NAKAYO INC (6715) AI Stock Analysis

• Market Cap: ¥11.27B
• Dividend Yield: 1.57%
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): 834.8
• Beta (1Y): -0.06
• Revenue Growth: -1.06%
• EPS Growth: -111.31%
• Country: JP
• Employees: 734
• Sector: Technology
• Sector Strength: 83
• Industry: Communication Equipment
• EPS (TTM): -2.10
• Shares Outstanding: 4,794,963
• 10 Day Avg. Volume: 14,310
• 30 Day Avg. Volume: 6,903
• PEG Ratio: -0.37
• Price to Book (P/B): 0.73
• 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: 50 Neutral
• Price Target: ―

NAKAYO INC's overall stock score reflects significant challenges in financial performance, with consistent losses and zero cash flow generation as major concerns. The balance sheet remains robust, providing some stability. Technical indicators suggest a mixed trend, with recent upward movement but uncertainty in short-term momentum. Valuation is hampered by negative profitability, despite a moderate dividend yield.

NAKAYO INC Business Overview & Revenue Model

Company Description

NAKAYO INC (6715) is a Japanese company primarily engaged in the development, manufacture, and sale of telecommunications equipment. The company focuses on providing innovative communication solutions, including telephone systems, intercom systems, and related network equipment. They serve a diverse range of sectors, including commercial enterprises, government institutions, and residential markets, offering products that enhance connectivity and communication efficiency.

How the Company Makes Money

NAKAYO INC generates revenue through the sale of its telecommunications products and solutions. The company's key revenue streams include the direct sale of telephone systems, intercom systems, and network equipment to various clients across multiple industries. Additionally, NAKAYO INC may engage in service contracts for installation, maintenance, and technical support, which provide a steady income stream. Strategic partnerships and collaborations with other technology firms or service providers can also contribute to its earnings by expanding its market reach and integrating its products with complementary technologies.

NAKAYO INC Financial Statement Overview

Summary

NAKAYO INC is facing significant profitability challenges, with consistent losses impacting its income statement. The balance sheet remains strong with no debt and a high equity ratio, providing a cushion against financial distress. However, cash flow generation is a major concern, with zero free cash flow in the TTM. The company must focus on reversing revenue declines and improving operational efficiencies to enhance profitability and cash flow generation.

Income Statement

NAKAYO INC has experienced a decline in revenue from previous years, as evidenced by the TTM (Trailing-Twelve-Months) revenue of ¥17.44 billion compared to ¥18.59 billion in 2022. The company is currently facing challenges with profitability, as shown by negative net profit margins (-3.4% TTM) and negative EBIT and EBITDA margins. Despite a positive gross profit margin (16.1% TTM), the company struggles with operational efficiencies leading to consistent net losses.

Balance Sheet

The company maintains a strong equity footing with a high equity ratio of 76.3% TTM, indicating financial stability and low leverage risk, as it has no total debt. The return on equity (ROE) is negative due to net losses, posing a concern for profitability. NAKAYO INC's balance sheet remains robust with substantial equity, but profitability issues persist.

Cash Flow

NAKAYO INC's cash flow statement reveals significant challenges in generating positive cash flows, with zero operating and free cash flow reported in the TTM period. While the absence of debt reduces financial risk, the lack of positive cash flow generation and reliance on cash reserves could constrain future operations and investments.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
17.44B	17.22B	17.09B	18.59B	17.66B	17.73B
	Gross Profit
2.81B	2.38B	2.17B	3.29B	3.48B	3.53B
	EBIT
-188.00M	-660.00M	-974.00M	86.00M	397.00M	357.00M
	EBITDA
-353.75M	-713.00M	348.00M	1.35B	1.28B	1.21B
	Net Income Common Stockholders
-592.00M	-1.27B	-708.00M	281.00M	271.00M	253.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.46B	4.17B	3.98B	6.05B	6.38B	6.62B
	Total Assets
20.54B	21.29B	22.39B	24.32B	24.23B	22.58B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-3.46B	-4.17B	-3.98B	-6.05B	-6.38B	-6.62B
	Total Liabilities
4.86B	5.50B	5.50B	6.05B	5.71B	4.85B
	Stockholders Equity
15.68B	15.78B	16.90B	18.27B	18.52B	17.73B
Cash Flow		Free Cash Flow
0.00	-605.00M	-2.40B	-708.00M	-14.00M	1.14B
	Operating Cash Flow
0.00	170.00M	-1.75B	-139.00M	878.00M	1.80B
	Investing Cash Flow
0.00	101.00M	-136.00M	-15.00M	-891.00M	-700.00M
	Financing Cash Flow
0.00	-91.00M	-177.00M	-177.00M	-222.00M	-287.00M

NAKAYO INC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2535.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6715, the sentiment is Neutral. The current price of 2535 is below the 20-day moving average (MA) of 2541.00, below the 50-day MA of 2542.04, and above the 200-day MA of 1638.64, indicating a neutral trend. The MACD of 4.02 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6715.

NAKAYO INC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6758	81 Outperform	¥23.16T	20.08	14.32%	0.50%	-0.49%	19.71%
6701	78 Outperform	¥5.14T	28.76	8.97%	0.70%	-1.55%	17.24%
6703	77 Outperform	$127.82B	10.26	8.57%	4.47%	7.25%	-51.36%
6779	68 Neutral	¥15.44B	9.16		4.27%	5.48%	-23.11%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%
6925	61 Neutral	¥157.38B	24.87	3.09%	3.82%	-1.01%	-26.38%
6715	50 Neutral	¥11.27B	834.82		1.57%	-1.06%	-111.31%