Trusco Nakayama Corporation (9830) AI Stock Analysis

• Market Cap: ¥159.78B
• Dividend Yield: 2.27%
• Average Volume (3M): 114.40K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.67
• Revenue Growth: 10.55%
• EPS Growth: 33.89%
• Country: JP
• Employees: 1,704
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 66,008,740
• 10 Day Avg. Volume: 103,310
• 30 Day Avg. Volume: 114,400
• 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: ¥2,535.00
• Price Target Upside: 4.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: ¥2,535.00 ▲(4.75% Upside)

Trusco Nakayama Corporation's stock is attractive due to its strong valuation with a low P/E ratio and good dividend yield. The technical indicators support a bullish outlook with strong momentum. Financial performance is solid but could be improved by addressing free cash flow challenges, which is a secondary consideration.

Trusco Nakayama Corporation Business Overview & Revenue Model

Company Description

Trusco Nakayama Corporation operates as a specialized trading company in Japan and internationally. The company engages in the wholesale of machine tools, distribution equipment, environmental safety equipment, and other equipment; and metal products, as well as planning and development of the products under the Trusco brand name. It sells its products to dealers of machine tools, welding consumables, electrical materials, architectural hardware, and tubing materials, as well as do-it-yourself stores, home centers, and other customers. The company was formerly known as Nakayama Kiko Co., Ltd. and changed its name to Trusco Nakayama Corporation in 1994. Trusco Nakayama Corporation was founded in 1959 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Trusco Nakayama Corporation generates revenue primarily through the wholesale distribution of machinery and tools. The company's key revenue streams include the sale of construction tools, industrial machinery, and equipment to a broad spectrum of clients ranging from small businesses to large corporations. Trusco Nakayama's extensive product catalog and efficient supply chain management enable it to maintain strong relationships with manufacturers and suppliers, ensuring competitive pricing and a steady supply of products. Additionally, the company may engage in strategic partnerships and collaborations with other firms to expand its market reach and enhance its product offerings, further contributing to its overall earnings.

Trusco Nakayama Corporation Financial Statement Overview

Summary

Trusco Nakayama Corporation demonstrates strong financial performance with solid revenue growth and profitability. The balance sheet is stable, with low leverage and strong equity. However, the negative free cash flow indicates cash flow management challenges, which could impact future growth investments. Overall, the company is financially sound but should address free cash flow issues to maintain its growth trajectory.

Income Statement

Trusco Nakayama Corporation has shown a strong revenue growth of 10.03% over the last year, with improving profit margins. The gross profit margin has increased to 20.91%, and the net profit margin improved to 5.45% from the previous year. The company's EBIT and EBITDA margins also reflect good operational efficiency at 6.77% and 8.84% respectively, indicating healthy profitability.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.32, reflecting manageable leverage levels. The return on equity is healthy at 9.25%, indicating effective use of shareholders' equity. The equity ratio stands at 64.39%, suggesting a solid financial structure with significant equity financing.

Cash Flow

Cash flow from operations is strong, but the free cash flow is negative, indicating higher capital expenditures. The operating cash flow to net income ratio is favorable at 0.81, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting potential concerns over investment efficiency and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	302.27B	295.02B	268.15B	246.45B	226.83B	213.40B
Gross Profit	59.13B	61.68B	51.32B	52.16B	48.28B	45.91B
EBITDA	29.50B	26.07B	24.24B	22.04B	24.02B	18.23B
Net Income	16.59B	16.09B	12.27B	10.63B	11.60B	8.01B
Balance Sheet
Total Assets	293.38B	270.29B	244.88B	225.21B	223.07B	208.85B
Cash, Cash Equivalents and Short-Term Investments	59.08B	41.35B	43.28B	39.40B	41.47B	32.38B
Total Debt	81.50B	56.50B	50.00B	45.00B	52.00B	52.00B
Total Liabilities	117.64B	96.30B	84.16B	74.20B	80.40B	75.89B
Stockholders Equity	175.74B	174.00B	160.72B	151.00B	142.67B	132.96B
Cash Flow
Free Cash Flow	0.00	-6.27B	1.69B	7.25B	7.33B	6.20B
Operating Cash Flow	0.00	13.02B	14.80B	12.18B	15.93B	15.07B
Investing Cash Flow	0.00	-18.27B	-13.11B	-5.17B	-4.60B	-8.74B
Financing Cash Flow	0.00	3.24B	1.93B	-9.11B	-2.24B	7.72B

Trusco Nakayama Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2420.00
• 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:9830, the sentiment is Positive. The current price of 2420 is above the 20-day moving average (MA) of 2416.45, above the 50-day MA of 2313.04, and above the 200-day MA of 2091.87, indicating a bullish trend. The MACD of 31.90 indicates Positive momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 52.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9830.

Trusco Nakayama Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9830	82 Outperform	¥159.78B	9.34	―	2.27%	10.55%	33.89%
8052	80 Outperform	55.21B	10.03	10.73%	2.44%	16.43%	52.00%
3176	80 Outperform	47.72B	9.36	10.89%	3.67%	3.94%	-13.24%
8061	75 Outperform	66.49B	11.80	16.52%	3.79%	12.01%	-23.10%
9902	72 Outperform	82.36B	17.52	5.67%	2.33%	5.72%	2.77%
7128	71 Outperform	56.57B	20.61	6.38%	3.19%	-2.41%	-43.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Trusco Nakayama Corporation Corporate Events

Trusco Nakayama Announces New Director Appointment and Resignations

Trusco Nakayama Corporation has announced the appointment of Mr. Masataka Nashida as a new outside director candidate, with the formal decision to be made at the upcoming annual shareholders’ meeting in March 2026. Mr. Nashida, a seasoned professional with extensive experience in managing professional baseball teams, is expected to contribute to the company’s sustainable growth and enhance corporate value. Additionally, two outside directors, Kenichi Saito and Kuniaki Hagihara, along with outside auditor Hiroho Kamakura, will resign on June 30, 2025, marking a significant milestone in their tenure.