Nihon Seimitsu Co., Ltd. (7771) AI Stock Analysis

• Market Cap: ¥1.96B
• Dividend Yield: N/A
• Average Volume (3M): 221.33K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.60
• Revenue Growth: -1.41%
• EPS Growth: -155.66%
• Country: JP
• Employees: 1,626
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -1.99
• Shares Outstanding: 22,238,298
• 10 Day Avg. Volume: 98,260
• 30 Day Avg. Volume: 221,330
• PEG Ratio: 0.75
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 11.40
• 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: 57 Neutral
• Price Target: ¥93.00 ▲(3.33% Upside)

The overall stock score is primarily influenced by mixed financial performance, with strong revenue growth but challenges in profitability and leverage. Technical indicators suggest limited upward momentum, and valuation metrics highlight potential overvaluation due to recent net losses.

Nihon Seimitsu Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Seimitsu Co., Ltd. (7771) is a prominent Japanese company specializing in precision machining and the production of high-quality components for various industries, including automotive, aerospace, and electronics. With a strong emphasis on technological innovation and quality assurance, the company manufactures a wide range of products, including precision gears, shafts, and mechanical parts that meet the demanding specifications of its global clientele.

How the Company Makes Money

Nihon Seimitsu Co., Ltd. generates revenue primarily through the sale of its precision machined components to various industries. The company operates on a business-to-business (B2B) model, supplying products to manufacturers in the automotive and aerospace sectors who require high-precision parts for their operations. Key revenue streams include long-term contracts with major automotive manufacturers, which provide a stable income base, as well as orders from electronics firms that rely on precision components for their products. Additionally, the company may engage in partnerships with technology firms to develop innovative machining solutions, further enhancing its product offerings and revenue potential.

Nihon Seimitsu Co., Ltd. Financial Statement Overview

Summary

Nihon Seimitsu Co., Ltd. shows strong revenue growth and positive cash flow, but faces challenges with profitability and high leverage. The net loss and high debt levels indicate financial risks that need addressing.

Income Statement

Nihon Seimitsu Co., Ltd. has shown a positive trend in revenue growth, with a recent year-over-year increase of 6.4%. The gross profit margin is fairly stable at approximately 21% in 2025, indicating efficient cost management. However, the net profit margin has turned negative in 2025 due to a net loss, reflecting challenges in converting revenue into profit. The EBIT margin is positive but modest at 3.85%, suggesting some operational efficiency but potential room for improvement.

Balance Sheet

The debt-to-equity ratio stands at 2.00, indicating a relatively high leverage which could pose risks in economic downturns. The return on equity has been negative due to the net loss, implying inefficiencies in generating returns for shareholders. However, the equity ratio of 26.06% demonstrates a decent level of financial stability with a significant portion of assets financed by equity.

Cash Flow

The company has shown resilience with a positive operating cash flow of 253 million JPY in 2025, despite a net loss. The free cash flow remains positive, albeit lower than previous years, highlighting effective cash management. However, the free cash flow to net income ratio is negative due to the net loss, indicating potential challenges in cash generation relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.06B	7.16B	6.73B	6.90B	5.74B	4.77B
Gross Profit	1.51B	1.50B	1.42B	1.44B	1.24B	660.85M
EBITDA	107.50M	279.64M	710.09M	482.01M	138.73M	-361.24M
Net Income	-278.28M	-20.02M	390.83M	175.55M	-128.17M	-631.93M
Balance Sheet
Total Assets	5.55B	5.64B	5.79B	5.30B	5.37B	5.37B
Cash, Cash Equivalents and Short-Term Investments	840.00M	875.86M	964.76M	601.31M	486.49M	683.67M
Total Debt	2.91B	2.94B	3.10B	3.18B	3.26B	3.22B
Total Liabilities	4.09B	4.17B	4.32B	4.04B	4.19B	3.97B
Stockholders Equity	1.46B	1.47B	1.47B	1.26B	1.18B	1.40B
Cash Flow
Free Cash Flow	0.00	139.16M	415.51M	200.83M	-213.79M	-384.56M
Operating Cash Flow	0.00	253.04M	475.57M	217.71M	-173.64M	-305.47M
Investing Cash Flow	0.00	-113.60M	-62.79M	-28.98M	-42.64M	-78.12M
Financing Cash Flow	0.00	-207.55M	-86.51M	-83.18M	28.54M	581.38M

Nihon Seimitsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 90.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7771, the sentiment is Neutral. The current price of 90 is above the 20-day moving average (MA) of 89.80, below the 50-day MA of 95.62, and above the 200-day MA of 83.13, indicating a neutral trend. The MACD of -1.27 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7771.

Nihon Seimitsu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7769	―	¥27.71B	13.58	―	2.18%	-2.63%	148.45%
7878	―	¥1.65B	23.16	―	4.74%	-0.80%	-53.15%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7771	―	¥1.96B	3.49	―	―	-1.41%	-155.66%
7872	―	¥6.22B	―	―	4.62%	-1.15%	47.80%
7794	―	¥7.49B	―	―	―	-24.62%	-747.64%
7810	―	¥2.56B	115.72	―	0.23%	10.06%	-22.67%