Nitta Gelatin Inc

Nitta Gelatin Inc has a market price of 1,227 JPY per share, with a market capitalization of 22.35 billion JPY. The company's price-to-book ratio is 1.23, and its price-to-tangible-book ratio is also 1.23, indicating that the market values the company slightly above its book value. The enterprise value to EBITDA ratio is negative at -82.54, reflecting the company's operating loss of 340 million JPY. The enterprise value to revenue ratio is 2.71, suggesting that the company is trading at a moderate multiple relative to its revenue.

The company's profitability metrics are weak, with a return on equity of -1.33% and a return on assets of -0.60%. These figures indicate that the company is not generating returns for its shareholders or effectively utilizing its assets. The gross profit margin is 19.12%, but the operating margin is negative at -3.28%, highlighting the company's struggle to convert revenue into operating profit. The net profit margin is also negative at -2.33%, further emphasizing the company's unprofitability.

Nitta Gelatin Inc's capital structure shows a debt-to-equity ratio of 0.54, indicating a moderate level of leverage. The company has 9.80 billion JPY in long-term debt and 4.08 billion JPY in cash and equivalents. The current ratio is 2.28, suggesting that the company has sufficient current assets to cover its current liabilities. However, the company's net cash position is negative after subtracting total debt, which raises concerns about its liquidity.

The company's growth trajectory is uncertain, with no specific revenue growth projections provided. The operating cash flow is positive at 4.91 billion JPY, which is a positive sign for liquidity. However, the capital expenditure of -2.27 billion JPY indicates that the company is investing in its operations. The company's recent performance has been mixed, with a net loss of 241 million JPY and an operating loss of 340 million JPY.

The risk assessment for Nitta Gelatin Inc indicates a medium level of liquidity risk and a low level of dilution risk. The key financial flag is the negative net cash position after subtracting total debt, which could impact the company's ability to meet its short-term obligations. The company's liquidity risk is moderate, and its credit risk is not explicitly stated but is likely influenced by its leverage and profitability.

Recent events and disclosures for Nitta Gelatin Inc include analyst estimates that suggest a mean recommendation of 1.00 (strong buy), with one strong-buy count and no buy, hold, sell, or strong-sell counts. The mean EPS estimate is 175.90 JPY, while the last actual EPS was 173.94 JPY. These figures indicate that analysts have a positive outlook on the company's earnings potential, but the company's recent performance has been below expectations.

Net income surged 270.9% year-over-year to JPY 3.16 billion in fiscal 2025, signaling a strong profitability recovery.

Operating income jumped 791.3% to JPY 4.05 billion in fiscal 2025, demonstrating significant operational leverage and margin expansion.

Free cash flow improved 276.6% to JPY 3.56 billion in fiscal 2025, reversing the previous year's negative cash generation.

Long-term debt decreased to JPY 7.74 billion in fiscal 2025, reflecting a deleveraging trend and improved balance sheet health.

The company holds a strong buy recommendation from one analyst, indicating positive sentiment despite limited coverage depth.

Operating and net margins rank in the bottom quartile of the Food Processing cohort, indicating persistent profitability challenges.

Return on equity remains negative at -1.33%, significantly underperforming the cohort median of 4.99% and suggesting poor capital efficiency.

The company faces high credit risk, posing potential threats to financial stability and access to external financing.

Revenue declined 4.1% year-over-year in fiscal 2025, suggesting weakening top-line growth momentum despite margin improvements.

Cash conversion is in the bottom quartile at -20.37%, highlighting inefficiencies in translating operating income into cash.

Revenue ¥9.67B, −2,4% YoY; Operating income +27,9% YoY.

• ▍Revenue ¥9.67B, −2,4% YoY
• ▍Operating income +27,9% YoY
• ▍Net income −45,7% YoY
• ▍Net margin 5.9%

Revenue ¥9.36B, +0,0% YoY; Operating income +2,8% YoY.

• ▍Revenue ¥9.36B, +0,0% YoY
• ▍Operating income +2,8% YoY
• ▍Net income +682,8% YoY
• ▍Net margin 17.0%

Revenue ¥9.14B, −11,9% YoY; Operating income +32,7% YoY.

• ▍Revenue ¥9.14B, −11,9% YoY
• ▍Operating income +32,7% YoY
• ▍Net income +1,3% YoY
• ▍Net margin 6.9%

Revenue ¥9.10B, −12,2% YoY; Operating income +412,4% YoY.

• ▍Revenue ¥9.10B, −12,2% YoY
• ▍Operating income +412,4% YoY
• ▍Net income +632,4% YoY
• ▍Net margin 14.1%

Revenue ¥9.91B; Operating income ¥1.00B.

• ▍Revenue ¥9.91B
• ▍Operating income ¥1.00B
• ▍Net margin 10.7%

Revenue ¥9.36B; Operating income ¥1.04B.

• ▍Revenue ¥9.36B
• ▍Operating income ¥1.04B
• ▍Net margin 2.2%

Revenue ¥10.38B; Operating income ¥944.0M.

• ▍Revenue ¥10.38B
• ▍Operating income ¥944.0M
• ▍Net margin 6.0%

Revenue ¥10.36B; Operating income -¥340.0M.

• ▍Revenue ¥10.36B
• ▍Operating income -¥340.0M
• ▍Net margin -2.3%

Revenue ¥38.74B, −4,1% YoY; Operating income +791,3% YoY.

• ▍Revenue ¥38.74B, −4,1% YoY
• ▍Operating income +791,3% YoY
• ▍Net income +270,9% YoY
• ▍Free cash flow +276,6% YoY
• ▍Net margin 8.2%

Revenue ¥40.42B, +3,1% YoY; Operating income −126,5% YoY.

• ▍Revenue ¥40.42B, +3,1% YoY
• ▍Operating income −126,5% YoY
• ▍Net income −218,7% YoY
• ▍Free cash flow −236,4% YoY
• ▍Net margin -4.6%

Revenue ¥39.19B, +23,3% YoY; Operating income +48,4% YoY.

• ▍Revenue ¥39.19B, +23,3% YoY
• ▍Operating income +48,4% YoY
• ▍Net income +114,3% YoY
• ▍Free cash flow +66,5% YoY
• ▍Net margin 4.0%

Revenue ¥31.78B, +4,2% YoY; Operating income +14,3% YoY.

• ▍Revenue ¥31.78B, +4,2% YoY
• ▍Operating income +14,3% YoY
• ▍Net income −2,1% YoY
• ▍Free cash flow +6,3% YoY
• ▍Net margin 2.3%