Consistent Revenue GrowthSustained revenue growth of 4.56% demonstrates persistent underlying demand and supports capacity utilization. Over a 2–6 month horizon this trend underpins predictable top-line cash generation, provides room for investment in product lines, and reduces reliance on one-off gains.

Stable Gross And Healthy Operating MarginsA stable gross margin (~26.4%) and healthy EBIT/EBITDA margins indicate durable operational efficiency and pricing power versus input costs. This margin profile supports longer-term earnings resilience, enabling reinvestment and buffering against commodity or cyclical swings over several months.

Moderate Leverage With Solid ROEA 0.67 debt/equity ratio signals balanced use of leverage, while a 12.1% ROE shows the company generates respectable returns on shareholder capital. This financial mix provides flexibility to fund operations or take incremental debt for growth without excessive solvency risk over a medium-term horizon.

Bears Say

Negative Free Cash Flow In 2025Free cash flow turning negative is a durable red flag: it curtails the firm’s ability to fund capex, pay dividends, or reduce debt without external financing. If persistent beyond a few quarters, negative FCF can force asset sales or higher borrowing, eroding strategic flexibility.

Poor Conversion Of Earnings To CashAn OCF-to-net-income ratio of 0.18 indicates earnings are not translating into cash, likely due to working-capital or accrual issues. This persistent disconnect undermines liquidity, elevates rollover and financing risk, and weakens the company's capability to self-finance growth or weather shocks.

Declining Net Income And Compressed Net MarginA falling net margin to 4.86% reflects profit compression that reduces internal funding and cushions for cost shocks. Over months this trend can limit retained earnings, constrain reinvestment, and pressure ROE unless cost controls or revenue mix improvements restore profitability.

4040 FAQ

What was NANKAI CHEMICAL COMPANY LIMITED’s price range in the past 12 months?

NANKAI CHEMICAL COMPANY LIMITED lowest stock price was ¥2001.00 and its highest was ¥3945.00 in the past 12 months.

What is NANKAI CHEMICAL COMPANY LIMITED’s market cap?

NANKAI CHEMICAL COMPANY LIMITED’s market cap is ¥8.25B.

When is NANKAI CHEMICAL COMPANY LIMITED’s upcoming earnings report date?

NANKAI CHEMICAL COMPANY LIMITED’s upcoming earnings report date is May 19, 2026 which is in 72 days.

How were NANKAI CHEMICAL COMPANY LIMITED’s earnings last quarter?

NANKAI CHEMICAL COMPANY LIMITED released its earnings results on Feb 12, 2026. The company reported ¥964.63 earnings per share for the quarter, beating the consensus estimate of N/A by ¥964.63.

Is NANKAI CHEMICAL COMPANY LIMITED overvalued?

According to Wall Street analysts NANKAI CHEMICAL COMPANY LIMITED’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NANKAI CHEMICAL COMPANY LIMITED pay dividends?

NANKAI CHEMICAL COMPANY LIMITED pays a Semiannually dividend of ¥35 which represents an annual dividend yield of 1.96%. See more information on NANKAI CHEMICAL COMPANY LIMITED dividends here

What is NANKAI CHEMICAL COMPANY LIMITED’s EPS estimate?

NANKAI CHEMICAL COMPANY LIMITED’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NANKAI CHEMICAL COMPANY LIMITED have?

NANKAI CHEMICAL COMPANY LIMITED has 2,330,330 shares outstanding.

What happened to NANKAI CHEMICAL COMPANY LIMITED’s price movement after its last earnings report?

NANKAI CHEMICAL COMPANY LIMITED reported an EPS of ¥964.63 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 3.994%.

Which hedge fund is a major shareholder of NANKAI CHEMICAL COMPANY LIMITED?

Currently, no hedge funds are holding shares in JP:4040

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NANKAI CHEMICAL COMPANY LIMITED

Nankai Chemical Company,Limited manufacturers and sells chemical in Japan and internationally. The company offers inorganic industrial chemicals, water treatment disinfectants, water treatment agents, healthy foods, organic fine chemicals, and pesticides, as well as salt. It is also involved in the sulfuric acid recycling business; collection, transportation, and intermediate treatment of industrial waste; distribution and recovery of precious metals, and non-ferrous metals; distribution and construction of air conditioning equipment; distribution of precision machinery, textile machinery, plating equipment, paint equipment, and building material; parking lot, and real estate management and warehousing; and research, development, production, and sale of agricultural, livestock, and marine products; freight transport and handling; power generation and operation; and non-life insurance business. The company was founded in 1906 and is headquartered in Osaka, Japan.