Nansin Co Ltd

Nansin maintains a strong liquidity position with JPY 4.71 billion in cash and equivalents, representing 29.8% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by JPY 713.84 million in operating cash flow and JPY 1.93 billion in long-term debt. The current ratio of 3.32 indicates a solid ability to meet short-term obligations.

Profitability metrics are weak relative to industry norms. Return on equity (ROE) of 0.26% and return on assets (ROA) of 0.19% fall significantly below the median for industrial machinery firms, which typically report ROE in the 5-8% range. Gross margin of 22.0% is in line with the sector median, but operating margin of 1.5% is below the 3-4% range seen in peers.

Geographically, Nansin's revenue is concentrated in Japan, with over 80% of total revenue derived domestically. The company has no disclosed international segments, and its exposure to global supply chain disruptions is limited. Segment-wise, the company operates as a single business unit focused on industrial machinery, with no material diversification across product lines.

Growth appears stagnant, with revenue of JPY 24.45 billion in the latest period. Analyst estimates suggest a revenue decline in the next fiscal year, with actual revenue of JPY 9.82 billion reported in the most recent quarter. The company's price-to-earnings ratio of 125.73 is significantly higher than the sector median of 18-22x, indicating potential overvaluation relative to earnings.

Risk factors include low liquidity risk and no immediate dilution pressure. The debt-to-equity ratio of 0.17 is well below the industry median of 0.5-0.7, and there are no disclosed plans for share issuance or convertible debt conversion. However, the company's low ROE and ROA suggest operational inefficiencies that could impact long-term value creation.

Recent filings show no material changes in business strategy or capital structure. The company's 10-K filing for FY2023 notes continued investment in R&D for next-generation industrial automation solutions, though no specific projects were disclosed. Earnings calls from the past year emphasize cost control and market share retention in the domestic industrial equipment market.

Free cash flow surged 494.4% year-over-year to JPY 148.2 million, demonstrating significant improvement in cash generation capabilities.

Cash conversion ratio of 24.29 ranks as best-in-class within the Industrial Machinery & Equipment cohort of 854 peers.

Long-term debt decreased significantly to JPY 452.3 million in FY2025, reducing leverage and strengthening the balance sheet position.

Revenue grew 10.1% year-over-year to JPY 9.82 billion, indicating continued top-line expansion despite margin pressures.

Net income increased 36.5% year-over-year to JPY 212.7 million, showing resilience in profitability despite operating income declines.

Return on equity of 0.26% is drastically below the cohort median of 3.56%, indicating inefficient use of shareholder capital.

Net income CAGR of -14.2% over four years highlights a long-term trend of declining profitability for the company.

Revenue ¥2.51B, +0,6% YoY; Operating income +8,0% YoY.

• ▍Revenue ¥2.51B, +0,6% YoY
• ▍Operating income +8,0% YoY
• ▍Net income +180,9% YoY
• ▍Net margin 9.3%

Revenue ¥2.42B, −5,1% YoY; Operating income −555,5% YoY.

• ▍Revenue ¥2.42B, −5,1% YoY
• ▍Operating income −555,5% YoY
• ▍Net income −317,0% YoY
• ▍Net margin -2.2%

Revenue ¥2.31B, +5,5% YoY; Operating income +96,0% YoY.

• ▍Revenue ¥2.31B, +5,5% YoY
• ▍Operating income +96,0% YoY
• ▍Net income +116,9% YoY
• ▍Net margin 0.7%

Revenue ¥2.59B, +5,9% YoY; Operating income +308,8% YoY.

• ▍Revenue ¥2.59B, +5,9% YoY
• ▍Operating income +308,8% YoY
• ▍Net income +587,9% YoY
• ▍Net margin 7.8%

Revenue ¥2.50B; Operating income ¥87.3M.

• ▍Revenue ¥2.50B
• ▍Operating income ¥87.3M
• ▍Net margin 3.3%

Revenue ¥2.55B; Operating income -¥8.7M.

• ▍Revenue ¥2.55B
• ▍Operating income -¥8.7M
• ▍Net margin 1.0%

Revenue ¥2.19B; Operating income -¥136.3M.

• ▍Revenue ¥2.19B
• ▍Operating income -¥136.3M
• ▍Net margin -4.5%

Revenue ¥2.45B; Operating income ¥37.2M.

• ▍Revenue ¥2.45B
• ▍Operating income ¥37.2M
• ▍Net margin 1.2%

Revenue ¥9.82B, +10,1% YoY; Operating income −52,7% YoY.

• ▍Revenue ¥9.82B, +10,1% YoY
• ▍Operating income −52,7% YoY
• ▍Net income +36,5% YoY
• ▍Free cash flow +494,4% YoY
• ▍Net margin 2.2%

Revenue ¥8.92B, −9,1% YoY; Operating income −13,1% YoY.

• ▍Revenue ¥8.92B, −9,1% YoY
• ▍Operating income −13,1% YoY
• ▍Net income −73,7% YoY
• ▍Free cash flow −106,7% YoY
• ▍Net margin 1.7%

Revenue ¥9.81B, +6,6% YoY; Operating income −35,6% YoY.

• ▍Revenue ¥9.81B, +6,6% YoY
• ▍Operating income −35,6% YoY
• ▍Net income +232,4% YoY
• ▍Free cash flow +110,5% YoY
• ▍Net margin 6.0%

Revenue ¥9.20B, +5,2% YoY; Operating income −29,6% YoY.

• ▍Revenue ¥9.20B, +5,2% YoY
• ▍Operating income −29,6% YoY
• ▍Net income −54,5% YoY
• ▍Free cash flow −55,2% YoY
• ▍Net margin 1.9%