Nippon Sanso Holdings Corporation (4091) AI Stock Analysis

• Market Cap: ¥2.26T
• Dividend Yield: 0.98%
• Average Volume (3M): 576.86K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.88
• Revenue Growth: 4.22%
• EPS Growth: -6.72%
• Country: JP
• Employees: 19,533
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Chemicals
• EPS (TTM): 49.21
• Shares Outstanding: 433,092,830
• 10 Day Avg. Volume: 584,810
• 30 Day Avg. Volume: 576,863
• PEG Ratio: 5.98
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.84
• 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: ¥4,850.00
• Price Target Upside: -8.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥5,683.00 ▲(7.65%Upside)

Nippon Sanso Holdings Corporation's stock score reflects strong financial performance and positive earnings call highlights. The technical analysis supports a positive outlook, although valuation metrics suggest limited immediate upside. Strategic initiatives and a robust balance sheet are key strengths, while industry-specific challenges and strategic risks temper the overall score.

Nippon Sanso Holdings Corporation Business Overview & Revenue Model

Company Description

Nippon Sanso Holdings Corporation is a leading global producer and supplier of industrial gases. The company operates in various sectors including electronics, healthcare, chemicals, and food and beverage. Its core products encompass a wide range of industrial gases such as oxygen, nitrogen, argon, and carbon dioxide, along with related equipment and technologies. Nippon Sanso Holdings is committed to innovation and sustainability in its operations, providing essential products and services that support industrial and technological advancement worldwide.

How the Company Makes Money

Nippon Sanso Holdings Corporation generates revenue primarily through the production and sale of industrial gases. The company supplies these gases to a diverse range of industries, including manufacturing, healthcare, and electronics, where they are used in processes such as metal fabrication, chemical production, and semiconductor manufacturing. In addition to gas sales, the company earns income from providing gas-related equipment and solutions, including gas supply systems and safety devices. Strategic partnerships and joint ventures in key markets also contribute to its earnings, alongside investments in research and development to enhance product offerings and efficiency. The company's global presence and extensive infrastructure enable it to meet the needs of its customers with reliability and innovation.

Nippon Sanso Holdings Corporation Financial Statement Overview

Summary

Nippon Sanso Holdings Corporation shows strong financial performance with consistent revenue and profit growth, stable margins, and efficient cash flow management. Despite high leverage, the company has improved its financial metrics over time, enhancing its profitability and stability.

Income Statement

Nippon Sanso Holdings Corporation has shown strong revenue growth with a consistent upward trend over the years. The TTM revenue increased by 3.4% compared to the previous annual period, and by 11.3% from two years ago. The gross profit margin is stable at approximately 42%, indicating efficient cost management. The net profit margin has improved to 8.5% in TTM, reflecting enhanced profitability. The EBIT and EBITDA margins are also robust, at 14% and 22.5% respectively, indicating strong operational efficiency.

Balance Sheet

The company's balance sheet reflects a healthy equity ratio of 40.3% in TTM, showing strong capitalization. The debt-to-equity ratio has gradually decreased to 0.9, which suggests an improved leverage position over time. Return on Equity (ROE) has risen to 11% in TTM, highlighting effective utilization of equity. However, the high absolute level of total debt remains a potential risk factor.

Cash Flow

Nippon Sanso has demonstrated a solid free cash flow generation, with a current free cash flow of ¥85.5 billion in TTM, although it decreased by 12.4% from the previous annual period. The operating cash flow to net income ratio stands at 2.18, indicating strong cash conversion efficiency. The free cash flow to net income ratio is 0.78, suggesting a good level of free cash flow relative to net income.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.30T	1.26T	1.19T	957.17B	818.24B	850.24B
	Gross Profit
539.47B	510.98B	438.63B	358.57B	317.44B	327.56B
	EBIT
181.29B	172.04B	119.52B	101.18B	88.85B	93.92B
	EBITDA
292.00B	284.39B	224.16B	191.77B	171.35B	169.65B
	Net Income Common Stockholders
109.99B	105.90B	73.08B	64.10B	55.21B	53.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
123.73B	126.10B	154.70B	101.01B	97.77B	107.15B
	Total Assets
2.47T	2.41T	2.16T	1.98T	1.84T	1.75T
	Total Debt
896.04B	890.26B	900.02B	890.34B	912.62B	962.59B
	Net Debt
772.31B	764.16B	767.80B	796.65B	821.56B	862.59B
	Total Liabilities
1.44T	1.46T	1.40T	1.32T	1.29T	1.31T
	Stockholders Equity
997.04B	914.48B	724.31B	628.71B	513.16B	409.34B
Cash Flow		Free Cash Flow
85.52B	97.63B	96.13B	74.28B	89.16B	77.27B
	Operating Cash Flow
240.38B	215.98B	187.96B	148.76B	149.23B	150.08B
	Investing Cash Flow
-163.91B	-124.65B	-98.07B	-70.86B	-59.69B	-62.63B
	Financing Cash Flow
-167.19B	-110.07B	-54.43B	-77.95B	-103.16B	-46.24B

Nippon Sanso Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5279.00
• 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:4091, the sentiment is Positive. The current price of 5279 is above the 20-day moving average (MA) of 5066.25, above the 50-day MA of 4766.20, and above the 200-day MA of 4707.43, indicating a bullish trend. The MACD of 131.21 indicates Negative momentum. The RSI at 68.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.61 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
4091	78 Outperform	¥2.26T	22.88		0.98%	4.22%	-6.72%
4042	74 Outperform	$662.99B	11.44	7.04%	4.59%	5.74%	1.14%
4188	73 Outperform	$1.07T	23.83	2.49%	4.05%	0.46%	-62.37%
3407	69 Neutral	$1.33T	10.00	7.25%	3.84%	9.06%	209.91%
4004	68 Neutral	$572.75B	15.40	6.01%	1.93%	5.93%	82.41%
4005	62 Neutral	¥552.89B	14.32	3.96%	2.16%	6.51%	―
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%

Nippon Sanso Holdings Corporation Corporate Events

Nippon Sanso Holdings Highlights Strategic Financial Performance in FYE2025

Nippon Sanso Holdings Corporation’s FYE2025 earnings presentation highlights the company’s financial performance, utilizing both IFRS and non-IFRS measures to provide a comprehensive view of its operations. The presentation underscores the company’s strategic focus on core results and underlying trends, aiming to offer stakeholders a deeper understanding of its financial health and market positioning.

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 Announces FY2025 Financial Results

Nippon Sanso Holdings Corporation announced its consolidated financial results for the fiscal year ending March 2025. The company uses both IFRS and non-IFRS measures to evaluate its performance and provide insights into its core operations and trends. The announcement highlights the company’s strategic financial management and its focus on providing additional analytical information to investors.

Nippon Sanso Holdings Announces Increased Year-End Dividend

Nippon Sanso Holdings Corporation announced a year-end dividend payment of 27 yen per share for the fiscal year ending March 31, 2025, marking an increase from the previous year. This decision reflects the company’s policy of balancing internal reserves for growth with shareholder returns, demonstrating its commitment to stable and performance-linked dividends.

Nippon Sanso Holdings Reports FY2025 Financial Results with Revenue Growth

Nippon Sanso Holdings Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a revenue increase of 4.2% year-on-year. Despite a rise in core operating income by 13.9%, the company experienced a decline in net income by 6.8%, attributed to various financial factors. The company plans to increase its annual dividend, reflecting a commitment to shareholder returns.

Nippon Sanso Holdings Revises Earnings Forecast Amid Impairment Loss

Nippon Sanso Holdings Corporation has announced an impairment loss due to the cancellation of a hydrogen production plant in the U.S., resulting in a reduction of the book value to the recoverable amount. This decision has led to a revision of their consolidated earnings forecasts for the fiscal year ending March 31, 2025, with a decrease in expected net income and operating income, although revenue remains unchanged due to offsetting factors such as price management and foreign exchange impacts.