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

• Market Cap: ¥25.32B
• Dividend Yield: 3.21%
• Average Volume (3M): 40.29K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.94
• Revenue Growth: 9.61%
• EPS Growth: 173.72%
• Country: JP
• Employees: 3,297
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 106.92
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥3,188.00 ▲(24.43% Upside)

Nippon Carbide Industries scores highly due to its strong financial performance, characterized by robust revenue growth and improved profitability. The technical analysis indicates a bullish trend with strong momentum, although caution is advised as the RSI approaches overbought levels. The stock's valuation is particularly attractive, with a low P/E ratio and a solid dividend yield, making it appealing for value and income investors.

Positive Factors

Revenue Growth

Consistent multi-year revenue expansion demonstrates durable demand for the company's chemical and engineered materials. A steady top-line trajectory across four years supports scaling of higher value-added product sales and underpins longer-term investment planning and market position stability.

Free Cash Flow Generation

Material improvement in free cash flow indicates the business converts earnings into cash, enabling reinvestment, debt reduction, and shareholder returns. Sustained FCF growth increases financial flexibility and resilience to cyclical downturns, supporting durable capital allocation choices over months to years.

Stronger Balance Sheet / Lower Leverage

A materially lower debt-to-equity ratio and rising equity improve financial stability and reduce refinancing risk. Stronger capitalization supports capital expenditures, R&D or strategic initiatives, and provides a buffer against margin pressure or commodity volatility over the medium term.

Negative Factors

Inconsistent Cash Conversion

Fluctuating conversion of net income into free cash flow reduces predictability of available internal funding. For a manufacturing chemicals business, inconsistent cash conversion can hinder reliable dividend policy, capex planning, and raises execution risk for multi-quarter investments or working capital management.

Moderate Asset Growth

Only moderate asset expansion may constrain the company's ability to scale production or invest in capacity for higher-value products. Limited asset growth can slow market share gains and impede long-term revenue acceleration, particularly if competitors expand capacity or technologies.

Net Income Volatility

Variability in net income signals exposure to swings in margins, input costs, or product mix. Persistent volatility complicates forecasting and could limit management's ability to commit to long-term programs, making earnings and cash-flow durability less certain 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

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	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: Neutral

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 2639.50, above the 50-day MA of 2541.68, and above the 200-day MA of 2089.94, indicating a bullish trend. The MACD of 54.26 indicates Negative momentum. The RSI at 69.28 is Neutral, neither overbought nor oversold. The STOCH value of 75.14 is Neutral, 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	80 Outperform	¥25.32B	8.66	―	3.21%	9.61%	173.72%
4113	69 Neutral	¥15.49B	9.04	―	3.23%	13.09%	89.45%
4231	69 Neutral	¥19.07B	4.83	―	5.21%	0.91%	100.31%
4092	66 Neutral	¥28.61B	12.59	―	3.84%	-3.41%	-12.83%
4410	66 Neutral	¥24.91B	13.05	―	4.62%	7.19%	―
4112	65 Neutral	¥37.53B	19.61	―	2.37%	-11.70%	-54.82%
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 Reports Strong Mid-Year Financial Performance

Nippon Carbide Industries reported a notable increase in its financial performance for the six months ending September 30, 2025, with net sales rising by 3.8% and profit attributable to owners increasing by 80.6% compared to the previous year. The company also announced a slight increase in dividends and provided a forecast for the fiscal year ending March 31, 2026, indicating a modest growth in net sales but a decrease in operating and ordinary profits, reflecting potential challenges in maintaining profit margins.

The most recent analyst rating on (JP:4064) stock is a Buy with a Yen2339.00 price target. To see the full list of analyst forecasts on Nippon Carbide Industries Company,Incorporated stock, see the JP:4064 Stock Forecast page.