Nippon Chemical Industrial Co., Ltd. (4092) AI Stock Analysis

• Market Cap: ¥25.66B
• Dividend Yield: 3.64%
• Average Volume (3M): 39.26K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.28
• Revenue Growth: -1.44%
• EPS Growth: -1.26%
• Country: JP
• Employees: 747
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 137.74
• Shares Outstanding: 8,922,775
• 10 Day Avg. Volume: 37,430
• 30 Day Avg. Volume: 39,263
• PEG Ratio: 0.13
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 16.48
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,123.00 ▲(7.25% Upside)

Nippon Chemical Industrial Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust revenue growth and profitability improvements are significant strengths. Technical analysis indicates moderate bullish momentum, though caution is advised due to nearing overbought conditions. The lack of earnings call and corporate events data did not impact the score.

Nippon Chemical Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Chemical Industrial Co., Ltd. (4092) is a prominent Japanese company specializing in the manufacturing and distribution of a wide range of chemical products. Operating primarily in sectors such as petrochemicals, specialty chemicals, and advanced materials, the company focuses on providing innovative solutions to various industries, including automotive, electronics, and pharmaceuticals. Its core products include synthetic resins, industrial chemicals, and functional materials that cater to diverse applications, reinforcing its position as a key player in the chemical industry.

How the Company Makes Money

Nippon Chemical Industrial Co., Ltd. generates revenue through the production and sale of its chemical products across multiple sectors. The company’s revenue model is primarily based on the direct sale of its manufactured goods to both domestic and international markets. Key revenue streams include the sale of specialty chemicals and materials, which often involve long-term contracts with industrial clients. Additionally, the company may benefit from partnerships with other manufacturing firms and collaborations in research and development, allowing it to innovate and expand its product offerings. Factors contributing to its earnings include the demand for high-performance materials in emerging technologies and the company’s ability to adapt to market needs through continuous improvement in manufacturing processes.

Nippon Chemical Industrial Co., Ltd. Financial Statement Overview

Summary

Nippon Chemical Industrial Co., Ltd. demonstrates strong financial health with robust revenue growth, improved profitability, and efficient cash flow management. While leverage is controlled and equity levels are high, the company faces challenges in maintaining high free cash flow due to capital expenditures. Overall, the financial outlook is positive, supported by strategic operational improvements.

Income Statement

The company shows solid revenue growth with a 0.79% increase from 2024 to 2025. Gross profit margin improved to 22.34%, indicating efficient production. Net profit margin increased to 6.59%, showing better cost control and profitability. EBIT and EBITDA margins also improved, reaching 8.42% and 18.03% respectively, highlighting strong operational performance.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.32, indicating manageable leverage. Return on Equity (ROE) increased to 5.52%, reflecting enhanced profitability. The equity ratio stands at 61.77%, suggesting a solid capital structure with substantial owner financing.

Cash Flow

Operating cash flow to net income ratio remains robust at 2.49, indicating efficient cash generation relative to profits. The free cash flow to net income ratio is lower at 0.46, reflecting significant capital expenditures. Despite this, free cash flow growth of 32.42% from 2024 to 2025 is a positive sign of improving liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.41B	38.84B	38.54B	38.08B	37.27B	34.64B
Gross Profit	8.10B	8.68B	7.32B	6.31B	9.05B	7.84B
EBITDA	6.92B	7.01B	6.01B	4.58B	6.33B	5.92B
Net Income	2.51B	2.56B	1.59B	855.00M	3.73B	2.18B
Balance Sheet
Total Assets	76.21B	75.11B	76.50B	72.90B	70.43B	70.20B
Cash, Cash Equivalents and Short-Term Investments	7.63B	7.93B	8.74B	7.84B	9.01B	10.00B
Total Debt	15.07B	15.07B	16.53B	16.78B	15.92B	15.58B
Total Liabilities	29.21B	28.71B	31.46B	30.66B	28.57B	31.12B
Stockholders Equity	47.00B	46.40B	45.05B	42.24B	41.87B	39.07B
Cash Flow
Free Cash Flow	0.00	1.19B	897.00M	-1.32B	-3.04B	942.00M
Operating Cash Flow	0.00	6.37B	6.15B	1.49B	1.98B	5.22B
Investing Cash Flow	0.00	-5.07B	-4.41B	-2.82B	-3.08B	-3.54B
Financing Cash Flow	0.00	-2.42B	-870.00M	102.00M	120.00M	-1.02B

Nippon Chemical Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2912.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4092, the sentiment is Positive. The current price of 2912 is above the 20-day moving average (MA) of 2856.60, above the 50-day MA of 2836.33, and above the 200-day MA of 2302.90, indicating a bullish trend. The MACD of 24.01 indicates Negative momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 65.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4092.

Nippon Chemical Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4229	75 Outperform	¥22.73B	11.94	―	2.89%	3.53%	8.36%
4064	73 Outperform	¥20.61B	9.78	―	3.79%	11.19%	122.83%
4973	72 Outperform	¥17.57B	13.11	―	4.07%	18.02%	18.04%
4092	71 Outperform	¥25.66B	10.19	―	3.64%	-1.44%	-1.26%
4113	66 Neutral	¥17.11B	9.04	―	3.27%	13.09%	89.45%
4409	66 Neutral	¥16.32B	11.70	―	2.70%	1.30%	-5.03%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Chemical Industrial Co., Ltd. Corporate Events

Nippon Chemical Industrial Corrects Major Shareholder Information

Nippon Chemical Industrial Co., Ltd. announced a correction regarding its major shareholders. The company clarified that the Nippon Chemical Industrial Co., Ltd. Partner Shareholding Association is the major and lead shareholder, rather than Japan Master Trust Bank Co., Ltd. This correction does not affect the previously reported details about the shareholders’ voting rights and shareholding ratios.

Nippon Chemical Boosts Earnings and Dividend Forecasts Amid Strong Demand

Nippon Chemical Industrial Co., Ltd. has revised its earnings and dividend forecasts for the fiscal year ending March 2026, citing increased demand for its specialty chemical products and favorable economic conditions such as a stronger yen and reduced raw material costs. The company has raised its net sales and profit expectations significantly, and in line with its policy of prioritizing shareholder returns, it has also increased its annual dividend forecast, reflecting improved financial performance.

Nippon Chemical Reports Mixed Q1 Results and Raises Dividend Forecast

Nippon Chemical Industrial Co., Ltd. reported its consolidated financial results for the three months ending June 30, 2025, with net sales increasing by 5.5% year-on-year to ¥10,949 million. However, the company experienced a decline in operating and ordinary profits by 34.2% and 34.9%, respectively. Despite these challenges, the company revised its forecast for the fiscal year ending March 31, 2026, with expected net sales growth of 4.3% and an increase in annual dividends per share, indicating a strategic focus on shareholder returns.

Nippon Chemical Completes Treasury Share Disposal for Compensation

Nippon Chemical Industrial Co., Ltd. has completed the payment procedure for the disposal of treasury shares as part of a restricted stock compensation plan. This move, resolved at the Board of Directors meeting on July 7, 2025, involves the disposal of 20,541 shares of common stock at a price of 2,032 yen per share, totaling 41,739,312 yen. The disposal is aimed at compensating two directors and 16 corporate officers, executive officers, and general managers, enhancing the company’s compensation structure.

Nippon Chemical Announces Change in Major Shareholders

Nippon Chemical Industrial Co., Ltd. announced a change in its major shareholders as of June 20, 2025, with the Nippon Chemical Industrial Co., Ltd. Partner Stockholding Association increasing its shareholding slightly. This change is not expected to impact the company’s management or performance, as the stockholding association plans to continue purchasing shares, maintaining a fluid ownership structure.