Naikai Zosen Corporation (7018) AI Stock Analysis

• Market Cap: ¥31.28B
• Dividend Yield: 0.22%
• Average Volume (3M): 159.03K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.55
• Revenue Growth: -10.62%
• EPS Growth: 68.03%
• Country: JP
• Employees: 628
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 233.47
• Shares Outstanding: 2,253,000
• 10 Day Avg. Volume: 419,610
• 30 Day Avg. Volume: 159,030
• PEG Ratio: -0.17
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -1.44
• 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: 66 Neutral
• Price Target: ¥19,954.00 ▲(90.58% Upside)

The overall stock score of 66.3 reflects a mixed outlook for Naikai Zosen Corporation. The most significant factor is the strong technical momentum, which is offset by financial performance concerns, particularly in cash flow management. Valuation metrics suggest the stock may be overvalued, further tempering the positive technical signals.

Naikai Zosen Corporation Business Overview & Revenue Model

Company Description

Naikai Zosen Corporation (7018) is a prominent Japanese company specializing in the shipbuilding and marine engineering sectors. Established in 1896, the company primarily focuses on the design, construction, and repair of a wide range of vessels, including cargo ships, tankers, and specialized ships for various industries. In addition to shipbuilding, Naikai Zosen is involved in the production of marine equipment and components, as well as providing engineering services related to marine and offshore structures.

How the Company Makes Money

Naikai Zosen Corporation generates revenue primarily through the construction of ships and marine vessels, which constitutes its main revenue stream. The company enters into contracts with shipping companies and other commercial entities to build customized vessels according to specific requirements. Additionally, Naikai Zosen earns income from the repair and maintenance services offered to existing vessels. Another significant revenue source includes the sale of marine equipment and components, which are essential for the operation of ships. The company may also engage in partnerships with other firms for joint ventures in shipbuilding projects or engineering services, which can enhance its market reach and profitability. Fluctuations in global shipping demand, regulatory changes, and advancements in marine technology also influence its earnings.

Naikai Zosen Corporation Financial Statement Overview

Summary

Naikai Zosen Corporation's financial health shows a combination of strengths and weaknesses. While the company maintains reasonable profitability margins, declining revenues and negative cash flows pose significant risks. The balance sheet remains stable, but liquidity issues could impact future flexibility. Addressing operational inefficiencies and enhancing cash flow management are crucial for sustainable growth.

Income Statement

The company shows a mixed performance with a declining revenue trend, dropping from 46.38 billion to 44.65 billion JPY in the latest year. However, profitability metrics like Gross Profit Margin (5.70%) and Net Profit Margin (2.28%) remain stable. The decline in EBIT and EBITDA margins indicates potential operational inefficiencies.

Balance Sheet

The balance sheet reflects moderate financial stability with a Debt-to-Equity Ratio of 0.52, indicating manageable leverage. The Equity Ratio is at 25.55%, suggesting a solid equity base. However, there is a notable decrease in cash reserves, highlighting potential liquidity concerns.

Cash Flow

The cash flow statement reveals significant issues, with negative Free Cash Flow and Operating Cash Flow in the latest year. Free Cash Flow has decreased dramatically, indicating potential cash management problems. The company may face challenges in sustaining operations without improving cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.38B	44.65B	46.38B	37.62B	33.03B	31.12B
Gross Profit	2.83B	2.54B	4.38B	1.93B	1.62B	244.00M
EBITDA	2.27B	2.06B	3.44B	2.01B	1.27B	103.00M
Net Income	1.20B	1.02B	2.26B	737.00M	143.00M	-971.00M
Balance Sheet
Total Assets	42.34B	42.49B	43.82B	40.20B	36.81B	34.04B
Cash, Cash Equivalents and Short-Term Investments	11.63B	4.70B	14.80B	9.31B	16.28B	7.45B
Total Debt	4.19B	5.68B	8.96B	9.41B	9.71B	9.98B
Total Liabilities	31.15B	31.63B	34.08B	32.78B	30.02B	27.27B
Stockholders Equity	11.18B	10.86B	9.74B	7.43B	6.79B	6.78B
Cash Flow
Free Cash Flow	0.00	-6.58B	5.96B	-7.88B	9.28B	-5.61B
Operating Cash Flow	0.00	-5.38B	6.75B	-6.38B	10.78B	-4.10B
Investing Cash Flow	0.00	-1.20B	-824.00M	-249.00M	-1.68B	-1.53B
Financing Cash Flow	0.00	-3.44B	-528.00M	-359.00M	-278.00M	1.71B

Naikai Zosen Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10470.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7018, the sentiment is Positive. The current price of 10470 is below the 20-day moving average (MA) of 10624.00, above the 50-day MA of 9355.00, and above the 200-day MA of 6438.70, indicating a bullish trend. The MACD of 2164.26 indicates Negative momentum. The RSI at 91.24 is Negative, neither overbought nor oversold. The STOCH value of 81.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7018.

Naikai Zosen Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7022	―	¥8.98B	7.58	―	2.79%	2.19%	67.67%
6018	―	¥12.08B	26.34	―	2.92%	44.84%	-15.31%
7014	―	€262.88B	12.40	22.12%	0.96%	7.59%	-16.37%
7018	―	¥31.28B	23.84	―	0.22%	-10.62%	68.03%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7003	―	$506.29B	28.26	10.47%	0.58%	5.10%	-66.51%
6022	―	¥4.53B	45.42	―	0.54%	3.74%	-19.91%