Nifco Inc. (7988) AI Stock Analysis

• Market Cap: ¥415.38B
• Dividend Yield: 1.79%
• Average Volume (3M): 261.68K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.88
• Revenue Growth: -4.69%
• EPS Growth: 171.87%
• Country: JP
• Employees: 10,226
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 103.28
• Shares Outstanding: 100,257,050
• 10 Day Avg. Volume: 270,290
• 30 Day Avg. Volume: 261,676
• PEG Ratio: 0.05
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 9.63
• 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: ¥4,274.00
• Price Target Upside: -3.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥3,848.00 ▼(-13.04% Downside)

Nifco Inc.'s strong financial performance is the primary driver of its overall stock score, reflecting its solid financial structure and growth potential. The valuation metrics suggest potential undervaluation, offering a good entry point for investors. Technical analysis provides a mixed view, with some positive momentum indicators balanced by neutral signals.

Nifco Inc. Business Overview & Revenue Model

Company Description

Nifco Inc. manufactures and sells industrial plastic parts and components in Japan, rest of Asia, North America, and Europe. It offers automotive parts and components for use in fuel, engine, exterior, interiors, and electric powertrain. The company also offers household equipment, such as drawer closers, push latches, earthquake-proof latches, and door dampers; consumer electronics/office automation products that include dampers, free-stop hinges, magnet latches, and push latches; and fashion/sport products, such as side release buckles, cord locks, and other buckles. In addition, it manufactures and sells beds, as well as imports and sells furniture products. The company was formerly known as Japan Industry Fastener Inc. and changed its name to Nifco Inc. in December 1970. Nifco Inc. was incorporated in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nifco Inc. generates revenue through the production and sale of industrial plastic components, primarily catering to the automotive industry. The company’s core revenue streams involve supplying fasteners and precision-engineered parts to major automobile manufacturers. Additionally, Nifco serves the home appliance and construction industries with its advanced plastic solutions. Strategic partnerships with automotive companies and continuous investment in research and development to innovate new products are significant factors contributing to its earnings. The company's global manufacturing and distribution network also plays a crucial role in its business operations.

Nifco Inc. Financial Statement Overview

Summary

Nifco Inc. presents a solid financial profile with improved profitability and growth trajectory in its income statement, a robust balance sheet with strong equity backing and low leverage, and excellent cash flow management. These factors indicate a well-managed financial structure with potential for sustainable growth.

Income Statement

Nifco Inc. demonstrates a strong income statement with notable improvements in profitability metrics. The gross profit margin increased from prior years, indicating efficient cost management. The net profit margin and EBIT margin have also improved significantly, reflecting better operational efficiency. Moreover, the revenue growth rate shows a recovery trend after a previous dip, signaling positive momentum in sales performance.

Balance Sheet

The balance sheet of Nifco Inc. displays a robust financial position with an impressive equity ratio, indicating a strong asset base funded by equity. The debt-to-equity ratio has improved over the years, suggesting prudent leverage management. High return on equity highlights effective utilization of shareholder funds. Overall, the balance sheet reflects stability and low financial risk.

Cash Flow

Nifco Inc.'s cash flow statement shows a strong operating cash flow to net income ratio, suggesting efficient cash generation from operating activities. The free cash flow growth rate is positive, indicating increased cash available for growth and investment. The company's ability to convert income into cash is solid, reflecting strong cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	361.88B	353.04B	371.64B	321.77B	283.78B	256.08B
Gross Profit	108.15B	107.20B	101.70B	85.84B	76.51B	70.86B
EBITDA	48.50B	67.59B	46.31B	50.27B	43.69B	41.58B
Net Income	22.76B	44.77B	18.25B	21.17B	22.96B	18.40B
Balance Sheet
Total Assets	362.92B	379.82B	380.40B	359.15B	333.07B	307.13B
Cash, Cash Equivalents and Short-Term Investments	143.47B	147.58B	150.93B	130.48B	113.70B	97.60B
Total Debt	42.55B	35.48B	50.89B	64.46B	70.39B	70.10B
Total Liabilities	108.13B	101.09B	133.35B	133.02B	132.19B	128.48B
Stockholders Equity	251.53B	274.97B	243.70B	223.55B	198.18B	176.47B
Cash Flow
Free Cash Flow	0.00	36.03B	38.46B	28.65B	22.13B	24.83B
Operating Cash Flow	0.00	54.22B	47.26B	37.26B	31.74B	39.92B
Investing Cash Flow	0.00	-23.89B	-8.13B	-11.53B	-9.48B	-12.57B
Financing Cash Flow	0.00	-35.15B	-26.02B	-17.42B	-13.52B	-20.27B

Nifco Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4425.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7988, the sentiment is Positive. The current price of 4425 is above the 20-day moving average (MA) of 4415.53, above the 50-day MA of 4110.74, and above the 200-day MA of 3667.07, indicating a bullish trend. The MACD of 98.79 indicates Positive momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7988.

Nifco Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5991	77 Outperform	¥444.14B	10.96	11.81%	3.01%	3.38%	-3.92%
7282	75 Outperform	¥461.25B	12.33	6.70%	2.85%	-1.88%	-26.03%
7988	74 Outperform	¥415.38B	9.38	―	1.79%	-4.69%	171.87%
3116	72 Outperform	¥428.29B	23.28	4.21%	3.50%	-1.03%	-64.10%
6471	70 Outperform	¥370.05B	38.02	1.53%	4.49%	-1.15%	-13.31%
6473	69 Neutral	¥459.20B	50.21	1.84%	3.74%	-1.82%	-72.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nifco Inc. Corporate Events

Nifco Inc. Announces Share Buyback Plan to Enhance Capital Efficiency

Nifco Inc. announced a plan to acquire up to 1.5 million of its own shares, representing 1.56% of the total issued shares, with an acquisition budget capped at 5 billion yen. This move aims to enhance capital efficiency and provide financial flexibility in response to market changes, potentially impacting shareholder value and market perception.

Nifco Inc. Reports Mixed Financial Results for Q1 FY2025

Nifco Inc. reported its consolidated financial results for the first quarter of fiscal year 2025, showing a slight decrease in net sales to 85,541 million yen, down 0.7% year-on-year. Despite this, the company achieved a 9.3% increase in operating profit, reaching 12,999 million yen. The results indicate a mixed performance with a notable decline in comprehensive income by 89.6%, while profit attributable to owners of the parent increased by 11.2%. The financial position remains strong with a net assets ratio of 76.5%, reflecting stability in the company’s operations. The forecast for FY2025 anticipates a slight decrease in net sales and ordinary profit but an increase in dividends per share, suggesting a focus on shareholder returns.

Nifco Inc. Completes Treasury Share Disposal with Adjustments

Nifco Inc. announced the completion of its payment procedures for the disposal of treasury shares to the Employee Stock Ownership Association, following a decision made in May 2025. The number of shares and total disposal value were adjusted due to partial forfeiture, impacting the company’s financial allocation and employee stock ownership structure.

Nifco Inc. Unveils New Management Structure

Nifco Inc. has announced a new management structure following its General Shareholders Meeting and subsequent Board of Directors meeting. Key appointments include Michihiro Fukuo as Director and Head of R&D, and Satoshi Yamahata as a new external Director. These changes are expected to enhance the company’s strategic direction and operational efficiency, potentially impacting its market positioning and stakeholder relations.

Nifco Inc. Announces Treasury Stock Disposal for Employee Incentive Scheme

Nifco Inc. has announced a strategic move to dispose of 115,000 shares of its treasury stock through a third-party allotment to the Nifco Employee Stock Ownership Association. This initiative is part of a newly introduced incentive scheme aimed at enhancing employee motivation and increasing the company’s medium- to long-term shareholder value. By granting special incentives to employees, Nifco seeks to strengthen its market position and align employee interests with company growth, potentially benefiting stakeholders through improved operational performance.

Nifco Inc. Launches Special Incentive Scheme to Boost Employee Motivation and Shareholder Value

Nifco Inc. has introduced a ‘Special Incentive Scheme’ aimed at enhancing employee motivation and increasing shareholder value over the medium to long term. The scheme involves granting company shares to employees through the Nifco Employee Stock Ownership Association, encouraging participation in company management and aligning employee interests with those of shareholders. This initiative is expected to foster greater employee engagement and potentially improve company performance by aligning employee and shareholder interests.