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Nippon Sanso Holdings Corporation (JP:4091)
:4091
Japanese Market
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Nippon Sanso Holdings Corporation (4091) AI Stock Analysis

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JP:4091

Nippon Sanso Holdings Corporation

(4091)

Rating:78Outperform
Price Target:
¥6,532.00
▲(14.50%Upside)
Nippon Sanso Holdings Corporation presents a strong financial profile with consistent growth and robust cash flows. Despite technical overbought signals, the company's strategic initiatives and improved financial health signal positive long-term prospects. Valuation suggests fair pricing, but modest dividend yield highlights a growth-oriented stance.

Nippon Sanso Holdings Corporation (4091) vs. iShares MSCI Japan ETF (EWJ)

Nippon Sanso Holdings Corporation Business Overview & Revenue Model

Company DescriptionNippon Sanso Holdings Corporation, headquartered in Japan, is a leading global supplier of industrial gases, providing a wide range of products and services across various sectors including electronics, healthcare, chemical, and manufacturing industries. The company specializes in the production and distribution of gases such as oxygen, nitrogen, argon, and carbon dioxide, as well as the development of related equipment and technologies.
How the Company Makes MoneyNippon Sanso Holdings Corporation generates revenue primarily through the sale of industrial gases and related services. Its core revenue streams include the production and distribution of bulk and packaged gases to industrial clients, as well as the leasing and maintenance of gas-related equipment and systems. Significant partnerships with companies in the electronics, healthcare, and manufacturing sectors also contribute to its earnings. Additionally, the company engages in innovation and development of advanced gas technologies, enhancing its service offerings and expanding its market reach.

Nippon Sanso Holdings Corporation Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 16.24%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
Nippon Sanso Holdings Corporation's earnings call highlighted strong revenue growth and improvements in core operating income, driven by effective price management and strategic investments. However, challenges were noted in shipment volumes, particularly in the U.S. and Asia, and the Thermos and Japan business segments faced revenue and income declines. The company's strategic acquisitions and investments suggest a forward-looking growth strategy, but volume declines present a challenge.
Q1-2025 Updates
Positive Updates
Revenue Growth and Core Operating Income Increase
Revenue increased by 6.6% year-over-year, with Core Operating Income rising by 18.7%. Excluding currency impacts, Core Operating Income was up 8.8%, and the Core Operating Income margin improved to 14.7%.
Productivity and Price Management
The company attributes its strong financial performance to effective price management, moderating energy costs, and operational excellence with productivity improvements.
U.S. Business Performance
U.S. business revenue increased by 12.9%, with segment income rising by 32.3%, driven by effective price management and productivity initiatives.
European Segment Growth
European segment revenue increased by 16.3%, and segment income grew by 26.6%, supported by increased shipment volumes and a decline in electricity costs.
Strategic Acquisitions and Investments
The company announced the acquisition of an LP gas business in Australia and continued to report a strong capital investment backlog of approximately ¥180 billion.
Negative Updates
Volume Decline in Key Regions
Despite overall revenue growth, there was a decline in shipment volumes in regions such as the U.S. and Asia, particularly in electronics gas and packaged gas.
Asia and Oceania Performance Challenges
In Asia and Oceania, revenue decreased by 0.5% when excluding currency impacts, and segment income also declined by 5.7% due to soft demand in the electronics business.
Thermos Business Segment Income Decline
Despite revenue growth, segment income for the Thermos business decreased by 15% year-over-year, affected by increased manufacturing costs due to yen depreciation.
Challenges in Japan Business
The Japan segment saw a revenue decrease of 6.2% year-over-year, affected by deconsolidation of a residential LP gas subsidiary and soft demand in electronic material gas.
Company Guidance
During Nippon Sanso Holdings Corporation's Q1 earnings call for the fiscal year ending March 2025, the company provided detailed guidance and metrics. Revenue increased by 6.6% year-over-year, with core operating income rising by 18.7%, driven by effective price management and operational excellence. The company maintained its full-year guidance with expected sales of ¥1.3 trillion and core operating income of ¥177 billion, citing currency volatility and soft volumes as reasons for caution. The company emphasized its focus on capital investments, particularly in the U.S., and noted that environmental and hydrogen-related projects accounted for approximately 50% of its backlog. The Q1 results revealed regional variations, with significant volume growth in Europe and substantial investments in the U.S. The company also highlighted its strategic efforts in diversity, female engagement, and improving corporate value.

Nippon Sanso Holdings Corporation Financial Statement Overview

Summary
Nippon Sanso Holdings Corporation exhibits strong revenue growth and profitability. The solid equity position and efficient cash generation further support the company's robust financial standing. However, there is room for improvement in liability management.
Income Statement
87
Very Positive
Nippon Sanso Holdings Corporation has demonstrated strong revenue growth with a consistent upward trajectory over the past years, highlighted by a 4.2% increase in the most recent year. The company maintains healthy profit margins, with a gross profit margin of approximately 41.7% and a net profit margin of 7.6% for the latest fiscal year. Both EBIT and EBITDA margins are robust, at 14.2% and 21.5%, respectively, indicating efficient operational management and profitability.
Balance Sheet
75
Positive
The balance sheet reveals a solid equity position, with a debt-to-equity ratio of 0.87, showcasing manageable leverage. The return on equity stands at 10.1%, reflecting decent profitability for shareholders. The equity ratio is 40.5%, indicating a stable capital structure, though there is room for improvement in reducing total liabilities.
Cash Flow
82
Very Positive
The cash flow statement depicts a positive cash flow trajectory, with a significant operating cash flow to net income ratio of 2.38, suggesting strong cash generation relative to profits. The free cash flow to net income ratio is 0.89, which is indicative of healthy cash flow management. Free cash flow growth, although fluctuating, remains positive, supporting the company's operational and financial stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.31T1.26T1.19T957.17B818.24B
Gross Profit545.44B510.98B438.63B358.57B317.44B
EBITDA280.98B284.39B227.44B191.77B171.35B
Net Income98.78B105.90B73.08B64.10B55.21B
Balance Sheet
Total Assets2.42T2.41T2.16T1.98T1.84T
Cash, Cash Equivalents and Short-Term Investments144.53B126.10B154.70B101.01B97.77B
Total Debt850.57B890.26B900.02B890.34B912.62B
Total Liabilities1.40T1.46T1.40T1.32T1.29T
Stockholders Equity980.45B914.48B724.31B628.71B513.16B
Cash Flow
Free Cash Flow88.32B97.63B96.13B74.28B89.16B
Operating Cash Flow235.15B215.98B187.96B148.76B149.23B
Investing Cash Flow-142.93B-124.65B-98.07B-70.86B-59.69B
Financing Cash Flow-73.29B-110.07B-54.43B-77.95B-103.16B

Nippon Sanso Holdings Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5705.00
Price Trends
50DMA
5338.58
Positive
100DMA
4994.98
Positive
200DMA
4788.61
Positive
Market Momentum
MACD
79.18
Negative
RSI
65.50
Neutral
STOCH
92.11
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 5705 is above the 20-day moving average (MA) of 5514.75, above the 50-day MA of 5338.58, and above the 200-day MA of 4788.61, indicating a bullish trend. The MACD of 79.18 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 92.11 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥2.47T25.00
0.84%4.22%-6.73%
74
Outperform
$721.86B12.467.04%4.08%5.74%1.14%
73
Outperform
$1.42T10.637.25%3.65%9.06%210.11%
71
Outperform
$670.17B18.026.01%1.76%5.93%82.41%
70
Outperform
$1.15T25.682.49%3.94%0.46%-62.37%
61
Neutral
¥611.10B15.823.96%2.41%6.51%
44
Neutral
C$980.66M-6.79-13.68%1.76%17.37%-32.98%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4091
Nippon Sanso Holdings Corporation
5,705.00
1,163.27
25.61%
JP:4005
Sumitomo Chemical Co
373.20
4.36
1.18%
JP:4004
Showa Denko KK
3,701.00
72.47
2.00%
JP:4042
Tosoh
2,268.50
319.22
16.38%
JP:3407
Asahi Kasei
1,041.50
10.71
1.04%
JP:4188
Mitsubishi Chemical Holdings
812.50
-37.39
-4.40%

Nippon Sanso Holdings Corporation Corporate Events

Nippon Sanso Holdings Strengthens Alliance with Mitsubishi Chemical Group
Jun 30, 2025

Nippon Sanso Holdings Corporation has announced its relationship with its parent company, Mitsubishi Chemical Group Corporation, highlighting a capital and business alliance aimed at mutual growth through sales expansion and market development. The company maintains operational independence while ensuring transparency and protection for minority shareholders in transactions with the controlling shareholder.

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 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.

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.Date of analysis: Jun 21, 2025