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

• Market Cap: ¥29.74B
• Dividend Yield: 3.21%
• Average Volume (3M): 40.29K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.96
• 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: ¥3,486.00 ▲(36.07% 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

Sustained Revenue Growth

A multi-year revenue increase demonstrates durable end-market demand and/or successful product mix shifts toward higher-value materials. Sustained top-line growth supports reinvestment, scale economics, and underwriting of longer-term R&D or capacity projects that bolster competitive position.

Improving Profitability and Margins

Rising gross and net margins point to stronger pricing power and better operational efficiency, likely from a move into value-added products and cost control. Structural margin improvement increases free cash flow potential and resilience to cyclical downturns over the medium term.

Stronger Balance Sheet and Cash Generation

Significantly lower leverage and materially higher free cash flow strengthen financial flexibility for capex, dividends, M&A, or downturns. A healthier capital structure reduces refinancing risk and supports sustained investment in higher-margin product development and capacity expansion.

Negative Factors

Inconsistent Cash Conversion

Although FCF expanded, inconsistent cash conversion indicates variability in working capital or timing of receivables/payables. Over the medium term this can complicate capital allocation, limit predictable reinvestment, and require buffer liquidity that constrains growth plans.

Moderate Asset Growth Limits Scale

Slower asset base expansion can reflect cautious capex or constrained investment capacity, potentially limiting the company's ability to scale production or enter adjacent markets. Over months this may cap revenue upside and slow capture of larger industrial contracts.

Input and Energy Cost Exposure

Profitability is structurally sensitive to raw material and energy price swings given the chemicals business. Without durable hedging or pass-through pricing, rising input costs could quickly erode margins, making earnings and cash flow more volatile over the medium term.

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

Nippon Carbide Industries generates revenue primarily through the sale of its specialty chemical products and materials used in semiconductor manufacturing and electronics. The company's revenue model is built on a combination of direct sales to manufacturers in the electronics and automotive sectors, as well as partnerships with technology firms for the development of customized materials. Key revenue streams include sales from photoresists, etching materials, and other electronic components. Additionally, Nippon Carbide leverages its research and development capabilities to innovate and expand its product offerings, which helps to maintain and grow its market share. Strategic alliances with major players in the semiconductor and electronics industries further enhance its revenue potential.

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	64.55B	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	9.61B	11.16B	11.46B	14.37B	18.89B
Total Liabilities	25.60B	25.45B	26.40B	28.75B	32.50B	35.41B
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: Positive
• Last Price: 2562.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4064, the sentiment is Positive. The current price of 2562 is below the 20-day moving average (MA) of 2927.95, below the 50-day MA of 2723.10, and above the 200-day MA of 2202.28, indicating a bullish trend. The MACD of 100.49 indicates Negative momentum. The RSI at 68.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥29.74B	11.37	―	3.21%	9.61%	173.72%
5302	75 Outperform	¥55.77B	11.56	10.88%	4.46%	-1.14%	34.15%
5304	69 Neutral	¥61.84B	17.37	―	4.32%	-31.99%	-44.75%
4182	64 Neutral	¥846.59B	-52.21	-1.15%	3.49%	-6.83%	-123.67%
5301	63 Neutral	¥237.63B	11.84	-14.04%	3.06%	-7.36%	-574.56%
4043	63 Neutral	¥322.06B	12.71	8.86%	2.65%	-0.04%	3.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Carbide Industries Company,Incorporated Corporate Events

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.