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

• Market Cap: ¥31.64B
• Dividend Yield: 3.84%
• Average Volume (3M): 39.26K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.29
• Revenue Growth: -3.41%
• EPS Growth: -12.83%
• Country: JP
• Employees: 747
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 57.01
• 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): 262.7
• Revenue Forecast (FY): ¥40.00B

• Rating: 72 Outperform
• Price Target: ¥3,952.00 ▲(38.57% Upside)
• Action: Upgraded Date: 02/25/26
• Date: Action: Upgraded 02/25/26

The score is driven primarily by solid financial performance (improving margins, manageable leverage, and strong operating cash generation), supported by a strong uptrend in technicals. Valuation is reasonable with a mid-teens P/E and ~3% dividend yield, though elevated RSI/Stoch and weaker free-cash-flow conversion temper the overall rating.

Positive Factors

Improving Profitability

Margin expansion across gross, EBIT and EBITDA indicates the company is capturing pricing or mix improvements and controlling costs. Durable margin gains support sustainable cash flow and resilience to cyclical demand, improving reinvestment and shareholder return capacity over months.

Strong Operating Cash Generation

Operating cash conversion well above earnings shows high-quality earnings and strong internal liquidity. Combined with substantial year-over-year FCF growth, this underpins funding for capex, product development, and dividends without heavy reliance on external financing.

Manageable Leverage & Capital Structure

Low leverage and a high equity ratio provide financial flexibility through cycles and capacity for targeted investments. An improving ROE signals better capital deployment, reducing refinancing risk and supporting steady operational plans over the medium term.

Negative Factors

Weak EPS Trend

Significant negative EPS growth signals pressures on net profitability that may reflect one-off charges, margin pressure, or lower high-margin volumes. If persistent, it can constrain reinvestment, slow deleveraging, and weaken returns to shareholders over multiple quarters.

Low Free Cash Flow Conversion

Relatively low FCF conversion versus net income indicates substantial capital intensity or working capital deployment. Continued high capex or inventory needs could limit cash available for debt reduction, dividends, or strategic M&A over the medium term.

Input‑cost and Volume Sensitivity

Business exposed to raw material and energy cost swings and commodity volume cycles. Persistent input-price volatility or weaker end-market volumes can pressure margins and require pricing pass-through or mix shifts, challenging stable profitability across quarters.

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

Financials are solid overall: profitability improved (gross margin 22.34%, net margin 6.59%, EBIT margin 8.42%, EBITDA margin 18.03%) with modest revenue growth (+0.79%). Balance sheet leverage is manageable (debt-to-equity 0.32; equity ratio 61.77%) and ROE improved to 5.52%. Cash generation is strong versus earnings (operating cash flow/net income 2.49), but free cash flow conversion is weaker (FCF/net income 0.46) due to capital expenditures despite strong FCF growth (+32.42%).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Negative
• 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 3366.50, below the 50-day MA of 3168.62, and above the 200-day MA of 2616.80, indicating a bullish trend. The MACD of 100.58 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 72.73 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
4462	78 Outperform	¥42.03B	15.65	―	1.90%	2.15%	16.14%
4362	75 Outperform	¥62.08B	13.67	―	2.92%	3.03%	28.27%
4619	75 Outperform	¥55.28B	9.57	―	5.04%	-3.21%	27.18%
4092	72 Outperform	¥31.64B	15.35	―	3.84%	-3.41%	-12.83%
4094	70 Outperform	¥53.38B	21.15	―	3.77%	8.54%	6.93%
4112	67 Neutral	¥39.05B	16.63	―	2.37%	-11.70%	-54.82%
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 Dissolve Real Estate Subsidiary Nikka System in Efficiency Drive

Nippon Chemical Industrial Co., Ltd. has resolved to dissolve and liquidate its wholly owned subsidiary Nikka System Co., Ltd., citing a sharp decline in sales and the limited scope of the subsidiary’s remaining real estate management operations. The company plans to consolidate Nikka System’s functions into its own administrative divisions to improve operational efficiency, with the dissolution scheduled for the first half of fiscal 2026 and only a minor impact expected on consolidated earnings for the fiscal year ending March 2027.

Nikka System, founded in 1991 and fully owned by Nippon Chemical, had already exited the bookstore business amid a challenging market environment and had seen its net sales and profitability gradually erode in recent years. While expenses related to the wind-down will be incurred, the parent company characterizes the financial impact as insignificant, underscoring that the move is primarily a structural streamlining rather than a major earnings event for stakeholders.

The most recent analyst rating on (JP:4092) stock is a Hold with a Yen3622.00 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 Profit Drops but Full‑Year Outlook and Dividend Raised

Nippon Chemical Industrial reported nine‑month net sales to December 31, 2025 of ¥30.4 billion, down 1.4% year on year, with operating profit sliding 40.7% to ¥1.99 billion and profit attributable to owners falling 21.8% to ¥1.84 billion. Despite weaker earnings, total assets and equity both increased, and comprehensive income rose, indicating a strengthened financial position.

The company kept its full‑year forecast unchanged, targeting ¥40.5 billion in sales and ¥3.2 billion in operating profit, implying modest top‑line growth but a decline in operating profit versus the prior year. It also plans to lift the annual dividend to ¥120 per share for the year ending March 31, 2026, signaling continued shareholder returns even as profitability comes under pressure.

The most recent analyst rating on (JP:4092) stock is a Hold with a Yen3622.00 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 Reports Progress on Share Buyback Program

Nippon Chemical Industrial Co., Ltd. has disclosed the progress of its share buyback program authorized by its board of directors on December 23, 2025, under provisions of the Companies Act allowing acquisition of its own shares. Between January 5 and January 31, 2026, the company repurchased 37,200 common shares on the Tokyo Stock Exchange for a total of ¥117.8 million, against an approved ceiling of up to 100,000 shares and ¥260 million through March 31, 2026. The execution of this buyback strengthens shareholder return measures and capital efficiency, and signals management’s willingness to actively manage its capital structure, though the company still retains capacity to expand the program within the limits of the existing board authorization.

The most recent analyst rating on (JP:4092) stock is a Hold with a Yen3633.00 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 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.