Naito & Co., Ltd. (7624) AI Stock Analysis

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Naito & Co., Ltd.

(TSE/TYO:7624)

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Rating:64Neutral

Price Target:JPY 165.00▲(7.14% Upside)

Action:reiterated

Date:09/30/26

The overall score is predominantly anchored by a virtually debt-free balance sheet that ensures excellent financial stability. However, the score is capped by a lack of top-line revenue growth and declining margins. Furthermore, while the valuation remains fair, technically overbought momentum indicators severely limit short-term appeal.

Positive Factors

Conservative balance sheetVery low leverage gives Naito substantial financial resilience and reduces the burden of interest and refinancing obligations. A stable capital base should help the company continue serving manufacturing customers and funding operations through cyclical changes in equipment demand.

Negative Factors

Sharp recent revenue declineThe steep recent revenue contraction signals weaker customer activity or reduced equipment demand and limits operating scale. If the decline persists, it could weaken supplier purchasing leverage, reduce coverage of fixed costs, and make recovery in earnings dependent on a broad manufacturing upturn.

Naito & Co., Ltd. (7624) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.38B
Dividend Yield: 2.60%
Average Volume (3M): 174.89K
Price to Earnings (P/E): 11.6
Beta (1Y): 0.58
Revenue Growth: 8.40%
EPS Growth: 90.53%
Country: Japan
Employees: 309
Sector: General
Sector Strength: 55
Industry: Industrial - Distribution

Naito & Co., Ltd. Business Overview & Revenue Model

Company Description

Naito & Co., Ltd., a Tokyo-headquartered trading firm established in 1945, distributes a diverse array of industrial equipment across Japan and to international markets. Their extensive product portfolio features various cutting tools, including carb...

How the Company Makes Money

Naito & Co., Ltd. makes money primarily by acting as an intermediary distributor/wholesaler to manufacturing companies. Its core revenue comes from selling (1) machine tools and production equipment, (2) cutting tools and tooling consumables, and (3)...

Naito & Co., Ltd. Financial Statement Overview

Summary

Naito & Co. boasts a fortress-like balance sheet with negligible debt and adequate cash flows to fund operations. However, performance is weighed down by stagnant revenue, razor-thin margins, and a steady decline in net profitability.

Income Statement

52Neutral

Balance Sheet

88Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	47.45B	43.52B	43.55B	44.06B	44.46B	43.62B
Gross Profit	6.06B	5.24B	5.29B	5.41B	5.46B	5.00B
EBITDA	1.33B	769.00M	858.00M	838.00M	1.35B	871.00M
Net Income	724.00M	284.00M	314.00M	345.00M	732.00M	448.00M
Balance Sheet
Total Assets	18.50B	17.59B	17.28B	17.84B	17.24B	17.27B
Cash, Cash Equivalents and Short-Term Investments	590.00M	82.00M	113.00M	138.00M	186.00M	186.00M
Total Debt	0	101.00M	73.00M	876.00M	356.00M	710.00M
Total Liabilities	4.99B	4.45B	4.36B	5.01B	4.58B	5.04B
Stockholders Equity	13.51B	13.14B	12.91B	12.83B	12.66B	12.22B
Cash Flow
Free Cash Flow	0	406.00M	1.08B	-84.00M	409.00M	87.00M
Operating Cash Flow	0	462.00M	1.16B	101.00M	442.00M	92.00M
Investing Cash Flow	0	-290.00M	-158.00M	-452.00M	72.00M	-238.00M
Financing Cash Flow	0	-190.00M	-1.02B	300.00M	-518.00M	141.00M

Naito & Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price154.00

Price Trends

50DMA164.92Negative

100DMA153.79Positive

200DMA144.78Positive

Market Momentum

MACD-4.89Positive

RSI40.96Neutral

STOCH59.09Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7624, the sentiment is Neutral. The current price of 154.00 is below the 20-day moving average (MA) of 161.40, below the 50-day MA of 164.92, and above the 200-day MA of 144.78, indicating a neutral trend. The MACD of -4.89 indicates Positive momentum. The RSI at 40.96 is Neutral, neither overbought nor oversold. The STOCH value of 59.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7624.

Naito & Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7624 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9902	77Outperform	JPY 87.37B	12.46	―	3.23%	13.77%	37.66%
JP:8103	71Outperform	JPY 38.14B	11.35	―	4.44%	17.27%	-5.58%
JP:3176	68Neutral	JPY 60.93B	10.58	―	3.82%	8.96%	23.50%
JP:7628	64Neutral	JPY 28.23B	13.85	―	3.63%	11.01%	-7.93%
JP:7624	64Neutral	JPY 8.43B	11.65	―	2.60%	8.40%	90.53%
JP:9830	59Neutral	JPY 163.93B	10.01	―	2.45%	10.37%	1.94%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7624 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7624	Naito & Co., Ltd.	154.00	18.88	13.97%
JP:3176	Sanyo Trading Co., Ltd.	1047.00	318.90	43.80%
JP:7628	Ohashi Technica Inc.	1130.00	52.52	4.87%
JP:8103	Meiwa Corporation	951.00	183.03	23.83%
JP:9830	Trusco Nakayama Corporation	2489.00	169.41	7.30%
JP:9902	Nichiden Corporation	2940.00	622.12	26.84%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026

Naito & Co., Ltd. AI Stock Analysis