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

• Market Cap: ¥20.11B
• Dividend Yield: 3.8%
• Average Volume (3M): 54.69K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.92
• Revenue Growth: 11.19%
• EPS Growth: 122.83%
• Country: JP
• Employees: 3,297
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 57.41
• Shares Outstanding: 9,419,659
• 10 Day Avg. Volume: 50,270
• 30 Day Avg. Volume: 54,686
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,939.00
• Price Target Upside: -9.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,939.00 ▼(-9.27% Downside)

Nippon Carbide Industries receives a strong overall score due to its solid financial performance, characterized by revenue growth and improved profitability. The valuation is particularly favorable, with a low P/E ratio and high dividend yield suggesting potential undervaluation. Technical analysis presents mixed signals, with bearish momentum but potential for upward correction. The absence of earnings call and corporate events data reduces the depth of analysis but does not detract from the positive financial and valuation indicators.

Nippon Carbide Industries Company,Incorporated Business Overview & Revenue Model

Company Description

Nippon Carbide Industries Company, Incorporated (4064) is a Japanese company engaged in the production and sale of chemical products. The company operates in several sectors, including specialty chemicals, functional materials, and industrial products. Its core offerings include films, sheets, and adhesives, as well as resins and fine chemicals. Nippon Carbide focuses on delivering innovative solutions that cater to various industries such as automotive, electronics, and construction.

How the Company Makes Money

Nippon Carbide Industries Company, Incorporated generates revenue primarily through the manufacturing and sale of its diverse chemical product lineup. The company's key revenue streams include specialty chemicals and functional materials that are sold to industrial clients across sectors such as automotive, electronics, and construction. Additionally, partnerships with other enterprises and collaborations in research and development contribute to the company's earnings. Its ability to innovate and provide tailored solutions for its clients' specific needs also plays a significant role in sustaining its revenue.

Nippon Carbide Industries Company,Incorporated Financial Statement Overview

Summary

Nippon Carbide Industries demonstrates a robust financial position with strong revenue growth and improved profitability margins. The balance sheet is characterized by low leverage and growing equity, ensuring financial stability. Cash flow metrics indicate strong cash generation capabilities, although some fluctuations exist. Overall, the company is on a positive financial trajectory, with minor areas for enhancement in asset growth and cash flow consistency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.73B	48.73B	43.23B	44.01B	47.00B	42.23B
Gross Profit	15.60B	15.60B	12.20B	12.61B	14.14B	13.12B
EBITDA	5.47B	5.47B	3.88B	3.29B	4.81B	5.42B
Net Income	2.21B	2.21B	999.00M	332.00M	1.93B	2.41B
Balance Sheet
Total Assets	63.36B	63.36B	61.02B	61.84B	64.55B	63.91B
Cash, Cash Equivalents and Short-Term Investments	14.54B	14.54B	13.44B	10.91B	11.38B	12.98B
Total Debt	9.61B	9.61B	11.16B	11.46B	14.37B	18.89B
Total Liabilities	25.45B	25.45B	26.40B	28.75B	32.50B	35.41B
Stockholders Equity	35.72B	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: 2137.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2137 is above the 20-day moving average (MA) of 2082.55, above the 50-day MA of 1966.10, and above the 200-day MA of 1790.31, indicating a bullish trend. The MACD of 56.61 indicates Negative momentum. The RSI at 86.87 is Negative, neither overbought nor oversold. The STOCH value of 84.64 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
4231	81 Outperform	¥19.71B	5.74		5.40%	3.11%	12.90%
4113	77 Outperform	¥19.63B	11.98		2.28%	7.57%	35.66%
4064	76 Outperform	¥20.11B	9.49		3.80%	11.19%	122.83%
4112	69 Neutral	¥26.64B	12.38		4.14%	-6.65%	-45.46%
4410	68 Neutral	¥22.70B	27.06		4.76%	10.02%	―
4092	68 Neutral	¥24.91B	10.03		2.86%	-1.44%	-1.26%
Sector *	62 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%

Nippon Carbide Industries Company,Incorporated Corporate Events

Nippon Carbide Industries Sees Sales Growth but Profit Decline in Q1 2025

Nippon Carbide Industries reported a 4.7% increase in net sales for the three months ending June 30, 2025, compared to the previous year. Despite the rise in sales and operating profit, the profit attributable to owners of the parent decreased by 19.1%, indicating potential challenges in cost management or other operational areas.

Nippon Carbide Finalizes Treasury Shares Disposal for Stock Compensation

Nippon Carbide Industries Co., Inc. has completed the payment procedures for the disposal of treasury shares as restricted stock compensation. This strategic move involves the allocation of 11,422 common shares to directors and executive officers, potentially aligning management interests with shareholder value.

Nippon Carbide Industries Announces Restricted Stock Compensation Plan

Nippon Carbide Industries Co., Inc. announced the disposal of treasury shares as part of a restricted stock compensation plan for its directors and executive officers. This initiative aims to align the interests of management with those of shareholders by providing incentives for sustainable corporate growth. The plan involves the allocation of 11,422 shares with restrictions on transfer until certain conditions are met, reflecting the company’s strategic focus on long-term value creation.