Consistent Revenue GrowthConsistent top-line growth (4.56% YoY) indicates stable demand for Nankai’s chemical products and incremental market or pricing gains. Sustained revenue expansion supports reinvestment in capacity and customer relationships, underpinning medium-term cash generation and competitive positioning.

Stable Operational MarginsA gross margin near 26% alongside healthy EBIT/EBITDA margins reflects durable operational efficiency and some pricing power in product mix. Stable margins help absorb input cost volatility, fund routine capex and R&D, and sustain profitability over multiple business cycles.

Balanced Capital Structure & ROEModerate leverage (D/E 0.67) combined with a 12.1% ROE and a 37.4% equity ratio indicates efficient use of capital with manageable solvency risk. This balance affords financial flexibility to fund targeted growth or withstand shocks without excessive refinancing pressure.

Bears Say

Negative Free Cash FlowFree cash flow turning negative in 2025 reduces internally available funds for capex, dividends, and debt reduction. If negative FCF persists, the company may need external financing or asset sales, which would limit strategic options and pressure long-term solvency and shareholder returns.

Weak Cash ConversionAn OCF-to-net-income ratio of 0.18 signals poor conversion of reported profits into cash, likely from rising working capital or non-cash accounting items. Weak cash conversion constrains liquidity, raises funding costs for growth, and heightens vulnerability to cyclical downturns.

Declining Net Profit MarginA falling net profit margin (4.86% in 2025) from decreased net income narrows the cushion for reinvestment and debt servicing. Continued margin pressure would erode retained earnings and ROE, limiting the firm's ability to self-fund expansion or withstand commodity and pricing shocks.

4040 FAQ

What was NANKAI CHEMICAL COMPANY LIMITED’s price range in the past 12 months?

NANKAI CHEMICAL COMPANY LIMITED lowest stock price was ¥2001.00 and its highest was ¥3945.00 in the past 12 months.

What is NANKAI CHEMICAL COMPANY LIMITED’s market cap?

NANKAI CHEMICAL COMPANY LIMITED’s market cap is ¥8.07B.

When is NANKAI CHEMICAL COMPANY LIMITED’s upcoming earnings report date?

NANKAI CHEMICAL COMPANY LIMITED’s upcoming earnings report date is May 19, 2026 which is in 68 days.

How were NANKAI CHEMICAL COMPANY LIMITED’s earnings last quarter?

NANKAI CHEMICAL COMPANY LIMITED released its earnings results on Feb 12, 2026. The company reported ¥964.63 earnings per share for the quarter, beating the consensus estimate of N/A by ¥964.63.

Is NANKAI CHEMICAL COMPANY LIMITED overvalued?

According to Wall Street analysts NANKAI CHEMICAL COMPANY LIMITED’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NANKAI CHEMICAL COMPANY LIMITED pay dividends?

NANKAI CHEMICAL COMPANY LIMITED pays a Semiannually dividend of ¥35 which represents an annual dividend yield of 1.96%. See more information on NANKAI CHEMICAL COMPANY LIMITED dividends here

What is NANKAI CHEMICAL COMPANY LIMITED’s EPS estimate?

NANKAI CHEMICAL COMPANY LIMITED’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NANKAI CHEMICAL COMPANY LIMITED have?

NANKAI CHEMICAL COMPANY LIMITED has 2,330,330 shares outstanding.

What happened to NANKAI CHEMICAL COMPANY LIMITED’s price movement after its last earnings report?

NANKAI CHEMICAL COMPANY LIMITED reported an EPS of ¥964.63 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 3.994%.

Which hedge fund is a major shareholder of NANKAI CHEMICAL COMPANY LIMITED?

Currently, no hedge funds are holding shares in JP:4040

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NANKAI CHEMICAL COMPANY LIMITED

Nankai Chemical Company,Limited manufacturers and sells chemical in Japan and internationally. The company offers inorganic industrial chemicals, water treatment disinfectants, water treatment agents, healthy foods, organic fine chemicals, and pesticides, as well as salt. It is also involved in the sulfuric acid recycling business; collection, transportation, and intermediate treatment of industrial waste; distribution and recovery of precious metals, and non-ferrous metals; distribution and construction of air conditioning equipment; distribution of precision machinery, textile machinery, plating equipment, paint equipment, and building material; parking lot, and real estate management and warehousing; and research, development, production, and sale of agricultural, livestock, and marine products; freight transport and handling; power generation and operation; and non-life insurance business. The company was founded in 1906 and is headquartered in Osaka, Japan.