Nihon Parkerizing Co., Ltd. (4095) AI Stock Analysis

• Market Cap: ¥187.96B
• Dividend Yield: 3.5%
• Average Volume (3M): 144.69K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.82
• Revenue Growth: 3.85%
• EPS Growth: -1.53%
• Country: JP
• Employees: 4,279
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 33.89
• Shares Outstanding: 132,604,520
• 10 Day Avg. Volume: 139,370
• 30 Day Avg. Volume: 144,690
• PEG Ratio: -5.41
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 156.71
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,784.00 ▲(25.37% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Nihon Parkerizing Co., Ltd. demonstrates strong financial performance with consistent growth and stability, which is the most significant factor in its overall score. The technical analysis suggests some short-term caution but supports a longer-term positive trend. The valuation is reasonable, with an attractive dividend yield, enhancing the stock's appeal. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Consistent revenue growth

Sustained top-line expansion over multiple years indicates durable demand for surface-treatment products across automotive and industrial end markets. Growing revenue supports scale benefits, reinvestment capacity, and resilience to cyclical weakness in individual end markets over the next 2–6 months.

Stable and improving margins

Consistent gross margins and gradually improving net margin reflect sustained pricing power and operational efficiency in chemical processing. Margin durability supports cash generation and the ability to fund capex or dividends without immediate structural changes to the business model.

Strong balance sheet and low leverage

A rising equity base and low leverage provide financial flexibility for strategic investments, M&A or to absorb shocks. This capital structure reduces refinancing risk and supports long-term stability, enabling the company to sustain operations through cycles without urgent deleveraging.

Negative Factors

Declining operating cash flow

A sharp drop in operating cash flow weakens internal funding for working capital and capex, pressuring the firm's ability to sustain investment or dividend policies if the trend persists. It raises the risk that profitability improvements may not fully convert into liquidity.

Decreasing cash and equivalents trend

Declining cash balances reduce short-term liquidity cushions and heighten exposure to unexpected cash needs or supply-chain disruptions. Over months, this can limit flexibility to pursue growth projects or respond to raw-material price swings without tapping external financing.

Negative EPS growth

Material negative EPS growth indicates earnings per share contraction in recent periods, which may reflect share-base effects, margin pressure, or one-off items. If persistent, declining EPS can undermine reinvestment capacity and signal underlying profit-quality issues.

Nihon Parkerizing Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Parkerizing Co., Ltd. manufactures and supplies surface treatment chemicals in Japan and internationally. The company supplies surface treatment chemicals for cleaning substrates, adding corrosion resistance, creating a base for painting, and providing lubrications; emulsion type rolling oil for rolling steel and cooling applications; heat exchangers, as well as offers technical support services. Further, the company provides various surface treatments, such as rust preventive treatment of metals and multi-functional surface treatments; and heat treatments. It offers WEATHERCOAT, a surface treatment technology to develop rust layer on weathering steel. The company also provides conversion coating, lubricant for deformation, solid lubricant and rust proof coatings, salt-bath nitriding and carburizing, austemper treatment, composite plating, and plasma electrolytic oxidation services. The company was incorporated in 1928 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Parkerizing generates revenue through the provision of surface treatment services and the sale of related products. The company primarily earns money by charging clients for the processing of their metal components, which involves specialized treatments that improve the performance and longevity of products in industries such as automotive and machinery. Key revenue streams include contracts with manufacturing companies, particularly those in automotive supply chains, which require high-quality surface treatments. Additionally, the company may benefit from strategic partnerships with other manufacturers and suppliers, enhancing its market reach and capabilities. Factors contributing to its earnings include the growing demand for advanced coating technologies and the expansion of industries that rely on durable metal products.

Nihon Parkerizing Co., Ltd. Financial Statement Overview

Summary

Nihon Parkerizing Co., Ltd. exhibits strong financial performance with consistent revenue and profit growth, supported by stable margins. The balance sheet reflects low leverage and high equity, underscoring financial stability. However, the declining trend in cash flow metrics requires attention to ensure long-term sustainability.

Income Statement

Nihon Parkerizing Co., Ltd. has demonstrated strong and consistent revenue growth, with a notable increase from ¥99.92 billion in 2021 to ¥132.28 billion in 2025. Gross profit margins have remained stable around 32-33%, indicating efficient cost management. The net profit margin has improved to 9.91% in 2025 from 8.99% in 2022, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showing the company's robust operating performance. Overall, the income statement highlights a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet of Nihon Parkerizing Co., Ltd. shows a strong equity base, with stockholders' equity rising from ¥151.5 billion in 2021 to ¥195.2 billion in 2025. The debt-to-equity ratio is low, indicating minimal leverage, and the equity ratio is high, suggesting financial stability. Return on equity (ROE) has improved, showcasing efficient use of equity capital. Overall, the balance sheet is stable with low risk, but the decreasing cash and equivalents over the years could be a concern if not managed properly.

Cash Flow

The cash flow statement indicates a decline in operating cash flow from ¥22.78 billion in 2024 to ¥12.01 billion in 2025, which might point to operational challenges. Free cash flow has also decreased significantly, though it remains positive. The company has maintained positive free cash flow to net income ratios, indicating good cash conversion. However, the decreasing trend in operating cash flow and investment activities could pose a risk if it continues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	133.81B	132.28B	125.08B	119.18B	117.75B	99.92B
Gross Profit	42.89B	42.65B	42.69B	38.96B	38.42B	34.59B
EBITDA	23.89B	26.36B	27.19B	22.57B	21.79B	22.11B
Net Income	12.90B	13.11B	13.19B	9.97B	9.05B	10.00B
Balance Sheet
Total Assets	256.08B	267.25B	269.82B	236.53B	228.98B	220.21B
Cash, Cash Equivalents and Short-Term Investments	70.61B	78.71B	90.62B	76.89B	75.82B	67.16B
Total Debt	450.00M	450.00M	700.00M	974.00M	1.31B	1.19B
Total Liabilities	40.49B	43.95B	49.94B	40.14B	41.31B	43.54B
Stockholders Equity	188.43B	195.22B	187.15B	166.27B	160.29B	151.50B
Cash Flow
Free Cash Flow	0.00	883.00M	15.35B	7.00B	10.05B	11.30B
Operating Cash Flow	0.00	12.01B	22.78B	16.61B	14.28B	16.21B
Investing Cash Flow	0.00	-16.28B	-5.78B	-12.30B	-6.66B	-7.26B
Financing Cash Flow	0.00	-15.23B	-6.78B	-9.16B	-4.11B	-8.11B

Nihon Parkerizing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1423.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4095, the sentiment is Positive. The current price of 1423 is below the 20-day moving average (MA) of 1545.40, below the 50-day MA of 1490.56, and above the 200-day MA of 1365.70, indicating a bullish trend. The MACD of 26.42 indicates Negative momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4095.

Nihon Parkerizing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4095	75 Outperform	¥187.96B	13.84	―	3.50%	3.85%	-1.53%
7970	74 Outperform	¥180.92B	17.43	―	2.84%	6.06%	19.76%
6036	73 Outperform	¥99.44B	10.61	―	1.52%	10.51%	2.95%
4612	69 Neutral	¥2.72T	15.09	10.44%	1.52%	9.81%	32.64%
4613	68 Neutral	¥466.36B	13.77	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥419.23B	12.96	8.14%	2.61%	-1.45%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nihon Parkerizing Co., Ltd. Corporate Events

Nihon Parkerizing Posts Higher Sales but Lower Profit, Keeps Dividend and Forecasts Unchanged

Nihon Parkerizing reported consolidated net sales of ¥101.0 billion for the first nine months of fiscal 2026, a 4.7% year-on-year increase, while operating income fell 2.4% to ¥11.0 billion and ordinary income was almost flat. Net income attributable to shareholders declined 1.9% to ¥9.4 billion, but comprehensive income rose 14.4%, and the shareholders’ equity ratio strengthened to 74.9% despite a slight decrease in shareholders’ equity.

The company maintained its dividend policy, confirming a ¥25 mid-year dividend and projecting a full-year total of ¥50 per share with no changes to prior guidance. Full-year forecasts remain conservative, with net sales expected to edge down 1.0% to ¥131.0 billion and net income projected to fall 7.2%, signaling a cautious outlook amid solid balance sheet metrics and stable capital returns to investors.

The most recent analyst rating on (JP:4095) stock is a Buy with a Yen1684.00 price target. To see the full list of analyst forecasts on Nihon Parkerizing Co., Ltd. stock, see the JP:4095 Stock Forecast page.

Nihon Parkerizing Nears Completion of ¥5 Billion Share Buyback Program

Nihon Parkerizing has reported progress on its ongoing share repurchase program authorized by its board in August 2025 under the Japanese Companies Act. Between January 1 and January 31, 2026, the company bought back 109,400 shares of its common stock via market purchases on the Tokyo Stock Exchange for approximately ¥160.8 million, as part of a broader plan allowing repurchases of up to 4.8 million shares or ¥5 billion through March 31, 2026. As of January 31, 2026, total repurchases under this authorization had reached 3,415,900 shares for about ¥4.71 billion, indicating the company is close to the ceiling of its buyback program. The scale and near-completion of the authorized buybacks signal an effort to enhance capital efficiency and shareholder returns, potentially supporting earnings per share and share price stability, while modestly reducing the company’s free float and overall number of shares outstanding.

The most recent analyst rating on (JP:4095) stock is a Hold with a Yen1603.00 price target. To see the full list of analyst forecasts on Nihon Parkerizing Co., Ltd. stock, see the JP:4095 Stock Forecast page.

Nihon Parkerizing Advances Share Buyback, Repurchasing Over 3.3 Million Shares

Nihon Parkerizing has reported the latest status of its ongoing share repurchase program authorized by its board in August 2025. During the period from December 1 to December 31, 2025, the company bought back 115,000 shares of its common stock through market purchases on the Tokyo Stock Exchange for a total of ¥160.8 million. Under the broader authorization running from August 8, 2025 to March 31, 2026, the company had, as of December 31, 2025, repurchased a total of 3,306,500 shares for approximately ¥4.55 billion, moving significantly toward the approved ceiling of 4.8 million shares and ¥5.0 billion. The continued execution of this buyback program signals management’s commitment to capital returns and may support shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (JP:4095) stock is a Buy with a Yen1518.00 price target. To see the full list of analyst forecasts on Nihon Parkerizing Co., Ltd. stock, see the JP:4095 Stock Forecast page.

Nihon Parkerizing to Absorb Hokkaido Subsidiary in Streamlining Merger

Nihon Parkerizing Co., Ltd. will absorb its wholly owned subsidiary Hokkaido Parkerizing Co., Ltd. in an absorption-type merger effective April 1, 2026, with Nihon Parkerizing as the surviving entity and the subsidiary dissolved. The simplified, no-consideration merger aims to consolidate management resources, streamline operations, and improve business efficiency within the group, but is not expected to alter the company’s capital structure since no new shares or assets will be issued, reinforcing its integrated position in the metal surface treatment chemicals and processing market.

The most recent analyst rating on (JP:4095) stock is a Buy with a Yen1518.00 price target. To see the full list of analyst forecasts on Nihon Parkerizing Co., Ltd. stock, see the JP:4095 Stock Forecast page.

Nihon Parkerizing Receives Significant Dividend from Thai Subsidiary

Nihon Parkerizing Co., Ltd. announced that it will receive a dividend of approximately 6.6 billion yen from its subsidiary, Thai Parkerizing Co., Ltd., following a resolution at an extraordinary general meeting. This income will be recorded as non-operating income in the company’s non-consolidated financial statements for the fiscal year ending March 31, 2026, without affecting the consolidated business results.

The most recent analyst rating on (JP:4095) stock is a Buy with a Yen1518.00 price target. To see the full list of analyst forecasts on Nihon Parkerizing Co., Ltd. stock, see the JP:4095 Stock Forecast page.

Nihon Parkerizing Announces Strategic Share Repurchase

Nihon Parkerizing Co., Ltd. has announced the repurchase of 187,600 shares of its common stock, amounting to 254,153,391 JPY, as part of a broader strategy to buy back up to 4,800,000 shares by March 2026. This move is part of the company’s efforts to optimize its capital structure and potentially increase shareholder value, reflecting a strategic focus on financial management.

The most recent analyst rating on (JP:4095) stock is a Buy with a Yen1518.00 price target. To see the full list of analyst forecasts on Nihon Parkerizing Co., Ltd. stock, see the JP:4095 Stock Forecast page.