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Nippon Chemical Industrial Co., Ltd. (JP:4092)
:4092
Japanese Market
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Nippon Chemical Industrial Co., Ltd. (4092) AI Stock Analysis

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JP:4092

Nippon Chemical Industrial Co., Ltd.

(4092)

Rating:68Neutral
Price Target:
¥2,808.00
▲(8.75% Upside)
Nippon Chemical Industrial Co., Ltd. exhibits strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. The stock's valuation is attractive, with a low P/E ratio and a solid dividend yield, enhancing its appeal. However, technical indicators suggest overbought conditions, which could lead to short-term volatility. The absence of recent earnings call insights or notable corporate events means these factors do not influence the score.

Nippon Chemical Industrial Co., Ltd. (4092) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNippon Chemical Industrial Co., Ltd. is a Japanese company that engages in the manufacturing and sale of a wide range of chemical products. The company operates in various sectors, including basic chemicals, functional materials, electronic materials, and environmental chemicals. Its core products encompass inorganic chemicals, organic chemicals, and specialty chemicals that serve industries such as electronics, automotive, and agriculture.
How the Company Makes MoneyNippon Chemical Industrial Co., Ltd. generates revenue through the production and sale of its diverse chemical product portfolio. The company's key revenue streams include the sale of inorganic chemicals like sulfuric acid and hydrochloric acid, which are essential for various industrial applications. It also earns income from its functional materials and electronic materials, which are used in high-tech applications, including semiconductors and display panels. Additionally, Nippon Chemical's specialty chemicals, developed for specific applications such as agriculture and environmental protection, contribute to its earnings. Strategic partnerships and collaborations with other industrial players and research institutions further bolster its revenue opportunities by enhancing product innovation and market reach.

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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue38.84B38.54B38.08B37.27B34.64B
Gross Profit8.68B7.32B6.31B9.05B7.84B
EBITDA7.01B6.01B4.58B6.99B5.67B
Net Income2.56B1.59B855.00M3.73B2.18B
Balance Sheet
Total Assets75.11B76.50B72.90B70.43B70.20B
Cash, Cash Equivalents and Short-Term Investments7.93B8.74B7.84B9.01B10.00B
Total Debt15.07B16.53B16.78B15.92B15.58B
Total Liabilities28.71B31.46B30.66B28.57B31.12B
Stockholders Equity46.40B45.05B42.24B41.87B39.07B
Cash Flow
Free Cash Flow1.19B897.00M-1.32B-3.04B942.00M
Operating Cash Flow6.37B6.15B1.49B1.98B5.22B
Investing Cash Flow-5.07B-4.41B-2.82B-3.08B-3.54B
Financing Cash Flow-2.42B-870.00M102.00M120.00M-1.02B

Nippon Chemical Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2582.00
Price Trends
50DMA
2069.02
Positive
100DMA
2069.37
Positive
200DMA
2213.08
Positive
Market Momentum
MACD
97.93
Negative
RSI
89.55
Negative
STOCH
87.84
Negative
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 2582 is above the 20-day moving average (MA) of 2158.15, above the 50-day MA of 2069.02, and above the 200-day MA of 2213.08, indicating a bullish trend. The MACD of 97.93 indicates Negative momentum. The RSI at 89.55 is Negative, neither overbought nor oversold. The STOCH value of 87.84 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥19.69B10.64
3.42%2.14%-5.12%
77
Outperform
¥20.18B12.41
2.18%7.57%35.66%
76
Outperform
¥19.00B9.02
4.00%11.19%122.83%
74
Outperform
¥17.19B12.33
2.45%4.46%25.80%
72
Outperform
¥17.63B12.58
3.93%11.01%105.63%
68
Neutral
¥23.16B9.20
3.02%-1.44%-1.26%
44
Neutral
AU$1.54B-7.28-22.76%4.37%-3.13%-36.41%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4092
Nippon Chemical Industrial Co., Ltd.
2,680.00
-44.84
-1.65%
JP:4064
Nippon Carbide Industries Company,Incorporated
2,019.00
370.44
22.47%
JP:4113
Taoka Chemical Co., Ltd.
1,420.00
527.58
59.12%
JP:4229
Gun Ei Chemical Industry Co., Ltd.
2,966.00
280.57
10.45%
JP:4409
Toho Chemical Industry Company, Limited
798.00
226.73
39.69%
JP:4973
Japan Pure Chemical Co., Ltd.
3,120.00
-34.73
-1.10%

Nippon Chemical Industrial Co., Ltd. Corporate Events

Nippon Chemical Industrial Corrects Major Shareholder Information
Aug 7, 2025

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
Aug 7, 2025

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
Aug 7, 2025

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
Jul 31, 2025

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
Jul 25, 2025

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.

Nippon Chemical Announces Disposal of Treasury Shares for Executive Remuneration
Jul 7, 2025

Nippon Chemical Industrial Co., Ltd. has announced the disposal of 20,541 treasury shares as part of a restricted share-based remuneration plan. This move aims to align the interests of directors and executive officers with those of shareholders by sharing the risks and benefits of share price fluctuations, thereby enhancing corporate value and commitment to the company’s growth.

Nippon Chemical Industrial Reports Fiscal Year 2025 Financial Results
May 14, 2025

Nippon Chemical Industrial Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.8% to ¥38,843 million. The company experienced significant growth in operating profit, which rose by 47.6% to ¥3,342 million, and profit attributable to owners of the parent increased by 60.9% to ¥2,559 million. Despite these positive results, comprehensive income decreased by 33.7% compared to the previous fiscal year. The company also announced an increase in annual dividends per share, reflecting its commitment to returning value to shareholders.

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: Aug 09, 2025