Nippon Sanso Holdings Corporation (4091) AI Stock Analysis

• Market Cap: ¥2.51T
• Dividend Yield: 1.11%
• Average Volume (3M): 557.70K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.84
• Revenue Growth: 2.35%
• EPS Growth: 0.43%
• Country: JP
• Employees: 19,533
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): N/A
• Shares Outstanding: 433,092,830
• 10 Day Avg. Volume: 573,680
• 30 Day Avg. Volume: 557,703
• PEG Ratio: -2.94
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 22.12
• 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: 69 Neutral
• Price Target: ¥6,102.00 ▲(30.72% Upside)
• Action: Downgraded Date: 02/06/26
• Date: Action: Downgraded 02/06/26

The score is driven primarily by solid financial fundamentals (strong margins, improving leverage, and positive free cash flow), partially offset by only moderate cash conversion and slowing recent revenue growth. Technically, the trend is strong but appears overextended (high RSI/Stoch), increasing near-term pullback risk. Valuation is less supportive with a ~20 P/E and sub-1% yield, while the latest earnings call was constructive on margins, cash flow, and maintained guidance but weighed down by a notable impairment and mixed demand signals.

Positive Factors

Diverse, contract-based demand

Nippon Sanso's business spans steel, chemicals, healthcare, electronics and energy with long-term on-site and pipeline supply contracts. This mix creates recurring revenue, reducing volatility and supporting predictable utilization and cash flows over multi-year cycles.

Strong margins and cash generation

Sustained high gross and operating margins plus substantial free cash flow demonstrate structural profitability in industrial gases. Healthy FCF enables reinvestment in capacity, debt reduction, and funding of strategic projects without relying solely on external financing.

Strategic sustainability and engineering expansion

The Polaris stake and targeted hydrogen/environment investments deepen engineering capability and position the company in carbon-neutral gas solutions. These moves align with long-term structural demand for low-carbon gases and services, expanding addressable market and tech differentiation.

Negative Factors

Slowing revenue growth

Top-line momentum has slowed to low single digits, reducing leverage to fixed costs and limiting scalable profit expansion. Over several quarters this constrains reinvestment capacity and increases sensitivity to cyclical end-market downturns in metals or chemicals.

High absolute debt load

A large absolute debt stock in a capital-intensive industry limits financial flexibility. During demand weakness, servicing and refinancing needs can constrain capex for strategic hydrogen projects and slow deleveraging, raising downside risk if cash conversion or volumes deteriorate.

Volume and project risk in key sectors

Declining gas volumes and semiconductor sector weakness reduce plant utilization and margin sustainability. The recent ¥10.7B impairment and cancelled carbon-neutral project show customer credit and project execution risk, which can depress returns on large capex and backlog visibility.

Nippon Sanso Holdings Corporation Business Overview & Revenue Model

Company Description

Nippon Sanso Holdings Corporation engages in the gas business in Japan, the United States, Europe, Asia, and Oceania. It operates through five segments: Gas Business in Japan; Gas Business in the United States; Gas Business in Europe; Gas Business in Asia and Oceania; and Thermos Business. The company offers oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, and acetylene; welding, cutting, gas supply, and medical gases and related equipment; air separation and electronic material gases; and refining and supply equipment installation services. It also manufactures and sells household goods, such as stainless-steel vacuum-insulated bottles, tumblers, and fry pans. The company was formerly known as Taiyo Nippon Sanso Corporation and changed its name to Nippon Sanso Holdings Corporation in October 2020. Nippon Sanso Holdings Corporation was founded in 1910 and is headquartered in Tokyo, Japan. Nippon Sanso Holdings Corporation is a subsidiary of Mitsubishi Chemical Group Corporation.

How the Company Makes Money

Nippon Sanso Holdings generates revenue primarily through the sale of industrial gases, which are utilized in a wide range of applications across different industries. The company has established long-term contracts with key customers, ensuring a consistent and stable income stream. Additionally, revenues are bolstered by the provision of specialized gas-related services, including equipment maintenance, gas supply systems, and safety consulting. Significant partnerships with major manufacturers and healthcare providers further enhance its market reach and revenue potential. The company's commitment to innovation in gas production and distribution technologies also enables it to capture new opportunities and drive growth in emerging markets.

Nippon Sanso Holdings Corporation Financial Statement Overview

Summary

Solid profitability and resilience with TTM gross margin ~42%, EBIT margin ~13.5%, and net margin ~8.6%. Balance sheet leverage is moderate and improving (debt-to-equity ~0.75) with steady ROE (~10–12%). Cash flow is positive (TTM FCF ~¥152B, ~24% growth), but cash conversion is only ~58% of net income and near-term coverage (~0.54) suggests working-capital/investment needs can absorb cash; revenue growth has also cooled (~1.4% TTM).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability for a chemicals business, with gross margin ~42%, EBIT margin ~13.5%, and net margin ~8.6%. Revenue growth is positive in TTM (~1.4%) and the multi-year trend shows revenue stepping up meaningfully since 2021, alongside improving operating profitability versus earlier years. The main weakness is that the most recent growth rate is modest versus prior years, suggesting momentum has cooled after a strong post-2021 rebound.

Balance Sheet

Leverage is moderate and improving: debt-to-equity is ~0.75 in TTM (Trailing-Twelve-Months), down from higher levels in prior annual periods, supported by a rising equity base. Returns on equity are steady around ~10–12%, indicating consistent profitability relative to capital. The key risk remains the absolute debt load (TTM total debt ~¥878B) in a cyclical, capital-intensive industry, which can pressure flexibility if conditions weaken.

Cash Flow

Cash generation is healthy with positive operating cash flow (TTM ~¥261B) and free cash flow (TTM ~¥152B), and free cash flow growth is strong in TTM (~24%). However, cash conversion is the softer spot: free cash flow is only ~58% of net income in TTM, and operating cash flow covers a little over half of near-term obligations as reflected in the provided coverage ratio (~0.54), implying working-capital or investment needs can meaningfully absorb cash.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.33T	1.31T	1.26T	1.19T	957.17B	818.24B
Gross Profit	564.45B	545.44B	510.98B	438.63B	358.57B	317.44B
EBITDA	303.20B	280.98B	284.39B	227.44B	191.77B	171.35B
Net Income	114.44B	98.78B	105.90B	73.08B	64.10B	55.21B
Balance Sheet
Total Assets	2.67T	2.42T	2.41T	2.16T	1.98T	1.84T
Cash, Cash Equivalents and Short-Term Investments	132.92B	144.53B	126.10B	132.22B	93.70B	91.06B
Total Debt	878.40B	850.57B	890.26B	900.02B	890.34B	912.62B
Total Liabilities	1.46T	1.40T	1.46T	1.40T	1.32T	1.29T
Stockholders Equity	1.17T	980.45B	914.48B	724.31B	628.71B	513.16B
Cash Flow
Free Cash Flow	152.20B	88.32B	97.63B	96.13B	74.28B	89.16B
Operating Cash Flow	260.87B	235.15B	215.98B	187.96B	148.76B	149.23B
Investing Cash Flow	-170.00B	-142.93B	-124.65B	-98.07B	-70.86B	-59.69B
Financing Cash Flow	-89.10B	-73.29B	-110.07B	-54.43B	-77.95B	-103.16B

Nippon Sanso Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4668.00
• 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:4091, the sentiment is Positive. The current price of 4668 is below the 20-day moving average (MA) of 5430.75, below the 50-day MA of 5021.86, and below the 200-day MA of 5174.52, indicating a bullish trend. The MACD of 243.99 indicates Negative momentum. The RSI at 76.05 is Negative, neither overbought nor oversold. The STOCH value of 81.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4091.

Nippon Sanso Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4093	79 Outperform	¥13.98B	11.09	―	3.89%	-3.00%	-29.83%
4097	79 Outperform	¥62.82B	14.80	―	2.88%	3.42%	13.37%
4063	75 Outperform	¥11.70T	23.17	10.87%	2.17%	3.77%	0.35%
4091	69 Neutral	¥2.51T	21.98	―	1.11%	2.35%	0.43%
3407	68 Neutral	¥2.49T	15.84	7.48%	2.89%	3.55%	95.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4004	58 Neutral	¥2.15T	74.15	1.67%	1.00%	-1.90%	-71.97%

Nippon Sanso Holdings Corporation Corporate Events

Nippon Sanso lifts FY2026 outlook on weaker yen and efficiency gains

The company lifted its fiscal 2026 revenue outlook to ¥1.33 trillion and raised profit metrics across the board, crediting currency tailwinds, disciplined price management, and productivity gains that offset inflationary pressure, while keeping the year-end dividend at ¥29 per share to signal confidence in cash generation.

The most recent analyst rating on (JP:4091) stock is a Buy with a Yen5550.00 price target. To see the full list of analyst forecasts on Nippon Sanso Holdings Corporation stock, see the JP:4091 Stock Forecast page.

Nippon Sanso Reaffirms Q3 FYE2026 Trajectory

The company confirmed Q3 fiscal 2026 consolidated results and reiterated its full-year forecast, signaling stability in both quarterly and nine-month performance metrics despite elemental market headwinds. Management highlighted business overview themes and ongoing execution against plan, implying limited operational surprises and steady positioning for stakeholders into year-end.

The most recent analyst rating on (JP:4091) stock is a Buy with a Yen5550.00 price target. To see the full list of analyst forecasts on Nippon Sanso Holdings Corporation stock, see the JP:4091 Stock Forecast page.

Nippon Sanso Raises Full-Year Profit Outlook on Strong Nine-Month Results

Nippon Sanso Holdings reported steady growth for the first three quarters of the fiscal year ending March 31, 2026, with revenue up 2.7% year on year to ¥997.7 billion and core operating income rising 4.6% to ¥146.2 billion. Operating income climbed 13.5%, while net income attributable to owners of the parent surged 20.2% to ¥93.1 billion, lifting basic earnings per share to ¥215.18. The group’s financial position strengthened, with total assets increasing to ¥2.67 trillion and the equity ratio improving to 43.8%, supported partly by the consolidation of four additional companies, including Coregas Pty Ltd. The company maintained its dividend plan, targeting a full-year payout of ¥58 per share, up from the prior year, indicating confidence in earnings sustainability.

The company revised its full-year forecast upward, now projecting revenue of ¥1.33 trillion and a 3.6% increase in core operating income to ¥196 billion, alongside a 17.1% rise in operating income and a 25.0% jump in net income attributable to owners of the parent to ¥123.5 billion. These upgraded forecasts point to solid operational momentum and margin improvement, suggesting stronger profitability and cash generation for shareholders. The improved earnings outlook and higher equity base reinforce Nippon Sanso Holdings’ financial resilience and may enhance its competitive positioning in the global industrial gas industry, while the unchanged share count and modest level of treasury stock signal a stable capital structure for existing investors.

The most recent analyst rating on (JP:4091) stock is a Buy with a Yen5550.00 price target. To see the full list of analyst forecasts on Nippon Sanso Holdings Corporation stock, see the JP:4091 Stock Forecast page.

Nippon Sanso to Book ¥15.7 Billion Dividend from European Subsidiary on Non-Consolidated Results

Nippon Sanso Holdings Corporation announced that it will receive a dividend of €85 million (approximately ¥15.7 billion) from its consolidated European subsidiary, Nippon Gases Euro-Holding S.L.U., based on a resolution dated January 22, 2026. The dividend will be recorded as operating revenue in the parent company’s non-consolidated financial statements for the fiscal year ending March 2026, but because it is an intra-group transaction that will be eliminated on consolidation, it will not affect the company’s consolidated financial results, limiting its impact mainly to the standalone earnings and financial position of the parent entity.

The most recent analyst rating on (JP:4091) stock is a Buy with a Yen5550.00 price target. To see the full list of analyst forecasts on Nippon Sanso Holdings Corporation stock, see the JP:4091 Stock Forecast page.