MUN:NIP

Stock Analysis Report

Executive Summary

Nippon Sharyo, Ltd. manufactures and sells railway rolling stock, transportation equipment, steel structures, construction equipment, and engineering equipment in Japan, the United States, Asia, and internationally.


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Nippon Sharyo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NIP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.3%

NIP

-3.1%

DE Machinery

-2.7%

DE Market


1 Year Return

12.1%

NIP

-31.5%

DE Machinery

-20.4%

DE Market

Return vs Industry: NIP exceeded the German Machinery industry which returned -30.9% over the past year.

Return vs Market: NIP exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

NIPIndustryMarket
7 Day11.3%-3.1%-2.7%
30 Day6.5%-18.2%-18.4%
90 Day-13.6%-30.0%-26.7%
1 Year12.1%12.1%-29.4%-31.5%-18.1%-20.4%
3 Year-8.2%-8.2%-42.2%-46.3%-19.1%-25.9%
5 Year-11.1%-11.9%-30.2%-38.0%-19.5%-30.4%

Price Volatility Vs. Market

How volatile is Nippon Sharyo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nippon Sharyo undervalued compared to its fair value and its price relative to the market?

5.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NIP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NIP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NIP is good value based on its PE Ratio (5.5x) compared to the Machinery industry average (10.2x).

PE vs Market: NIP is good value based on its PE Ratio (5.5x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NIP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NIP is overvalued based on its PB Ratio (1.1x) compared to the DE Machinery industry average (1.1x).


Next Steps

Future Growth

How is Nippon Sharyo forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nippon Sharyo has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nippon Sharyo performed over the past 5 years?

46.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIP has high quality earnings.

Growing Profit Margin: NIP's current net profit margins (7%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: NIP has become profitable over the past 5 years, growing earnings by 46.5% per year.

Accelerating Growth: NIP's earnings growth over the past year (45.5%) is below its 5-year average (46.5% per year).

Earnings vs Industry: NIP earnings growth over the past year (45.5%) exceeded the Machinery industry -19.9%.


Return on Equity

High ROE: NIP's Return on Equity (19.9%) is considered low.


Next Steps

Financial Health

How is Nippon Sharyo's financial position?


Financial Position Analysis

Short Term Liabilities: NIP's short term assets (¥70.4B) exceed its short term liabilities (¥29.1B).

Long Term Liabilities: NIP's short term assets (¥70.4B) exceed its long term liabilities (¥65.2B).


Debt to Equity History and Analysis

Debt Level: NIP's debt to equity ratio (154.3%) is considered high.

Reducing Debt: NIP's debt to equity ratio has increased from 26.5% to 154.3% over the past 5 years.


Balance Sheet

Inventory Level: NIP has a high level of physical assets or inventory.

Debt Coverage by Assets: NIP's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NIP is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: NIP is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Nippon Sharyo's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NIP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NIP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NIP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NIP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NIP is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NIP's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Kazuhiro Igarashi (62yo)

no data

Tenure

Mr. Kazuhiro Igarashi serves as Chief Executive Officer and President at Nippon Sharyo, Ltd. Mr. Igarashi served as a Corporate Executive Officer at Central Japan Railway Company until January 15, 2016 and ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nippon Sharyo, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nippon Sharyo, Ltd.
  • Ticker: NIP
  • Exchange: MUN
  • Founded: 1896
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: JP¥39.620b
  • Listing Market Cap: JP¥335.067m
  • Shares outstanding: 14.43m
  • Website: https://www.n-sharyo.co.jp

Number of Employees


Location

  • Nippon Sharyo, Ltd.
  • 1-1 Sanbonmatsu-cho
  • Atsuta-ku
  • Nagoya
  • Aichi
  • 456-8691
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NIPMUN (Boerse Muenchen)YesCommon StockDEEURJan 1992
7102TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NPPS.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992

Biography

Nippon Sharyo, Ltd. manufactures and sells railway rolling stock, transportation equipment, steel structures, construction equipment, and engineering equipment in Japan, the United States, Asia, and internationally. The company offers EMUs, DMUs, passenger cars, linear motor cars, track maintenance machines, rolling stock components, and automated guideway transit systems; and inter-city and express vehicles, suburban and commuter vehicles, and metro and subway EMUs, as well as exports high speed trains, urban and suburban trains, and metro and light rail transit vehicles. It also provides rubber-tired AGT vehicles, magnetic-levitating vehicles, hanging monorail vehicles, etc. for medium or small volume transportation; and low-floor and articulated design light rail vehicles. In addition, the company offers freight cars, locomotives, tank trucks, tank trailers, storage tanks, heavy-duty industrial vehicles, containers, automated guided vehicles, roadway bridges, railway bridges, water gates, and storage tanks. Further, it provides pile driving rigs, crawler cranes, hydraulic hammers, casing rotators, portable diesel generator sets, emergency generators, and various products related to electric machines, as well as other products related to foundation work; earth drilling rigs, soil stabilizing rigs, and diesel generators; and agricultural plants, grain complex, seed processing plants, railway rolling stock inspection/maintenance system, and pulp and paper plants. Additionally, the company constructs bridges; and offers country elevator soft drying systems and seed processing plants, SSI shredding systems and bale breakers, kneading pulpers, fiber laser stencil processing systems, and fiber laser precision sheet metal processing systems. The company was founded in 1896 and is headquartered in Nagoya, Japan. Nippon Sharyo, Ltd. is a subsidiary of Central Japan Railway Company. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 20:56
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.