Nihon Seikan KK

Nihon Seikan's capital structure shows a debt-to-equity ratio of 0.62, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.28 and cash and equivalents of 642.2 million JPY. However, net cash is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics reveal a challenging operating environment for Nihon Seikan. The company reported an operating loss of 6.5 million JPY, while net income was 32.8 million JPY. Return on equity (ROE) is 0.63%, and return on assets (ROA) is 0.22%, both significantly below industry benchmarks for the non-paper containers and packaging sector.

Geographically, Nihon Seikan's revenue is concentrated in Japan, with no disclosed international segments. The company's exposure to domestic economic conditions and regulatory changes in Japan is a key factor in its risk profile.

Growth trajectory appears mixed. While the company's revenue for the latest period was 30.4 billion JPY, the operating loss suggests operational challenges. Analysts reported a last actual revenue of 11.4 billion JPY, which may reflect seasonal or reporting period differences.

Risk factors include liquidity constraints and the potential for dilution, though the latter is currently assessed as low. The company's negative net cash position and high capital expenditures of 786.1 million JPY raise concerns about its ability to fund operations without external financing.

Recent events include a reported operating loss and a net income of 32.8 million JPY, which may signal underlying operational inefficiencies or market pressures. The company's capital expenditures suggest ongoing investment in infrastructure, but the magnitude of these expenditures relative to operating cash flow is a concern.

Operating income surged 67.4% year-over-year to minus 402.9 million yen, signaling significant improvement in core operational efficiency.

Cash conversion ratio of 11.79 ranks best-in-class among 176 peers, demonstrating superior ability to generate cash from operations.

Revenue grew 1.6% year-over-year to 11.44 billion yen, maintaining top-line stability despite recent net income volatility.

Gross profit increased to 1.09 billion yen in FY2026, recovering from the 851.5 million yen low recorded in FY2025.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion.

Net income deteriorated to a loss of 346.7 million yen in FY2026, continuing a negative trend from the prior year.

Operating margin of -0.21% places the company in the bottom quartile compared to 179 non-paper packaging peers.

Credit risk is flagged as high, indicating significant potential for financial distress or default issues for the issuer.

Free cash flow turned negative at minus 391.8 million yen in FY2025, reflecting substantial cash outflows from operations.

Revenue ¥2.96B, +13,2% YoY; Operating income +50,9% YoY.

• ▍Revenue ¥2.96B, +13,2% YoY
• ▍Operating income +50,9% YoY
• ▍Net income +128,4% YoY
• ▍Net margin 1.1%

Revenue ¥2.84B, −15,5% YoY; Operating income −209,9% YoY.

• ▍Revenue ¥2.84B, −15,5% YoY
• ▍Operating income −209,9% YoY
• ▍Net income −202,5% YoY
• ▍Net margin -1.9%

Revenue ¥2.50B, −17,6% YoY; Operating income −4 301,6% YoY.

• ▍Revenue ¥2.50B, −17,6% YoY
• ▍Operating income −4 301,6% YoY
• ▍Net income +1 400,6% YoY
• ▍Net margin 19.7%

Revenue ¥2.79B; Operating income -¥841.7M.

• ▍Revenue ¥2.79B
• ▍Operating income -¥841.7M
• ▍Net margin -27.4%

Revenue ¥2.61B; Operating income -¥173.9M.

• ▍Revenue ¥2.61B
• ▍Operating income -¥173.9M
• ▍Net margin -4.5%

Revenue ¥3.36B; Operating income ¥67.1M.

• ▍Revenue ¥3.36B
• ▍Operating income ¥67.1M
• ▍Net margin 1.6%

Revenue ¥3.04B; Operating income -¥6.5M.

• ▍Revenue ¥3.04B
• ▍Operating income -¥6.5M
• ▍Net margin 1.1%

Revenue ¥11.44B, +1,6% YoY; Operating income +67,4% YoY.

• ▍Revenue ¥11.44B, +1,6% YoY
• ▍Operating income +67,4% YoY
• ▍Net income −3,4% YoY
• ▍Net margin -3.0%

Revenue ¥11.26B, −8,1% YoY; Operating income −587,9% YoY.

• ▍Revenue ¥11.26B, −8,1% YoY
• ▍Operating income −587,9% YoY
• ▍Net income −223,6% YoY
• ▍Free cash flow −237,2% YoY
• ▍Net margin -3.0%

Revenue ¥12.25B, +12,2% YoY; Operating income +19,2% YoY.

• ▍Revenue ¥12.25B, +12,2% YoY
• ▍Operating income +19,2% YoY
• ▍Net income −6,4% YoY
• ▍Free cash flow −157,1% YoY
• ▍Net margin 2.2%

Revenue ¥10.92B, +4,3% YoY; Operating income +35,4% YoY.

• ▍Revenue ¥10.92B, +4,3% YoY
• ▍Operating income +35,4% YoY
• ▍Net income +22,5% YoY
• ▍Free cash flow +35,9% YoY
• ▍Net margin 2.7%

Revenue ¥10.47B; Operating income ¥156.9M.

• ▍Revenue ¥10.47B
• ▍Operating income ¥156.9M
• ▍Net margin 2.3%