Nissan Chemical (4021) AI Stock Analysis

• Market Cap: ¥735.02B
• Dividend Yield: 3.18%
• Average Volume (3M): 578.26K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.72
• Revenue Growth: 10.06%
• EPS Growth: 18.03%
• Country: JP
• Employees: 3,137
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 66.25
• Shares Outstanding: 135,800,000
• 10 Day Avg. Volume: 562,440
• 30 Day Avg. Volume: 578,260
• PEG Ratio: 0.96
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 2.43
• P/FCF Ratio: 14.20
• 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): 338.89
• Revenue Forecast (FY): ¥268.60B

• Rating: 78 Outperform
• Price Target: ¥6,081.00 ▲(17.21% Upside)

Nissan Chemical's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. The technical analysis supports a positive outlook with bullish momentum, although caution is advised due to potential overbought conditions. The reasonable valuation and attractive dividend yield further enhance the stock's investment appeal.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates an expanding market presence and effective product demand, supporting long-term business sustainability.

Cash Generation

Improved cash generation enhances financial flexibility, enabling strategic investments and debt management, crucial for sustained growth.

Balance Sheet Health

Prudent leverage management reflects financial stability, reducing risk and providing a strong foundation for future expansion.

Negative Factors

Operational Efficiency

Declining margins suggest potential inefficiencies, which could impact profitability if not addressed, posing a risk to long-term operational performance.

Equity Ratio Uncertainty

Lack of detailed equity ratio data hinders full evaluation of financial stability, potentially obscuring risks related to asset financing.

Operational Pressure

Operational pressures could strain resources and affect future profitability if not managed, challenging long-term business resilience.

Nissan Chemical Business Overview & Revenue Model

Company Description

Nissan Chemical Corporation (4021) is a Japanese chemical company that operates primarily in the fields of specialty chemicals, agricultural chemicals, and electronic materials. The company develops and manufactures a wide range of products, including agrochemicals, electronic materials for semiconductors, and other specialty chemicals that cater to various industries. With a focus on innovation and sustainability, Nissan Chemical aims to provide high-quality solutions that meet the evolving needs of its customers across different sectors.

How the Company Makes Money

Nissan Chemical generates revenue through several key streams, primarily from the sale of its specialty chemicals and agricultural products. The company’s agrochemical division, which includes herbicides, insecticides, and fungicides, contributes significantly to its earnings by serving the agricultural sector. Additionally, its electronic materials segment, which produces materials for semiconductor manufacturing and displays, has seen growth due to the increasing demand for electronics. Strategic partnerships with other companies in the tech and agricultural fields also enhance Nissan Chemical's market reach and bolster its revenue. The company emphasizes R&D to innovate new products, which can lead to increased sales and market share, further contributing to its financial performance.

Nissan Chemical Financial Statement Overview

Summary

Nissan Chemical exhibits a robust financial profile with strong revenue growth and profitability, supported by efficient operations and a solid balance sheet. While cash flow generation presents some challenges, the company's overall financial health remains strong, positioning it well for future growth in the chemicals industry.

Income Statement

Nissan Chemical demonstrates strong financial performance with consistent revenue growth, evidenced by a 4.45% increase in TTM. The company maintains healthy margins, with a gross profit margin of 46.35% and a net profit margin of 17.27% in TTM. EBIT and EBITDA margins are robust at 23.62% and 28.99%, respectively, indicating efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.21, reflecting prudent financial leverage. Return on equity is impressive at 19.72%, showcasing effective use of equity capital. The equity ratio stands at 69.41%, indicating a strong equity base relative to total assets. The increase in total debt over the years warrants monitoring, though it remains manageable.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow is strong, covering 73.48% of net income, and free cash flow to net income ratio is healthy at 70.94%. However, the free cash flow growth rate is negative at -1.84% in TTM, highlighting potential challenges in cash generation. The company should focus on improving free cash flow to support future investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	263.27B	251.37B	226.71B	228.06B	207.97B	209.12B
Gross Profit	121.47B	116.54B	104.78B	106.80B	101.09B	87.75B
EBITDA	76.02B	74.55B	66.11B	67.84B	64.45B	55.97B
Net Income	45.35B	43.04B	38.03B	41.09B	38.78B	33.47B
Balance Sheet
Total Assets	322.24B	330.76B	323.46B	298.71B	279.69B	265.51B
Cash, Cash Equivalents and Short-Term Investments	34.27B	27.45B	22.74B	29.65B	34.66B	32.38B
Total Debt	26.10B	40.47B	40.98B	27.29B	22.71B	22.67B
Total Liabilities	80.87B	94.58B	92.56B	77.19B	71.68B	64.95B
Stockholders Equity	238.01B	233.29B	227.47B	218.42B	205.91B	198.83B
Cash Flow
Free Cash Flow	45.87B	43.01B	12.70B	15.05B	29.10B	30.40B
Operating Cash Flow	61.74B	59.18B	33.70B	35.23B	41.95B	39.94B
Investing Cash Flow	-18.65B	-17.61B	-18.74B	-19.64B	-12.39B	-12.85B
Financing Cash Flow	-39.60B	-35.65B	-22.10B	-25.03B	-27.87B	-25.63B

Nissan Chemical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5188.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4021, the sentiment is Positive. The current price of 5188 is below the 20-day moving average (MA) of 5259.90, below the 50-day MA of 5229.64, and above the 200-day MA of 4741.88, indicating a bullish trend. The MACD of 63.03 indicates Negative momentum. The RSI at 62.64 is Neutral, neither overbought nor oversold. The STOCH value of 88.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4021.

Nissan Chemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	78 Outperform	¥735.02B	16.33	19.69%	3.18%	10.06%	18.03%
4004	72 Outperform	¥1.09T	101.46	1.67%	1.00%	-1.90%	-71.97%
4042	71 Outperform	¥741.59B	18.35	4.79%	4.25%	-1.21%	-27.21%
4188	68 Neutral	¥1.19T	10.85	1.09%	3.54%	-11.50%	25.86%
4005	66 Neutral	¥720.15B	8.49	8.79%	2.70%	-1.64%	―
3405	62 Neutral	¥484.86B	62.55	1.08%	3.40%	-1.94%	-84.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nissan Chemical Corporate Events

Nissan Chemical Reports Positive Financial Growth for First Half of 2025

Nissan Chemical Corporation reported a 10.1% increase in net sales for the six months ending September 30, 2025, compared to the same period in the previous year. The company’s financial results indicate a positive trajectory with increased net income and a revised dividend outlook, suggesting strengthened financial health and potential benefits for stakeholders.

Nissan Chemical Cancels 1 Million Treasury Shares

Nissan Chemical Corporation announced the cancellation of 1,000,000 of its common shares, representing 0.73% of its issued shares, as decided in a Board of Directors meeting. This move is part of the company’s capital management strategy, potentially impacting shareholder value and market perception by reducing the number of outstanding shares.