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

• Market Cap: ¥46.46B
• Dividend Yield: 3.12%
• Average Volume (3M): 24.73K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.36
• Revenue Growth: 11.94%
• EPS Growth: 17.08%
• Country: JP
• Employees: 448
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 40.72
• Shares Outstanding: 20,280,000
• 10 Day Avg. Volume: 15,670
• 30 Day Avg. Volume: 24,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,477.00
• Price Target Upside: 3.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥2,477.00 ▲(3.08% Upside)

The overall stock score is primarily driven by the company's strong financial performance, characterized by robust revenue growth and a solid balance sheet with minimal leverage. The technical analysis shows bullish momentum, although caution is advised due to overbought signals. Valuation metrics indicate a fair valuation with an attractive dividend yield, supporting the stock's appeal.

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

Company Description

Nihon Kagaku Sangyo Co., Ltd. is a Japanese company primarily engaged in the chemical industry. The company focuses on the production and sale of various chemical products, including industrial chemicals, specialty chemicals, and functional materials. It serves a wide range of sectors such as manufacturing, agriculture, and technology, offering products that are integral to multiple industrial applications.

How the Company Makes Money

Nihon Kagaku Sangyo Co., Ltd. generates revenue through the manufacture and sale of chemical products. Its key revenue streams include industrial chemicals, which are used as raw materials and intermediates in manufacturing processes across different industries. The company also produces specialty chemicals tailored to specific applications, providing added value through their unique properties. Additionally, functional materials developed by the company cater to advanced technological applications, contributing to its earnings. The company benefits from strategic partnerships and its ability to innovate in chemical production, maintaining a competitive edge in the market.

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. Overall, the company is well-positioned within the specialty chemicals industry, demonstrating stability and growth potential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.44B	25.44B	22.44B	24.06B	23.72B	19.64B
Gross Profit	6.15B	6.15B	5.26B	5.88B	7.19B	5.03B
EBITDA	4.08B	4.37B	3.63B	4.17B	5.50B	3.58B
Net Income	2.36B	2.36B	1.74B	2.23B	3.24B	1.84B
Balance Sheet
Total Assets	54.30B	54.30B	52.93B	50.06B	49.49B	46.34B
Cash, Cash Equivalents and Short-Term Investments	15.42B	15.42B	19.69B	18.81B	16.99B	16.17B
Total Debt	263.80M	263.80M	373.80M	373.80M	373.80M	376.00M
Total Liabilities	7.83B	7.83B	7.27B	6.70B	7.51B	6.80B
Stockholders Equity	46.48B	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: 2403.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 2403 is above the 20-day moving average (MA) of 2395.05, above the 50-day MA of 2206.96, and above the 200-day MA of 1710.56, indicating a bullish trend. The MACD of 48.02 indicates Positive momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 44.21 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	79 Outperform	¥46.46B	19.65		3.12%	11.94%	17.08%
4464	76 Outperform	¥53.67B	18.11		1.75%	1.55%	8.45%
5304	73 Outperform	¥46.60B	10.79		4.42%	-27.68%	-43.78%
4078	73 Outperform	¥49.55B	9.74		4.57%	0.10%	―
4461	69 Neutral	¥56.42B	17.92		1.46%	11.99%	31.00%
4092	68 Neutral	¥24.91B	10.03		2.83%	-1.44%	-1.26%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%

Nihon Kagaku Sangyo Co., Ltd. Corporate Events

Nihon Kagaku Sangyo Reports Q1 2025 Financial Results with Increased Sales

Nihon Kagaku Sangyo Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a 5.5% increase in net sales compared to the previous year, although operating profit decreased by 1.7%. The company’s profit attributable to owners of the parent increased by 1.3%, indicating a stable financial performance. The company also announced a forecasted increase in annual dividends for the fiscal year ending March 31, 2026, reflecting confidence in its future earnings potential.