Nihon Kagaku Sangyo Co., Ltd. (4094) AI Stock Analysis

• Market Cap: ¥37.33B
• Dividend Yield: 4.68%
• Average Volume (3M): 18.42K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.32
• Revenue Growth: 13.35%
• EPS Growth: 36.31%
• Country: JP
• Employees: 448
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 25.11
• Shares Outstanding: 20,280,000
• 10 Day Avg. Volume: 15,070
• 30 Day Avg. Volume: 18,423
• PEG Ratio: -0.31
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.72
• 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

• Rating: 76 Outperform
• Price Target: ¥2,207.00 ▲(14.53%Upside)

The company's strong financial performance, characterized by robust revenue growth and profitability, is a significant factor driving the score. While technical indicators suggest strong upward momentum, the overbought conditions could pose a risk of a price correction. The valuation is reasonable, supported by a solid dividend yield, adding to the attractiveness of the stock.

Nihon Kagaku Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Kagaku Sangyo Co., Ltd. is a Japanese company primarily engaged in the production and sale of chemical products. The company operates in various sectors, including the manufacture of industrial chemicals, agricultural chemicals, and pharmaceuticals. Its core products include specialty chemicals, resins, and other chemical materials used in a wide range of industries such as agriculture, healthcare, and manufacturing.

How the Company Makes Money

Nihon Kagaku Sangyo Co., Ltd. generates revenue through the production and sale of its chemical products. The company's key revenue streams include sales of industrial and specialty chemicals to manufacturers who utilize these products in their production processes. Additionally, the company sells agricultural chemicals to farmers and agricultural businesses, contributing to crop protection and yield enhancement. The pharmaceutical chemicals sector also provides revenue through the supply of raw materials to pharmaceutical companies. Strategic partnerships and long-term contracts with businesses in these sectors are significant factors in ensuring consistent demand and earnings for the company.

Nihon Kagaku Sangyo Co., Ltd. Financial Statement Overview

Summary

Nihon Kagaku Sangyo Co., Ltd. exhibits strong financial health with impressive revenue growth and profitability margins. The balance sheet is robust, characterized by minimal leverage and a strong equity position. Cash flow performance is solid with effective cash generation, though there is slight room for improvement in free cash flow growth.

Income Statement

The company has demonstrated robust revenue growth with a 13.35% increase in the latest period. Gross profit margin is strong at approximately 24.15%, indicating efficient cost management. The net profit margin is commendable at 9.26%, showing good profitability. EBIT and EBITDA margins are healthy, reflecting strong operational efficiency. Overall, the income statement suggests solid growth and profitability within the industry.

Balance Sheet

The balance sheet is exceptionally strong, with a very low debt-to-equity ratio of 0.006, indicating minimal leverage. The equity ratio is high at 85.58%, suggesting a strong equity base. Return on equity is impressive at 5.07%, reflecting good shareholder returns. Overall, the balance sheet highlights stability and a strong financial position with minimal risk.

Cash Flow

Operating cash flow is consistent, with a positive operating cash flow to net income ratio of 1.40, indicating effective cash generation from operations. However, free cash flow has decreased slightly, impacting the free cash flow growth rate. The free cash flow to net income ratio of 0.72 shows good cash conversion. Overall, the cash flow statement reflects solid cash generation capabilities, albeit with some room for improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.73B	25.44B	22.44B	24.06B	23.72B	19.64B
Gross Profit	6.05B	6.15B	5.26B	5.88B	7.19B	5.03B
EBITDA	3.80B	4.37B	3.63B	4.17B	5.50B	3.58B
Net Income	2.34B	2.36B	1.74B	2.23B	3.24B	1.84B
Balance Sheet
Total Assets	53.98B	54.30B	52.93B	50.06B	49.49B	46.34B
Cash, Cash Equivalents and Short-Term Investments	14.24B	15.42B	19.69B	18.81B	16.99B	16.17B
Total Debt	682.00M	263.80M	373.80M	373.80M	373.80M	376.00M
Total Liabilities	7.64B	7.83B	7.27B	6.70B	7.51B	6.80B
Stockholders Equity	46.34B	46.48B	45.66B	43.36B	41.97B	39.54B
Cash Flow
Free Cash Flow	0.00	1.70B	1.93B	2.41B	1.44B	2.74B
Operating Cash Flow	0.00	3.30B	3.10B	3.06B	2.76B	3.49B
Investing Cash Flow	0.00	-11.45B	-1.32B	-655.42M	-954.77M	-749.24M
Financing Cash Flow	0.00	-1.27B	-999.52M	-633.05M	-981.63M	-595.78M

Nihon Kagaku Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1927.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4094, the sentiment is Positive. The current price of 1927 is below the 20-day moving average (MA) of 1970.95, above the 50-day MA of 1835.94, and above the 200-day MA of 1526.79, indicating a neutral trend. The MACD of 22.19 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 11.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4094.

Nihon Kagaku Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4094	76 Outperform	¥37.33B	15.85		4.68%	13.35%	36.31%
4464	75 Outperform	¥35.52B	12.04		2.64%	-0.44%	11.34%
5304	73 Outperform	¥41.67B	7.08		4.95%	-16.43%	-20.57%
4092	73 Outperform	¥17.95B	7.02		4.51%	0.79%	60.97%
4078	71 Outperform	¥45.61B	8.75		5.36%	3.16%	―
4461	69 Neutral	¥39.67B	14.43		0.51%	16.06%	120.22%
Sector *	62 Neutral	$10.25B	9.95	-0.15%	2.86%	2.14%	-32.15%

Nihon Kagaku Sangyo Co., Ltd. Corporate Events

Nihon Kagaku Sangyo Reports Strong Financial Growth and Increased Dividends

Nihon Kagaku Sangyo Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 13.4% and operating profit increasing by 31.4% compared to the previous year. The company also announced an increase in dividends, reflecting strong profitability and a positive outlook for stakeholders.