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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 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 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 exhibits strong revenue growth and profitability, supported by efficient operations. The financial statements reveal a robust financial profile with a solid balance sheet and positive cash flow. The company maintains healthy profit margins and shows a sustainable leverage level.
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.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
1.31T1.26T1.19T957.17B818.24B
Gross Profit
545.44B510.98B438.63B358.57B317.44B
EBIT
186.13B172.04B119.52B101.18B88.85B
EBITDA
280.98B284.39B227.44B191.77B171.35B
Net Income Common Stockholders
98.78B105.90B73.08B64.10B55.21B
Balance SheetCash, Cash Equivalents and Short-Term Investments
144.53B126.10B154.70B101.01B97.77B
Total Assets
2.42T2.41T2.16T1.98T1.84T
Total Debt
850.57B890.26B900.02B890.34B912.62B
Net Debt
706.04B764.16B767.80B796.65B821.56B
Total Liabilities
1.40T1.46T1.40T1.32T1.29T
Stockholders Equity
980.45B914.48B724.31B628.71B513.16B
Cash FlowFree Cash Flow
88.32B97.63B96.13B74.28B89.16B
Operating Cash Flow
235.15B215.98B187.96B148.76B149.23B
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 Price5279.00
Price Trends
50DMA
4793.08
Positive
100DMA
4644.62
Positive
200DMA
4715.12
Positive
Market Momentum
MACD
139.15
Negative
RSI
71.28
Negative
STOCH
84.24
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 5279 is above the 20-day moving average (MA) of 5098.50, above the 50-day MA of 4793.08, and above the 200-day MA of 4715.12, indicating a bullish trend. The MACD of 139.15 indicates Negative momentum. The RSI at 71.28 is Negative, neither overbought nor oversold. The STOCH value of 84.24 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥2.28T23.13
0.91%4.22%-6.72%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
$9.18B10.207.25%4.07%
$7.41B25.252.49%4.07%
$4.03B16.586.01%1.92%
$3.82B17.783.96%0.02%
$4.52B11.877.04%0.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4091
Nippon Sanso Holdings Corporation
5,358.00
756.90
16.45%
AHKSF
Asahi Kasei
6.55
0.36
5.82%
MTLHF
Mitsubishi Chemical Holdings
5.24
0.50
10.55%
SHWDF
Showa Denko KK
22.16
0.82
3.84%
SOMMF
Sumitomo Chemical Co
2.75
0.79
40.31%
TOSCF
Tosoh
14.51
1.90
15.07%

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.