Nichiryoku Co., Ltd. (7578) AI Stock Analysis

• Market Cap: ¥2.35B
• Dividend Yield: N/A
• Average Volume (3M): 651.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -18.74%
• EPS Growth: -1062.47%
• Country: JP
• Employees: 140
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -10.13
• Shares Outstanding: 17,393,505
• 10 Day Avg. Volume: 1,821,360
• 30 Day Avg. Volume: 651,133
• 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: ¥142.00
• Price Target Upside: 5.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ¥142.00 ▲(5.19% Upside)

Nichiryoku Co., Ltd. faces significant financial challenges, with declining revenue and profitability, and negative cash flows being the most critical issues. While technical indicators show some positive momentum, the overbought RSI suggests caution. The negative P/E ratio and lack of dividend yield further highlight valuation concerns. Overall, the stock's financial performance heavily influences its low score, indicating a need for strategic improvements.

Nichiryoku Co., Ltd. Business Overview & Revenue Model

Company Description

Nichiryoku Co.,Ltd. engages in the funeral and cemetery businesses in Japan. It is involved in the construction, sale, and management of cemeteries; mining, design, manufacture, and sale of stone products and materials; planning and contracting of various rituals; and sale of funeral gifts and Buddhist altars, as well as the management of funeral operations. Nichiryoku Co.,Ltd. was founded in 1966 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nichiryoku Co., Ltd. generates revenue through a diversified business model centered around the funeral industry. The company's primary revenue streams include fees from funeral services, sales of burial plots, and cemetery maintenance services. Additionally, the sale of funeral-related products such as urns and memorial items contributes to its earnings. The company may also engage in strategic partnerships with local governments or religious organizations to secure land or enhance service offerings, thereby potentially increasing its market reach and customer base.

Nichiryoku Co., Ltd. Financial Statement Overview

Summary

Nichiryoku Co., Ltd. shows a concerning financial performance with declining revenue, profitability, and negative cash flows. The company faces significant operational challenges, as evidenced by negative EBIT and EBITDA margins. While the balance sheet shows a solid equity base, high leverage poses financial risks.

Income Statement

Nichiryoku Co., Ltd. has experienced a significant decline in revenue and profitability, with a notable drop in net income from the previous year. The gross profit margin remains relatively stable, but the negative EBIT and EBITDA margins indicate operational inefficiencies. The company has faced challenges in maintaining revenue growth, and the current trajectory shows a concerning downward trend in income performance.

Balance Sheet

The company maintains a solid equity base compared to its total assets, indicated by a healthy equity ratio. However, the debt-to-equity ratio is moderately high, suggesting potential leverage risks. Despite these risks, the return on equity is negative due to the net loss, which impacts overall equity performance.

Cash Flow

Nichiryoku Co., Ltd. reports negative free cash flow, indicating cash outflows exceeding inflows from operations. The operating cash flow has turned negative, reflecting operational challenges. The free cash flow to net income ratio is unfavorable, suggesting inefficient cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.24B	2.85B	3.22B	2.98B	2.62B
Gross Profit	1.56B	1.99B	2.20B	2.14B	1.83B
EBITDA	-66.86M	400.30M	301.11M	338.13M	250.48M
Net Income	-271.01M	279.61M	118.06M	129.23M	-292.81M
Balance Sheet
Total Assets	7.48B	8.07B	8.91B	9.47B	9.74B
Cash, Cash Equivalents and Short-Term Investments	107.06M	282.91M	670.05M	1.13B	1.68B
Total Debt	2.22B	2.44B	3.30B	4.07B	4.84B
Total Liabilities	2.89B	3.21B	4.37B	5.15B	5.81B
Stockholders Equity	4.59B	4.86B	4.54B	4.31B	3.92B
Cash Flow
Free Cash Flow	-118.39M	77.73M	327.66M	311.24M	104.39M
Operating Cash Flow	-113.54M	90.71M	339.68M	336.86M	128.23M
Investing Cash Flow	152.50M	351.86M	280.52M	-181.00M	-662.91M
Financing Cash Flow	-214.80M	-829.71M	-663.15M	-521.76M	633.15M

Nichiryoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 135.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7578, the sentiment is Positive. The current price of 135 is above the 20-day moving average (MA) of 126.85, above the 50-day MA of 124.72, and above the 200-day MA of 131.09, indicating a bullish trend. The MACD of 3.24 indicates Negative momentum. The RSI at 60.16 is Neutral, neither overbought nor oversold. The STOCH value of 24.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7578.

Nichiryoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9160	73 Outperform	8.40B	9.30	9.90%	―	11.07%	5.85%
9628	72 Outperform	32.10B	6.48	12.70%	2.50%	55.72%	97.54%
2485	69 Neutral	11.59B	9.63	9.19%	3.88%	25.26%	65.66%
6186	56 Neutral	2.17B	-7.86	-2.22%	3.56%	-2.89%	-144.95%
3041	51 Neutral	1.84B	43.29	―	1.98%	8.87%	48.11%
7578	48 Neutral	¥2.35B	―	―	―	-18.74%	-1062.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%