Nippon Soda Co., Ltd. (4041) AI Stock Analysis

• Market Cap: ¥200.18B
• Dividend Yield: 4.14%
• Average Volume (3M): 94.76K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.55
• Revenue Growth: 1.69%
• EPS Growth: 0.94%
• Country: JP
• Employees: 2,402
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 65.64
• Shares Outstanding: 56,787,735
• 10 Day Avg. Volume: 83,020
• 30 Day Avg. Volume: 94,763
• PEG Ratio: -1.22
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 44.70
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥3,819.00 ▲(5.35% Upside)

Nippon Soda Co., Ltd. shows a strong financial foundation with robust profitability and low leverage, contributing significantly to its overall score. The technical indicators suggest a positive trend, although momentum is moderate. The valuation is fair with an attractive dividend yield, enhancing the stock's appeal. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Business Model Strength

Nippon Soda's diversified business model across agrochemicals, pharmaceuticals, and specialty chemicals provides resilience against sector-specific downturns and supports stable revenue streams.

Competitive Advantages

Strategic partnerships expand market reach and enable cross-selling, strengthening Nippon Soda's competitive position and fostering long-term growth opportunities.

Balance Sheet Health

Low leverage and a strong equity base enhance financial stability, providing Nippon Soda with the flexibility to invest in growth and withstand economic fluctuations.

Negative Factors

Earnings Decline

A decline in net income could signal challenges in maintaining profitability, potentially impacting future investment capacity and shareholder returns.

Free Cash Flow Generation

Limited free cash flow generation may constrain Nippon Soda's ability to fund new projects or return capital to shareholders, impacting long-term growth prospects.

EPS Growth

Negative EPS growth suggests potential challenges in profitability and efficiency, which could affect investor confidence and the company's ability to attract capital.

Nippon Soda Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Soda Co., Ltd. develops, produces, processes, imports, markets, sells, and exports chemicals, agrochemicals, and other products in Japan and internationally. The company offers agrochemicals, including fungicides, insecticides, acaricides, and herbicides. It also provides specialty chemicals organic, such as titanate; magnesium ethylate, o-tolidine diisocyanate, adhesive agents for film lamination, photoresist base resins, developers for thermal paper, epoxy catalyst, permethyl polysilane, crown ethers, photocatalysts, bactericides, algaecides, fungicides for wood, insecticides, and termiticide, as well as liquid-1, 2-polybutadiene. In addition, the company offers pharmaceutical excipients, including diaminomaleonitrile, sodium stearyl fumarate, and hydroxypropyl cellulose; and eco business and consumer chemicals, such as inorganic chlorine tablets and granules, toilet-use uroliths removers, and chelating agents for heavy metal, as well as treatment systems by for PCBs. Further, it provides chlor-alkali chemicals comprising caustic soda, hydrochloric acid, liquid chlorine, potassium cyanide, sodium hypochlorite, sodium metal, sodium alcoholates, sodium cyanide, phosphorus oxychloride, and phosphorus trichloride. Additionally, the company offers functional products, synthetic resins and other plastic materials, dyes, industrial devices, and construction products; pharmaceuticals; synthetic resin molded products; smoking, deoxygenating, and dehumidifying agents; industrial chemicals; household goods; agricultural materials and other products; and feed additives. It also engages in warehousing, packaging, customs brokerage, and insurance agency business, as well as leasing activities; freight forwarding, truck transportation; plant construction and civil engineering activities; mining of soil and rocks; and manufacture and sale of non-ferrous metals and concrete products. Nippon Soda Co., Ltd. was incorporated in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Soda Co., Ltd. generates revenue through multiple key streams, primarily from the sale of its chemical products across different sectors. The agrochemical division, which includes herbicides and insecticides, represents a significant portion of the company's revenue, catering to the agricultural sector's needs. Additionally, the pharmaceutical segment contributes to earnings through the production of active pharmaceutical ingredients (APIs) and intermediates. The company also benefits from its specialty chemicals division, which services various industries including electronics and materials science. Strategic partnerships with agricultural firms and pharmaceutical companies enhance its market reach and provide opportunities for cross-selling, further bolstering its revenue. Moreover, Nippon Soda's investment in research and development allows the company to stay competitive by introducing innovative products, which can command higher prices in the market.

Nippon Soda Co., Ltd. Financial Statement Overview

Summary

Nippon Soda Co., Ltd. demonstrates strong financial health with robust profitability, effective equity utilization, and improving cash flow metrics. The company's low leverage and strong equity position provide stability and resilience. However, attention to free cash flow generation remains crucial to maintain liquidity and support future growth initiatives.

Income Statement

Nippon Soda Co., Ltd. has shown consistent revenue growth with a slight increase in total revenue from 2024 to 2025. The gross profit margin is strong at 28.9%, and the net profit margin is healthy at 9.7%. Despite a decrease in net income compared to the previous year, the EBIT and EBITDA margins remain robust at 10.4% and 18.4%, respectively, indicating good operational efficiency.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.27, indicating low leverage. The equity ratio stands at 64.8%, reflecting a strong equity base compared to its assets. Return on equity is commendable at 8.0%, showcasing effective use of equity for generating profits.

Cash Flow

Nippon Soda Co., Ltd. has experienced a significant improvement in free cash flow from negative in 2024 to positive in 2025, indicating better cash management. The operating cash flow to net income ratio is 1.51, suggesting efficient conversion of income into cash. However, the free cash flow to net income ratio is relatively low at 0.24, indicating limited free cash generation relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.64B	155.20B	154.43B	172.81B	152.54B	139.36B
Gross Profit	45.43B	44.91B	42.70B	49.28B	42.11B	38.77B
EBITDA	28.18B	28.55B	29.49B	33.62B	26.34B	17.29B
Net Income	13.89B	15.01B	16.61B	16.69B	12.68B	7.36B
Balance Sheet
Total Assets	289.67B	288.10B	290.49B	251.35B	245.59B	227.97B
Cash, Cash Equivalents and Short-Term Investments	22.51B	22.27B	22.21B	18.51B	17.94B	19.29B
Total Debt	58.26B	50.24B	48.91B	32.34B	38.99B	37.71B
Total Liabilities	101.52B	99.99B	101.02B	80.39B	87.29B	78.77B
Stockholders Equity	186.86B	186.78B	188.05B	169.25B	155.94B	145.77B
Cash Flow
Free Cash Flow	1.82B	3.58B	-5.69B	3.00B	2.56B	813.00M
Operating Cash Flow	15.72B	22.64B	5.73B	15.59B	14.54B	13.82B
Investing Cash Flow	-13.98B	-17.56B	-9.59B	-4.86B	-11.62B	-13.77B
Financing Cash Flow	-2.93B	-5.39B	6.69B	-10.44B	-4.80B	1.72B

Nippon Soda Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3625.00
• 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:4041, the sentiment is Positive. The current price of 3625 is above the 20-day moving average (MA) of 3553.00, above the 50-day MA of 3472.70, and above the 200-day MA of 3135.53, indicating a bullish trend. The MACD of 34.19 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 53.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4041.

Nippon Soda Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4041	74 Outperform	¥200.18B	12.74	―	4.14%	1.69%	0.94%
4045	74 Outperform	¥181.30B	19.02	4.41%	3.81%	-1.50%	-32.46%
4272	73 Outperform	¥266.66B	11.54	8.79%	4.03%	6.60%	503.36%
4114	71 Outperform	¥285.18B	18.01	―	5.36%	-0.47%	25.41%
4061	64 Neutral	¥228.93B	-19.65	-4.00%	3.73%	0.24%	-234.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	48 Neutral	¥13.53B	-10.39	-7.76%	―	-19.70%	-159.15%

Nippon Soda Co., Ltd. Corporate Events

Nippon Soda to Merge with Subsidiary Nisso Green for Enhanced Efficiency

Nippon Soda Co., Ltd. announced a strategic absorption-type merger with its wholly-owned subsidiary, Nisso Green Co., Ltd., effective October 1, 2026. This merger aims to enhance management efficiency by integrating NSG’s agrochemical sales operations into Nippon Soda’s broader chemical manufacturing and marketing activities, potentially strengthening its market position and operational capabilities.

Nippon Soda Advances Treasury Share Acquisition Strategy

Nippon Soda Co., Ltd. has reported progress in its acquisition of treasury shares, purchasing 159,600 shares at a cost of 554,030,500 yen between November 4 and November 28, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 2,500,000 shares by January 31, 2026, with a maximum budget of 5 billion yen, aiming to enhance shareholder value and optimize capital structure.

Nippon Soda Reports Higher-Than-Expected First Half Profits

Nippon Soda Co., Ltd. announced a positive difference between its consolidated financial forecasts and actual results for the first half of the fiscal year ending March 31, 2026. The company reported higher-than-expected profits due to increased equity method profits and favorable foreign exchange rates. Despite this, the company maintains its full-year forecast as previously disclosed.

Nippon Soda Reports Stable Financial Performance for H1 2025

Nippon Soda Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing stable net sales and a slight increase in profit attributable to owners of the parent. Despite a marginal decline in operating profit, the company experienced significant growth in comprehensive income. The company also maintained its dividend forecast and highlighted a 2-for-1 share split conducted in October 2024, reflecting its commitment to shareholder returns.

Nippon Soda Advances Treasury Share Acquisition Plan

Nippon Soda Co., Ltd. announced the acquisition of 199,500 treasury shares at a total cost of 676,027,000 yen during October 2025, as part of a larger plan to acquire up to 2,500,000 shares by January 2026. This strategic move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

Nippon Soda Advances Treasury Share Acquisition Plan

Nippon Soda Co., Ltd. has announced the progress of its treasury share acquisition, having acquired 133,600 shares at a cost of 465,161,000 yen between September 1 and September 22, 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 2,500,000 shares by January 31, 2026, with a maximum budget of 5 billion yen, aiming to enhance shareholder value and optimize capital structure.