Nippi Inc (7932) AI Stock Analysis

• Market Cap: ¥34.97B
• Dividend Yield: 3.98%
• Average Volume (3M): 11.13K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.43
• Revenue Growth: -1.69%
• EPS Growth: -2.96%
• Country: JP
• Employees: 627
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 316.96
• Shares Outstanding: 2,889,000
• 10 Day Avg. Volume: 13,150
• 30 Day Avg. Volume: 11,130
• 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: ¥12,748.00
• Price Target Upside: 4.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 86 Outperform
• Price Target: ¥12,748.00 ▲(4.07% Upside)

Nippi Inc's overall stock score is driven by its strong financial performance, robust technical indicators suggesting bullish momentum, and attractive valuation metrics, including a reasonable P/E ratio and high dividend yield. The lack of recent earnings call data or notable corporate events means these factors are excluded from this analysis.

Nippi Inc Business Overview & Revenue Model

Company Description

Nippi,Incorporated, together with its subsidiaries, manufactures and sells collagen casings, gelatin and collagen peptides, cosmetics and functional foods, functional polymers, and life science products in Japan and internationally. The company offers collagen casings for use in various fields, including foods, medicines and pharmaceuticals, and cosmetics; gelatin, which is used in food products, pharmaceutical products, photo films, etc.; and leather products for the automotive industry. It also develops cosmetics and functional foods with collagen; offers Nippi Linker, a vinyl chloride resin, which is primarily used for electric wires and masking films; and provides Nippi V Foam, a foam made of vinyl chloride for welder processing that is used in cars, quilt products, and novelty goods. In addition, the company engages in real estate leasing activities; and provides life science products that include laminin, lab equipment and supplies, and reagents, as well as contract services and bovine spongiform encephalopathy test kits. The company was formerly known as The Japan Leather Mfg. Co., Ltd. and changed its name to Nippi,Incorporated in February 1974. Nippi,Incorporated was founded in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippi Inc generates revenue primarily through the sale of its gelatin and collagen products. The company capitalizes on the growing demand for these materials in various industries. In the food industry, its products are used as gelling agents and stabilizers. In the pharmaceutical sector, they are crucial for drug encapsulation and other medical applications. Additionally, the beauty and cosmetics industries utilize collagen for its anti-aging properties. Nippi Inc also engages in collaborations and partnerships that facilitate research and development, enhancing its product offerings and opening new markets. The company's revenue streams are bolstered by its strong emphasis on quality and innovation, allowing it to maintain a competitive edge in a specialized market.

Nippi Inc Financial Statement Overview

Summary

Nippi Inc exhibits strong financial health with consistent revenue and margin stability, improved leverage, and robust cash flow generation. The company's conservative financial management is evident through its improved debt profile and steady equity base. While net income margins have slightly dipped, the overall performance is solid, indicating resilience in the competitive apparel sector.

Income Statement

Nippi Inc displays solid profitability with a consistent gross profit margin of approximately 27% in the latest year. The net profit margin has slightly declined, from 5.2% to 5%, indicating mild pressure on net income. However, the EBIT and EBITDA margins have remained stable, reflecting good operational efficiency. Revenue growth is modest but stable, with a slight 0.19% increase in the latest year, suggesting steady performance.

Balance Sheet

The company maintains a strong equity base, with an equity ratio of 56.8%, indicating financial stability. The debt-to-equity ratio has improved over the years, dropping to 0.27, showcasing a decrease in leverage and strengthening balance sheet health. Return on equity is lower at 6.17%, reflecting moderate profitability relative to shareholder investment.

Cash Flow

Nippi Inc has demonstrated strong cash generation capabilities, with a significant operating cash flow to net income ratio of 1.89, indicating efficient cash conversion. Free cash flow has grown by 13%, showing robust cash management and capacity for reinvestment or shareholder returns. The free cash flow to net income ratio is also high at 1.57, affirming strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.14B	49.14B	49.05B	44.81B	39.35B	35.59B
Gross Profit	13.17B	13.17B	12.73B	10.41B	9.89B	8.76B
EBITDA	5.09B	5.09B	5.31B	3.23B	3.17B	7.57B
Net Income	2.46B	2.46B	2.55B	1.17B	1.14B	4.22B
Balance Sheet
Total Assets	70.17B	70.17B	72.39B	69.56B	68.42B	69.41B
Cash, Cash Equivalents and Short-Term Investments	8.93B	8.93B	8.78B	7.01B	6.79B	7.67B
Total Debt	10.65B	10.65B	13.57B	14.96B	16.22B	17.86B
Total Liabilities	29.60B	29.60B	34.09B	34.49B	34.42B	36.45B
Stockholders Equity	39.84B	39.84B	37.62B	34.46B	33.41B	32.41B
Cash Flow
Free Cash Flow	0.00	3.87B	3.42B	1.59B	1.02B	-805.00M
Operating Cash Flow	0.00	4.65B	4.17B	2.67B	2.07B	2.76B
Investing Cash Flow	0.00	-815.00M	-580.00M	-821.00M	-917.00M	3.30B
Financing Cash Flow	0.00	-3.75B	-1.88B	-1.67B	-2.13B	-2.59B

Nippi Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12250.00
• 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:7932, the sentiment is Positive. The current price of 12250 is above the 20-day moving average (MA) of 11784.00, above the 50-day MA of 11277.40, and above the 200-day MA of 7748.25, indicating a bullish trend. The MACD of 196.68 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 60.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7932.

Nippi Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7932	86 Outperform	¥34.97B	13.35	―	3.98%	-1.69%	-2.96%
8050	76 Outperform	265.61B	16.31	8.54%	1.48%	6.92%	46.32%
7936	75 Outperform	2.70T	36.65	27.35%	0.57%	18.72%	44.99%
7955	75 Outperform	29.37B	14.31	3.49%	3.89%	2.12%	56.08%
7989	73 Outperform	42.51B	13.09	5.29%	2.43%	2.31%	2.20%
7938	65 Neutral	7.67B	14.82	5.49%	2.91%	-1.58%	-16.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%