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

• Market Cap: ¥275.26B
• Dividend Yield: 5.84%
• Average Volume (3M): 832.80K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.60
• Revenue Growth: -0.47%
• EPS Growth: 25.41%
• Country: JP
• Employees: 4,607
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 21.16
• Shares Outstanding: 156,000,000
• 10 Day Avg. Volume: 672,080
• 30 Day Avg. Volume: 832,803
• PEG Ratio: 0.25
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 20.38
• 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: ¥1,685.00
• Price Target Upside: -6.08% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥1,900.00 ▲(5.91% Upside)

Nippon Shokubai Co., Ltd. has a stable financial position with strong profitability margins and low leverage. However, challenges in revenue growth and free cash flow generation are notable. Technical indicators show mixed signals, with the stock trading below key moving averages. The valuation is attractive with a reasonable P/E ratio and strong dividend yield, providing a good return for investors.

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

Company Description

Nippon Shokubai Co., Ltd. provides various chemical products in Japan. It operates through three segments: Basic Chemicals, Functional Chemicals, and Environment and Catalysts. The Basic Chemicals segment offers acrylic acids, acrylates, ethylene oxides, ethylene glycols, ethanolamine, secondary alcohol ethoxylates, and glycol ether. The Functional Chemicals segment provides superabsorbent polymers, special acrylates, pharmaceutical intermediates, polymer for concrete admixture, electronic and information materials, iodine, maleic anhydride, resins for adhesives and paints, and adhesive products. The Environment and Catalysts segment offers automotive, De-NOx, dioxin decomposition, waste gas treatment, and process catalysts; and fuel cell materials. The company also provides agro chemicals, flame retardants, photo/electro chemicals, adhesive- processed and fine sphere particles, surfactant and other chemicals, stabilizer of vinyl chloride resin, antiseptic, antifouling agents, anti-freeze, polycyclic aromatic hydrocarbons, acrylic acid derivatives, unsaturated polyester resins, plastic molded materials, malonates, plant control systems, and water soluble polymers, as well as MAA, MMA, and PMMA products. In addition, it designs, constructs, repairs, and maintains production facilities; and provides logistics for chemicals. The company was formerly known as Nippon Shokubai Kagaku Kogyo Co., Ltd. and changed its name to Nippon Shokubai Co., Ltd. in 1991. Nippon Shokubai Co., Ltd. was incorporated in 1941 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nippon Shokubai generates revenue through the sales of its chemical products across various industries, with significant revenue streams coming from superabsorbent polymers used in hygiene products, catalysts for the production of petrochemicals, and specialty chemicals for various applications. The company's revenue model is primarily based on direct sales to manufacturers and distributors, as well as long-term contracts with key clients in the automotive and agricultural sectors. Additionally, Nippon Shokubai benefits from strategic partnerships and collaborations with other firms and research institutions, which enhances its innovation capabilities and market reach, further contributing to its earnings.

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, challenges in revenue growth and free cash flow generation are notable. The balance sheet is robust, but the income statement and cash flow statement highlight areas needing strategic focus for 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	53.14B	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: 1794.00
• 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:4114, the sentiment is Positive. The current price of 1794 is above the 20-day moving average (MA) of 1793.72, below the 50-day MA of 1813.80, and above the 200-day MA of 1706.72, indicating a neutral trend. The MACD of -9.20 indicates Positive momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 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
4368	80 Outperform	¥199.83B	15.50	―	1.48%	8.80%	33.39%
4272	78 Outperform	€222.18B	12.42	7.16%	4.74%	8.14%	274.53%
4041	74 Outperform	¥190.69B	13.54	―	4.27%	3.26%	-13.75%
4045	74 Outperform	$168.26B	17.65	4.41%	4.07%	-1.50%	-32.46%
4114	63 Neutral	¥275.26B	15.69	―	5.84%	-0.47%	25.41%
4061	62 Neutral	€192.39B	-20.15	-4.00%	4.41%	0.24%	-234.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Shokubai Co., Ltd. Corporate Events

Nippon Shokubai Completes Treasury Stock Purchase

Nippon Shokubai Co., Ltd. has completed the purchase of 983,600 shares of its own common stock, amounting to a total cost of 1,781,253,200 yen. This action is part of a broader resolution by the Board of Directors to acquire up to 5,000,000 shares, with a total budget of 7 billion yen, as a strategic move to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:4114) stock is a Hold with a Yen1951.00 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 Status

Nippon Shokubai Co., Ltd. announced the status of its treasury stock purchase, which was resolved by the Board of Directors on July 30, 2025. The company purchased 1,361,900 shares of common stock for approximately 2.46 billion yen through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan to buy back up to 5 million shares, with a total cost of up to 7 billion yen, by February 2026. The purchase is aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:4114) stock is a Hold with a Yen2039.00 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 Addresses Server Breach with Enhanced Security Measures

Nippon Shokubai Co., Ltd. has completed an investigation into unauthorized access to its servers, initially reported in May 2025. The investigation, conducted with external experts, confirmed unauthorized access to multiple file servers and the potential leak of personal information of 197 employees. No business systems were affected, and no actual data leakage or secondary damage has been confirmed. The company has strengthened its monitoring systems and continues to enhance security measures to prevent recurrence. There is no current impact on financial results, and any future developments will be promptly disclosed.

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 Reports Decline in Q1 Financial Performance for FY2025

Nippon Shokubai Co., Ltd. reported a decrease in its financial performance for the first quarter of the fiscal year ending March 31, 2026, with revenue dropping by 3.7% compared to the previous year. The company also experienced a decline in operating profit and profit before tax, indicating challenges in maintaining its previous growth trajectory. Despite these setbacks, the inclusion of Emulsion Technology Co., Ltd. in its consolidation scope may suggest strategic efforts to diversify and strengthen its market position.

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 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.