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Nippon Sanso Holdings Corporation (JP:4091)
:4091
Japanese Market

Nippon Sanso Holdings Corporation (4091) AI Stock Analysis

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Nippon Sanso Holdings Corporation

(4091)

Rating:78Outperform
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 (4091) vs. iShares MSCI Japan ETF (EWJ)

Nippon Sanso Holdings Corporation Business Overview & Revenue Model

Company DescriptionNippon 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 MoneyNippon 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 Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q4-2024)
|
% Change Since: 7.56%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant growth in core operating income, improved financial health, and increased dividends. However, challenges remain in the semiconductor industry and specific regional segments, with delayed capital investments impacting growth prospects.
Q4-2024 Updates
Positive Updates
Strong Core Operating Income Growth
Core operating income exceeded the target of the NS Vision 2026, showing significant growth. The team managed solid price management and productivity initiatives, leading to a COI growth of 16% in Q4 and 27% for the full year.
Improved Financial Health
EBITDA to debt ratio improved significantly from near five times to 3.4 times by the end of fiscal year 2024. This demonstrates the company's solid work in progress over the past few years.
Record Dividend Increase
The company proposed a 20% increase in dividends from ¥20 to ¥24 per share, marking a compound annual growth rate of approximately 14% since 2014.
Positive Outlook for Fiscal Year 2025
The company expects sales to increase by 3.6% and core operating income to rise by 6.6% in fiscal year 2025, driven by strong price management, productivity initiatives, and a recovery in electronics.
Sustainability Recognition
MSCI score upgraded from BB to BBB and FTSE score improved from 3.2 to 3.5. The group was selected for the first time for the ESG index and included in the investment portfolio of GPIF.
Negative Updates
Challenges in Semiconductor Industry
Demand in the semiconductor industry, particularly in the electronics sector, has not fully recovered, affecting shipment volumes of electronic material gases.
Japan Segment Decline
Revenue in Japan decreased by 9.2% year-on-year due to conversion of a subsidiary and deconsolidation of a residential LPG business. Segment income declined by 15.7% year-on-year.
Weak Performance in Certain Segments
Chemicals remain weak, and electronics sales decreased in Japan. In Asia and Oceania, shipment volumes of core products declined, and sales of electronic material gases fell substantially.
Delayed Capital Expenditure
Actual capital expenditure was below the plan due to timing differences in large projects, impacting the expected growth and return on investment.
Company Guidance
During the fourth quarter earnings call for Nippon Sansa Holdings Corporation, several key financial and operational metrics were highlighted. The company reported a core operating income exceeding the targets set in their medium-term management plan, NS Vision 2026, demonstrating a significant improvement in profitability. Despite global geopolitical tensions and economic challenges, the company achieved a 3.6% revenue increase forecast for FY 2025, driven by strategic price management and productivity initiatives. The EBITDA margin improved by 180 basis points to 21.7%, while the adjusted net TE ratio improved to 0.74x. Additionally, they planned capital expenditures of approximately ¥165 billion for the current fiscal year, aimed at enhancing growth in the electronics and industrial gas sectors. The company maintained a stable dividend policy, proposing a 20% increase, reflecting a compound annual growth rate of 14% since 2014. With a focus on achieving an EBITDA margin target above 17%, Nippon Sansa Holdings remains committed to strategic investments and operational excellence to sustain its growth trajectory.

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
85
Very Positive
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
78
Positive
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
80
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.30T1.26T1.19T957.17B818.24B850.24B
Gross Profit
539.47B510.98B438.63B358.57B317.44B327.56B
EBIT
181.29B172.04B119.52B101.18B88.85B93.92B
EBITDA
292.00B284.39B224.16B191.77B171.35B169.65B
Net Income Common Stockholders
109.99B105.90B73.08B64.10B55.21B53.34B
Balance SheetCash, Cash Equivalents and Short-Term Investments
123.73B126.10B154.70B101.01B97.77B107.15B
Total Assets
2.47T2.41T2.16T1.98T1.84T1.75T
Total Debt
896.04B890.26B900.02B890.34B912.62B962.59B
Net Debt
772.31B764.16B767.80B796.65B821.56B862.59B
Total Liabilities
1.44T1.46T1.40T1.32T1.29T1.31T
Stockholders Equity
997.04B914.48B724.31B628.71B513.16B409.34B
Cash FlowFree Cash Flow
85.52B97.63B96.13B74.28B89.16B77.27B
Operating Cash Flow
240.38B215.98B187.96B148.76B149.23B150.08B
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 Price5279.00
Price Trends
50DMA
4766.20
Positive
100DMA
4622.27
Positive
200DMA
4707.43
Positive
Market Momentum
MACD
131.21
Negative
RSI
68.15
Neutral
STOCH
77.61
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥2.26T22.88
0.98%4.22%-6.72%
74
Outperform
$662.99B11.447.04%4.59%5.74%1.14%
73
Outperform
$1.07T23.832.49%4.05%0.46%-62.37%
69
Neutral
$1.33T10.007.25%3.84%9.06%209.91%
68
Neutral
$572.75B15.406.01%1.93%5.93%82.41%
62
Neutral
¥552.89B14.323.96%2.16%6.51%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4091
Nippon Sanso Holdings Corporation
5,279.00
627.38
13.49%
JP:4005
Sumitomo Chemical Co
336.70
18.47
5.80%
JP:4004
Showa Denko KK
3,230.00
-155.45
-4.59%
JP:4042
Tosoh
2,070.50
58.40
2.90%
JP:3407
Asahi Kasei
967.10
-23.52
-2.37%
JP:4188
Mitsubishi Chemical Holdings
751.10
-58.72
-7.25%

Nippon Sanso Holdings Corporation Corporate Events

Nippon Sanso Holdings Highlights Strategic Financial Performance in FYE2025
May 23, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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
Mar 25, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.