Nippon Kodoshi Corporation (3891) AI Stock Analysis

• Market Cap: ¥36.72B
• Dividend Yield: 2.28%
• Average Volume (3M): 33.57K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.96
• Revenue Growth: 12.56%
• EPS Growth: 18.52%
• Country: JP
• Employees: 485
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 72.46
• 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): 227.6
• Revenue Forecast (FY): ¥18.50B

• Rating: 62 Neutral
• Price Target: ¥3,705.00 ▲(8.18% Upside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is driven primarily by stable-to-good fundamentals (strong 2025 revenue rebound and a manageable balance sheet) but is held back by persistently negative free cash flow and weak near-term technicals. Valuation is a supportive offset with a moderate P/E and ~2% dividend yield.

Positive Factors

Revenue rebound in 2025

A ~185% revenue rebound in 2025 shows durable recovery of end-market demand and restores a larger revenue base versus the 2023–24 trough. This strengthens the firm's ability to invest in capacity and R&D, improves fixed-cost absorption, and supports multi-quarter operational stability.

Sustained profitability margins (2025)

Healthy 2025 margins indicate the company retains pricing power and/or cost structure advantages in specialized separator paper. Durable mid-teens operating margins provide a buffer through cycles, enabling reinvestment and consistent earnings generation even if volumes fluctuate moderately.

Manageable leverage and stronger equity

A debt-to-equity near 0.35 and rising equity suggest conservative leverage and balance-sheet resilience. That structural strength supports capital spending for technical materials, cushions cyclical downturns, and preserves access to financing for long-term projects without immediate solvency pressure.

Negative Factors

Three years of negative FCF

Sustained negative free cash flow reduces financial flexibility despite recent revenue recovery. Persistent FCF deficits constrain organic funding for capex or working-capital needs, may force external financing for growth, and increases vulnerability if margins or sales dip again.

Falling return on equity

A decline in ROE to ~7.5% signals weaker capital efficiency versus prior peaks. This may reflect lower pricing, higher capital intensity, or margin compression, and reduces the company's long-term ability to generate shareholder returns from incremental invested capital.

Revenue volatility / cyclical exposure

The swing from declines to a sharp rebound highlights exposure to cyclical demand in automotive, electronics, and energy-storage end markets. Such structural volatility complicates capacity planning, forecasting, and steady earnings visibility across multi-quarter horizons.

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.

Nippon Kodoshi Corporation Financial Statement Overview

Summary

Income statement is solid (revenue rebounded sharply in 2025 and profitability remains healthy), and the balance sheet looks moderate-risk with manageable leverage. The main drag is cash flow quality: operating cash conversion is mixed and free cash flow has been negative for three straight years, reducing financial flexibility.

Income Statement

Revenue rebounded strongly in 2025 (annual growth of ~185%) after declines in 2023–2024, indicating demand volatility but a solid latest-year recovery. Profitability remains healthy in 2025 (gross margin ~27.8%, operating margin ~15.5%, net margin ~11.1%), though margins are meaningfully below the 2022–2023 peak levels (net margin ~14–16% range). Net income improved vs. 2024, but overall earnings power appears cyclical with a multi-year margin reset lower than prior highs.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.35 in 2025 (still moderate, though higher than 2021–2022 levels). Equity has grown over time, supporting balance sheet resilience. Returns on equity are positive but have cooled from the 2022 peak (~15.1%) to ~7.5% in 2025, suggesting weaker capital efficiency despite the stronger revenue year. Overall financial risk appears contained, but the rising debt load versus earlier years is a key watch item.

Cash Flow

Operating cash flow improved in 2025 (~¥3.8B) versus 2023–2024, but cash conversion remains mixed given operating cash flow is only ~56% of net income in 2025 (and was even weaker in 2023–2024). Free cash flow is negative for three straight years (2023–2025), including ~-¥2.1B in 2025, indicating elevated investment or working-capital drag and reduced financial flexibility. The business can generate cash in stronger periods (positive free cash flow in 2020–2022), but recent consistency is a concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	35.50B	34.04B	30.70B	26.18B	25.05B
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	11.59B	11.68B	9.13B	6.85B	8.44B
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: Neutral
• Last Price: 3425.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3891, the sentiment is Neutral. The current price of 3425 is below the 20-day moving average (MA) of 4063.25, below the 50-day MA of 3746.00, and above the 200-day MA of 2674.91, indicating a neutral trend. The MACD of -4.95 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 4.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3891.

Nippon Kodoshi Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6817	70 Outperform	¥35.10B	10.46	―	4.53%	-2.57%	3.43%
6768	69 Neutral	¥49.61B	33.92	3.63%	2.25%	11.74%	-30.96%
3891	62 Neutral	¥36.72B	11.82	―	2.28%	12.56%	18.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6996	60 Neutral	¥119.64B	11.45	―	2.18%	-0.93%	-45.03%
6844	58 Neutral	¥31.54B	2.72	―	1.95%	6.10%	―
6997	47 Neutral	¥33.94B	9.09	2.26%	―	-2.53%	-85.61%