Nippon Kodoshi Corporation (3891) AI Stock Analysis

• Market Cap: ¥39.24B
• 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: 72 Outperform
• Price Target: ¥4,745.00 ▲(38.54% Upside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

The score is driven primarily by solid financial performance (strong profitability and a stable balance sheet), supported by a clear uptrend in the price. Offsetting factors are negative recent free cash flow due to elevated capex and only moderate valuation with a P/E around 20.

Positive Factors

Strong balance sheet (high equity ratio)

A 67.8% equity ratio and low leverage provide durable financial resilience, lowering refinancing risk and supporting capital allocation. This balance sheet strength gives management flexibility to fund strategic investments, weather demand cycles, and prioritize shareholder returns over the medium term.

Sustained gross margin and improving net margin

A stable ~28% gross margin and rising net margin to 11.1% indicate durable product-level profitability and effective cost control. Sustained margins support persistent earnings power, enabling reinvestment, debt servicing, and potential dividend continuity across business cycles.

Improving operating cash flow

Rising operating cash flow demonstrates the firm's ability to convert revenue into cash over time, underpinning operational resilience. Reliable cash generation enhances capacity to fund working capital and strategic capex without immediate reliance on external financing, supporting medium-term growth.

Negative Factors

Negative free cash flow due to high capex

Persistent negative free cash flow driven by elevated capex can erode liquidity and force tougher capital-allocation choices. Over several quarters this may pressure reserves, limit dividends or share buybacks, and necessitate external funding if cash generation and returns on capex don't materialize.

Rising leverage trend

Although leverage remains moderate, the upward trend in debt-to-equity reduces financial headroom and increases sensitivity to interest costs. Continued increases could constrain strategic flexibility, raise refinancing risk in stress periods, and weaken credit metrics that support long-term investment plans.

Limited scale (small workforce)

A small employee base can signal limited scale for R&D, global sales, and after-sales support versus larger competitors. Over the medium term this may slow product rollouts, constrain market expansion, and reduce bargaining power with suppliers, affecting durable competitive positioning.

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

Overall financials are solid: income statement strength (75) is supported by steady ~28% gross margin and improving net margin (to 11.1% in 2025), while the balance sheet is notably strong (80) with a high 67.8% equity ratio and low leverage. The main offset is cash flow (65): operating cash flow is improving, but recent negative free cash flow driven by high capex warrants monitoring.

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	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: Neutral

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 4098.75, below the 50-day MA of 3735.80, and above the 200-day MA of 2656.35, indicating a neutral trend. The MACD of 61.62 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 30.03 is Neutral, 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
3891	72 Outperform	¥39.24B	11.82	―	2.28%	12.56%	18.52%
6817	70 Outperform	¥36.58B	10.46	―	4.53%	-2.57%	3.43%
6768	69 Neutral	¥54.79B	33.92	3.63%	2.25%	11.74%	-30.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6996	60 Neutral	¥128.45B	11.45	―	2.18%	-0.93%	-45.03%
6844	58 Neutral	¥33.09B	2.72	―	1.95%	6.10%	―
6997	47 Neutral	¥37.07B	9.09	2.26%	―	-2.53%	-85.61%