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

• Market Cap: ¥171.96B
• Dividend Yield: 3.5%
• Average Volume (3M): 144.69K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.83
• 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: ¥1,691.00 ▲(18.83% 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 & Stable Margins

Multi-year revenue expansion paired with steady 32-33% gross margins indicates durable demand and pricing power in its niche surface-treatment markets. This combination supports sustainable operating profitability and provides headroom for reinvestment and steady cash generation over the medium term.

Strong Balance Sheet

A robust equity base and minimal leverage give the company financial flexibility to fund capex, sustain dividends, or pursue strategic opportunities without heavy refinancing risk. High equity ratio improves resilience to cyclical downturns and supports long-term investment plans.

Positive Cash Conversion

Consistent positive free cash flow conversion means reported earnings largely translate into cash, underpinning dividend capacity and internal funding for operations. Even with recent declines, durable cash conversion supports longer-term financial flexibility and shareholder returns.

Negative Factors

Declining Operating Cash Flow

A sharp year-over-year drop in operating cash flow suggests emerging operational or working-capital stress. If sustained, reduced cash generation can limit capex, constrain dividends, and force greater reliance on balance-sheet buffers, weakening medium-term financial flexibility.

EPS Contraction

A nearly 20% decline in EPS despite revenue gains signals pressure on per-share earnings, possibly from margin mix shifts, costs, or non-operating items. Continued EPS contraction would erode return metrics and could impair dividend sustainability and investor confidence over time.

Cyclical End-Market Exposure

Heavy reliance on automotive and industrial manufacturing demand exposes revenues to capital goods and auto cycles. Structural slowdowns or OEM order reductions can materially compress volumes and margins, increasing earnings and cash-flow volatility across multiple quarters.

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

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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	44.15B	42.65B	41.62B	37.88B	37.35B	33.48B
EBITDA	21.55B	21.63B	21.50B	18.60B	19.28B	16.30B
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	745.00M	989.00M	1.27B	1.64B	1.54B
Total Liabilities	40.49B	43.95B	49.93B	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: Negative
• Last Price: 1423.00
• 50DMA: Negative
• 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:4095, the sentiment is Negative. The current price of 1423 is below the 20-day moving average (MA) of 1529.75, below the 50-day MA of 1516.32, and above the 200-day MA of 1389.74, indicating a neutral trend. The MACD of -14.21 indicates Positive momentum. The RSI at 40.96 is Neutral, neither overbought nor oversold. The STOCH value of 40.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥171.96B	10.40	―	3.50%	3.85%	-1.53%
7970	74 Outperform	¥163.59B	14.73	―	2.84%	6.06%	19.76%
6036	73 Outperform	¥83.21B	3.80	―	1.52%	10.51%	2.95%
4612	69 Neutral	¥2.32T	13.66	11.64%	1.52%	9.81%	32.64%
4613	68 Neutral	¥408.31B	7.90	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥363.86B	10.69	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 to Sell Policy Shareholdings, Booking ¥3.5 Billion Gain

Nihon Parkerizing Co., Ltd. has decided to sell a portion of its holdings of multiple listed investment securities as part of a strategy to reduce policy shareholdings and enhance capital efficiency. The sale is expected to generate an estimated gain of about ¥3.5 billion, which will be recognized as extraordinary income in the fiscal year ending March 31, 2026.

Management is currently reviewing the impact of this transaction, together with other factors, on its earnings forecast for the year ending March 2026. The company indicated it will promptly disclose any revisions to its earnings outlook, signaling potential changes to shareholder returns or financial metrics as capital efficiency measures progress.

The most recent analyst rating on (JP:4095) stock is a Hold with a Yen1622.00 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 Co., Ltd. has disclosed the latest status of its share repurchase program, reporting the buyback of 99,200 common shares for approximately ¥153.9 million through market purchases on the Tokyo Stock Exchange between February 1 and February 28, 2026. This transaction forms part of a broader board-approved program, under which the company has so far repurchased 3,515,100 shares for about ¥4.87 billion, signaling an ongoing capital policy focused on shareholder returns and potentially enhancing earnings per share and capital efficiency.

The buyback is being executed under a resolution that authorizes the purchase of up to 4.8 million shares, or about 4.1% of outstanding shares excluding treasury stock, and up to a total of ¥5 billion through March 31, 2026. With most of the authorized budget and volume already utilized, stakeholders can infer that the company is nearing completion of this repurchase initiative, which may support the stock price, adjust the firm’s capital structure, and reflect management’s confidence in its financial position and future prospects.

The most recent analyst rating on (JP:4095) stock is a Buy with a Yen1758.00 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 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.