.33B
Gross Profit	1.21B	1.21B	1.17B	1.07B	1.37B	1.33B
EBITDA	191.28M	153.42M	39.19M	6.08M	210.66M	211.64M
Net Income	39.04M	-30.19M	509.35M	-108.45M	40.22M	2.14B
Balance Sheet
Total Assets	5.21B	5.62B	5.79B	7.46B	8.00B	8.08B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.38B	1.62B	2.14B	2.04B	2.22B
Total Debt	1.78B	1.98B	2.09B	2.74B	2.79B	2.94B
Total Liabilities	2.99B	3.30B	3.48B	4.09B	4.54B	4.82B
Stockholders Equity	2.23B	2.30B	2.28B	3.37B	3.46B	3.26B
Cash Flow
Free Cash Flow	0	-66.63M	85.17M	242.34M	-185.12M	347.40M
Operating Cash Flow	0	24.66M	233.44M	257.53M	-159.07M	368.78M
Investing Cash Flow	0	-103.76M	956.36M	485.59M	-649.51M	2.25B
Financing Cash Flow	0	-153.89M	-1.77B	-119.43M	-209.15M	-919.96M

Japan Power Fastening Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price152.00

Price Trends

50DMA149.98Positive

100DMA147.00Positive

200DMA161.49Negative

Market Momentum

MACD0.24Negative

RSI61.66Neutral

STOCH85.07Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5950, the sentiment is Positive. The current price of 152.00 is above the 20-day moving average (MA) of 144.80, above the 50-day MA of 149.98, and below the 200-day MA of 161.49, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.66 is Neutral, neither overbought nor oversold. The STOCH value of 85.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5950.

Japan Power Fastening Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5950 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6586	78Outperform	JPY 1.43T	15.48	―	3.97%	9.23%	13.88%
JP:6877	74Outperform	JPY 109.27B	12.68	―	2.20%	17.28%	26.43%
JP:5851	72Outperform	JPY 81.61B	7.71	5.99%	3.94%	3.21%	64.77%
JP:5967	70Outperform	JPY 9.83B	8.96	―	3.09%	5.96%	10.20%
JP:5990	64Neutral	JPY 4.45B	135.41	―	3.37%	7.56%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5950	47Neutral	JPY 2.17B	55.68	―	1.64%	-3.28%	-59.02%

* General Sector Average

Performance Comparison

JP:5950 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5950	Japan Power Fastening Co., Ltd.	152.00	-45.47	-23.03%
JP:5851	Ryobi	2588.00	-74.04	-2.78%
JP:5967	TONE Co. Ltd.	421.00	-189.06	-30.99%
JP:5990	Super Tool Co., Ltd.	1931.00	54.05	2.88%
JP:6586	Makita Corporation	5264.00	772.07	17.19%
JP:6877	Obara Group Incorporated	6820.00	2736.43	67.01%

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 06, 2026

Japan Power Fastening Co., Ltd. AI Stock Analysis