NIPPN Corporation (2001) AI Stock Analysis

• Market Cap: ¥187.43B
• Dividend Yield: 2.93%
• Average Volume (3M): 181.02K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.35
• Revenue Growth: 2.30%
• EPS Growth: -36.75%
• Country: JP
• Employees: 3,829
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 57.75
• Shares Outstanding: 84,727,165
• 10 Day Avg. Volume: 242,890
• 30 Day Avg. Volume: 181,023
• PEG Ratio: -1.11
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -122.17
• 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: 72 Outperform
• Price Target: ¥2,517.00 ▲(10.98% Upside)

NIPPN Corporation's strong financial performance and attractive valuation are key strengths, making it a potentially good investment in the packaged foods industry. However, technical indicators suggest a lack of momentum, and liquidity challenges due to negative free cash flow are concerns that need addressing.

NIPPN Corporation Business Overview & Revenue Model

Company Description

NIPPN Corporation, established in 2001, is a prominent player in the food industry, primarily engaged in the production and distribution of flour, food products, and various ingredients. The company operates across multiple sectors, including retail, food service, and industrial markets, offering a diverse range of products such as wheat flour, noodles, and baked goods. NIPPN is known for its commitment to quality and innovation, catering to both domestic and international markets.

How the Company Makes Money

NIPPN Corporation generates revenue primarily through the sale of flour and food products. Its key revenue streams include wholesale distribution to food manufacturers, retail sales through supermarkets and convenience stores, and direct sales to restaurants and food service operators. The company has established significant partnerships with various stakeholders in the food supply chain, enabling it to secure consistent demand for its products. Additionally, NIPPN invests in research and development to innovate and expand its product line, which helps attract new customers and enter new markets, further enhancing its earnings potential.

NIPPN Corporation Financial Statement Overview

Summary

NIPPN Corporation shows strong financial performance with robust revenue growth and stable profitability, supported by a solid balance sheet with low leverage. However, there is a notable concern regarding negative free cash flow, indicating potential liquidity challenges.

Income Statement

NIPPN Corporation has demonstrated solid growth with a consistent increase in revenue over the years. The Gross Profit Margin for the latest year stands at 23.83%, indicating effective cost management. The Net Profit Margin slightly decreased to 6.02% from 6.58% a year ago, primarily due to a slight reduction in net income. The Revenue Growth Rate was robust at 2.59% year-over-year, showing a positive trajectory. EBIT and EBITDA Margins were healthy at 5.23% and 11.69%, respectively. Overall, the company maintains strong profitability with stable margins.

Balance Sheet

The balance sheet of NIPPN Corporation is strong with a Debt-to-Equity Ratio of 0.24, indicating low leverage and a solid financial structure. The Return on Equity (ROE) is slightly reduced at 10.22%, reflecting strong returns to shareholders. The Equity Ratio stands at 60.67%, showing a robust capital structure with a majority funded by equity. Overall, the company demonstrates financial stability and low risk due to prudent financial management.

Cash Flow

The cash flow statement shows a decline in Free Cash Flow, which turned negative, indicating potential challenges in cash management. The Operating Cash Flow to Net Income Ratio is 0.76, suggesting a moderate conversion of income to cash. The Free Cash Flow to Net Income Ratio is negative, highlighting a concern in generating free cash flow from operations. While the cash flow from operations remains positive, the negative free cash flow points to cash expenditure in capital investments impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.13B	410.88B	400.51B	365.52B	321.32B	288.32B
Gross Profit	101.21B	97.92B	94.00B	80.07B	74.93B	68.34B
EBITDA	41.18B	48.04B	46.85B	25.10B	24.25B	22.35B
Net Income	20.00B	24.76B	26.37B	10.26B	9.33B	8.64B
Balance Sheet
Total Assets	407.80B	399.23B	386.69B	344.61B	325.87B	308.02B
Cash, Cash Equivalents and Short-Term Investments	45.42B	44.95B	45.59B	36.81B	34.06B	37.49B
Total Debt	47.44B	57.03B	61.23B	64.13B	68.71B	70.18B
Total Liabilities	141.72B	152.74B	158.41B	152.00B	147.17B	138.89B
Stockholders Equity	259.16B	242.26B	224.34B	188.91B	174.31B	164.44B
Cash Flow
Free Cash Flow	0.00	-1.39B	2.87B	7.22B	1.32B	-1.02B
Operating Cash Flow	0.00	18.77B	24.02B	15.05B	11.97B	14.80B
Investing Cash Flow	0.00	-7.81B	-9.49B	-5.03B	-10.10B	-12.59B
Financing Cash Flow	0.00	-10.53B	-7.24B	-8.40B	-4.28B	2.55B

NIPPN Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2268.00
• 50DMA: Negative
• 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:2001, the sentiment is Neutral. The current price of 2268 is below the 20-day moving average (MA) of 2285.47, below the 50-day MA of 2281.82, and above the 200-day MA of 2165.33, indicating a neutral trend. The MACD of -11.74 indicates Positive momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 56.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2001.

NIPPN Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	72 Outperform	¥187.43B	8.83	8.18%	2.93%	2.30%	-36.75%
2811	67 Neutral	¥249.64B	19.49	―	2.03%	11.08%	-46.09%
2602	66 Neutral	€165.93B	6.80	13.21%	3.50%	4.12%	60.25%
2296	66 Neutral	¥297.93B	19.13	―	2.65%	8.96%	9.34%
2613	65 Neutral	¥66.48B	10.61	―	3.47%	-4.47%	-7.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	44 Neutral	¥285.48B	346.23	―	1.57%	19.69%	-61.83%

NIPPN Corporation Corporate Events

NIPPN Corporation Adjusts Bond Conversion Price Following Dividend Approval

NIPPN Corporation announced an adjustment in the conversion price of its Zero Coupon Convertible Bonds due 2025, reducing the price from ¥2,213.9 to ¥2,179.9, effective April 1, 2025. This adjustment follows the approval of an extraordinary dividend payment at the company’s general meeting, impacting the terms of the bonds and reflecting the company’s financial strategy and shareholder engagement.

NIPPN Corporation Reports FY2025 Financial Results and FY2026 Forecast

NIPPN Corporation reported its consolidated financial results for FY2025, showing a modest increase in net sales and operating income compared to the previous year. The company anticipates continued growth in FY2026, with a forecasted increase in net sales and operating income, although profit attributable to owners is expected to decline. The inclusion of NIPPN Vietnam Company Limited in the consolidation scope marks a strategic expansion, potentially impacting future operations and market positioning.

NIPPN Corporation Reports FY2025 Results and FY2026 Forecast

NIPPN Corporation reported a 2.6% increase in net sales for FY2025, driven by expanded food service demand and strategic marketing efforts, despite rising costs. The company forecasts a 3.2% sales increase for FY2026, with continued strong consumer demand, but anticipates a decrease in profit attributable to owners due to higher operational costs and depreciation expenses from new factory operations.