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Nippon Sanso Holdings Corporation (JP:4091)
:4091
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Nippon Sanso Holdings Corporation
(4091)
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Rating:70Outperform
Price Target:
¥5,253.00
▲(12.53% Upside)
Nippon Sanso Holdings Corporation's strong financial performance and positive earnings call insights are the primary drivers of its overall score. However, technical indicators suggest a bearish trend, and valuation metrics indicate moderate attractiveness. The company's sustainability initiatives and strategic focus provide a balanced outlook amidst sector challenges.
Positive Factors
Revenue Growth
Consistent revenue and core operating income growth indicate strong market demand and effective cost management, supporting long-term business stability.
Sustainability Initiatives
Commitment to sustainability enhances brand reputation and aligns with global regulatory trends, potentially opening new market opportunities.
European Market Expansion
Growth in the European market strengthens the company's international presence and diversifies revenue streams, reducing dependency on domestic markets.
Negative Factors
Non-Recurring Impairment Charge
Significant impairment charges can impact financial results and reflect potential risks in customer reliability and project execution.
Challenges in Gas and Semiconductor Sectors
Declining gas volumes and semiconductor sector challenges may affect future revenue growth and operational efficiency.
CapEx Backlog Decrease
A reduced CapEx backlog could limit future growth opportunities and indicate potential project execution challenges.
Nippon Sanso Holdings Corporation (4091) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.03T
Dividend Yield1.11%
Average Volume (3M)557.70K
Price to Earnings (P/E)19.0
Beta (1Y)0.80
Revenue Growth2.35%
EPS Growth0.43%
CountryJP
Employees19,533
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)67.07
Shares Outstanding433,092,830
10 Day Avg. Volume573,680
30 Day Avg. Volume557,703
Financial Highlights & Ratios
PEG Ratio-2.94
Price to Book (P/B)1.99
Price to Sales (P/S)1.49
P/FCF Ratio22.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon Sanso Holdings Corporation Business Overview & Revenue Model
Company DescriptionNippon 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 MoneyNippon 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 Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2025)
| Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
The call presented solid operational and financial progress: mid-single digit revenue growth, stronger core operating income and margin expansion, significant operating cash flow improvement, strategic M&A to expand regional footprints, and successful refinancing that reduces interest costs. Offsets include volume softness in parts of the business, regionally mixed profitability (Asia & Oceania pressures), a substantial increase in investing outflows and a meaningful free cash flow decline, plus project execution and leverage implications from acquisitions and suspended projects. On balance the positive execution on pricing, productivity, margin expansion, backlog size, and strategic deals outweigh the near-term cash/volume challenges.Q3-2025 Updates
Positive Updates
Consolidated Revenue Growth
Q3 revenue increased 3.8% year-over-year (Oct–Dec 2024). Excluding favorable currency, revenue rose ~1.2%. Management maintained full-year sales guidance at ¥1.3 trillion.
Core Operating Income and Margin Improvement
Core operating income (COI) increased 7.5% year-over-year (ex-currency +4.5%). COI margin expanded by 50 basis points to 14.1%. EBITDA margin also improved by 50 basis points to 23%.
Strong Operating Cash Flow and Financial Actions
Operating cash flow improved ~19% year-to-date (about ¥24 billion). The company refinanced ¥75 billion of hybrid debt in Q3 (¥175 billion refinanced in just over one year), saving nearly 90 basis points in effective interest expense per annum.
Upward Revision to COI Guidance
Core operating income guidance was revised up by ¥8 billion (4.5%) to ¥185 billion; operating income guidance increased by ¥1 billion to ¥178 billion. Net income forecast for the year is ¥110 billion (¥107 billion attributable to parent).
Backlog and Growth-related Projects
Backlog of projects (≥¥500 million) as of Dec 31, 2024 is approximately ¥170 billion, with environment/hydrogen‑related projects accounting for roughly 45% of the backlog, indicating sizable future CapEx-driven growth opportunities.
Strategic Acquisitions to Expand Geographic and Service Footprint
Announced acquisitions: Coregas Group (Australia/New Zealand) and Esteve Teijin Healthcare (Spain). Coregas expected to increase the company’s presence in Australia by ~50% (raising Australia’s share of Asia & Oceania sales from ~30% to ~40%). The Spain homecare acquisition expands European medical/homecare footprint (asset <3% of group revenue). Both deals targeted to close mid‑2025 pending approvals.
Segment Standouts — Europe and U.S.
Europe: revenue ¥83.3 billion, +10.0% YoY (ex-FX +6.9%); segment income ¥15.4 billion, +16.4% YoY (ex-FX +13.2%). U.S.: revenue ¥90.5 billion, +3.3% YoY (but ex-FX -2.1%); segment income ¥13.5 billion, +9.3% YoY (ex-FX +3.4%).
Thermos Business Resilience
Thermos revenue ¥8.0 billion, +3.3% YoY; segment profit ¥1.6 billion, +11.8% YoY (design/product updates helped offset yen-driven cost increases).
Negative Updates
Volume Softness and Product Weaknesses
Overall volume impact was negative 1.4% in Q3. Specific product challenges include softness in packaged gases (dry ice, hard goods), semiconductor-related gases in some regions, and weak helium demand in Europe.
Asia & Oceania Profit Decline
Asia & Oceania revenue rose to ¥45.2 billion (+9.4% YoY; ex-FX +6.0%), but segment profit decreased to ¥4.0 billion, down 1.7% YoY (ex-FX -4.3%), pressured by higher electricity and labor costs and some price declines.
Japan Revenue Decline
Japan revenue decreased to ¥100.8 billion, down ¥2.5 billion or -2.4% YoY (partly due to deconsolidation of a residential LP gas subsidiary and lower air separation gas shipments), though Japan segment income still rose 2.9%.
Free Cash Flow and Increased Investing Outflows
Year‑to‑date free cash flow decreased by ~31% due to higher CapEx and M&A. Investing activities increased 47% YoY driven by large capital projects and acquisition spending, reducing near‑term liquidity generation.
Project Suspensions and Uncertainties (Vertex)
Certain large projects remain uncertain or suspended (e.g., Vertex project suspended following Chapter 11; recovery/ restart timing and impact unclear), introducing execution and backlog risk despite overall backlog size.
Balance Sheet / Leverage Targets May Be Challenged
Management acknowledged that opportunistic acquisitions (total acquisition payments discussed around ~¥100 billion) may make achieving the target net debt-to-equity ratio of 0.7 difficult in the near term, increasing leverage risk versus prior targets.
Macro & Geopolitical Risks
Management flagged elevated geopolitical tensions, U.S. tariff moves and potential resurgence of inflation as risks that could indirectly affect customer industries and supply chains; company believes direct tariff impact is limited due to local production model but remains watchful.
Company Guidance
The company kept full-year sales guidance unchanged at ¥1.3 trillion while raising core operating income (COI) by ¥8.0 billion (up 4.5%) to ¥185.0 billion and nudging operating income up ¥1.0 billion to ¥178.0 billion; pre-tax income is projected at ¥156.5 billion and net income at ¥110.0 billion (¥107.0 billion attributable to the parent). Q3 trends that underpin the guidance included revenue +3.8% (ex-currency ~+1.2%), COI +7.5% (ex-currency +4.5%), COI margin +50 bps to 14.1% and EBITDA margin +50 bps to 23%; the Q3 consolidated variance breakdown was currency +2.6%, price +2.0%, volume -1.4%, pass-through +0.4% and other +0.2%. Management assumes USD/JPY ¥152.45 and EUR/JPY ¥165.83 for Q4, and notes currency sensitivity of ~¥2.4 billion revenue / ¥350 million COI per ¥1 vs USD and ~¥1.9 billion revenue / ¥350 million COI per ¥1 vs EUR. Key cash and investment metrics cited were backlog ≈¥170 billion (projects ≥¥500 million), operating cash flow up ~19% year-to-date (~¥24 billion), free cash flow down ~31% YTD due to higher CapEx and M&A, and refinancing of ¥75 billion hybrid debt in Q3 (¥175 billion refinanced in ~1 year) saving roughly 90 basis points in annual effective interest expense.Nippon Sanso Holdings Corporation Financial Statement Overview
Summary
Nippon Sanso Holdings Corporation exhibits strong financial performance with robust growth and profitability in the income statement, a stable financial structure with moderate leverage in the balance sheet, and efficient cash management in the cash flow statement. The company is well-positioned for future growth.Income Statement
Nippon Sanso Holdings Corporation demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.72% and consistent gross profit margins around 41.8%. The net profit margin is stable at 7.58%, indicating solid profitability. The EBIT and EBITDA margins are healthy, reflecting efficient operations. Overall, the income statement shows robust growth and profitability, with a positive trajectory.85
Very Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.86, indicating a balanced approach to leveraging. The return on equity is 10.53%, showing effective utilization of shareholder funds. The equity ratio stands at 42.3%, suggesting a stable financial structure. While the balance sheet is strong, there is room for improvement in reducing debt levels further.78
Positive
Cash Flow
The cash flow statement reflects a healthy operating cash flow to net income ratio of 0.60, indicating strong cash generation relative to earnings. Free cash flow has grown by 4.17% TTM, showcasing effective cash management. The free cash flow to net income ratio of 0.48 suggests good cash conversion. Overall, the cash flow position is solid, supporting the company's financial health.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.32T | 1.31T | 1.26T | 1.19T | 957.17B | 818.24B |
| Gross Profit | 551.45B | 545.44B | 510.98B | 438.63B | 358.57B | 317.44B |
| EBITDA | 292.86B | 280.98B | 284.39B | 227.44B | 191.77B | 171.35B |
| Net Income | 107.01B | 98.78B | 105.90B | 73.08B | 64.10B | 55.21B |
Balance Sheet | ||||||
| Total Assets | 2.54T | 2.42T | 2.41T | 2.16T | 1.98T | 1.84T |
| Cash, Cash Equivalents and Short-Term Investments | 142.87B | 144.53B | 126.10B | 132.22B | 93.70B | 91.06B |
| Total Debt | 866.07B | 850.57B | 890.26B | 900.02B | 890.34B | 912.62B |
| Total Liabilities | 1.43T | 1.40T | 1.46T | 1.40T | 1.32T | 1.29T |
| Stockholders Equity | 1.07T | 980.45B | 914.48B | 724.31B | 628.71B | 513.16B |
Cash Flow | ||||||
| Free Cash Flow | 122.47B | 88.32B | 97.63B | 96.13B | 74.28B | 89.16B |
| Operating Cash Flow | 235.62B | 235.15B | 215.98B | 187.96B | 148.76B | 149.23B |
| Investing Cash Flow | -173.03B | -142.93B | -124.65B | -98.07B | -70.86B | -59.69B |
| Financing Cash Flow | -78.01B | -73.29B | -110.07B | -54.43B | -77.95B | -103.16B |
Nippon Sanso Holdings Corporation Technical Analysis
Negative
4668.00
Price Trends
4777.14
Negative
4971.04
Negative
5089.91
Negative
Market Momentum
-54.67
Positive
46.79
Neutral
34.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4091, the sentiment is Negative. The current price of 4668 is below the 20-day moving average (MA) of 4767.20, below the 50-day MA of 4777.14, and below the 200-day MA of 5089.91, indicating a bearish trend. The MACD of -54.67 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 34.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4091.
Nippon Sanso Holdings Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥802.21B | 19.85 | 4.79% | 4.21% | -1.21% | -27.21% | |
70 Outperform | ¥2.03T | 18.96 | ― | 1.11% | 2.35% | 0.43% | |
69 Neutral | ¥2.04T | 14.51 | 7.48% | 2.89% | 3.55% | 95.65% | |
68 Neutral | ¥1.35T | 12.36 | 1.09% | 3.50% | -11.50% | 25.86% | |
66 Neutral | ¥769.60B | 9.07 | 8.79% | 2.68% | -1.64% | ― | |
65 Neutral | ¥1.62T | 151.17 | 1.67% | 1.00% | -1.90% | -71.97% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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Nippon Sanso Holdings Corporation Corporate Events
Nippon Sanso Holdings Increases Dividend Forecast for Fiscal Year 2026
Oct 30, 2025
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
Oct 30, 2025
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.
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.