Nippon Carbide Industries Company,Incorporated (4064) AI Stock Analysis

• Market Cap: ¥25.52B
• Dividend Yield: 3.21%
• Average Volume (3M): 40.29K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.99
• Revenue Growth: 9.61%
• EPS Growth: 173.72%
• Country: JP
• Employees: 3,297
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 99.09
• Shares Outstanding: 9,419,659
• 10 Day Avg. Volume: 33,980
• 30 Day Avg. Volume: 40,290
• PEG Ratio: 0.06
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 5.41
• 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): 300.3
• Revenue Forecast (FY): ¥49.50B

• Rating: 76 Outperform
• Price Target: ¥3,063.00 ▲(19.56% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven mainly by solid financial performance (revenue growth, improving margins, stronger balance sheet leverage, and higher free cash flow) and supportive valuation (low P/E with a moderate dividend). Technicals remain positive due to a strong uptrend, but overbought signals temper the score due to increased near-term downside risk.

Positive Factors

Revenue Growth Trend

Consistent revenue expansion from 2021 to 2025 indicates durable end-market demand and improving product adoption. Sustained top-line growth supports scale economies, funds reinvestment into higher-value functional materials, and underpins longer-term cash generation and strategic flexibility.

Margin Improvement

Rising net, EBIT and EBITDA margins, plus a steady gross margin near 32%, signal improving pricing power and operational efficiency. Structural margin gains from mix shift to higher-value products enhance profitability resilience and increase sustainable free cash flow over multiple cycles.

Balance Sheet Strength

Marked decline in leverage and growing shareholders' equity provide durable financial flexibility. Low debt levels reduce financial risk, enable stable capex and R&D funding, support shareholder distributions or opportunistic M&A, and improve the company's ability to withstand cyclical downturns.

Negative Factors

Inconsistent Free Cash Flow

Although FCF has grown materially, variability in cash conversion indicates inconsistent cash generation. This inconsistency can limit reliable reinvestment, dividend policy predictability and debt reduction plans, constraining long-term capital allocation and financial planning.

Earnings Volatility

Reported net income has shown swings across recent periods, reducing predictability of profitability. Earnings volatility may reflect cyclic demand, product mix shifts or pricing exposure and complicates long-term forecasting, budgeting and investor visibility into sustainable returns.

Input & Energy Cost Exposure

Profitability is structurally sensitive to raw material and energy price movements and shipment volumes. Persistent input cost inflation or inability to fully pass-through costs would compress margins and cash flow, posing a durable headwind to margin sustainability absent strategic hedging or pricing power.

Nippon Carbide Industries Company,Incorporated Business Overview & Revenue Model

Company Description

Nippon Carbide Industries Co., Inc. engages in the electronic and functional products, and films and sheetings business. It offers functional chemicals, such as electronic materials, special functional coatings, agrochemicals, metal surface treatment agents, pharmaceutical products, and biochemistry; and specialty polymers, including thickening and adhesive agents, ingredients of toner ink and coating materials, and melamine resin for tableware. The company also provides semiconductor mold cleaners and conditioners; and ceramic substrates, such as alumina substrates, thick-film printing substrates, and green sheetings. In addition, it offers marking films, laser markable labels, and packaging materials; graphic and 3D-emblem stickers; retroreflective sheetings and aluminum connected sign substrates; and aerial display reflectors. The company was founded in 1935 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company makes money primarily by manufacturing and selling its products to corporate customers, generating revenue from product sales across its operating segments (e.g., chemicals and materials-related businesses). Earnings are driven by shipment volumes, product mix (higher value-added functional materials versus commodity-type products), and pricing relative to input and energy costs. Additional contributors can include sales from overseas operations and distribution channels where applicable. null

Nippon Carbide Industries Company,Incorporated Financial Statement Overview

Summary

Fundamentals are solid: revenue rose from 43.23B JPY (2021) to 48.73B JPY (2025) and profitability improved (net margin up to 4.54% in 2025). Balance sheet risk is lower with a debt-to-equity improvement to 0.27 (2025) and growing equity, while free cash flow expanded meaningfully to 3.11B JPY (2025), though cash flow consistency has shown some fluctuations.

Income Statement

Nippon Carbide Industries has shown strong revenue growth from 43.23 billion JPY in 2021 to 48.73 billion JPY in 2025, a notable increase of approximately 12.7% over 4 years. The gross profit margin has remained healthy, averaging around 32% annually. The net profit margin improved significantly from 2.36% in 2023 to 4.54% in 2025, showcasing enhanced profitability. Additionally, EBIT and EBITDA margins have shown consistent improvement, indicating strong operational efficiency. The company's revenue growth and improved margins denote a positive trajectory, although the fluctuations in net income warrant careful monitoring.

Balance Sheet

The company's balance sheet reveals a solid equity position with stockholders' equity increasing from 24.44 billion JPY in 2020 to 35.72 billion JPY in 2025. The debt-to-equity ratio improved from 0.77 in 2020 to 0.27 in 2025, indicating reduced leverage and financial risk. The equity ratio has been strong, reflecting financial stability. However, the total assets have shown moderate growth, suggesting potential limitations in asset expansion. Overall, the company's low debt levels and strong equity position are commendable, though asset growth should be observed.

Cash Flow

The operating cash flow has been stable, and free cash flow has grown from 1.14 billion JPY in 2021 to 3.11 billion JPY in 2025, representing a significant 172.8% increase. The operating cash flow to net income ratio remains strong, indicating efficient cash generation relative to reported profits. However, the free cash flow to net income ratio fluctuated, suggesting some inconsistency in cash utilization. Despite this, the company's ability to generate free cash flow is a positive aspect, with room for improvement in consistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	49.26B	48.73B	43.23B	44.01B	47.00B	42.23B
Gross Profit	16.09B	15.60B	12.20B	12.61B	14.14B	13.12B
EBITDA	5.55B	5.47B	3.88B	3.29B	4.81B	5.42B
Net Income	2.08B	2.21B	999.00M	332.00M	1.93B	2.41B
Balance Sheet
Total Assets	62.76B	63.36B	61.02B	61.84B	65.04B	63.91B
Cash, Cash Equivalents and Short-Term Investments	14.00B	14.54B	13.44B	10.91B	11.38B	12.98B
Total Debt	9.98B	9.90B	11.49B	11.86B	14.44B	18.71B
Total Liabilities	25.60B	25.45B	26.39B	28.75B	32.99B	35.40B
Stockholders Equity	34.93B	35.72B	32.63B	31.23B	30.32B	26.95B
Cash Flow
Free Cash Flow	0.00	3.11B	2.43B	1.46B	1.76B	1.14B
Operating Cash Flow	0.00	4.11B	5.37B	3.61B	4.30B	3.79B
Investing Cash Flow	0.00	-1.21B	-2.44B	-2.15B	-2.36B	-1.05B
Financing Cash Flow	0.00	-2.54B	-1.26B	-3.21B	-4.21B	1.03B

Nippon Carbide Industries Company,Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2562.00
• 50DMA: Negative
• 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:4064, the sentiment is Negative. The current price of 2562 is below the 20-day moving average (MA) of 2923.55, below the 50-day MA of 2826.74, and above the 200-day MA of 2291.57, indicating a neutral trend. The MACD of -20.94 indicates Positive momentum. The RSI at 41.58 is Neutral, neither overbought nor oversold. The STOCH value of 55.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4064.

Nippon Carbide Industries Company,Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4064	76 Outperform	¥25.52B	6.46	―	3.21%	9.61%	173.72%
5302	75 Outperform	¥50.97B	10.10	9.07%	4.46%	-1.14%	34.15%
5304	68 Neutral	¥54.01B	8.68	―	4.32%	-31.99%	-44.75%
4182	67 Neutral	¥770.74B	77.75	-2.50%	3.49%	-6.83%	-123.67%
4043	65 Neutral	¥267.95B	11.03	9.45%	2.65%	-0.04%	3.15%
5301	63 Neutral	¥196.06B	10.31	6.95%	3.06%	-7.36%	-574.56%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Carbide Industries Company,Incorporated Corporate Events

Nippon Carbide Boosts Shareholder Returns and Launches New Benefit Program

Nippon Carbide Industries has revised its shareholder return policy for the next medium-term management plan, raising its target from a dividend payout ratio of 30% or more to a policy of maintaining stable dividends with the higher of a 40% payout ratio or a 3.0% dividend-on-equity ratio. This shift, effective from the interim dividend for the fiscal year ending March 2027, is intended to enhance capital efficiency, strengthen shareholder returns, and support a higher level of stable dividends.

The company is also introducing a shareholder benefit program from the record date of September 30, 2026, aimed at increasing the attractiveness of its shares and encouraging long-term holdings. Shareholders owning at least 100 shares as of March 31 and September 30 each year will receive digital gifts worth 500 yen per record date, for a total of 1,000 yen annually, with exchangeable options such as major digital gift cards and payment points to provide added value to investors.

The most recent analyst rating on (JP:4064) stock is a Buy with a Yen3104.00 price target. To see the full list of analyst forecasts on Nippon Carbide Industries Company,Incorporated stock, see the JP:4064 Stock Forecast page.

Nippon Carbide Industries Lifts Earnings, Ups Dividend Outlook for FY2025

Nippon Carbide Industries reported steady top-line growth and stronger profitability for the nine months ended December 31, 2025, with net sales up 4.5% year on year to ¥37.48 billion and profit attributable to owners of parent rising 18.3% to ¥2.46 billion, driving basic earnings per share to ¥263.42. The company’s financial position also improved modestly, with total assets increasing to ¥64.52 billion and the equity ratio edging up to 57.2%, while it raised its annual dividend outlook to ¥92 per share for the fiscal year ending March 31, 2026 and projected full-year net sales of ¥49.0 billion and a 17.6% rise in profit attributable to owners of parent, signaling confidence in sustained earnings growth and continued shareholder returns.

The most recent analyst rating on (JP:4064) stock is a Buy with a Yen3188.00 price target. To see the full list of analyst forecasts on Nippon Carbide Industries Company,Incorporated stock, see the JP:4064 Stock Forecast page.

Nippon Carbide Lifts Full-Year Dividend Forecast on Improved Profit Outlook

Nippon Carbide Industries has revised its dividend forecast for the fiscal year ending March 2026, raising the projected year-end dividend from ¥41 to ¥51 per share and lifting the full-year dividend from ¥82 to ¥92 per share, following an earlier interim dividend of ¥41. The revision reflects an upgraded earnings outlook in which profit attributable to owners of parent is now expected to rise to ¥2.6 billion, up ¥300 million from the prior forecast, supported by stronger operating and ordinary profits, signaling improved business performance and a more generous return for shareholders compared with the previous fiscal year.

The most recent analyst rating on (JP:4064) stock is a Buy with a Yen3188.00 price target. To see the full list of analyst forecasts on Nippon Carbide Industries Company,Incorporated stock, see the JP:4064 Stock Forecast page.