Neturen Co., Ltd. (5976) AI Stock Analysis

• Market Cap: ¥28.81B
• Dividend Yield: 5.33%
• Average Volume (3M): 80.37K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.77
• Revenue Growth: -2.91%
• EPS Growth: 483.19%
• Country: JP
• Employees: 1,627
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 26.53
• Shares Outstanding: 34,495,400
• 10 Day Avg. Volume: 56,870
• 30 Day Avg. Volume: 80,373
• PEG Ratio: -1.26
• Price to Book (P/B): 0.56
• 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

Neturen Co., Ltd. demonstrates financial stability with a robust balance sheet but faces challenges in profitability and cash flow consistency. The technical indicators reflect a bearish trend, and the valuation suggests a potential overvaluation despite a strong dividend yield. These factors contribute to a moderate overall stock score.

Neturen Co., Ltd. Business Overview & Revenue Model

Company Description

Neturen Co., Ltd. is a Japanese company specializing in the manufacturing of industrial machinery, with a primary focus on induction heating equipment, prestressing steel bars, and other related materials. The company serves various industries including automotive, construction, and infrastructure, providing innovative solutions that enhance the durability and efficiency of steel products.

How the Company Makes Money

Neturen Co., Ltd. generates revenue through the sale of its proprietary induction heating equipment and prestressing steel bars. These products are integral in the automotive and construction industries, where they are used to enhance the performance and longevity of steel components. The company also engages in the provision of technical support and maintenance services, which form an additional revenue stream. Neturen's business model is supported by strategic partnerships and collaborations with industry leaders, which help to expand its market reach and drive sales growth.

Neturen Co., Ltd. Financial Statement Overview

Summary

Neturen Co., Ltd. shows financial stability with a strong balance sheet, evidenced by a low Debt-to-Equity Ratio and high Equity Ratio. However, profitability is a concern with low net profit margins, and cash flow management appears inconsistent with the absence of TTM data.

Income Statement

Neturen Co., Ltd. has shown stable revenue over the years with a modest increase in TTM revenue compared to the previous annual period. The Gross Profit Margin stands at 17.72%, indicating efficient cost management. However, the Net Profit Margin of 2.00% is relatively low, reflecting challenges in achieving higher profitability. The EBIT Margin is 2.60% and the EBITDA Margin is 7.57%, both of which suggest limited operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a low Debt-to-Equity Ratio of 0.12, indicating prudent financial management and low leverage. The Return on Equity (ROE) is modest at 1.93%, pointing towards potential for better utilization of equity. An Equity Ratio of 69.94% highlights a high proportion of equity financing, ensuring financial stability.

Cash Flow

Neturen Co., Ltd.'s cash flow position is mixed. Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios cannot be assessed due to zero values in the TTM data. Historically, there has been a positive Free Cash Flow, but growth has been inconsistent. The absence of TTM cash flow data poses a challenge in current cash flow assessment.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
55.99B	57.20B	57.52B	53.00B	42.57B	48.81B
	Gross Profit
9.92B	9.85B	10.24B	11.29B	8.09B	10.05B
	EBIT
1.45B	1.63B	2.40B	3.70B	920.00M	2.09B
	EBITDA
4.24B	5.08B	4.04B	7.47B	4.39B	4.94B
	Net Income Common Stockholders
1.12B	1.54B	381.00M	2.69B	268.00M	250.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.54B	16.18B	18.48B	19.55B	15.06B	13.74B
	Total Assets
83.13B	80.61B	79.89B	82.00B	75.57B	76.28B
	Total Debt
6.73B	1.17B	1.87B	2.65B	2.95B	3.09B
	Net Debt
-10.54B	-14.73B	-16.45B	-16.57B	-11.72B	-10.65B
	Total Liabilities
18.60B	14.14B	13.34B	15.15B	12.86B	13.51B
	Stockholders Equity
58.15B	60.01B	59.39B	59.65B	56.23B	56.28B
Cash Flow		Free Cash Flow
0.00	1.66B	2.60B	5.33B	2.54B	1.87B
	Operating Cash Flow
0.00	4.19B	3.89B	6.33B	3.97B	6.30B
	Investing Cash Flow
0.00	-1.65B	-1.20B	-40.00M	-758.00M	-4.02B
	Financing Cash Flow
0.00	-5.08B	-4.29B	-1.97B	-1.59B	-1.81B

Neturen Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 941.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5976, the sentiment is Positive. The current price of 941 is above the 20-day moving average (MA) of 929.15, below the 50-day MA of 950.60, and below the 200-day MA of 963.71, indicating a bullish trend. The MACD of 12.26 indicates Negative momentum. The RSI at 79.60 is Negative, neither overbought nor oversold. The STOCH value of 79.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5976.

Neturen Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5401	76 Outperform	$3.01T	8.22	6.77%	5.21%	1.42%	-27.64%
5406	72 Outperform	$654.65B	5.45	10.71%	4.80%	-0.32%	-23.77%
5471	70 Outperform	¥221.51B	7.61	6.56%	4.76%	-0.91%	80.48%
5976	67 Neutral	¥28.81B	18.25		5.33%	-2.91%	483.19%
5451	66 Neutral	$159.21B	11.80	6.92%	5.61%	2.48%	-18.92%
5411	66 Neutral	¥1.01T	11.68	3.62%	5.08%	-4.62%	-30.09%
Sector *	49 Neutral	$1.97B	-1.18	-21.24%	3.71%	1.29%	-31.16%

Neturen Co., Ltd. Corporate Events

Neturen Co., Ltd. Acquires Dohken Co., Ltd. to Bolster Construction Material Capabilities

Neturen Co., Ltd. announced the acquisition of shares in Dohken Co., Ltd., making it a subsidiary to enhance production efficiency and develop new products. This strategic move aligns with Neturen’s mid-term management plan to expand globally and create new growth drivers, addressing labor shortages in the construction industry by leveraging Dohken’s expertise in precast concrete products.

Neturen Co., Ltd. Revises Financial Forecasts Amid Market Challenges

Neturen Co., Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2025, due to sluggish market conditions in key industries and a decline in raw material prices. Despite a decrease in sales and operating profit projections, the company expects an increase in profit attributable to owners due to extraordinary income from the sale of investment securities. The company plans to enhance corporate value through proactive sales activities and cost reduction efforts.

Neturen Co., Ltd. Records Extraordinary Income from Tender Offer

Neturen Co., Ltd. announced the successful participation in a tender offer by KYB Corporation for its shares in Chita Kogyo Co., Ltd., resulting in the sale of 823,800 shares at a total of ¥1,655 million. This transaction will lead to an extraordinary income of ¥1,217 million for the fiscal year ending March 2025, impacting both standalone and consolidated financial statements, with revised forecasts disclosed.

Neturen Co., Ltd. to Record Extraordinary Income from Share Sale

Neturen Co., Ltd. has announced its decision to accept a tender offer from KYB Corporation for all its shares in CHITA KOGYO CO., LTD. This strategic decision is expected to result in a substantial extraordinary income of 1,218 million yen from the gain on sale of investment securities in the fiscal year ending March 31, 2025. The move aligns with CHITA KOGYO’s Board of Directors’ approval and offers a reasonable purchase price, potentially positively impacting Neturen’s financial performance.

Neturen Co., Ltd. Reports Financial Results with Positive Future Outlook

Neturen Co., Ltd. reported a decrease in net sales and profits for the nine months ending December 31, 2024, compared to the previous year. Despite the drop in sales, the company maintains a strong financial position with a capital adequacy ratio of 69.9% and has projected an increase in net sales and profits for the fiscal year ending March 31, 2025, indicating a positive outlook.