Nissan Chemical (4021) AI Stock Analysis

• Market Cap: ¥894.13B
• Dividend Yield: 3.15%
• Average Volume (3M): 563.95K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.77
• Revenue Growth: 10.06%
• EPS Growth: 18.03%
• Country: JP
• Employees: 3,137
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 90.65
• Shares Outstanding: 135,800,000
• 10 Day Avg. Volume: 567,690
• 30 Day Avg. Volume: 563,950
• 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: ¥6,000.00
• Price Target Upside: 15.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥7,728.00 ▲(48.96% Upside)

The score is driven primarily by strong financial performance (high margins, low leverage, attractive ROE) and a reasonable valuation with a ~3% dividend. The main offset is technicals: the trend is strong, but RSI/Stoch are extremely overbought, increasing near-term pullback risk.

Positive Factors

High Profitability

Sustained high margins indicate durable product differentiation and pricing power in specialty chemicals. Such profitability supports reinvestment in R&D and capacity, funds dividends and buybacks, and cushions returns through cycles, underpinning long-term earnings quality and ROE.

Conservative Balance Sheet

Very low leverage provides financial flexibility to fund capex, M&A or shareholder returns and to withstand cyclical downturns. A strong equity base reduces refinancing risk and supports stable capital allocation over the next several quarters to years.

Strong Free Cash Flow

Healthy FCF generation and a high FCF-to-net-income ratio indicate earnings convert to cash at a meaningful rate, enabling consistent funding of operations, investment in specialty product development, and steady shareholder returns even with modest revenue growth.

Negative Factors

Modest Top-line Growth

Low-single-digit organic growth constrains long-term upside and means returns must come mainly from margins, cost control, or capital allocation. In specialty chemicals, sustained low growth increases reliance on cyclical end-market recoveries or successful new product commercialization.

Volatile Cash Conversion

Intermittent gaps between reported earnings and operating cash suggest working-capital timing or collection risks. Persistent volatility in cash conversion can constrain reinvestment, limit flexibility in downturns, and raise execution risk for long-duration projects or payout commitments.

Exposure to Cyclical End-Markets

Significant exposure to agriculture and electronics links revenue to seasonal, regulatory, and capital-spending cycles. These end-market cyclicities can produce uneven demand, lengthen product qualification timelines, and increase sensitivity of growth and margins to macro trends over the medium term.

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

Overall financials are strong: high profitability (TTM gross margin ~46%, operating ~23%, net ~17%), conservative leverage (TTM D/E ~0.17) and solid ROE (~19.5%). Free cash flow is healthy (~¥46B) with ~73% FCF-to-net-income, but cash conversion has been somewhat volatile historically and growth is modest.

Income Statement

Profitability is strong for a chemicals company, with TTM (Trailing-Twelve-Months) gross margin ~46%, operating margin ~23%, and net margin ~17%. Earnings power looks resilient and consistent over the period, and revenue has re-accelerated from roughly flat in FY2024 to low-single-digit growth in TTM. The main offset is that the growth profile is modest and margins have eased slightly from the peak levels seen in FY2022–FY2023.

Balance Sheet

The balance sheet is conservatively positioned with low leverage (TTM debt-to-equity ~0.17) and a sizeable equity base. Returns to shareholders are attractive (TTM return on equity ~19.5%) and have generally improved versus prior years, suggesting efficient capital use. A watch item is that leverage has ticked up from earlier years (FY2022–FY2023), though it remains very manageable.

Cash Flow

Cash generation is solid in TTM (Trailing-Twelve-Months), with free cash flow of ~¥46B and improving versus FY2024’s weaker conversion year. Free cash flow equals ~73% of net income in TTM, indicating generally good earnings quality, but cash conversion has been somewhat volatile historically (notably weaker in FY2023–FY2024). Operating cash flow relative to reported earnings is also below 1.0 in TTM, implying working-capital or timing effects that can create periodic fluctuations.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	271.97B	251.37B	226.71B	228.06B	207.97B	209.12B
Gross Profit	126.17B	116.54B	104.78B	106.80B	101.09B	87.75B
EBITDA	77.54B	74.55B	66.11B	67.84B	64.45B	55.97B
Net Income	46.38B	43.04B	38.03B	41.09B	38.78B	33.47B
Balance Sheet
Total Assets	340.14B	330.76B	323.46B	298.71B	279.69B	265.51B
Cash, Cash Equivalents and Short-Term Investments	34.04B	27.45B	22.74B	29.65B	34.66B	32.38B
Total Debt	40.95B	40.47B	40.98B	27.29B	22.71B	22.67B
Total Liabilities	94.60B	94.58B	92.56B	77.19B	71.68B	64.95B
Stockholders Equity	241.84B	233.29B	227.47B	218.42B	205.91B	198.83B
Cash Flow
Free Cash Flow	46.41B	43.01B	12.70B	15.05B	29.10B	30.40B
Operating Cash Flow	63.66B	59.18B	33.70B	35.23B	41.95B	39.94B
Investing Cash Flow	-19.60B	-17.61B	-18.74B	-19.64B	-12.39B	-12.85B
Financing Cash Flow	-39.75B	-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: Neutral

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 6028.90, below the 50-day MA of 5667.54, and above the 200-day MA of 5066.57, indicating a bullish trend. The MACD of 340.37 indicates Negative momentum. The RSI at 67.11 is Neutral, neither overbought nor oversold. The STOCH value of 76.18 is Neutral, 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	75 Outperform	¥894.13B	19.32	19.69%	3.15%	10.06%	18.03%
4063	75 Outperform	¥10.96T	21.70	10.87%	2.17%	3.77%	0.35%
4042	68 Neutral	¥844.69B	24.65	4.79%	4.21%	-1.21%	-27.21%
4188	66 Neutral	¥1.50T	17.10	1.09%	3.50%	-11.50%	25.86%
4005	65 Neutral	¥962.49B	9.88	8.79%	2.68%	-1.64%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3405	60 Neutral	¥558.68B	77.07	1.08%	3.37%	-1.94%	-84.08%

Nissan Chemical Corporate Events

Nissan Chemical Delivers Profit Growth and Confirms Outlook for FY2025

Nissan Chemical reported consolidated results for the nine months to Dec. 31, 2025, with net sales rising 11.8% year on year to ¥195.4 billion and net income attributable to owners of the parent climbing 10.5% to ¥35.0 billion, while basic earnings per share reached ¥259.10. Total assets increased to ¥340.1 billion and the equity ratio improved to 71.1%, underscoring a solid financial position supported by higher comprehensive income.

The company kept its full-year outlook unchanged, forecasting fiscal 2025 net sales of ¥272.2 billion and net income of ¥44.0 billion, alongside an annual dividend of ¥180 per share, up from ¥174 the previous year. Steady profit growth, a higher projected year-end dividend, and continued share treasury activity signal confidence in earnings resilience and a commitment to shareholder returns, which may strengthen its standing among institutional investors and analysts.

The most recent analyst rating on (JP:4021) stock is a Buy with a Yen6086.00 price target. To see the full list of analyst forecasts on Nissan Chemical stock, see the JP:4021 Stock Forecast page.

Nissan Chemical Finalizes Share Buyback Tranche

Nissan Chemical completed a board-authorized share repurchase program by acquiring 26,400 shares for ¥144.2 million between February 1 and February 3, 2026 on the Tokyo Stock Exchange. The buyback brings cumulative purchases under the May 2025 mandate to 1,815,100 shares for ¥8.999 billion, signaling continued capital allocation toward shareholder returns before the March 31, 2026 deadline.

The most recent analyst rating on (JP:4021) stock is a Buy with a Yen6086.00 price target. To see the full list of analyst forecasts on Nissan Chemical stock, see the JP:4021 Stock Forecast page.

Nissan Chemical Nears Completion of Share Buyback Program

Nissan Chemical Corporation has continued its share buyback program, repurchasing 380,000 common shares on the Tokyo Stock Exchange between January 1 and January 31, 2026, at a total cost of approximately 2.06 billion yen. This transaction forms part of a broader board-approved repurchase authorization from May 2025 allowing buybacks of up to 2.5 million shares or 9 billion yen through March 31, 2026; as of January 31, 2026, the company has acquired 1,788,700 shares for about 8.86 billion yen, indicating the program is close to completion and reflecting ongoing efforts to enhance shareholder returns and optimize capital structure.

The most recent analyst rating on (JP:4021) stock is a Buy with a Yen6086.00 price target. To see the full list of analyst forecasts on Nissan Chemical stock, see the JP:4021 Stock Forecast page.

Nissan Chemical Progresses Share Buyback Program, Repurchasing 340,000 Shares in December

Nissan Chemical Corporation has continued its share repurchase program, buying 340,000 common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of approximately 1.8 billion yen. This transaction forms part of a broader board-approved buyback plan, under which the company is authorized to repurchase up to 2.5 million shares or 9 billion yen through March 31, 2026; as of December 31, 2025, it had cumulatively acquired about 1.41 million shares for roughly 6.8 billion yen, signaling an ongoing effort to enhance capital efficiency and return value to shareholders.

The most recent analyst rating on (JP:4021) stock is a Buy with a Yen6081.00 price target. To see the full list of analyst forecasts on Nissan Chemical stock, see the JP:4021 Stock Forecast page.