Nippon Sanso Holdings Corporation (4091) AI Stock Analysis

• Market Cap: ¥2.59T
• Dividend Yield: 1.11%
• Average Volume (3M): 557.70K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.78
• 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: 74 Outperform
• Price Target: ¥6,981.00 ▲(49.55% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by solid financial performance (strong margins and positive free cash flow with improving leverage), supported by constructive price/indicator trends (price above key moving averages and positive MACD). Valuation is reasonable on earnings but the low dividend yield and only moderate cash conversion/recent revenue growth keep the score from being higher.

Positive Factors

Strong profitability and free cash flow

Sustained mid-teens operating margins and substantial TTM free cash flow (~¥152B) indicate durable core profitability and internal funding capacity. This supports capex, maintenance of gas networks, and strategic reinvestment without sole reliance on external funding over the medium term.

Diversified end-market exposure

Serving a broad set of industrial and high-value markets (healthcare, semiconductors, steel, chemicals) reduces revenue cyclicality and creates multiple growth levers. Exposure to secularly growing electronics and healthcare demand supports steadier medium-term volumes and premium specialty gas sales.

Improving leverage and steady returns

A falling debt-to-equity ratio alongside consistent ROE around 10–12% signals de-leveraging and efficient capital use. Improved capital structure enhances resilience to cycles and increases optionality for strategic investments or bolt-on acquisitions without materially raising financial risk.

Negative Factors

Large absolute debt load

A near-¥900B nominal debt burden in a capital-intensive industry constrains financial flexibility. Large fixed obligations amplify sensitivity to slower cash flow periods and limit room for aggressive share actions or rapid capex expansion without careful debt management or improved cash conversion.

Modest recent revenue growth

Top-line growth has cooled to low single digits, reducing scope for operating leverage to drive faster margin or earnings expansion. Without stronger organic demand or strategic expansion in high-growth niches, midterm EPS and cash-growth trajectories may remain constrained.

Suboptimal cash conversion

Although absolute FCF is positive, conversion from accounting profits is weak and OCF coverage is low. Persistent working-capital needs or capex absorption can limit discretionary cash for debt paydown, dividends, or M&A, slowing balance-sheet repair despite profitability.

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 makes money primarily by producing, distributing, and selling industrial and specialty gases, and by providing associated equipment and services that enable customers to use those gases reliably and safely. Key revenue streams include: 1) Bulk industrial gas supply (longer-term supply contracts): The company generates recurring revenue by supplying large volumes of oxygen, nitrogen, argon and other gases to industrial customers. Supply is typically delivered via pipeline to large sites, by on-site plants located at or near customer facilities, or by bulk liquid delivery in tank trucks. These arrangements tend to be contract-based and support stable, ongoing sales tied to customers’ production levels. 2) Packaged gases and specialty gases (cylinders and small-volume supply): It earns revenue from sales of gases filled into cylinders and other containers for laboratories, fabrication shops, hospitals, and smaller industrial users. This business often includes rental/maintenance fees for cylinders and related handling services, and may include higher-margin specialty and high-purity products for electronics and analytical applications. 3) Electronics and advanced materials-related gas solutions: The company supplies high-purity gases and gas handling solutions used in electronics and semiconductor manufacturing. Revenue comes from the sale of these gases and from supporting infrastructure and services required for stringent purity and safety requirements. 4) Equipment, engineering, and systems: Beyond the gas itself, the company sells and services equipment such as vaporizers, gas supply systems, storage tanks, and related safety/control systems. It also provides engineering, installation, and maintenance services for gas production and distribution facilities (including on-site gas plants), generating project revenue and ongoing service/maintenance income. 5) Other related products and services: Where applicable, the company can earn additional income from logistics and distribution services within its gas supply chain (e.g., delivery and handling), and from value-added services tied to stable supply, uptime, and compliance. Earnings drivers and factors: - Demand across multiple end markets (steel, chemicals, healthcare, electronics, etc.) diversifies revenue sources. - Long-term on-site/pipeline supply arrangements can provide relatively predictable, recurring sales. - Growth in electronics/semiconductor manufacturing can support demand for high-purity gases and integrated supply solutions. Significant partnerships: null

Nippon Sanso Holdings Corporation Financial Statement Overview

Summary

Overall fundamentals are solid with strong TTM profitability (gross margin ~42%, EBIT margin ~13.5%, net margin ~8.6%) and positive free cash flow (TTM ~¥152B). Balance sheet leverage is moderate and improving (debt-to-equity ~0.75), but absolute debt remains sizable (~¥878B). Recent revenue growth is modest (~1.4%) and cash conversion is only moderate (FCF ~58% of net income; OCF coverage ratio ~0.54).

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	325.27B	299.60B	284.39B	224.16B	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	902.65B	936.92B	941.78B	929.22B	949.24B
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: Neutral
• 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 5863.35, below the 50-day MA of 5387.92, and below the 200-day MA of 5246.10, indicating a bullish trend. The MACD of 178.60 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 80.31 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
4063	84 Outperform	¥12.58T	18.04	11.19%	2.17%	3.77%	0.35%
4093	79 Outperform	¥15.97B	8.02	―	3.89%	-3.00%	-29.83%
4097	79 Outperform	¥61.94B	11.06	―	2.88%	3.42%	13.37%
4091	74 Outperform	¥2.59T	14.14	―	1.11%	2.35%	0.43%
3407	68 Neutral	¥2.11T	8.67	8.29%	2.89%	3.55%	95.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4004	58 Neutral	$2.03T	40.66	4.42%	1.00%	-1.90%	-71.97%

Nippon Sanso Holdings Corporation Corporate Events

Nippon Sanso Lifts Profits and Forecasts on Steady Industrial Gas Demand

Nippon Sanso Holdings reported solid results for the first three quarters of the fiscal year ending March 2026, with revenue up 2.7% year-on-year to ¥997.7 billion and core operating income rising 4.6%, while net income attributable to owners of the parent jumped 20.2%, lifting basic earnings per share to ¥215.18. The company strengthened its financial position with higher total assets and equity, maintained its dividend plan with a projected full-year payout of ¥58 per share, revised upward its full-year earnings forecast, and expanded its consolidation scope by adding four companies including Coregas Pty Ltd, underscoring continued growth and balance sheet improvement for stakeholders.

The most recent analyst rating on (JP:4091) stock is a Buy with a Yen6015.00 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 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.