Nippon Kodoshi Corporation (3891) AI Stock Analysis

• Market Cap: ¥35.30B
• Dividend Yield: 2.28%
• Average Volume (3M): 33.57K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.90
• Revenue Growth: 12.56%
• EPS Growth: 18.52%
• Country: JP
• Employees: 485
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 61.23
• Shares Outstanding: 10,698,482
• 10 Day Avg. Volume: 30,540
• 30 Day Avg. Volume: 33,566
• PEG Ratio: 0.50
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -8.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,879.00 ▼(-15.94% Downside)

Nippon Kodoshi Corporation's strong financial performance and bullish technical indicators are the primary drivers of its high stock score. The company demonstrates robust profitability and financial stability, though negative free cash flow warrants attention. The stock's valuation is reasonable, with a fair P/E ratio and attractive dividend yield. Technical analysis shows strong upward momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Balance Sheet Health

A strong equity ratio reflects financial stability, providing resilience against economic downturns and supporting future growth initiatives.

Profit Margins

Sustained profit margins demonstrate effective cost management and pricing power, crucial for long-term profitability and competitiveness.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can strain liquidity and limit financial flexibility, posing challenges for funding growth and operations.

Capital Expenditures

While investments in growth are positive, excessive capital expenditures may impact cash reserves and require careful management.

Cash Flow Management

Effective cash flow management is crucial to ensure liquidity and support ongoing operations, especially with current negative free cash flow.

Nippon Kodoshi Corporation Business Overview & Revenue Model

Company Description

Nippon Kodoshi Corporation manufactures and sells separators in Japan and internationally. The company offers aluminum electrolytic capacitors for electronic devices and home appliances; separators for conductive polymer solid capacitors that are used for digital home appliances, such as PC and flat TV; and separators for electric double layer capacitors that are used for OA equipment, industrial machines, eco-car, and clean energy. It also provides battery separators for alkaline battery and lithium ion battery. Nippon Kodoshi Corporation was incorporated in 1941 and is headquartered in Kochi, Japan.

How the Company Makes Money

Nippon Kodoshi Corporation generates revenue through the sales of its specialized resin materials and components to various industries, including electronics and automotive. The company’s primary revenue streams include the production of high-performance epoxy resins, which are essential for manufacturing printed circuit boards and other electronic components. Additionally, partnerships with leading technology firms and automotive manufacturers enhance its market reach and stability. The company also benefits from research and development investments, enabling it to offer cutting-edge materials that command premium pricing in competitive markets. Overall, Nippon Kodoshi's focus on quality and innovation allows it to maintain strong customer relationships and drive consistent revenue growth.

Nippon Kodoshi Corporation Financial Statement Overview

Summary

Nippon Kodoshi Corporation shows robust financial health with consistent revenue growth, strong profit margins, and efficient operational management. The balance sheet reflects stability with a low debt level and high equity ratio, though the negative free cash flow due to capital expenditures requires monitoring. Overall, the company is well-positioned for future growth, but attention to cash flow management is advised.

Income Statement

Nippon Kodoshi Corporation demonstrates strong profitability with a consistent gross profit margin of around 28% over the last three years. The net profit margin shows a positive trend, increasing from 9.9% in 2020 to 11.1% in 2025. Revenue growth is steady but has fluctuated, with a notable growth of 8.1% from 2024 to 2025. EBIT and EBITDA margins indicate effective cost management and operational efficiency.

Balance Sheet

The company maintains a solid balance sheet, highlighted by a decreasing debt-to-equity ratio from 0.21 in 2020 to 0.35 in 2025, reflecting prudent financial leverage. Return on equity has improved significantly to 7.4% in 2025, indicating enhanced profitability for shareholders. The equity ratio stands strong at 67.8% in 2025, suggesting financial stability and low reliance on external debt.

Cash Flow

Operating cash flow has improved substantially from 2020 to 2025, up from ¥2.4 billion to ¥3.8 billion, demonstrating strong cash generation capability. However, free cash flow has been negative in recent years due to high capital expenditures, which could pose liquidity challenges if not managed carefully. The operating cash flow to net income ratio is healthy, indicating efficient conversion of profit into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.78B	16.03B	14.83B	17.59B	18.07B	15.92B
Gross Profit	4.58B	4.45B	3.65B	5.53B	6.15B	4.60B
EBITDA	3.58B	3.51B	3.46B	4.95B	5.55B	4.07B
Net Income	1.72B	1.78B	1.48B	2.47B	2.92B	2.01B
Balance Sheet
Total Assets	35.57B	35.27B	33.98B	30.63B	26.16B	25.03B
Cash, Cash Equivalents and Short-Term Investments	4.33B	4.13B	4.31B	4.22B	4.44B	4.58B
Total Debt	9.08B	8.29B	8.19B	5.75B	2.85B	3.82B
Total Liabilities	11.48B	11.37B	11.61B	9.06B	6.83B	8.42B
Stockholders Equity	24.08B	23.90B	22.37B	21.57B	19.33B	16.60B
Cash Flow
Free Cash Flow	0.00	-2.14B	-1.50B	-2.88B	1.02B	2.32B
Operating Cash Flow	0.00	3.80B	1.91B	685.31M	2.91B	3.22B
Investing Cash Flow	0.00	-3.40B	-3.41B	-3.60B	-1.84B	-988.77M
Financing Cash Flow	0.00	-637.32M	1.50B	2.58B	-1.26B	541.32M

Nippon Kodoshi Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3425.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3891, the sentiment is Positive. The current price of 3425 is above the 20-day moving average (MA) of 3279.60, above the 50-day MA of 2970.80, and above the 200-day MA of 2145.96, indicating a bullish trend. The MACD of 149.68 indicates Positive momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3891.

Nippon Kodoshi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.54B	12.89	―	2.89%	6.15%	2.98%
3891	76 Outperform	¥35.30B	19.29	―	2.28%	12.56%	18.52%
6626	73 Outperform	¥27.42B	8.58	―	1.78%	4.47%	12.28%
6874	72 Outperform	¥22.98B	10.14	―	2.84%	8.78%	16.25%
6779	64 Neutral	¥22.10B	19.52	―	2.86%	2.87%	-53.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥35.51B	32.83	―	1.95%	6.10%	―