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

• Market Cap: ¥165.00B
• Dividend Yield: 5.41%
• Average Volume (3M): 146.20K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.60
• Revenue Growth: 0.50%
• EPS Growth: -8.77%
• Country: JP
• Employees: 2,402
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): 44.90
• Shares Outstanding: 56,787,735
• 10 Day Avg. Volume: 175,290
• 30 Day Avg. Volume: 146,196
• PEG Ratio: 0.12
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.43
• 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

• Rating: 77 Outperform
• Price Target: ¥3,221.00 ▲(9.86%Upside)

Nippon Soda Co., Ltd. shows strong financial health with excellent profitability and a stable equity position, which is the most significant factor in its favorable evaluation. Technical indicators suggest a positive price trend, though caution is warranted due to potential overbought signals. The valuation metrics, including a reasonable P/E ratio and a high dividend yield, further support a positive outlook.

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

Company Description

Nippon Soda Co., Ltd. is a Japan-based chemical company that primarily engages in the manufacture and sale of industrial chemicals, agrochemicals, and pharmaceuticals. It operates through several business segments, including Chemicals, Agro Products, and Trading & Logistics. The company is known for its innovative solutions in the chemical industry, offering a wide range of products such as caustic soda, chlorine, and various specialty chemicals that cater to diverse industries ranging from agriculture to pharmaceuticals.

How the Company Makes Money

Nippon Soda Co., Ltd. generates revenue through the production and sale of chemical products, with a significant portion of its income derived from industrial chemicals and agrochemicals. The company serves a variety of industries, providing essential raw materials and specialty chemicals. Its agrochemical segment contributes significantly to its revenue, offering products such as pesticides and herbicides that support agricultural productivity. Additionally, the company's trading and logistics segment facilitates the distribution of its products, further enhancing its revenue streams. Strategic partnerships and a strong focus on research and development also play a crucial role in driving the company's profitability by fostering innovation and expanding its market reach.

Nippon Soda Co., Ltd. Financial Statement Overview

Summary

Nippon Soda Co., Ltd. demonstrates strong financial health with robust profitability and effective equity utilization. The company's low leverage and strong equity position provide stability and resilience, while cash flow improvements highlight enhanced operational efficiency. However, attention to free cash flow generation remains crucial to maintain liquidity.

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
156.38B	155.20B	154.43B	172.81B	152.54B	139.36B
	Gross Profit
44.28B	44.91B	42.70B	49.28B	42.11B	38.77B
	EBIT
15.30B	16.06B	13.87B	16.89B	11.93B	9.98B
	EBITDA
23.14B	28.55B	29.49B	26.00B	20.54B	17.67B
	Net Income Common Stockholders
17.37B	15.01B	16.61B	16.69B	12.68B	7.36B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.12B	22.27B	22.21B	18.51B	17.94B	19.29B
	Total Assets
293.71B	288.10B	290.49B	251.35B	245.59B	227.97B
	Total Debt
50.74B	50.24B	48.91B	32.34B	38.99B	37.71B
	Net Debt
26.62B	27.97B	26.70B	13.83B	21.05B	18.42B
	Total Liabilities
103.91B	99.99B	101.02B	80.39B	87.29B	78.77B
	Stockholders Equity
188.50B	186.78B	188.05B	169.25B	155.94B	145.77B
Cash Flow		Free Cash Flow
3.21B	3.58B	-5.69B	3.00B	2.56B	813.00M
	Operating Cash Flow
6.91B	22.64B	5.73B	15.59B	14.54B	13.82B
	Investing Cash Flow
-3.57B	-17.56B	-9.59B	-4.86B	-11.62B	-13.77B
	Financing Cash Flow
-2.46B	-5.39B	6.69B	-10.44B	-4.80B	1.72B

Nippon Soda Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2932.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2932 is above the 20-day moving average (MA) of 2911.05, above the 50-day MA of 2767.78, and above the 200-day MA of 2672.48, indicating a bullish trend. The MACD of 54.50 indicates Positive momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 35.45 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	77 Outperform	¥165.00B	10.84		5.41%	0.50%	-8.77%
4114	74 Outperform	¥255.49B	14.46		6.55%	4.42%	61.99%
4272	72 Outperform	€207.75B	12.29	6.49%	5.69%	10.30%	333.75%
4045	72 Outperform	$160.51B	14.56	5.27%	4.17%	5.13%	-8.77%
4061	61 Neutral	€171.69B	15.29	-4.17%	5.02%	2.82%	-202.97%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
4080	45 Neutral	€13.53B	7.54	-1.83%	0.86%	-23.94%	-110.06%

Nippon Soda Co., Ltd. Corporate Events

Nippon Soda Advances Treasury Share Acquisition Plan

Nippon Soda Co., Ltd. announced the acquisition of 131,700 treasury shares at a cost of 376,458,700 yen, as part of a broader plan to acquire up to 2.5 million shares by January 2026. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Nippon Soda Proposes Dividend from Retained Earnings

Nippon Soda Co., Ltd. has announced a proposal to pay a dividend from its retained earnings, which will be discussed at the upcoming shareholders’ meeting. The company has introduced a progressive dividend policy, setting a target return ratio of 50% or more, and has decided on a year-end dividend of 80 yen per share for the fiscal year ended March 2025, reflecting its commitment to stable dividends and shareholder returns.

Nippon Soda Revises KPIs and Introduces New Capital Policy

Nippon Soda Co., Ltd. has revised its key performance indicators for its long-term vision ‘Brilliance through Chemistry 2030’ and introduced a new capital policy to improve capital efficiency. The company plans to increase its year-end dividend by 20 yen per share and acquire up to 2.5 million treasury shares, reflecting its response to changes in the business environment and commitment to shareholder returns.

Nippon Soda Announces Treasury Share Acquisition Plan

Nippon Soda Co., Ltd. has announced a plan to acquire up to 2,500,000 of its own common shares, representing 4.53% of the total issued shares, as part of a strategy to enhance shareholder returns and improve capital efficiency. The acquisition, with a maximum cost of 5 billion yen, will be conducted through market purchases on the Tokyo Stock Exchange from May 15, 2025, to January 31, 2026, reflecting a commitment to a new capital policy.

Nippon Soda Co., Ltd. Increases Year-End Dividend Amid Steady Performance

Nippon Soda Co., Ltd. announced a revision of its dividend forecast for the fiscal year ended March 31, 2025, increasing the year-end dividend by 20 yen per share to 80 yen. This decision aligns with the company’s new shareholder return policy, which includes a progressive dividend policy and a target total return ratio of 50% or more, reflecting steady business performance.

Nippon Soda Reports Mixed Financial Results for FY 2025

Nippon Soda Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.5% to ¥155,199 million. However, the company experienced a decline in ordinary profit by 16.2% and profit attributable to owners by 9.6%. The company also announced a 2-for-1 share split effective October 1, 2024, impacting its dividend payments and share calculations. Despite the challenges, the company maintains a strong equity-to-asset ratio of 64.8%, indicating a stable financial position.