Nippon Seiki Co., Ltd. (7287) AI Stock Analysis

• Market Cap: ¥100.14B
• Dividend Yield: 3.61%
• Average Volume (3M): 97.20K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.14
• Revenue Growth: 0.60%
• EPS Growth: 172.55%
• Country: JP
• Employees: 13,291
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 12.24
• Shares Outstanding: 58,471,300
• 10 Day Avg. Volume: 90,470
• 30 Day Avg. Volume: 97,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥1,845.00 ▲(2.56% Upside)

Nippon Seiki Co., Ltd. has a stable financial performance with strong profitability and low leverage, but faces significant cash flow management challenges. The technical analysis indicates bullish momentum, though overbought conditions suggest caution. Valuation metrics are reasonable, providing a fair value with an attractive dividend yield.

Nippon Seiki Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Seiki Co., Ltd. manufactures and sells instruments for automobiles, motorcycles, agricultural / construction machines, and boats in Japan, the Americas, Europe, and Asia. The company also provides sensors for automobiles, such as level, rotation, pressure, angle, and temperature sensor; household appliances, including displays, intercom systems, and wireless communication products, as well products which require waterproofing technology; office automation appliances comprising control panels for copiers, printers, facsimiles, and multi-functional products; and factory automation appliances, such as sequence controllers. In addition, it offers display products, which consists of passive liquid crystal display and organic light emitting diode; and manufactures and supplies gauges and displays for vehicles for the aftermarkets under the Defi brand name. Further, the company provides controllers for air-conditioning and household equipment, assemblies for factory automation, amusement units, high-density mounting boards, and electroluminescence panels and modules; PCB assemblies for amusements; and car inspection and maintenance services, as well as sells new and used automobiles. Additionally, it processes and sells resin materials; manufactures electronic sub-assemblies for instruments and remote controllers, and peripheral systems; develops and sells software products; and provides freight transportation, advertising agency, and computer services. The company also offers engages in the plastic injection molding; compounding and coloring of plastic; and trading activities. Nippon Seiki Co., Ltd. was founded in 1946 and is headquartered in Nagaoka, Japan.

How the Company Makes Money

Nippon Seiki generates revenue primarily through the sale of automotive displays and related technology to original equipment manufacturers (OEMs) in the automotive industry. The company has established long-term relationships with major automotive manufacturers, allowing it to secure significant contracts for the supply of its products. Key revenue streams include the production and sale of instrument panels, electronic displays, and vehicle information systems. Additionally, Nippon Seiki invests in research and development to innovate and enhance its product offerings, which helps maintain its competitive edge and attract new clients. Strategic partnerships with automotive companies and participation in joint development projects also contribute to its earnings, as they expand market reach and enhance product capabilities.

Nippon Seiki Co., Ltd. Financial Statement Overview

Summary

Nippon Seiki Co., Ltd. demonstrates stable profitability with a strong balance sheet and low leverage. However, significant challenges in cash flow management, with a negative free cash flow growth rate, could impact future financial flexibility.

Income Statement

Nippon Seiki Co., Ltd. shows a stable gross profit margin of around 14.6% in TTM, with a slight decline in revenue growth rate at -5%. The net profit margin is modest at 1.94%, indicating profitability but with room for improvement. The EBIT and EBITDA margins are healthy, suggesting efficient operations despite the revenue decline.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.17, indicating low leverage. Return on equity is modest at 2.8%, reflecting moderate profitability. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

The cash flow statement reveals challenges, with a significant negative free cash flow growth rate of -443.43% in TTM. Operating cash flow is positive, but the free cash flow to net income ratio is negative, indicating cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.24B	316.40B	312.36B	275.78B	223.62B	216.93B
Gross Profit	45.24B	46.34B	42.92B	38.63B	36.11B	32.84B
EBITDA	23.07B	24.72B	26.99B	18.82B	10.69B	17.69B
Net Income	6.63B	6.12B	5.30B	1.38B	-5.18B	517.00M
Balance Sheet
Total Assets	325.98B	332.10B	338.63B	355.95B	329.55B	315.19B
Cash, Cash Equivalents and Short-Term Investments	41.52B	35.30B	33.26B	85.16B	102.80B	112.43B
Total Debt	29.09B	37.22B	25.19B	79.14B	69.13B	69.77B
Total Liabilities	108.48B	111.86B	109.58B	149.50B	134.68B	128.66B
Stockholders Equity	214.04B	216.69B	221.54B	199.62B	186.26B	179.22B
Cash Flow
Free Cash Flow	6.35B	-1.85B	13.15B	-27.61B	-12.91B	525.00M
Operating Cash Flow	22.60B	15.27B	24.64B	-18.06B	-5.44B	10.60B
Investing Cash Flow	-3.05B	-8.31B	37.93B	19.71B	-7.52B	-13.01B
Financing Cash Flow	-10.27B	-4.75B	-59.58B	2.03B	-5.50B	4.88B

Nippon Seiki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1799.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7287, the sentiment is Positive. The current price of 1799 is above the 20-day moving average (MA) of 1754.82, above the 50-day MA of 1722.85, and above the 200-day MA of 1341.35, indicating a bullish trend. The MACD of 16.83 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 92.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7287.

Nippon Seiki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	79 Outperform	¥85.43B	7.49	―	4.73%	-6.49%	-16.68%
7250	78 Outperform	¥162.48B	12.39	―	2.16%	-1.29%	-26.66%
7283	77 Outperform	¥130.88B	10.85	―	3.57%	1.71%	-11.98%
7241	68 Neutral	¥84.64B	13.11	―	3.97%	-11.96%	-46.82%
5988	66 Neutral	¥44.27B	48.89	―	5.15%	-3.80%	-66.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7287	61 Neutral	¥100.14B	15.08	―	3.61%	0.60%	172.55%

Nippon Seiki Co., Ltd. Corporate Events

Nippon Seiki Co., Ltd. Reports Modest Revenue Growth and Increased Dividends

Nippon Seiki Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in revenue by 1.3% to 316,397 million yen. Despite a decline in profit before tax by 32.9%, the company saw a 13% rise in operating profit and a 15.5% increase in profit attributable to owners of the parent. The company plans to increase its annual cash dividend per share to 50 yen and forecasts further financial growth in the upcoming fiscal year, with a projected revenue of 320,000 million yen and a 30.7% rise in profit attributable to owners of the parent.