NISSEI ASB MACHINE CO.,LTD. FY2025 Q4 Earnings Report

Financial Highlights

• Net Sales: ¥43.65B
• Operating Income: ¥10.64B
• Net Income: ¥2.96B
• EPS: ¥516.36

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Nissei ASB Machine Co., Ltd. delivered a strong FY2025 Q4 performance with solid top-line growth and stronger operating leverage. Revenue rose 18.7% YoY to ¥43.65bn, while operating income increased 34.6% YoY to ¥10.64bn, indicating margin expansion and cost discipline. Net income grew 33.9% YoY to ¥7.74bn, translating to EPS of ¥516.36. Profitability metrics are robust: EBITDA of ¥12.51bn implies a 28.7% margin, and the net margin of 17.73% underscores healthy pricing and mix. DuPont analysis shows ROE of 13.13% driven primarily by strong margins (17.73%) and moderate asset turnover (0.557x) with conservative leverage (assets/equity 1.33x). Liquidity is very strong with a current ratio of 464.6% and quick ratio of 442.6%, supported by sizeable working capital of ¥43.24bn. The balance sheet is conservative: total liabilities of ¥19.91bn against equity of ¥58.95bn equate to a debt-to-equity ratio of 0.34x. Interest coverage is exceptionally high at 280x, reflecting minimal financing burden and ample earnings cushion. Cash generation quality is good; operating cash flow of ¥8.39bn exceeds net income (OCF/NI 1.08x), and free cash flow reached ¥7.39bn after modest investing outflows. Investing cash outflows were limited at ¥1.00bn, suggesting disciplined capex relative to operating scale. Financing cash outflows of ¥3.87bn likely reflect shareholder returns and/or debt reduction, consistent with the firm’s low-leverage stance. We note an internal inconsistency between reported cost of sales and gross profit; however, the gross margin (39.8%) and EBITDA bridge are coherent with operating income and D&A, so profitability commentary relies on these aligned figures. The reported effective tax rate metric is shown as 0.0%, but using tax expense and net income implies an estimated effective rate around 22–23%, subject to extraordinary items. Several items (equity ratio %, cash and equivalents, DPS, shares outstanding) are listed as zero and should be treated as undisclosed rather than actual zeros; our analysis therefore emphasizes available non-zero data and internally consistent derived measures. Overall, fundamentals point to a high-quality, cash-generative business with margin strength, conservative balance sheet, and solid earnings-to-cash conversion, albeit with typical capital equipment cyclicality and FX exposure risks.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 17.73%
• asset_turnover: 0.557
• financial_leverage: 1.33
• calculated_ROE: 13.13%
• commentary: ROE is driven primarily by strong margins and moderate asset utilization, with low leverage contributing a smaller portion. Ordinary income exceeding operating income suggests small positive non-operating contributions. margin_quality:
• gross_margin: 39.8%
• operating_margin: 24.4%
• ebitda_margin: 28.7%
• net_margin: 17.73%
• notes: Operating margin expansion outpaced revenue growth (OI +34.6% vs revenue +18.7%), indicating operating leverage and mix/pricing tailwinds. Gross margin and EBITDA reconcile well with operating income and D&A, despite an inconsistency between reported cost of sales and gross profit. operating_leverage: High in the period: revenue growth of 18.7% translated into 34.6% operating income growth. Fixed-cost absorption appears favorable, and SG&A efficiency likely improved.

Growth Assessment

revenue_sustainability: Top-line growth of 18.7% is strong for capital equipment, potentially supported by robust order intake, PET container demand, and geographic diversification. Sustainability will depend on backlog, book-to-bill, and replacement demand cycles. profit_quality: Net margin at 17.7% and EBITDA margin near 29% reflect healthy product mix and pricing power. Interest burden is negligible, so earnings quality is driven mainly by operations and tax. Estimated effective tax rate ~22–23% implies no unusual tax distortion. outlook: With conservative leverage and strong cash generation, the company is positioned to navigate demand fluctuations. Key sensitivities include FX (JPY vs USD/EUR/EM), order timing, and capex cycles among beverage and consumer goods customers.

Financial Health

liquidity:

• current_ratio: 464.6%
• quick_ratio: 442.6%
• working_capital_yen: 43244000000
• commentary: Ample liquidity supported by large current asset base relative to current liabilities; inventory is modest at ¥2.60bn, implying made-to-order dynamics and limited stock risk. solvency:
• debt_to_equity: 0.34x
• interest_coverage: 280.0x
• equity_ratio_estimate: ≈75.2% (Total equity ¥58.95bn / Total assets ¥78.39bn)
• commentary: Very conservative capital structure with limited financial risk; high equity cushion supports resilience. capital_structure: Total liabilities of ¥19.91bn vs equity of ¥58.95bn reflect low gearing. Ordinary income exceeds operating income slightly, suggesting positive non-operating items rather than leverage-driven returns.

Cash Flow Quality

earnings_quality: OCF/NI of 1.08x indicates that earnings are substantially backed by cash, with limited accrual drag. free_cash_flow_analysis:

• operating_cf_yen: 8390000000
• investing_cf_yen: -1004000000
• free_cash_flow_yen: 7386000000
• notes: Investing cash outflow is modest relative to EBITDA, suggesting disciplined capex and/or timing effects. FCF is strong and provides capacity for shareholder returns and reinvestment. working_capital: Working capital is large and positive; monitoring receivables and advance payments is important in a project-based delivery cycle. Low inventories reduce obsolescence risk but increase sensitivity to delivery timing.

Dividend Sustainability

payout_ratio_assessment: Dividend data (DPS, payout ratio) are shown as zero, indicating non-disclosure in this dataset rather than actual zeros. Therefore, a precise payout assessment is not possible from the provided figures. fcf_coverage: On capacity, FCF of ¥7.39bn comfortably covers a moderate dividend outlay if implemented; coverage appears ample relative to net income of ¥7.74bn. policy_outlook: Given strong cash generation and a conservative balance sheet, the company has flexibility for dividends and/or buybacks, subject to investment needs and cyclical visibility. Confirmation of stated policy and historical payout trends would refine the assessment.

Risk Assessment

Business Risks:

• Demand cyclicality in PET container and beverage/consumer end-markets
• Order timing and backlog volatility typical of capital equipment
• Pricing pressure and competition in blow molding machinery
• Technology shifts in materials and packaging sustainability requirements
• Geopolitical and trade-related disruptions impacting exports and supply chains

Financial Risks:

• FX exposure (USD/JPY, EUR/JPY) affecting revenue and margins
• Working capital swings tied to project deliveries and advance payments
• Potential concentration risk by customer or region
• Commodity and component cost inflation pressuring margins

Key Concerns:

• Inconsistency between reported cost of sales and gross profit figures in the dataset
• Limited disclosure in this extract for cash and equivalents, equity ratio, and dividend details
• Exposure to macro slowdown in capital spending by beverage and FMCG customers

Investment Implications

Key Takeaways:

• Strong FY2025 profitability with clear operating leverage (OI +34.6% vs revenue +18.7%)
• High-quality earnings: OCF/NI 1.08x and solid FCF of ¥7.39bn
• Conservative balance sheet with low leverage (D/E 0.34x) and very strong liquidity
• ROE of 13.1% primarily margin-driven; scope to improve via asset turnover if growth persists
• Minimal interest burden (coverage 280x) provides resilience through cycles

Metrics to Watch:

• Order backlog and book-to-bill ratio
• Gross and operating margins, especially vs component cost trends
• OCF/NI and working capital turns (receivables, contract assets/liabilities)
• FX rates and hedging outcomes
• Capex intensity vs growth (Investing CF/EBITDA)
• Aftermarket/service revenue mix to stabilize margins through cycles

Relative Positioning: Compared to typical capital equipment peers, the company exhibits stronger margins, superior liquidity, and lower leverage, positioning it favorably for cyclical volatility while maintaining investment capacity.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis