Nippi Inc (7932) AI Stock Analysis

• Market Cap: ¥28.56B
• Dividend Yield: 6.04%
• Average Volume (3M): 16.51K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.43
• Revenue Growth: 0.19%
• EPS Growth: -3.57%
• Country: JP
• Employees: 627
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 199.89
• Shares Outstanding: 2,889,000
• 10 Day Avg. Volume: 9,080
• 30 Day Avg. Volume: 16,513
• PEG Ratio: 0.44
• Price to Book (P/B): 0.48
• 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: 78 Outperform
• Price Target: ¥11,029.00 ▲(12.43%Upside)

Nippi Inc's strong financial performance and attractive valuation are the primary drivers of its high score. Robust cash flow generation, stable margins, and a strong equity base contribute positively. While technical indicators suggest overbought conditions, the bullish upward trend supports a positive outlook. The absence of recent earnings call data and corporate events does not detract from the overall favorable assessment.

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 through the manufacture and sale of collagen and gelatin products, which are used in diverse applications including food supplements, beauty and skincare products, and medical supplies. The company capitalizes on its proprietary technologies and expertise in collagen to offer premium products to the market. Additionally, Nippi Inc engages in strategic partnerships and collaborations with companies in the pharmaceutical and cosmetics industries, enhancing its distribution channels and expanding its market reach. Revenue streams are further bolstered by the company's focus on research and development, enabling the creation of innovative products that meet evolving consumer demands.

Nippi Inc Financial Statement Overview

Summary

Nippi Inc has a strong financial profile with solid revenue growth and profitability. The balance sheet reflects prudent management with a conservative leverage strategy. While the cash flow shows improvements, consistency in operational cash flow remains a focus area.

Income Statement

Nippi Inc shows strong growth and profitability. The Gross Profit Margin for TTM is 25.8%, demonstrating solid cost control. Net Profit Margin stands at 4.6%, showing improvement, although lower than the industry average. EBIT Margin at 6.2% and EBITDA Margin at 11.3% reflect effective operational management. Notably, revenue has grown consistently from 2020 to TTM, with a significant jump from 2022 to 2023, indicating robust demand for products.

Balance Sheet

The company's balance sheet is stable with a Debt-to-Equity Ratio of 0.28, indicating a conservative leverage position. Return on Equity (ROE) is strong at 5.7%, reflecting effective use of shareholder funds. The Equity Ratio of 55.3% indicates a healthy level of equity financing. Overall, the balance sheet shows strength in equity and cautious debt management, although there is room for optimizing asset utilization.

Cash Flow

Cash flow metrics reveal some concerns. Operating Cash Flow to Net Income Ratio is not calculable for TTM due to missing data, although prior years show positive cash generation. The Free Cash Flow Growth Rate shows variability, with a significant improvement from negative free cash flow in 2021 to positive in subsequent years. The Free Cash Flow to Net Income Ratio is not available for TTM, but past trends indicate improving cash generation relative to earnings. Overall, the cash flow position could be strengthened with more consistent operational cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
49.66B	49.05B	44.81B	39.35B	35.59B	42.41B
	Gross Profit
13.20B	12.73B	10.41B	9.89B	8.76B	9.81B
	EBIT
3.76B	3.61B	1.47B	1.76B	874.00M	1.86B
	EBITDA
5.46B	5.31B	3.23B	3.17B	7.57B	3.51B
	Net Income Common Stockholders
2.64B	2.55B	1.17B	1.14B	4.22B	1.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.78B	8.78B	7.01B	6.79B	7.67B	4.18B
	Total Assets
72.39B	72.39B	69.56B	68.42B	69.41B	67.65B
	Total Debt
13.73B	13.57B	14.96B	16.22B	17.86B	20.09B
	Net Debt
5.13B	4.79B	7.94B	9.43B	10.19B	15.91B
	Total Liabilities
34.09B	34.09B	34.49B	34.42B	36.45B	39.13B
	Stockholders Equity
37.62B	37.62B	34.46B	33.41B	32.41B	27.99B
Cash Flow		Free Cash Flow
0.00	3.42B	1.59B	1.02B	-805.00M	855.00M
	Operating Cash Flow
0.00	4.17B	2.67B	2.07B	2.76B	1.90B
	Investing Cash Flow
0.00	-580.00M	-821.00M	-917.00M	3.30B	-280.00M
	Financing Cash Flow
0.00	-1.88B	-1.67B	-2.13B	-2.59B	-1.54B

Nippi Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9810.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 9810 is above the 20-day moving average (MA) of 8950.50, above the 50-day MA of 6867.03, and above the 200-day MA of 5896.56, indicating a bullish trend. The MACD of 953.36 indicates Positive momentum. The RSI at 81.63 is Negative, neither overbought nor oversold. The STOCH value of 66.98 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
7989	80 Outperform	¥33.59B	10.46		2.89%	1.88%	8.88%
7932	78 Outperform	¥28.56B	11.62		6.04%	0.19%	-3.57%
7955	75 Outperform	¥24.57B	14.01		4.65%	1.57%	20.22%
8050	74 Outperform	¥162.09B	11.99		2.54%	10.09%	33.98%
7936	73 Outperform	¥2.43T	36.34	29.51%	0.52%	20.34%	52.96%
7938	70 Outperform	¥7.85B	11.22		3.05%	-0.73%	63.91%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%