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

• Market Cap: ¥190.69B
• Dividend Yield: 4.29%
• Average Volume (3M): 94.76K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.53
• Revenue Growth: 3.26%
• EPS Growth: -13.75%
• Country: JP
• Employees: 2,402
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 58.46
• 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 ▲(8.65% 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.

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

Company Description

Nippon Soda Co., Ltd. is a diversified chemical company based in Japan, primarily engaged in the production and sale of a wide range of chemical products. The company operates in various sectors including agrochemicals, pharmaceuticals, and specialty chemicals, offering products such as herbicides, insecticides, and various industrial chemicals. With a strong focus on research and development, Nippon Soda aims to innovate and provide high-quality solutions to meet the demands of its global clientele.

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: 3515.00
• 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 3515 is above the 20-day moving average (MA) of 3396.25, above the 50-day MA of 3406.01, and above the 200-day MA of 3021.01, indicating a bullish trend. The MACD of 21.17 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 78.93 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
4272	78 Outperform	€222.18B	12.42	7.16%	4.74%	8.14%	274.53%
4041	74 Outperform	¥190.69B	13.54	―	4.29%	3.26%	-13.75%
4045	74 Outperform	$168.26B	17.65	4.41%	4.07%	-1.50%	-32.46%
4114	63 Neutral	¥275.26B	15.69	―	5.84%	-0.47%	25.41%
4061	62 Neutral	€192.39B	-20.15	-4.00%	4.41%	0.24%	-234.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	48 Neutral	€13.60B	-10.44	-7.76%	―	-19.70%	-159.15%

Nippon Soda Co., Ltd. Corporate Events

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.

The most recent analyst rating on (JP:4041) stock is a Buy with a Yen3710.00 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 Mixed Financial Results Amid Declining Profits

Nippon Soda Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 1.4% year-on-year, reaching ¥32,639 million. Despite this, the company faced a decline in ordinary profit and profit attributable to owners of the parent, decreasing by 13.4% and 25.9% respectively. The company’s financial forecast for the fiscal year ending March 31, 2026, indicates a projected decrease in net sales and profits, reflecting challenges in maintaining growth momentum and profitability.

Nippon Soda Reports Progress on Treasury Share Acquisition

Nippon Soda Co., Ltd. announced the acquisition of 207,800 treasury shares at a cost of 683,899,500 yen between July 1 and July 31, 2025, as part of a broader plan to acquire up to 2,500,000 shares by January 2026. This strategic move aims to optimize the company’s capital structure and potentially enhance shareholder value, reflecting a proactive approach in managing its financial resources.