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

• Market Cap: ¥153.73B
• Dividend Yield: 3.82%
• Average Volume (3M): 183.72K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.87
• Revenue Growth: 5.75%
• EPS Growth: -1.75%
• Country: JP
• Employees: 4,279
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 30.74
• Shares Outstanding: 132,604,520
• 10 Day Avg. Volume: 176,290
• 30 Day Avg. Volume: 183,720
• PEG Ratio: 8.59
• Price to Book (P/B): 0.74
• 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: ¥1,413.00
• Price Target Upside: 8.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,413.00 ▲(8.94%Upside)

Nihon Parkerizing Co., Ltd. benefits from strong financial performance and attractive valuation, with stable revenue growth and profitability. Technical indicators support the positive trend. However, monitoring cash flow trends is crucial for sustaining growth.

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

Company Description

Nihon Parkerizing Co., Ltd. is a Japanese company specializing in surface treatment technologies, including metal surface processing, lubricants, and coating agents. The company operates in various sectors, including automotive, electronics, and industrial machinery, providing essential materials and solutions that enhance the durability, functionality, and performance of metal components.

How the Company Makes Money

Nihon Parkerizing Co., Ltd. generates revenue primarily through the sale of its surface treatment chemicals and technologies. The company's key revenue streams include the manufacturing and sale of metal surface processing chemicals, lubricants, and coating agents. These products are essential for industries such as automotive manufacturing, electronics, and industrial machinery, where they are used to improve the durability and performance of metal parts. Additionally, the company may engage in partnerships with manufacturers and industrial clients to provide customized solutions that meet specific needs, further contributing to its earnings.

Nihon Parkerizing Co., Ltd. Financial Statement Overview

Summary

Nihon Parkerizing shows strong financial performance with consistent revenue growth, strong profitability margins, and a robust balance sheet with minimal leverage. However, the lack of current cash flow data is a concern for liquidity assessment.

Income Statement

Nihon Parkerizing has demonstrated strong financial performance with consistent revenue growth, evident from a 4.3% increase in revenue from the previous year and 31.4% since 2021. The company maintains healthy profitability with a gross profit margin above 33% and a net profit margin of 10.3% in the TTM. EBIT and EBITDA margins are also robust at 11.7% and 16.6% respectively, indicating efficient cost management and operational excellence.

Balance Sheet

The balance sheet of Nihon Parkerizing shows a solid financial structure with a very low debt-to-equity ratio of 0.002 in the TTM, showcasing minimal leverage risk. The equity ratio stands at an impressive 72.7%, reflecting a strong equity position. Return on Equity is also healthy at 7%, demonstrating effective utilization of shareholder funds.

Cash Flow

The cash flow analysis is limited due to missing data for TTM. Historically, the company has shown strong free cash flow growth and a high free cash flow to net income ratio, indicating efficient cash conversion. However, the absence of cash flow data in the TTM period poses a risk to assessing current liquidity and operational cash flow sustainability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	130.50B	125.08B	119.18B	117.75B	99.92B	119.03B
Gross Profit	43.56B	42.69B	38.96B	38.42B	34.59B	40.21B
EBITDA	21.61B	27.19B	18.60B	19.28B	16.30B	19.12B
Net Income	13.48B	13.19B	9.97B	9.05B	10.00B	9.45B
Balance Sheet
Total Assets	264.48B	269.82B	236.53B	228.98B	220.21B	216.77B
Cash, Cash Equivalents and Short-Term Investments	79.19B	90.62B	76.89B	75.82B	67.16B	62.67B
Total Debt	450.00M	700.00M	974.00M	1.31B	1.19B	1.49B
Total Liabilities	44.28B	49.94B	40.14B	41.31B	43.54B	45.83B
Stockholders Equity	192.20B	187.15B	166.27B	160.29B	151.50B	143.23B
Cash Flow
Free Cash Flow	0.00	15.35B	7.00B	10.05B	11.30B	8.34B
Operating Cash Flow	0.00	22.78B	16.61B	14.28B	16.21B	17.51B
Investing Cash Flow	0.00	-5.78B	-12.30B	-6.66B	-7.26B	-8.73B
Financing Cash Flow	0.00	-6.78B	-9.16B	-4.11B	-8.11B	-6.11B

Nihon Parkerizing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1297.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1297 is above the 20-day moving average (MA) of 1265.95, above the 50-day MA of 1236.84, and above the 200-day MA of 1234.45, indicating a bullish trend. The MACD of 19.82 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 85.13 is Negative, 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
4966	82 Outperform	¥146.57B	10.69	13.95%	2.98%	4.47%	29.40%
4095	80 Outperform	¥153.73B	11.63		3.82%	5.75%	-1.75%
4619	80 Outperform	¥43.86B	9.02		3.76%	2.11%	25.18%
4611	78 Outperform	¥33.40B	3.56		4.16%	0.79%	104.86%
4028	74 Outperform	¥84.46B	9.66		4.02%	4.87%	5.07%
Sector *	70 Outperform	¥175.99B	11.22	6.29%	3.46%	3.94%	5.74%

Nihon Parkerizing Co., Ltd. Corporate Events

Nihon Parkerizing Executes Strategic Share Repurchase

Nihon Parkerizing Co., Ltd. announced the repurchase of 645,000 shares of its common stock for approximately 801.8 million JPY, as part of a broader strategy approved in August 2024 to buy back up to 12 million shares. This move is intended to optimize the company’s capital structure and potentially increase shareholder value, reflecting a proactive approach in managing its equity and market presence.

Nihon Parkerizing Announces Corrections to Financial Results

Nihon Parkerizing Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ended March 31, 2024, due to errors found in the consolidated statements of cash flows. The corrections slightly adjusted the cash flows from operating activities, but the overall financial position, including cash and cash equivalents at year-end, remained unchanged.

Nihon Parkerizing Announces Share Repurchase as Part of Strategic Buyback Plan

Nihon Parkerizing Co., Ltd. announced the repurchase of 661,500 shares of its common stock, totaling 801,052,200 JPY, as part of a broader buyback initiative authorized by its Board in August 2024. This move, executed through market purchases on the Tokyo Stock Exchange, reflects the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value.

Nihon Parkerizing Subsidiary to Propose Dividend Payment

Nihon Parkerizing Co., Ltd. announced that its subsidiary, Parker Processing Co., Ltd., will propose a dividend payment of 3,042 million yen, subject to shareholder approval. This dividend will be recorded as non-operating income in Nihon Parkerizing’s non-consolidated financial statements for the fiscal year ending March 31, 2026, without affecting the consolidated business results.

Nihon Parkerizing Reports FY2025 Financial Results with Mixed Performance

Nihon Parkerizing Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 5.8% increase in net sales to 132,281 million yen. However, the company experienced a slight decline in operating and ordinary income, with a notable drop in comprehensive income by 39.5% compared to the previous year. The company forecasts a slight decrease in net sales and income for the next fiscal year, indicating potential challenges in maintaining growth momentum.

Nihon Parkerizing Executes Share Repurchase Plan

Nihon Parkerizing Co., Ltd. announced the repurchase of 916,600 shares of its common stock for a total of 1,028,123,700 JPY from April 1 to April 30, 2025, as part of a broader repurchase plan initiated in August 2024. This move is part of a strategic effort to manage its capital structure, potentially enhancing shareholder value and demonstrating confidence in the company’s financial health.