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Nihon Kagaku Sangyo Co., Ltd. (JP:4094)
:4094
Japanese Market

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

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JP

Nihon Kagaku Sangyo Co., Ltd.

(4094)

Rating:76Outperform
Price Target:
¥2,207.00
▲(11.46%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. (4094) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNihon 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 MoneyNihon 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. displays a strong financial performance. The income statement shows robust profitability with impressive margins and growth. The balance sheet is solid with minimal leverage and strong equity. However, cash flow analysis reveals some concerns, notably the lack of current data, highlighting a need for improved transparency in cash flow reporting.
Income Statement
78
Positive
Nihon Kagaku Sangyo Co., Ltd. has shown a strong performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is impressive at 24.45%, and the net profit margin stands at 9.45%, indicating solid profitability. The revenue growth rate from the previous year is a notable 10.16%, demonstrating a positive growth trajectory. The EBIT and EBITDA margins are healthy at 11.64% and 15.35% respectively, reflecting efficient operations. Overall, the company displays robust and stable profitability with positive growth trends.
Balance Sheet
85
Very Positive
The balance sheet of Nihon Kagaku Sangyo shows a strong financial position with a low debt-to-equity ratio of 0.01, indicating minimal leverage and a very strong equity base. The return on equity (ROE) is healthy at 5.05%, showing effective utilization of shareholder funds to generate profits. The equity ratio is high at 85.85%, providing a strong cushion for financial stability. These metrics suggest a very solid and risk-averse financial structure.
Cash Flow
60
Neutral
The cash flow analysis for Nihon Kagaku Sangyo highlights some concerns. The operating cash flow to net income ratio was not calculable due to unavailable data for TTM. However, previous annual data shows a positive free cash flow with a free cash flow to net income ratio of 1.11 in 2023. Although there is stability in cash flow generation, the absence of TTM cash flow figures limits a full assessment. The company should focus on improving cash flow visibility and consistency.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
24.73B22.44B24.06B23.72B19.64B21.52B
Gross Profit
6.05B5.26B5.88B7.19B5.03B5.14B
EBIT
2.88B2.18B2.90B4.22B2.39B2.37B
EBITDA
3.80B3.63B4.17B5.50B3.58B3.75B
Net Income Common Stockholders
2.34B1.74B2.23B3.24B1.84B1.98B
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.69B19.69B18.81B16.99B16.17B14.15B
Total Assets
52.93B52.93B50.06B49.49B46.34B41.81B
Total Debt
374.53M373.80M373.80M373.80M376.00M391.00M
Net Debt
-19.11B-19.31B-18.43B-16.61B-15.79B-13.76B
Total Liabilities
7.27B7.27B6.70B7.51B6.80B5.41B
Stockholders Equity
45.66B45.66B43.36B41.97B39.54B36.40B
Cash FlowFree Cash Flow
0.001.93B2.41B1.44B2.74B1.15B
Operating Cash Flow
0.003.10B3.06B2.76B3.49B3.11B
Investing Cash Flow
0.00-1.32B-655.42M-954.77M-749.24M-878.17M
Financing Cash Flow
0.00-999.52M-633.05M-981.63M-595.78M-637.28M

Nihon Kagaku Sangyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1980.00
Price Trends
50DMA
1644.36
Positive
100DMA
1563.35
Positive
200DMA
1474.80
Positive
Market Momentum
MACD
102.02
Positive
RSI
71.21
Negative
STOCH
67.07
Neutral
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 1980 is above the 20-day moving average (MA) of 1927.15, above the 50-day MA of 1644.36, and above the 200-day MA of 1474.80, indicating a bullish trend. The MACD of 102.02 indicates Positive momentum. The RSI at 71.21 is Negative, neither overbought nor oversold. The STOCH value of 67.07 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥38.74B16.46
3.76%13.35%36.30%
75
Outperform
¥41.06B6.97
5.02%-16.43%-20.49%
71
Outperform
¥44.53B8.55
5.11%3.16%
71
Outperform
¥35.11B11.89
2.67%-0.44%11.35%
70
Outperform
¥37.02B13.46
2.75%16.06%120.22%
66
Neutral
¥17.42B6.81
4.65%0.79%61.23%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4094
Nihon Kagaku Sangyo Co., Ltd.
1,961.00
473.50
31.83%
JP:4078
Sakai Chemical Industry Co., Ltd.
2,663.00
20.51
0.78%
JP:4092
Nippon Chemical Industrial Co., Ltd.
1,982.00
-298.84
-13.10%
JP:4461
DKS Co., Ltd.
3,590.00
2.99
0.08%
JP:4464
Soft99 Corporation
1,638.00
218.40
15.38%
JP:5304
SEC Carbon Ltd.
1,994.00
-376.57
-15.89%

Nihon Kagaku Sangyo Co., Ltd. Corporate Events

Nihon Kagaku Sangyo Reports Strong Financial Growth and Increased Dividends
May 14, 2025

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.

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.