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

• Market Cap: ¥166.55B
• Dividend Yield: 3.51%
• Average Volume (3M): 144.69K
• Price to Earnings (P/E): 12.6
• 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): 25.77
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,518.00 ▲(6.68% Upside)

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

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business stability and competitiveness.

Balance Sheet Strength

A robust balance sheet with low leverage and high equity ratio suggests financial stability, providing resilience against economic fluctuations.

Profitability

Improved profitability through stable margins and efficient cost management strengthens the company's financial health and ability to reinvest in growth.

Negative Factors

Declining Cash Flow

Decreasing cash flow could indicate operational challenges, potentially impacting the company's ability to fund growth and manage debt.

Cash and Equivalents

A decline in cash reserves may limit financial flexibility, affecting the company's capacity to invest in new opportunities or weather downturns.

Earnings Growth

Negative EPS growth suggests challenges in increasing profitability per share, which could affect investor confidence and future capital raising.

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

Company Description

Nihon Parkerizing Co., Ltd. (4095) is a leading Japanese company specializing in surface treatment and coatings for metal products. Founded in 1933, the company operates primarily in the sectors of automotive, machinery, and electronic components, offering a range of services including phosphating, plating, and other advanced coating technologies. Its core products are designed to enhance the durability, corrosion resistance, and aesthetic appeal of metal surfaces, making them essential for various industrial applications.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 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 1423 is above the 20-day moving average (MA) of 1397.80, above the 50-day MA of 1370.68, and above the 200-day MA of 1291.94, indicating a bullish trend. The MACD of 12.09 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 80.09 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	78 Outperform	¥228.18B	16.63	13.36%	1.88%	1.18%	4.57%
4095	75 Outperform	¥166.55B	12.58	―	3.51%	3.85%	-1.53%
4619	75 Outperform	¥50.68B	9.36	―	5.06%	-3.21%	27.18%
4611	74 Outperform	¥37.06B	4.59	―	3.70%	14.83%	51.42%
4028	74 Outperform	¥109.95B	7.90	―	4.18%	1.16%	167.89%
4099	71 Outperform	¥123.36B	15.09	―	1.78%	-0.52%	5.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nihon Parkerizing Co., Ltd. Corporate Events

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.

Nihon Parkerizing Announces Strategic Restructuring to Enhance Processing Business

Nihon Parkerizing Co., Ltd. announced a strategic restructuring by transferring its processing business to its wholly owned subsidiary, Parker Processing Co., Ltd., effective April 1, 2026. This move aims to integrate and enhance operational efficiency, leveraging combined resources to address global competition, environmental regulations, and evolving customer needs. The restructuring will unify sales and production systems and foster the development of new surface treatment technologies, positioning the company as a trusted partner across various industries.

Nihon Parkerizing Reports Mixed Financial Results for Q2 FY2026

Nihon Parkerizing Co., Ltd. reported its consolidated financial results for the second quarter of fiscal year 2026, showing a slight increase in net sales by 3.2% compared to the previous year. However, the company experienced a decline in operating income, ordinary income, and net income attributable to parent company shareholders. Despite these declines, the company maintained its dividend forecast, indicating stability in shareholder returns. The financial results reflect challenges in the company’s operations, but the steady dividend suggests confidence in future performance.

Nihon Parkerizing Announces Share Repurchase

Nihon Parkerizing Co., Ltd. has announced the repurchase of 142,100 shares of its common stock for approximately 200.9 million JPY, executed through market purchases on the Tokyo Stock Exchange. This move is part of a larger board-approved plan to repurchase up to 4.8 million shares by March 2026, potentially impacting the company’s stock value and shareholder equity.