NANKAI CHEMICAL COMPANY LIMITED (JP:4040)
:4040
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NANKAI CHEMICAL COMPANY LIMITED
(4040)
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Rating:73Outperform
Price Target:
¥4,666.00
▲(50.27% Upside)
Action:Reiterated
Date:05/16/26
The score is driven by very attractive valuation (low P/E) and strong technical uptrend, partially offset by a meaningful financial risk: deteriorating cash generation with negative operating and free cash flow despite improved profitability and leverage.
Positive Factors
Margin and profitability expansion
Net margin expanded materially to ~13% by 2026, reflecting sustained margin improvement. Higher margins increase structural earnings power and operational resilience, improving long-term ability to fund reinvestment or withstand demand cycles even if revenue growth is uneven.
Negative Factors
Negative operating and free cash flow
Operating cash flow reversed from positive to negative in 2026 and free cash flow has been negative two years. Persistent weak cash conversion reduces financial flexibility, constrains capex/dividends, and raises structural refinancing or liquidity risk until conversion normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and profitability expansion
Net margin expanded materially to ~13% by 2026, reflecting sustained margin improvement. Higher margins increase structural earnings power and operational resilience, improving long-term ability to fund reinvestment or withstand demand cycles even if revenue growth is uneven.
Read all positive factors
NANKAI CHEMICAL COMPANY LIMITED (4040) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.75B
Dividend Yield1.96%
Average Volume (3M)8.89K
Price to Earnings (P/E)3.0
Beta (1Y)1.24
Revenue Growth0.78%
EPS Growth171.25%
CountryJP
Employees305
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)441.59
Shares Outstanding2,330,330
10 Day Avg. Volume10,130
30 Day Avg. Volume8,893
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.58
Price to Sales (P/S)0.30
P/FCF Ratio-4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NANKAI CHEMICAL COMPANY LIMITED Business Overview & Revenue Model
Company Description
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 pes...
How the Company Makes Money
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NANKAI CHEMICAL COMPANY LIMITED Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.07B | 21.06B | 20.90B | 19.99B | 19.60B | 17.43B |
| Gross Profit | 5.52B | 5.98B | 5.51B | 5.50B | 4.50B | 4.13B |
| EBITDA | 2.44B | 2.92B | 2.44B | 2.59B | 1.80B | 1.72B |
| Net Income | 888.00M | 2.78B | 1.02B | 1.16B | 504.00M | 462.00M |
Balance Sheet | ||||||
| Total Assets | 23.27B | 19.55B | 22.47B | 20.26B | 18.35B | 17.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 2.04B | 1.70B | 1.71B | 1.30B | 1.28B |
| Total Debt | 5.68B | 3.68B | 5.64B | 5.21B | 6.07B | 7.41B |
| Total Liabilities | 14.67B | 8.38B | 13.96B | 12.75B | 13.15B | 12.54B |
| Stockholders Equity | 8.49B | 11.05B | 8.40B | 7.42B | 5.13B | 4.63B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.51B | -1.85B | 587.00M | 152.00M | 392.00M |
| Operating Cash Flow | 0.00 | -259.00M | 181.00M | 2.65B | 1.77B | 1.59B |
| Investing Cash Flow | 0.00 | 2.87B | -490.00M | -1.94B | -371.00M | -614.00M |
| Financing Cash Flow | 0.00 | -2.31B | 243.00M | -327.00M | -1.40B | -858.00M |
NANKAI CHEMICAL COMPANY LIMITED Technical Analysis
Positive
3105.00
Price Trends
3363.55
Positive
3341.06
Positive
3102.03
Positive
Market Momentum
272.97
Negative
75.82
Negative
88.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4040, the sentiment is Positive. The current price of 3105 is below the 20-day moving average (MA) of 3616.75, below the 50-day MA of 3363.55, and above the 200-day MA of 3102.03, indicating a bullish trend. The MACD of 272.97 indicates Negative momentum. The RSI at 75.82 is Negative, neither overbought nor oversold. The STOCH value of 88.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4040.
NANKAI CHEMICAL COMPANY LIMITED Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥9.75B | 2.97 | ― | 1.96% | 0.78% | 171.25% | |
68 Neutral | ¥6.87B | 7.90 | ― | 1.93% | 18.15% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | ¥7.77B | 27.07 | ― | 2.97% | 2.12% | -64.98% | |
57 Neutral | ¥9.43B | 12.55 | ― | 2.98% | 11.18% | 3.78% | |
43 Neutral | ¥10.12B | 32.41 | ― | 1.06% | -7.88% | 129.32% |
* Basic Materials Sector Average
JP:4040
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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.