Consistent Revenue GrowthSustained revenue growth with a stable gross margin indicates steady demand and predictable product economics. Over 2-6 months this supports recurring cash generation potential, room to reinvest in capacity or R&D, and indicates the core business remains commercially viable despite cyclical pressures.

Healthy ROE And Moderate LeverageA double-digit ROE paired with moderate leverage shows the company generates solid returns on shareholder capital while using debt conservatively. This capital structure supports funding for growth or dividends without excessive solvency risk, providing durable financial flexibility over months ahead.

Stable Operational MarginsConsistently healthy operating margins reflect effective cost control and operational efficiency. Margin stability in a chemicals business cushions against raw material swings, preserving operating cash flow and the ability to fund maintenance capex or strategic investments over the medium term.

Bears Say

Negative Free Cash FlowA shift to negative free cash flow restricts the company's ability to self-fund growth, repay debt, or sustain dividends. If maintained beyond a quarter or two, it may force external financing or cutbacks, raising long-term financing costs and constraining strategic initiatives.

Weak Cash ConversionVery low conversion of reported profits into cash suggests earnings quality issues—likely working capital pressure or non-cash items. Over time this reduces available liquidity for reinvestment and increases vulnerability to earnings volatility and refinancing needs.

Limited Investor DisclosureAbsence of earnings call data and notable corporate events reduces transparency on strategy, outlook, and management execution. Limited communications make it harder for investors to assess medium-term planning or operational fixes, which can hinder access to capital or market confidence if issues arise.

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 ¥3720.00 in the past 12 months.

What is NANKAI CHEMICAL COMPANY LIMITED’s market cap?

NANKAI CHEMICAL COMPANY LIMITED’s market cap is ¥7.96B.

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 92 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.