Nippon Sanso Holdings Corporation (4091) AI Stock Analysis

• Market Cap: ¥2.12T
• Dividend Yield: 1%
• Average Volume (3M): 557.70K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.83
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥5,627.00 ▲(12.90% Upside)

Nippon Sanso Holdings Corporation's overall stock score is driven by its solid financial performance and positive earnings call insights. The company's strong cash flow and strategic focus on sustainability and acquisitions are significant strengths. However, technical indicators suggest potential bearish momentum, and the valuation metrics indicate a fair but not undervalued stock.

Positive Factors

Revenue Growth

The company's revenue growth and improved operating income margin indicate strong market demand and operational efficiency, supporting long-term profitability.

Sustainability Initiatives

Commitment to sustainability can enhance brand reputation and align with global regulatory trends, potentially opening new market opportunities.

European Market Expansion

Growth in the European market strengthens the company's global presence and diversifies its revenue base, reducing reliance on any single region.

Negative Factors

Non-Recurring Impairment Charge

The significant impairment charge due to project cancellation highlights potential risks in project execution and customer reliability.

Challenges in Gas and Semiconductor Sectors

Declining gas volumes and challenges in the semiconductor sector could pressure revenue and margins, affecting future growth prospects.

CapEx Backlog Decrease

A reduced CapEx backlog may limit future growth and expansion opportunities, potentially impacting long-term strategic initiatives.

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

Nippon Sanso Holdings Corporation demonstrates solid financial health with strong cash flow and stable profitability metrics. While revenue growth has recently declined, the company maintains efficient operations and cash generation. The balance sheet shows improved leverage, though it remains an area to monitor.

Income Statement

Nippon Sanso Holdings Corporation shows strong gross profit margins consistently above 40%, indicating efficient cost management. However, the net profit margin is relatively low at around 7.5%, suggesting room for improvement in cost control or pricing strategies. The revenue growth rate has recently turned negative, which could be a concern if it continues. EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management, but it remains relatively high, which could pose risks if interest rates rise. Return on equity is stable at around 10%, showing decent profitability from shareholders' investments. The equity ratio is moderate, suggesting a balanced approach to financing assets.

Cash Flow

Operating cash flow is strong, with a healthy ratio to net income, indicating good cash generation from operations. Free cash flow has grown significantly, which is a positive sign for future investments or debt reduction. The free cash flow to net income ratio is robust, highlighting efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.29T	1.31T	1.26T	1.19T	957.17B	818.24B
Gross Profit	541.81B	545.44B	510.98B	438.63B	358.57B	317.44B
EBITDA	275.45B	280.98B	284.39B	227.44B	191.77B	171.35B
Net Income	98.09B	98.78B	105.90B	73.08B	64.10B	55.21B
Balance Sheet
Total Assets	2.45T	2.42T	2.41T	2.16T	1.98T	1.84T
Cash, Cash Equivalents and Short-Term Investments	169.56B	144.53B	126.10B	132.22B	93.70B	91.06B
Total Debt	873.20B	850.57B	890.26B	900.02B	890.34B	912.62B
Total Liabilities	1.40T	1.40T	1.46T	1.40T	1.32T	1.29T
Stockholders Equity	1.01T	980.45B	914.48B	724.31B	628.71B	513.16B
Cash Flow
Free Cash Flow	117.57B	88.32B	97.63B	96.13B	74.28B	89.16B
Operating Cash Flow	242.70B	235.15B	215.98B	187.96B	148.76B	149.23B
Investing Cash Flow	-116.32B	-142.93B	-124.65B	-98.07B	-70.86B	-59.69B
Financing Cash Flow	-75.33B	-73.29B	-110.07B	-54.43B	-77.95B	-103.16B

Nippon Sanso Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4984.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4091, the sentiment is Positive. The current price of 4984 is above the 20-day moving average (MA) of 4957.35, below the 50-day MA of 5105.71, and below the 200-day MA of 5037.73, indicating a neutral trend. The MACD of -36.41 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 70.47 is Neutral, 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
3407	76 Outperform	¥1.77T	12.59	7.48%	3.15%	3.55%	95.65%
4091	71 Outperform	¥2.12T	19.80	―	1.00%	2.35%	0.43%
4042	71 Outperform	$715.65B	17.71	4.79%	4.55%	-1.21%	-27.21%
4004	70 Outperform	$1.02T	95.26	1.67%	1.15%	-1.90%	-71.97%
4005	69 Neutral	¥782.37B	9.22	8.79%	2.64%	-1.64%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4188	54 Neutral	$1.12T	10.25	1.09%	3.97%	-11.50%	25.86%

Nippon Sanso Holdings Corporation Corporate Events

Nippon Sanso Holdings Increases Dividend Forecast for Fiscal Year 2026

Nippon Sanso Holdings Corporation announced an increase in its interim dividend to 29 yen per share and revised its year-end dividend forecast to 29 yen per share, resulting in an annual dividend forecast of 58 yen per share. This decision aligns with the company’s policy of balancing earnings allocation for corporate growth and stable shareholder returns.

The most recent analyst rating on (JP:4091) stock is a Hold with a Yen5399.00 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 Holdings Reports Strong First Half Financial Performance

Nippon Sanso Holdings Corporation reported its financial results for the first half of the fiscal year ending March 31, 2026, showing a slight increase in revenue and a significant rise in net income compared to the previous year. The company has revised its dividend forecasts upward, reflecting its strong performance and positive outlook for the full fiscal year, which may enhance its market position and benefit its stakeholders.

The most recent analyst rating on (JP:4091) stock is a Hold with a Yen5399.00 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’s Earnings Call: Growth Amid Challenges

Nippon Sanso Holdings Corporation’s recent earnings call presented a balanced sentiment, highlighting both positive revenue growth and strategic acquisitions, while also addressing significant challenges. The company showcased strong sustainability initiatives and impressive performance in Europe, which helped offset some of the negative aspects such as a major impairment charge and declining volumes in certain sectors.

Nippon Sanso Expands in Australia and New Zealand with Strategic Acquisition

Nippon Sanso Holdings Corporation has announced a significant change in its specified subsidiary status following the acquisition of Coregas Pty Ltd, Blacksmith Jacks Pty Ltd, and Coregas NZ Limited from Wesfarmers. This acquisition, completed through its Australian subsidiary, NSC (Australia) Pty Ltd, enhances the company’s market position in the industrial gas sector in Australia and New Zealand, with Coregas Pty Ltd now representing a substantial part of the company’s capital.

The most recent analyst rating on (JP:4091) stock is a Buy with a Yen5992.00 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 Reports Q1 Decline but Maintains Full-Year Outlook

Nippon Sanso Holdings Corporation reported a decline in financial performance for the first quarter of the fiscal year ending March 31, 2026, with revenue and operating income both decreasing compared to the same period last year. Despite the downturn, the company maintains its full-year forecasts, suggesting confidence in recovering performance, and plans to increase annual dividends, indicating a commitment to shareholder returns.

The most recent analyst rating on (JP:4091) stock is a Hold with a Yen4850.00 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 Holdings Reports Decline in Q1 Financial Performance

Nippon Sanso Holdings Corporation reported a decrease in its financial performance for the first quarter of the fiscal year ending March 31, 2026, with revenue and core operating income both showing declines compared to the previous year. Despite these declines, the company maintains its full-year forecasts, indicating a stable outlook for the remainder of the fiscal year, which may reassure stakeholders about its long-term strategy.

The most recent analyst rating on (JP:4091) stock is a Hold with a Yen4850.00 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 Holdings: Strong Earnings Amid Challenges

Nippon Sanso Holdings Corporation’s recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth and improvements in core operating income. The company attributed these gains to effective price management and strategic investments. However, challenges such as declining shipment volumes in the U.S. and Asia, and revenue and income declines in the Thermos and Japan business segments, were also highlighted. Despite these hurdles, the company’s strategic acquisitions and investments indicate a forward-looking growth strategy.