NIHON ISK Co., Ltd. (7986) AI Stock Analysis

• Market Cap: ¥2.62B
• Dividend Yield: 1.96%
• Average Volume (3M): 8.04K
• Price to Earnings (P/E): 5.7
• Beta (1Y): -0.05
• Revenue Growth: 3.85%
• EPS Growth: 17.08%
• Country: JP
• Employees: 281
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Steel
• EPS (TTM): 269.98
• Shares Outstanding: 1,776,000
• 10 Day Avg. Volume: 720
• 30 Day Avg. Volume: 8,036
• PEG Ratio: 2.74
• Price to Book (P/B): 0.55
• 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

NIHON ISK Co., Ltd. presents a strong financial position with no debt and solid profitability. The low P/E ratio and decent dividend yield contribute to a compelling valuation. Technical analysis shows a neutral to slightly bullish trend, although further momentum indicators are needed for a complete picture. Overall, the stock offers a balanced risk-reward profile, making it an appealing option in the steel industry.

NIHON ISK Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon ISK Co., Ltd. (7986) specializes in the manufacturing and distribution of industrial valves and related equipment. The company operates primarily within the industrial manufacturing sector, providing high-quality products essential for various applications, including oil and gas, chemical processing, and water management. Nihon ISK is recognized for its commitment to innovation and reliability, meeting the stringent demands of its diverse clientele.

How the Company Makes Money

Nihon ISK Co., Ltd. generates revenue through the sale of its industrial valves and equipment to businesses across multiple sectors. The company's primary revenue streams include direct sales to industrial clients, partnerships with distributors, and long-term supply agreements with key customers. Its earnings are significantly bolstered by its reputation for producing durable and efficient products, which leads to repeat business and customer loyalty. Additionally, Nihon ISK may engage in strategic collaborations or joint ventures that enhance its market reach and product offerings.

NIHON ISK Co., Ltd. Financial Statement Overview

Summary

NIHON ISK Co., Ltd. exhibits strong financial performance with solid revenue growth, profitability, and a healthy balance sheet devoid of debt. The cash flow improvements further strengthen its financial health, positioning the company well in the steel industry.

Income Statement

NIHON ISK Co., Ltd. has demonstrated strong revenue growth and profitability. The gross profit margin stands at 29.26%, and the net profit margin is 7.34% for 2024, indicating efficient cost management. Revenue grew by 3.86% from the previous year, showing positive growth momentum. EBIT and EBITDA margins are healthy at 8.78% and 10.11%, respectively, reflecting solid operating performance.

Balance Sheet

The balance sheet of NIHON ISK Co., Ltd. is robust, with a notable equity ratio of 69.03%, suggesting strong financial stability. The company is debt-free, eliminating leverage risk, and boasts a high return on equity of 10.11%, indicating effective use of equity capital. These factors contribute to a very stable financial position.

Cash Flow

Cash flow analysis reveals a significant turnaround with free cash flow growing from negative to positive in 2024. The operating cash flow to net income ratio is 0.76, indicating solid cash generation capability. While the free cash flow to net income ratio is 0.72, showing an improvement in cash conversion, there's room for further enhancement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.90B	5.68B	5.25B	5.52B	5.00B
	Gross Profit
1.73B	1.64B	1.35B	1.65B	1.44B
	EBIT
518.71M	476.63M	130.06M	444.90M	300.13M
	EBITDA
597.00M	567.00M	217.77M	520.73M	385.50M
	Net Income Common Stockholders
433.58M	375.18M	181.37M	332.47M	263.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	979.75M	1.22B	1.49B	1.49B
	Total Assets
6.21B	5.88B	5.44B	5.52B	5.37B
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.17B	-979.75M	-1.22B	-1.49B	-1.49B
	Total Liabilities
1.85B	1.87B	1.73B	1.88B	2.03B
	Stockholders Equity
4.28B	3.94B	3.66B	3.58B	3.29B
Cash Flow		Free Cash Flow
310.94M	-186.97M	-164.60M	63.44M	372.28M
	Operating Cash Flow
329.33M	378.64M	-30.53M	84.77M	448.58M
	Investing Cash Flow
-22.67M	-501.20M	-138.88M	-24.94M	-63.36M
	Financing Cash Flow
-116.18M	-113.58M	-108.67M	-55.82M	-115.28M

NIHON ISK Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1503.00
• 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:7986, the sentiment is Positive. The current price of 1503 is below the 20-day moving average (MA) of 1506.70, above the 50-day MA of 1492.50, and above the 200-day MA of 1460.13, indicating a bullish trend. The MACD of 5.50 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7986.

NIHON ISK Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7986	81 Outperform	¥2.62B	5.66		1.96%	3.85%	17.08%
7921	80 Outperform	¥45.22B	16.23		2.47%	2.39%	-2.43%
6376	71 Outperform	¥73.44B	10.01	5.86%	2.52%	10.77%	-12.30%
7013	69 Neutral	$1.88T	16.66	25.94%	0.93%	26.13%	―
6440	54 Neutral	¥12.01B	―		3.42%	-1.17%	63.91%
Sector *	49 Neutral	$1.98B	-1.10	-21.24%	3.61%	1.31%	-31.23%
6366	35 Underperform	¥83.39B	3.09	186.66%	―	-12.44%	-168.59%