| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1174.76 | -7 |
| Intrinsic value (DCF) | 328.52 | -74 |
| Graham-Dodd Method | 1749.59 | 39 |
| Graham Formula | 715.52 | -43 |
Nitta Gelatin Inc. (4977.T) is a leading Japanese manufacturer specializing in gelatin and collagen-based products for food, pharmaceutical, and industrial applications. Founded in 1918 and headquartered in Osaka, the company produces edible gelatin, pharmaceutical-grade gelatin, and photographic gelatin derived from animal bones, skin, and fish scales. Nitta Gelatin also develops bioactive collagen peptides using proprietary proteolytic technology, catering to health-conscious consumers and medical research. The company supplies stabilizers for confectionery, desserts, and chilled foods, as well as medical gelatin for biomaterials like artificial skin and bone. Operating in the specialty chemicals sector, Nitta Gelatin serves diverse markets, including food processing, pharmaceuticals, and medical device manufacturing. With a strong legacy in gelatin production, the company plays a critical role in Japan's basic materials industry, leveraging collagen's functional properties for innovative applications.
Nitta Gelatin presents a mixed investment profile. The company's FY 2024 financials show a net loss of JPY -1.85 billion and negative EPS (-JPY 101.93), raising concerns about profitability. However, it maintains a stable operating cash flow (JPY 4.91 billion) and a modest dividend (JPY 24 per share). The low beta (0.149) suggests lower volatility compared to the broader market, appealing to risk-averse investors. Challenges include high total debt (JPY 9.8 billion) and declining revenue (JPY 40.42 billion). Long-term prospects depend on demand for collagen peptides in nutraceuticals and medical gelatin in biomaterials, but competitive pressures and input cost fluctuations pose risks.
Nitta Gelatin holds a niche position in the gelatin and collagen market, differentiating itself through specialized applications in pharmaceuticals and biomaterials. Its competitive advantage lies in proprietary proteolytic technology for collagen peptides, which are increasingly used in functional foods and medical research. The company benefits from Japan's stringent quality standards, making its pharmaceutical gelatin attractive for regulated markets. However, it faces pricing pressure from global gelatin producers and synthetic alternatives. Nitta's focus on high-margin medical gelatin provides some insulation, but reliance on animal-derived raw materials exposes it to supply chain risks. Compared to multinational competitors, Nitta has limited geographic diversification, concentrating its revenue in Japan. Strengthening R&D in plant-based or lab-grown collagen could enhance its long-term positioning against sustainability-focused rivals.