Nankai Plywood Co., Ltd. (7887) AI Stock Analysis

• Market Cap: ¥5.87B
• Dividend Yield: 2.47%
• Average Volume (3M): 1.05K
• Price to Earnings (P/E): 58.1
• Beta (1Y): 0.44
• Revenue Growth: 4.82%
• EPS Growth: -89.34%
• Country: JP
• Employees: 1,810
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -562.80
• Shares Outstanding: 1,009,580
• 10 Day Avg. Volume: 860
• 30 Day Avg. Volume: 1,046
• PEG Ratio: <0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 72 Outperform
• Price Target: ¥6,460.00 ▲(6.43%Upside)

Nankai Plywood Co., Ltd. achieves a solid overall stock score, driven by robust financial performance and positive technical indicators. The company's revenue growth and financial stability are key strengths, while technical analysis confirms a bullish trend. However, the high P/E ratio suggests the stock may be overvalued, which slightly tempers the overall score.

Nankai Plywood Co., Ltd. Business Overview & Revenue Model

Company Description

Nankai Plywood Co., Ltd. (7887) is a Japanese company specializing in the manufacture and sale of plywood and other wood products. The company operates within the lumber and wood products sector, providing high-quality plywood that is utilized in various industries, including construction, furniture, and interior design. Nankai Plywood is known for its commitment to sustainable forestry practices and offers a diverse range of products that meet both domestic and international standards.

How the Company Makes Money

Nankai Plywood Co., Ltd. generates revenue primarily through the production and sale of plywood and related wood products. The company's key revenue streams include domestic sales to construction companies, furniture manufacturers, and retailers, as well as international exports. By maintaining a strong distribution network and leveraging its expertise in sustainable forestry, Nankai Plywood ensures a steady demand for its products. The company may also engage in partnerships with other businesses within the construction and design industries to expand its market reach and drive revenue growth. Additionally, Nankai Plywood's focus on quality and sustainability allows it to command a premium price for its products, contributing further to its earnings.

Nankai Plywood Co., Ltd. Financial Statement Overview

Summary

Nankai Plywood Co., Ltd. demonstrates solid revenue growth and financial stability with low leverage. Profitability margins are under pressure, and cash flow volatility poses a risk to liquidity. The company needs to improve cash generation to support operations and growth.

Income Statement

The company's revenue has shown consistent growth, with a TTM revenue of ¥24.39B compared to ¥23.77B in the previous annual period. The gross profit margin is strong at 28.6% TTM, though slightly lower than the previous year's 28.1%. The net profit margin is relatively stable at 3.7% TTM, but there has been a decline from the previous annual net income of ¥948.7M to ¥898.9M TTM. The EBIT margin is 3.8% TTM, indicating reasonable operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio of 75.0% TTM, showing strong financial stability. The debt-to-equity ratio is modest at 0.18, indicating low leverage. However, the return on equity (ROE) is modest at 3.7% TTM, reflecting limited efficiency in generating returns on shareholder equity.

Cash Flow

Cash flow performance is mixed, with operating cash flow at zero TTM, indicating potential issues in cash generation. Free cash flow shows significant volatility, with the previous year's free cash flow at ¥1.76B. The lack of operating cash flow compared to net income could indicate liquidity challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
24.39B	23.77B	23.06B	21.93B	19.41B	19.73B
	Gross Profit
6.98B	6.68B	6.52B	7.62B	6.71B	6.83B
	EBIT
914.55M	848.28M	906.34M	2.17B	1.64B	1.72B
	EBITDA
1.98B	2.66B	1.69B	3.10B	1.85B	2.20B
	Net Income Common Stockholders
898.87M	948.71M	1.59B	1.41B	501.57M	886.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.00B	3.51B	2.99B	3.33B	2.56B	1.58B
	Total Assets
32.51B	32.25B	31.35B	27.66B	24.03B	23.30B
	Total Debt
4.38B	4.66B	5.67B	2.39B	1.33B	687.14M
	Net Debt
1.37B	1.15B	2.69B	-937.68M	-992.88M	-895.13M
	Total Liabilities
8.07B	8.23B	8.86B	6.81B	4.53B	3.79B
	Stockholders Equity
24.39B	23.99B	22.46B	20.85B	19.50B	19.51B
Cash Flow		Free Cash Flow
0.00	1.76B	-3.12B	-250.08M	79.72M	-560.16M
	Operating Cash Flow
0.00	3.41B	-1.59B	1.89B	1.33B	594.66M
	Investing Cash Flow
0.00	-1.63B	-1.93B	-1.86B	-1.05B	-1.06B
	Financing Cash Flow
0.00	-1.30B	2.99B	867.56M	473.86M	91.81M

Nankai Plywood Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6070.00
• 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:7887, the sentiment is Positive. The current price of 6070 is above the 20-day moving average (MA) of 5776.50, above the 50-day MA of 5584.80, and above the 200-day MA of 5423.24, indicating a bullish trend. The MACD of 125.65 indicates Negative momentum. The RSI at 68.32 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7887.

Nankai Plywood Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7807	76 Outperform	¥3.91B	5.37		1.54%	-0.55%	-6.93%
7791	73 Outperform	¥3.12B	7.46		4.34%	18.55%	63.79%
7887	72 Outperform	¥5.87B	58.09		2.47%	4.82%	-89.34%
7898	65 Neutral	¥7.67B	4.30		2.91%	0.58%	―
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
9827	55 Neutral	¥7.84B	117.73		5.64%	2.17%	-101.54%
7822	52 Neutral	¥9.90B	3.86		4.46%	-0.65%	-100.90%