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Nissan Chemical Corporation (JP:4021)
:4021

Nissan Chemical (4021) AI Stock Analysis

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Nissan Chemical

(Frankfurt:4021)

Rating:76Outperform
Price Target:
¥4,812.00
▲(10.60%Upside)
The overall stock score for Nissan Chemical is 76, driven primarily by its strong financial performance and stable valuation. The company's low leverage and high profitability contribute positively. Technical indicators show a neutral to slightly positive momentum, reinforcing the stock's moderate attractiveness.

Nissan Chemical (4021) vs. iShares MSCI Japan ETF (EWJ)

Nissan Chemical Business Overview & Revenue Model

Company DescriptionNissan Chemical Corporation engages in the chemicals, performance materials, agricultural chemicals, and pharmaceuticals businesses in Japan and internationally. Its chemical products include MELAMINE, an adhesive agent; high purity chemicals; AdBlue, an urea solution; ammonia, sulfuric, and nitric acid; TEPIC, an epoxy compound; Melamine Cyanurate, a salt of melamine and iso cyanuric acid; Nissan Reishi, a health food; phenylphosphonic acid; HI-LITE, a chlorinated isocyanulate; OPTBEADS, a melamine-formaldehyde resin and silica; and FINEOXOCOL, a saturated fatty alcohol and acid. The company also offers performance materials comprising display, semiconductor, and inorganic materials; agricultural chemicals, such as herbicides, insecticides, fungicides, etc. for use on agricultural land, as well as in golf courses and parks; and drug substances for antiparasite drugs for animals. In addition, it provides pharmaceutical products, such as LIVALO, a cholesterol reduction agent; LANDEL and FINTE, a dual type calcium antagonist that blocks calcium channels; and custom manufacturing and process researching services for pharmaceutical ingredients. Further, the company develops healthcare, information and communication materials, and environmental and energy materials. The company was formerly known as Nissan Chemical Industries, Ltd. and changed its name to Nissan Chemical Corporation in July 2018. Nissan Chemical Corporation was founded in 1887 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNissan Chemical generates revenue through a diversified business model that encompasses several key segments. The basic chemicals segment produces and sells products such as melamine, sulfuric acid, nitric acid, and ammonia, which are essential raw materials for various industries. The performance materials segment focuses on high-value-added products like display materials, semiconductor materials, and inorganic materials, which are critical components in electronics and other advanced technologies. The agricultural chemicals division provides herbicides, fungicides, and insecticides, contributing significantly to the company's earnings by addressing global agricultural needs. Additionally, the pharmaceuticals segment involves the development and sale of active pharmaceutical ingredients and intermediates, capitalizing on partnerships with major pharmaceutical companies. Nissan Chemical's revenue is further supported by its emphasis on innovation, research and development, and strategic collaborations that enhance its product offerings and market reach.

Nissan Chemical Financial Statement Overview

Summary
Nissan Chemical demonstrates strong financial performance with consistent revenue growth and high profitability. The company has a robust revenue-generating capacity and cost management, as reflected in its high gross and net profit margins, along with efficient EBIT and EBITDA margins. The balance sheet shows a solid financial position with low leverage and strong equity financing, indicating financial stability. Despite healthy cash flow management, there is room for improving capital expenditures or operational efficiency for better cash flow efficiency.
Income Statement
85
Very Positive
Nissan Chemical demonstrates strong financial performance with consistent revenue growth, evident from a 10.9% increase in revenue from 2024 to 2025. The company maintains high profitability, with a gross profit margin of 46.3% and a net profit margin of 17.1% in 2025. EBIT and EBITDA margins also reflect efficiency and profitability. These metrics highlight the company's robust revenue-generating capacity and cost management.
Balance Sheet
80
Positive
The balance sheet of Nissan Chemical shows a solid financial position with a low debt-to-equity ratio of 0.17, indicating conservative leverage. The equity ratio stands at 70.5%, signifying strong equity financing. Return on equity is also favorable at 18.4%, demonstrating effective utilization of shareholders' funds. These factors collectively suggest financial stability and a low-risk profile.
Cash Flow
78
Positive
Nissan Chemical exhibits healthy cash flow management, with a substantial free cash flow growth rate of 238.4% from 2024 to 2025. The operating cash flow to net income ratio of 1.38 indicates efficient cash conversion. However, the free cash flow to net income ratio is slightly lower at 1.00, indicating room for improvement in capital expenditures or operational efficiency.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue251.37B226.71B228.06B207.97B209.12B
Gross Profit116.54B104.78B106.80B101.09B87.75B
EBITDA74.55B66.11B63.26B61.18B52.95B
Net Income43.04B38.03B41.09B38.78B33.47B
Balance Sheet
Total Assets330.76B323.46B298.71B279.69B265.51B
Cash, Cash Equivalents and Short-Term Investments27.45B22.74B29.65B34.66B32.38B
Total Debt40.47B40.98B27.29B22.71B22.67B
Total Liabilities94.58B92.56B77.19B71.68B64.95B
Stockholders Equity233.29B227.47B218.42B205.91B198.83B
Cash Flow
Free Cash Flow43.01B12.70B15.05B29.10B30.40B
Operating Cash Flow59.18B33.70B35.23B41.95B39.94B
Investing Cash Flow-17.61B-18.74B-19.64B-12.39B-12.85B
Financing Cash Flow-35.65B-22.10B-25.03B-27.87B-25.63B

Nissan Chemical Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4351.00
Price Trends
50DMA
4221.44
Positive
100DMA
4280.72
Positive
200DMA
4626.88
Negative
Market Momentum
MACD
19.28
Negative
RSI
59.26
Neutral
STOCH
83.29
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 4351 is above the 20-day moving average (MA) of 4238.45, above the 50-day MA of 4221.44, and below the 200-day MA of 4626.88, indicating a neutral trend. The MACD of 19.28 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.29 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€592.55B13.8918.55%4.78%10.88%14.80%
62
Neutral
$9.95B9.44-0.15%2.99%1.92%-35.27%
$4.10B28.572.92%2.75%
$7.32B24.482.49%4.20%
$4.17B17.196.01%1.78%
$3.90B17.783.96%0.02%
$4.62B12.147.04%0.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4021
Nissan Chemical
4,351.00
-441.41
-9.21%
KURRF
Kuraray Co
12.70
1.43
12.69%
MTLHF
Mitsubishi Chemical Holdings
5.08
-0.39
-7.13%
SHWDF
Showa Denko KK
23.17
2.13
10.12%
SOMMF
Sumitomo Chemical Co
2.75
0.64
30.33%
TOSCF
Tosoh
14.50
2.12
17.12%

Nissan Chemical Corporate Events

Nissan Chemical Announces Share Repurchase Plan
May 15, 2025

Nissan Chemical Corporation has announced a decision by its Board of Directors to repurchase up to 2,500,000 of its own common shares, representing 1.84% of the total shares outstanding, excluding treasury shares. This move, with a total repurchase amount of up to 9 billion yen, aims to facilitate a flexible capital policy in response to the evolving business environment, potentially impacting the company’s market positioning and shareholder value.

The most recent analyst rating on (JP:4021) stock is a Buy with a Yen5600.00 price target. To see the full list of analyst forecasts on Nissan Chemical stock, see the JP:4021 Stock Forecast page.

Nissan Chemical Completes Share Repurchase Program
Apr 18, 2025

Nissan Chemical Corporation has completed the repurchase of its own shares, acquiring a total of 695,400 shares for nearly 3 billion yen. This strategic move, executed on the Tokyo Stock Exchange, is part of a broader plan approved by the Board of Directors to enhance shareholder value and optimize capital structure.

Nissan Chemical Announces Share Repurchase Strategy
Apr 2, 2025

Nissan Chemical Corporation has repurchased 330,000 of its own common shares from the market, amounting to a total purchase cost of 1,500,769,800 yen. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 750,000 shares, with a total budget of 3,000,000,000 yen, aimed at enhancing shareholder value and optimizing capital structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025