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

• Market Cap: ¥38.74B
• Dividend Yield: 3.76%
• Average Volume (3M): 36.69K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.35
• Revenue Growth: 13.35%
• EPS Growth: 36.30%
• Country: JP
• Employees: 448
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Chemicals - Specialty
• EPS (TTM): 25.11
• Shares Outstanding: 20,280,000
• 10 Day Avg. Volume: 15,540
• 30 Day Avg. Volume: 36,690
• PEG Ratio: 2.17
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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 ▲(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. 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. 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
24.73B	22.44B	24.06B	23.72B	19.64B	21.52B
	Gross Profit
6.05B	5.26B	5.88B	7.19B	5.03B	5.14B
	EBIT
2.88B	2.18B	2.90B	4.22B	2.39B	2.37B
	EBITDA
3.80B	3.63B	4.17B	5.50B	3.58B	3.75B
	Net Income Common Stockholders
2.34B	1.74B	2.23B	3.24B	1.84B	1.98B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.69B	19.69B	18.81B	16.99B	16.17B	14.15B
	Total Assets
52.93B	52.93B	50.06B	49.49B	46.34B	41.81B
	Total Debt
374.53M	373.80M	373.80M	373.80M	376.00M	391.00M
	Net Debt
-19.11B	-19.31B	-18.43B	-16.61B	-15.79B	-13.76B
	Total Liabilities
7.27B	7.27B	6.70B	7.51B	6.80B	5.41B
	Stockholders Equity
45.66B	45.66B	43.36B	41.97B	39.54B	36.40B
Cash Flow		Free Cash Flow
0.00	1.93B	2.41B	1.44B	2.74B	1.15B
	Operating Cash Flow
0.00	3.10B	3.06B	2.76B	3.49B	3.11B
	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 Price: 1980.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4094	76 Outperform	¥38.74B	16.46		3.76%	13.35%	36.30%
5304	75 Outperform	¥41.06B	6.97		5.02%	-16.43%	-20.49%
4078	71 Outperform	¥44.53B	8.55		5.11%	3.16%	―
4464	71 Outperform	¥35.11B	11.89		2.67%	-0.44%	11.35%
4461	70 Outperform	¥37.02B	13.46		2.75%	16.06%	120.22%
4092	66 Neutral	¥17.42B	6.81		4.65%	0.79%	61.23%
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%

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.