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

• Market Cap: ¥228.38B
• Dividend Yield: 4.09%
• Average Volume (3M): 94.76K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.57
• Revenue Growth: 1.69%
• EPS Growth: 0.94%
• Country: JP
• Employees: 2,402
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 104.10
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 275.76
• Revenue Forecast (FY): ¥150.76B

• Rating: 74 Outperform
• Price Target: ¥4,603.00 ▲(27.15% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

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

Balance Sheet Strength

Low leverage and a high equity ratio provide durable financial flexibility. With debt-to-equity at 0.27 and equity making up ~65% of assets, the company can better withstand cyclical downturns, finance capex or R&D internally, and maintain stability across multi-quarter horizons.

Sustained Profitability

Healthy gross and operating margins reflect differentiated product mix and operational efficiency. Strong profitability supports reinvestment in specialty chemistries, funds dividends and R&D, and indicates competitive positioning that can persist through multi-quarter cycles.

Improving Cash Conversion

Conversion of accounting earnings into cash has meaningfully improved, with operating cash at 1.51x net income and free cash flow recovering to positive. This enhances the firm’s ability to fund operations, sustain payouts, and invest for medium-term growth without relying on new debt.

Negative Factors

Revenue Trend

A sub-0% revenue change signals stagnation or modest contraction in end markets. Persistent negative top-line trends can erode scale benefits, pressure margins over time, and limit the company’s ability to expand higher-margin specialty portfolios absent demand recovery or new product wins.

Earnings Decline

A double-digit decline in EPS reduces internal capital for growth and heightens sensitivity to cyclical headwinds. Continued EPS erosion can constrain funding for innovation or commercialization of differentiated chemistries and weaken ability to maintain rising dividend or buyback programs.

Limited Free Cash Relative to Earnings

Although free cash flow turned positive, FCF equals only ~24% of net income, indicating earnings convert to relatively little discretionary cash. Over several quarters this limits strategic optionality—M&A, larger capex, or sustained dividend increases—without tapping debt or equity.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 3620.00
• 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 3620 is below the 20-day moving average (MA) of 3951.75, below the 50-day MA of 3775.30, and above the 200-day MA of 3390.97, indicating a bullish trend. The MACD of 116.50 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 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
4021	75 Outperform	¥935.64B	20.22	19.69%	3.15%	10.06%	18.03%
4041	74 Outperform	¥228.38B	14.98	―	4.09%	1.69%	0.94%
4272	73 Outperform	¥309.73B	14.17	8.79%	3.97%	6.60%	503.36%
4114	69 Neutral	¥370.00B	20.96	―	5.28%	-0.47%	25.41%
4042	68 Neutral	¥850.26B	24.82	4.79%	4.21%	-1.21%	-27.21%
4061	64 Neutral	¥287.14B	-31.24	-4.00%	3.71%	0.24%	-234.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Soda Co., Ltd. Corporate Events

Nippon Soda to Sell Shares Held by Untraceable Shareholders Under Companies Act

Nippon Soda will sell shares held by so‑called untraceable shareholders, following a resolution of its board of directors under the Companies Act of Japan. These untraceable shareholders are those for whom mailed notices have failed to arrive and who have not received dividends for at least five consecutive years.

The company will publish details of the affected shareholders and their holdings via electronic public notice on February 13, 2026, with a deadline of May 14, 2026 for any objections before sales start on or after July 3, 2026. The move is intended to clean up the shareholder registry and may streamline administrative processes, with inquiries from affected parties handled by Mizuho Trust & Banking as shareholder register administrator.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen4343.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.

Nippon Soda Lifts Full-Year Profit Outlook on Weak Yen and Affiliate Gains

Nippon Soda revised its consolidated forecast for the fiscal year ending March 31, 2026, raising net sales to ¥151.0 billion and operating profit to ¥14.6 billion. It now expects ordinary profit of ¥22.0 billion and profit attributable to owners of parent of ¥17.0 billion, lifting projected basic earnings per share to ¥312.91, above both its previous guidance and last year’s actual EPS.

The upgrade is driven mainly by expectations for a weaker yen and higher-than-anticipated profit contributions from equity-method affiliates. The company assumes exchange rates of ¥150 to the U.S. dollar and ¥175 to the euro in the fourth quarter, suggesting that foreign exchange tailwinds and affiliate performance are materially improving its profitability outlook for stakeholders.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen4343.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.

Nippon Soda Updates Q3 FY2026 Results and Revises Full-Year Forecast

Nippon Soda Co., Ltd. released a financial results summary for the third quarter of the fiscal year ending March 31, 2026, outlining overall performance and results by segment. The company detailed the performance of its chemical materials and agri business operations, offering a breakdown of how each segment contributed to quarterly results.

Alongside the quarterly update, Nippon Soda revised its full-year earnings forecast for the fiscal year ending March 31, 2026, including projections by business segment. The materials also provided reference indicators and an overview of its business structure, giving stakeholders additional context on operational trends and future expectations.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen4343.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.

Nippon Soda Lifts Ordinary Profit Despite Slight Sales Dip and Lowers Operating Outlook

Nippon Soda reported consolidated net sales of ¥106.3 billion for the nine months to December 31, 2025, down 1.0% year on year, while operating profit edged up 2.8% to ¥11.5 billion and ordinary profit jumped 21.7% to ¥17.7 billion. Profit attributable to owners of the parent slipped 0.8% to ¥12.4 billion, but basic earnings per share rose slightly to ¥228.20 as the average number of shares declined.

Total assets increased to ¥306.1 billion and net assets to ¥198.2 billion, keeping the equity ratio at a solid 64.3%, while the company expanded treasury stock holdings. The board kept its dividend outlook unchanged at ¥140 per share for the year ending March 31, 2026, and revised full-year forecasts to anticipate lower net sales and operating profit but higher ordinary profit and profit attributable to owners compared with the previous year.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen4343.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.

Nippon Soda Completes ¥5 Billion Share Buyback Program

Nippon Soda Co., Ltd. has completed a share buyback program authorized by its board on May 14, 2025, acquiring 161,200 common shares on the Tokyo Stock Exchange between January 5 and January 30, 2026, at a total cost of ¥591.9 million. Under the full authorization, the company repurchased a cumulative 1,493,200 shares for approximately ¥5.0 billion by January 31, 2026, signaling an active capital policy aimed at enhancing shareholder value and optimizing its equity structure within the limits set by the board.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen3802.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.

Nippon Soda Reports Progress on Share Buyback Program

Nippon Soda Co., Ltd. reported the progress of its ongoing share buyback program, disclosing that it repurchased 146,700 common shares on the Tokyo Stock Exchange between December 1 and December 23, 2025, at a total cost of 524.6 million yen. This transaction is part of a broader Board-approved buyback plan, authorized in May 2025, that allows for the purchase of up to 2.5 million shares or 5 billion yen through January 31, 2026, under which the company has cumulatively acquired 1,332,000 shares for about 4.41 billion yen as of December 31, 2025, signaling an active effort to enhance capital efficiency and shareholder returns.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen3819.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.

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.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen3819.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.

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.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen3819.00 price target. To see the full list of analyst forecasts on Nippon Soda Co., Ltd. stock, see the JP:4041 Stock Forecast page.