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Nippon Soda Co., Ltd. (JP:4041)
:4041
Japanese Market
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Nippon Soda Co., Ltd. (4041) AI Stock Analysis

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JP:4041

Nippon Soda Co., Ltd.

(4041)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥4,208.00
▲(16.24% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid profitability and manageable leverage but tempered by uneven revenue and volatile cash generation. Valuation is a key positive (low P/E and strong dividend yield), while technical signals are broadly neutral and do not materially lift the score.
Positive Factors
Strong profitability margins
Sustained gross and operating margins indicate structural pricing power and cost control in specialty chemicals. These margins provide a durable earnings buffer through commodity swings, support reinvestment in R&D and capex, and underpin consistent cash available for dividends or debt reduction over months.
Negative Factors
Uneven revenue trajectory
Recurrent top-line volatility suggests demand sensitivity or product mix exposure that can limit predictable growth. Over several quarters this hampers capacity utilization and planning, can erode pricing leverage, and raises execution risk for multi-quarter investments and margin maintenance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability margins
Sustained gross and operating margins indicate structural pricing power and cost control in specialty chemicals. These margins provide a durable earnings buffer through commodity swings, support reinvestment in R&D and capex, and underpin consistent cash available for dividends or debt reduction over months.
Read all positive factors

Nippon Soda Co., Ltd. (4041) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Operating both domestically in Japan and across global markets, Nippon Soda Co., Ltd. is involved in the entire lifecycle of various products, from development and manufacturing to distribution and export, focusing primarily on chemicals and agroc...
How the Company Makes Money
Nippon Soda makes money primarily by manufacturing and selling chemical products to business and agricultural customers. Its key revenue streams include: (1) Agricultural chemicals: revenue from the sale of crop protection products (e.g., insectic...

Nippon Soda Co., Ltd. Financial Statement Overview

Summary
Solid profitability (gross margin high-20% range; operating margin low-to-mid teens; net margin ~8%–11% in 2022–2025) and a generally healthy balance sheet with manageable leverage (debt-to-equity ~0.19–0.27). The score is held back by uneven revenue trends (decline in 2024, slight rebound in 2025, slip in 2026 annual) and volatile cash flow, including a negative free-cash-flow year and only modest profit-to-FCF conversion even in positive years.
Income Statement
72
Positive
Balance Sheet
76
Positive
Cash Flow
58
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue152.09B155.20B154.43B172.81B152.54B
Gross Profit45.00B44.94B42.70B49.28B42.11B
EBITDA33.58B28.55B29.49B33.62B26.34B
Net Income18.27B15.01B16.61B16.69B12.68B
Balance Sheet
Total Assets307.31B288.10B290.49B251.35B245.59B
Cash, Cash Equivalents and Short-Term Investments24.63B22.24B22.21B18.51B17.95B
Total Debt52.27B50.30B48.99B32.38B39.91B
Total Liabilities101.21B99.99B101.02B80.39B87.28B
Stockholders Equity204.78B186.78B188.05B169.26B155.94B
Cash Flow
Free Cash Flow8.43B3.58B-5.20B3.21B2.91B
Operating Cash Flow21.59B22.64B5.73B15.59B14.54B
Investing Cash Flow-10.80B-17.56B-9.59B-4.86B-11.62B
Financing Cash Flow-11.27B-5.39B6.69B-10.44B-4.80B

Nippon Soda Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3620.00
Price Trends
50DMA
3643.40
Positive
100DMA
3629.76
Positive
200DMA
3604.05
Positive
Market Momentum
MACD
60.57
Negative
RSI
64.73
Neutral
STOCH
60.92
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 3620 is below the 20-day moving average (MA) of 3763.50, below the 50-day MA of 3643.40, and above the 200-day MA of 3604.05, indicating a bullish trend. The MACD of 60.57 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.92 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥1.01T20.3720.55%3.15%11.23%17.64%
70
Outperform
¥208.41B11.384.09%-2.00%23.67%
70
Outperform
¥281.46B11.929.12%3.97%8.66%49.77%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
¥321.70B19.185.28%-2.31%-1.30%
57
Neutral
¥862.51B20.485.11%3.52%-4.09%-26.93%
56
Neutral
¥295.58B18.845.26%3.71%-4.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4041
Nippon Soda Co., Ltd.
3,960.00
643.44
19.40%
JP:4061
Denka Co
3,575.00
1,526.26
74.50%
JP:4021
Nissan Chemical
7,495.00
2,372.72
46.32%
JP:4272
Nippon Kayaku Co
2,032.50
718.86
54.72%
JP:4042
Tosoh
2,722.00
469.72
20.86%
JP:4114
Nippon Shokubai Co., Ltd.
2,446.00
768.39
45.80%

Nippon Soda Co., Ltd. Corporate Events

Nippon Soda Completes Restricted Share Remuneration Using Treasury Stock
Jul 24, 2026
Nippon Soda Co., Ltd. completed the payment process for the disposal of 15,600 treasury shares used as restricted share remuneration, following a board resolution adopted earlier in July 2026. The shares, priced at 3,615 yen each for a total of 56...
Nippon Soda to Buy Treasury Shares from Untraceable Shareholders
Jul 3, 2026
Nippon Soda Co., Ltd. has resolved to purchase as treasury stock the shares held by untraceable shareholders, following an earlier announcement regarding the planned sale of such shares. The board decision, made under provisions of the Companies A...
Nippon Soda Grants Restricted Treasury Shares to Align Management with Shareholders
Jul 3, 2026
Nippon Soda has approved the disposal of 15,600 treasury shares as restricted share remuneration for four directors and eleven executive officers, with a total value of ¥56.39 million at ¥3,615 per share. The move is part of a shift from...
Nippon Soda to Cut ¥6 Billion Capital Reserve to Boost Financial Flexibility
May 22, 2026
Nippon Soda Co., Ltd. has resolved at its board meeting to reduce its capital reserve by ¥6 billion and transfer the same amount to other capital surplus, a move aimed at enhancing agility and flexibility in future capital policies under Arti...
Nippon Soda Lifts Year-End Dividend and Reaffirms Progressive Payout Policy
May 22, 2026
Nippon Soda Co., Ltd. has resolved at its board meeting to pay a year-end dividend of ¥90 per share for the fiscal year ended March 31, 2026, bringing the annual dividend to ¥160 per share. The dividend, with a total payout of ¥4,83...
Nippon Soda Launches Next Phase of Medium-Term Plan “Brilliance through Chemistry Stage III”
May 14, 2026
Nippon Soda has outlined its new medium-term business plan, “Brilliance through Chemistry Stage III,” covering the period from the fiscal year ending March 2027 to the fiscal year ending March 2030. This plan follows the completion and...
Nippon Soda to Dispose of Treasury Shares for Expanded Employee Stock Plan
May 14, 2026
Nippon Soda has approved the disposal of 250,000 treasury shares, or about 0.45% of its outstanding stock, by selling them for ¥3,700 per share to a trust account managed by Custody Bank of Japan. The ¥925 million transaction supports an...
Nippon Soda Hikes Year-End Dividend on Record Profit, Lifts Annual Payout to ¥160
May 14, 2026
Nippon Soda Co., Ltd. has revised its dividend forecast for the fiscal year ended March 31, 2026, announcing a higher year-end dividend as business performance surpassed expectations and profit attributable to owners of parent reached a record hig...
Nippon Soda Outlines FY2026 Results and FY2027 Outlook Amid Geopolitical Risks
May 14, 2026
Nippon Soda Co., Ltd. released an outline of its financial results for the fiscal year ended March 31, 2026, covering overall performance, segment results for chemical materials and agri business, and details on non-operating items, balance sheet,...
Nippon Soda Lifts Dividend as Profit Jumps but Guides for Weaker FY2027
May 14, 2026
Nippon Soda reported fiscal year 2026 consolidated net sales of ¥152.1 billion, down 2.0% year on year, while operating profit fell 6.8% to ¥15.0 billion, but ordinary profit rose 17.7% and profit attributable to owners of the parent cli...
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: May 15, 2026