Nippon Shokubai Co., Ltd. (4114) AI Stock Analysis

• Market Cap: ¥295.57B
• Dividend Yield: 5.82%
• Average Volume (3M): 881.92K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.61
• Revenue Growth: 1.44%
• EPS Growth: 58.90%
• Country: JP
• Employees: 4,607
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals
• EPS (TTM): 29.27
• Shares Outstanding: 156,000,000
• 10 Day Avg. Volume: 801,710
• 30 Day Avg. Volume: 881,916
• 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: ¥1,803.00
• Price Target Upside: -5.40% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: ¥2,039.00 ▲(6.98% Upside)

Nippon Shokubai Co., Ltd. receives a score of 69, driven by its stable financial performance and attractive valuation. The stock's technical indicators show strong momentum, but caution is advised due to overbought conditions. The company's financial health is solid, but challenges in revenue growth and cash flow generation need addressing for long-term success.

Nippon Shokubai Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Shokubai Co., Ltd. is a prominent Japanese chemical company specializing in the manufacture and sale of chemical products. Founded in 1941 and headquartered in Osaka, Japan, the company operates in various sectors, including basic chemicals, functional chemicals, and environmental solutions. Nippon Shokubai is particularly known for its superabsorbent polymers, acrylic acids, and ethylene oxide products, which are utilized in industries such as personal care, textiles, and automotive.

How the Company Makes Money

Nippon Shokubai makes money through its diverse portfolio of chemical products. The company's primary revenue streams are derived from the sale of superabsorbent polymers, which are widely used in disposable diapers and other personal hygiene products. Additionally, the production and sale of acrylic acids and their derivatives contribute significantly to its earnings, serving industries such as adhesives, paints, and coatings. Nippon Shokubai also generates income from its basic chemicals segment, which includes ethylene oxide and other industrial chemicals. Strategic partnerships and collaborations with other chemical manufacturers and a strong presence in international markets further enhance the company's revenue potential.

Nippon Shokubai Co., Ltd. Financial Statement Overview

Summary

Nippon Shokubai Co., Ltd. demonstrates a stable financial position with strengths in profitability margins and low leverage. However, the company faces challenges in revenue growth and free cash flow generation. While the balance sheet remains robust, the income statement and cash flow statement highlight areas that require strategic focus to enhance growth and liquidity.

Income Statement

Nippon Shokubai Co., Ltd. shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, with a negative growth rate of -0.94%. However, the company maintains a stable gross profit margin of approximately 17.2% and a net profit margin of 4.2%. The EBIT and EBITDA margins are also stable, indicating operational efficiency. The revenue growth has been inconsistent, with fluctuations over the years, which could pose a risk to future profitability.

Balance Sheet

The balance sheet of Nippon Shokubai Co., Ltd. reflects a strong equity position with a debt-to-equity ratio of 0.11, indicating low leverage. The return on equity is modest at 4.5%, suggesting moderate profitability from shareholders' investments. The equity ratio is healthy, showing that a significant portion of the company's assets is financed by equity. Overall, the balance sheet indicates financial stability with manageable debt levels.

Cash Flow

The cash flow statement reveals challenges in free cash flow growth, with a significant decline of -68.1% in the TTM period. The operating cash flow to net income ratio is 0.44, indicating that operating cash flow adequately covers net income. However, the free cash flow to net income ratio is lower at 0.28, suggesting limited free cash flow generation relative to net income. The cash flow position requires attention to ensure sustainable liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	405.50B	409.35B	392.01B	419.57B	369.29B	273.16B
Gross Profit	70.56B	70.45B	68.00B	80.39B	77.71B	48.05B
EBITDA	51.75B	53.14B	49.74B	54.70B	59.87B	15.45B
Net Income	17.20B	17.39B	11.01B	19.39B	23.72B	-10.90B
Balance Sheet
Total Assets	534.69B	543.66B	544.06B	523.32B	518.15B	471.62B
Cash, Cash Equivalents and Short-Term Investments	43.51B	54.56B	55.13B	39.03B	39.36B	36.34B
Total Debt	43.01B	41.39B	45.61B	57.61B	59.68B	61.57B
Total Liabilities	149.47B	151.13B	151.50B	153.32B	167.03B	147.89B
Stockholders Equity	376.50B	383.03B	383.45B	362.23B	343.88B	317.37B
Cash Flow
Free Cash Flow	4.16B	13.05B	37.31B	18.36B	12.80B	3.89B
Operating Cash Flow	45.29B	46.97B	57.88B	41.45B	35.06B	35.28B
Investing Cash Flow	-42.79B	-30.51B	-15.68B	-25.98B	-23.16B	-30.62B
Financing Cash Flow	-16.48B	-16.78B	-28.36B	-17.32B	-10.75B	-12.75B

Nippon Shokubai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1906.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4114, the sentiment is Positive. The current price of 1906 is above the 20-day moving average (MA) of 1830.05, above the 50-day MA of 1739.55, and above the 200-day MA of 1742.28, indicating a bullish trend. The MACD of 43.70 indicates Negative momentum. The RSI at 80.03 is Negative, neither overbought nor oversold. The STOCH value of 79.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4114.

Nippon Shokubai Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4114	69 Neutral	¥295.57B	16.85		5.82%	1.44%	58.90%
Sector *	62 Neutral	$10.36B	6.35	0.76%	2.84%	3.10%	-36.03%
DIK	―	€1.13B	14.99	-3.41%	―	―	―
NP7	―	€1.33B	11.75	7.16%	―	―	―
TOAGF	―	$1.18B	16.24	5.09%	6.26%	―	―
4041	78 Outperform	¥194.88B	13.84		2.29%	3.26%	-13.75%
4368	72 Outperform	¥166.35B	14.05		1.50%	12.70%	34.96%

Nippon Shokubai Co., Ltd. Corporate Events

Nippon Shokubai Announces Treasury Stock Disposal for Compensation Plan

Nippon Shokubai Co., Ltd. announced its decision to dispose of treasury stock through a third-party allotment as part of its performance-linked stock compensation plan for directors and executive officers. This move aims to align the interests of the company’s leadership with its performance and stock value, potentially enhancing corporate value over the medium to long term, with minimal impact on the market.

The most recent analyst rating on (JP:4114) stock is a Sell with a Yen1680.00 price target. To see the full list of analyst forecasts on Nippon Shokubai Co., Ltd. stock, see the JP:4114 Stock Forecast page.

Nippon Shokubai Announces Treasury Stock Purchase Plan

Nippon Shokubai Co., Ltd. has announced a decision by its Board of Directors to purchase up to 5,000,000 shares of its own common stock, representing 3.3% of its total issued shares, excluding treasury stock. This move, aimed at enhancing shareholder returns and capital efficiency, will involve a maximum expenditure of 7 billion yen and will be executed through market purchases on the Tokyo Stock Exchange between August 8, 2025, and February 27, 2026.

The most recent analyst rating on (JP:4114) stock is a Sell with a Yen1680.00 price target. To see the full list of analyst forecasts on Nippon Shokubai Co., Ltd. stock, see the JP:4114 Stock Forecast page.

Nippon Shokubai Focuses on Strategic Management to Enhance Value

Nippon Shokubai Co., Ltd. has announced updates on its strategic management actions aimed at being conscious of cost of capital and stock price, as discussed by its Board of Directors. This initiative is part of the company’s ongoing efforts to enhance corporate value, reflecting a proactive approach to improving profitability and market positioning.

The most recent analyst rating on (JP:4114) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Nippon Shokubai Co., Ltd. stock, see the JP:4114 Stock Forecast page.

Nippon Shokubai Investigates Server Breach

Nippon Shokubai Co., Ltd. announced a security breach involving unauthorized access to its servers, which is currently under investigation with the help of external cybersecurity experts. While there is no immediate impact on production and sales, the company is taking steps to enhance its security measures to prevent future incidents.

The most recent analyst rating on (JP:4114) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Nippon Shokubai Co., Ltd. stock, see the JP:4114 Stock Forecast page.

Nippon Shokubai Amends Stock Compensation Plan to Boost Corporate Growth

Nippon Shokubai Co., Ltd. announced a partial amendment and continuation of its Performance-linked Stock Compensation Plan for its Directors and Executive Officers. The plan, initially introduced in 2022, aims to align executive remuneration with the company’s performance and stock value, thereby motivating long-term corporate growth. The amended plan includes increased financial contributions and shares to be delivered, with new performance indicators to better align with the company’s mid-term management goals, reflecting a strategic move to enhance corporate value and shareholder alignment.

The most recent analyst rating on (JP:4114) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Nippon Shokubai Co., Ltd. stock, see the JP:4114 Stock Forecast page.

Nippon Shokubai Increases Year-End Dividend Amid Strong Financial Performance

Nippon Shokubai Co., Ltd. announced a year-end dividend of 60 yen per share for the fiscal year ending March 31, 2025, an increase from the previous forecast, resulting in an annual dividend of 114 yen per share. This decision reflects the company’s strong financial performance, driven by higher profit before tax and profit attributable to owners, despite a decrease in operating profit due to reduced production and sales volumes. The move aligns with their shareholder return policy, emphasizing a payout ratio of 100% or a dividend on equity of 2.0%, whichever is greater.

The most recent analyst rating on (JP:4114) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Nippon Shokubai Co., Ltd. stock, see the JP:4114 Stock Forecast page.

Nippon Shokubai Reports Strong Fiscal Year 2025 Results

Nippon Shokubai Co., Ltd. reported its financial results for the fiscal year ending March 31, 2025, showing a notable increase in revenue and profit compared to the previous year. The company experienced a 4.4% rise in revenue and a significant 49.1% increase in profit, attributed to improved operating efficiency and market conditions. Despite the positive performance, the company forecasts a slight decline in revenue and profit for the next fiscal year, indicating potential challenges ahead. The company also conducted a 4-for-1 stock split, affecting dividend payouts and share calculations.

The most recent analyst rating on (JP:4114) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on Nippon Shokubai Co., Ltd. stock, see the JP:4114 Stock Forecast page.