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

• Market Cap: ¥28.74B
• Dividend Yield: 3.84%
• Average Volume (3M): 39.26K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.34
• Revenue Growth: -3.41%
• EPS Growth: -12.83%
• Country: JP
• Employees: 747
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 15.05
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,530.00 ▲(23.77% Upside)

Nippon Chemical Industrial Co., Ltd. shows strong financial performance with robust revenue growth and profitability improvements, contributing significantly to the overall score. The stock's valuation is attractive due to a low P/E ratio and a high dividend yield. However, technical indicators suggest bearish momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Healthy capital structure

A low debt-to-equity ratio (0.32) and a 61.77% equity ratio indicate durable balance-sheet resilience. This conservatism preserves borrowing capacity, reduces interest burden and refinancing risk, and gives management flexibility to fund investments or support dividends through cyclical downturns.

Improving profitability margins

Marked margin improvements across gross, EBIT and EBITDA reflect better cost control and operational efficiency. Sustainable higher margins enhance cash generation capacity, support pricing power in specialty chemicals and provide a cushion against raw material or energy cost volatility over the medium term.

Strong operating cash generation

Operating cash flow well above reported net income and substantial FCF growth signal high earnings quality and effective working-capital management. Durable cash conversion supports reinvestment, debt servicing and shareholder returns even if earnings growth moderates.

Negative Factors

Capital expenditure pressure on FCF

Significant capex lowers FCF relative to net income, constraining discretionary cash despite solid operating cash flow. Ongoing investment needs can limit flexibility for dividends, buybacks or debt reduction, and make cash generation more sensitive to project timing and execution risk.

Declining EPS trend

Material negative EPS growth indicates recent earnings pressure that can persist if structural demand or margin headwinds remain. Falling EPS reduces retained earnings accumulation, constrains reinvestment capacity and raises investor scrutiny of sustainable profit improvement over coming quarters.

Weak/volatile revenue growth

Negative revenue growth signals demand volatility or pricing pressures in end markets, reducing predictability of cash flows and complicating capacity planning. For a B2B chemical supplier, inconsistent top-line trends can limit scale benefits and slow durable margin expansion.

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

Company Description

Nippon Chemical Industrial Co., Ltd. manufactures and sells various chemical products in Japan. The company provides inorganic chemical products, including chromium compounds, phosphorus compounds, silicates and silica products, lithium compounds, and pigments, as well as other industrial chemicals, such as sodium sulfate, potassium permanganate, and cuprous oxide products. It also offers specialty chemicals, such as electronic ceramic materials, barium compounds, circuit materials, battery materials, organic phosphorus compounds, pharmaceutical and agrochemical intermediates, semiconductor materials, and flame retardants, as well as other specialty products comprising thiourea and high purity thiourea; and custom manufacturing of organic chemical products. In addition, the company manages real estate properties and bookstores; and designs, manufactures, and installs various air conditioning equipment. Further, it exports its products to Southeast Asia and other countries. The company was formerly known as Nippon Seiren Co., Ltd. and changed its name to Nippon Chemical Industrial Co., Ltd. in March 1944. Nippon Chemical Industrial Co., Ltd. was founded in 1893 and is headquartered in Tokyo, Japan.

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: 2852.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2852 is below the 20-day moving average (MA) of 3192.55, below the 50-day MA of 2867.28, and above the 200-day MA of 2488.64, indicating a bullish trend. The MACD of 105.16 indicates Positive momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 52.10 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	81 Outperform	¥32.41B	14.61	―	2.47%	3.53%	8.36%
4064	80 Outperform	¥25.53B	8.73	―	3.21%	9.61%	173.72%
4973	77 Outperform	¥27.49B	16.86	―	3.63%	18.02%	18.04%
4113	69 Neutral	¥16.22B	9.47	―	3.23%	13.09%	89.45%
4092	66 Neutral	¥28.74B	12.65	―	3.84%	-3.41%	-12.83%
4409	66 Neutral	¥16.10B	13.14	―	2.78%	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 to Book Extraordinary Gain from Sale of Cross-Shareholdings

Nippon Chemical Industrial Co., Ltd. has announced that its board has approved the sale of three listed investment securities as part of a review of its cross-shareholdings to improve capital efficiency. The transactions, planned between December 25, 2025 and the end of March 2026, are expected to generate an estimated gain on sale of around 1 billion yen, which will be booked as extraordinary income in the consolidated results for the fiscal year ending March 2026, potentially bolstering earnings, while the company continues to review its full-year forecast and may update investors if disclosure becomes necessary.

The most recent analyst rating on (JP:4092) stock is a Hold with a Yen2725.00 price target. To see the full list of analyst forecasts on Nippon Chemical Industrial Co., Ltd. stock, see the JP:4092 Stock Forecast page.

Nippon Chemical Industrial to Buy Back Up to 1.14% of Shares to Boost Capital Efficiency

Nippon Chemical Industrial Co., Ltd. has announced that its board of directors has approved the acquisition of up to 100,000 common shares, representing about 1.14% of its outstanding stock (excluding treasury shares), as treasury stock. The company plans to spend up to 260 million yen on market purchases via the Tokyo Stock Exchange between January 5 and March 31, 2026, with the stated aim of improving capital efficiency and enhancing shareholder returns, signaling a shareholder-friendly capital allocation policy that may support its share price and underline management’s confidence in the company’s financial position.

The most recent analyst rating on (JP:4092) stock is a Hold with a Yen2725.00 price target. To see the full list of analyst forecasts on Nippon Chemical Industrial Co., Ltd. stock, see the JP:4092 Stock Forecast page.

Nippon Chemical Reports Mixed Financial Results for H1 2025

Nippon Chemical Industrial Co., Ltd. reported a slight increase in net sales for the six months ended September 30, 2025, but experienced a significant decline in operating and ordinary profits compared to the previous year. Despite these challenges, the company plans to increase its annual dividend per share, indicating confidence in its future financial stability.

The most recent analyst rating on (JP:4092) stock is a Buy with a Yen3123.00 price target. To see the full list of analyst forecasts on Nippon Chemical Industrial Co., Ltd. stock, see the JP:4092 Stock Forecast page.