Nakabayashi Co., Ltd. (7987) AI Stock Analysis

• Market Cap: ¥13.15B
• Dividend Yield: 4.32%
• Average Volume (3M): 34.44K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.46
• Revenue Growth: 2.82%
• EPS Growth: 127.57%
• Country: JP
• Employees: 2,184
• Sector: Industrials
• Sector Strength: 91
• Industry: Specialty Business Services
• EPS (TTM): 43.46
• Shares Outstanding: 28,794,294
• 10 Day Avg. Volume: 25,630
• 30 Day Avg. Volume: 34,436
• PEG Ratio: 0.20
• Price to Book (P/B): 0.53
• 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: 68 Neutral
• Price Target: ¥552.00 ▲(8.45%Upside)

Nakabayashi Co., Ltd. receives a moderate overall score of 68.2, reflecting a combination of solid financial performance and attractive valuation. The company's strong cash flow management and improved profitability margins are significant strengths. However, technical indicators suggest caution with potential downward price momentum. The lack of recent earnings call data limits further insights.

Nakabayashi Co., Ltd. Business Overview & Revenue Model

Company Description

Nakabayashi Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of diversified products, including office supplies, furniture, consumer electronics, and related goods. Founded in 1923 and headquartered in Osaka, Japan, the company operates through various segments, catering to both domestic and international markets. Nakabayashi is well-known for its high-quality products, which include bookbinding materials, office furniture, filing supplies, and digital photo frames.

How the Company Makes Money

Nakabayashi Co., Ltd. generates revenue through the sale of its diverse product lines across multiple sectors. The company's primary revenue streams include the production and distribution of office supplies and furniture, which are sold to businesses, educational institutions, and consumers. Additionally, Nakabayashi capitalizes on the demand for consumer electronics by offering products such as digital photo frames. The company’s earnings are further supported by strategic partnerships and collaborations that enhance its market presence and distribution capabilities. Domestic sales within Japan constitute a significant portion of its revenue, although the company also aims to expand its footprint in international markets.

Nakabayashi Co., Ltd. Financial Statement Overview

Summary

Nakabayashi Co., Ltd. shows moderate financial performance. The income statement indicates solid efficiency with a gross profit margin of 25%, but net profit margin is low at 2.4%. The balance sheet is stable, with a conservative debt-to-equity ratio of 0.53 and strong equity base. However, cash flow is a concern with zero free cash flow in the TTM period, indicating potential liquidity issues.

Income Statement

The income statement shows moderate performance. The gross profit margin for the TTM is approximately 25%, indicating solid efficiency in managing production costs. However, the net profit margin is around 2.4%, suggesting that high operational expenses or other costs are impacting profitability. Revenue growth is slightly negative over the past year, reflecting a challenging environment for sales expansion. The EBIT and EBITDA margins are relatively low, indicating limited operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of approximately 0.53, suggesting a conservative leverage strategy. The equity ratio is near 48%, indicating a strong equity base relative to assets. However, there is a need to monitor debt levels to ensure long-term sustainability. Return on equity is modest, showing room for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement shows some concerns, with free cash flow being zero in the TTM period, indicating challenges in generating surplus cash. The operating cash flow to net income ratio is unavailable, and previous free cash flow fluctuations suggest variability in cash generation. This could indicate potential liquidity issues and the need for improved cash management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
62.73B	61.04B	61.58B	63.12B	63.64B	65.31B
	Gross Profit
15.68B	14.72B	14.84B	16.32B	17.02B	16.57B
	EBIT
1.77B	462.00M	455.00M	1.82B	2.55B	2.35B
	EBITDA
3.35B	3.42B	1.65B	3.63B	4.42B	4.17B
	Net Income Common Stockholders
1.51B	876.00M	-666.00M	1.02B	1.55B	1.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.62B	7.21B	7.87B	8.10B	6.47B	6.85B
	Total Assets
57.64B	57.97B	57.70B	58.23B	57.11B	55.78B
	Total Debt
14.77B	14.92B	15.69B	13.51B	12.45B	13.31B
	Net Debt
7.16B	7.71B	7.81B	5.41B	5.98B	6.46B
	Total Liabilities
29.29B	29.85B	30.82B	29.73B	29.07B	29.68B
	Stockholders Equity
27.67B	27.44B	26.20B	26.86B	25.82B	24.07B
Cash Flow		Free Cash Flow
0.00	-451.00M	-1.63B	994.00M	695.00M	699.00M
	Operating Cash Flow
0.00	1.33B	-87.00M	2.23B	2.41B	3.88B
	Investing Cash Flow
0.00	-1.13B	-1.33B	-283.00M	-518.00M	-3.06B
	Financing Cash Flow
0.00	-1.42B	1.07B	-299.00M	-2.27B	-266.00M

Nakabayashi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 509.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7987, the sentiment is Negative. The current price of 509 is below the 20-day moving average (MA) of 513.25, above the 50-day MA of 508.04, and above the 200-day MA of 508.29, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 46.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7987.

Nakabayashi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	78 Outperform	¥15.53B	7.72		3.79%	10.75%	287.84%
7863	71 Outperform	¥2.90B	9.24		4.00%	-1.64%	-44.71%
7946	70 Neutral	¥921.46M	15.06		2.51%	5.17%	-57.44%
7987	68 Neutral	¥13.15B	7.01		4.32%	2.82%	127.57%
7805	68 Neutral	¥3.33B	8.42		1.94%	-7.15%	39.05%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
7916	60 Neutral	¥3.99B	56.52		3.84%	0.38%	24.47%

Nakabayashi Co., Ltd. Corporate Events

Nakabayashi Co., Ltd. Reports Strong Financial Performance for FY2025

Nakabayashi Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showcasing a notable increase in net sales and profits. The company achieved a 2.8% rise in net sales to ¥62,767 million and a significant improvement in operating profit, which surged by 286.4% to ¥1,787 million. These results indicate a strong recovery and operational efficiency, positioning Nakabayashi favorably in its industry. The financial results reflect a robust performance with increased profitability, which could positively impact stakeholders and enhance the company’s market position.