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

• Market Cap: ¥261.84B
• Dividend Yield: 6.4%
• Average Volume (3M): 586.39K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.66
• Revenue Growth: 4.42%
• EPS Growth: 61.92%
• Country: JP
• Employees: 4,607
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals
• EPS (TTM): 22.28
• Shares Outstanding: 156,000,000
• 10 Day Avg. Volume: 603,900
• 30 Day Avg. Volume: 586,386
• PEG Ratio: 1.00
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.37
• 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: ¥1,600.00
• Price Target Upside: -3.50% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: ¥1,885.00 ▲(13.69%Upside)

Nippon Shokubai Co., Ltd. scores well due to its strong financial performance and attractive valuation with a high dividend yield. The company's robust balance sheet and low leverage provide financial stability. Technical analysis indicates moderate momentum. However, the decline in free cash flow growth and the need for improved operational efficiency are areas to watch.

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 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 has shown solid revenue growth and profitability with a stable gross profit margin and improved net profit margin. The balance sheet is robust with a high equity ratio and low debt-to-equity ratio, indicating financial stability. However, there is room for improvement in EBIT margins and the decline in free cash flow growth is a potential concern.

Income Statement

Nippon Shokubai has demonstrated solid growth in its revenue, achieving a revenue growth rate of 4.42% from 2024 to 2025. The gross profit margin is stable at 17.2%, and the net profit margin improved to 4.25% in 2025, reflecting effective cost management. However, the EBIT margin stands at 4.19%, indicating room for improvement in operational efficiency. Overall, the income statement shows strong growth and profitability, although there are opportunities to enhance EBIT margins.

Balance Sheet

The balance sheet of Nippon Shokubai is robust, with a healthy equity ratio of 70.45%, signifying financial stability and a low reliance on debt. The debt-to-equity ratio is low at 0.11, indicating prudent financial management. Return on equity improved to 4.54% in 2025. The strong equity base and low leverage are key strengths, providing financial stability amid potential industry fluctuations.

Cash Flow

The cash flow statement reflects strong operating cash flow, with an operating cash flow to net income ratio of 2.7, showing effective cash generation from operations. However, free cash flow growth rate of -65.03% from 2024 to 2025 suggests a reduction in cash available after capital expenditures, which warrants monitoring. The overall cash flow position is strong, yet the decline in free cash flow growth may impact future investment capacities.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	409.35B	392.01B	419.57B	369.29B	273.16B
Gross Profit	70.45B	68.00B	80.39B	77.71B	48.05B
EBITDA	53.14B	49.74B	54.70B	57.27B	15.45B
Net Income	17.39B	11.01B	19.39B	23.72B	-10.90B
Balance Sheet
Total Assets	543.66B	544.06B	523.32B	518.15B	471.62B
Cash, Cash Equivalents and Short-Term Investments	54.56B	55.13B	53.19B	51.79B	46.00B
Total Debt	41.39B	45.61B	50.91B	52.19B	52.87B
Total Liabilities	151.13B	151.50B	153.32B	167.03B	147.89B
Stockholders Equity	383.03B	383.45B	362.23B	343.88B	317.37B
Cash Flow
Free Cash Flow	13.05B	37.31B	18.36B	12.80B	3.89B
Operating Cash Flow	46.97B	57.88B	41.45B	35.06B	35.28B
Investing Cash Flow	-30.51B	-15.68B	-25.98B	-23.16B	-30.62B
Financing Cash Flow	-16.78B	-28.36B	-17.32B	-10.75B	-12.75B

Nippon Shokubai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1658.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 1658 is above the 20-day moving average (MA) of 1656.52, above the 50-day MA of 1650.09, and below the 200-day MA of 1728.95, indicating a neutral trend. The MACD of 6.98 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 66.21 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	78 Outperform	¥147.67B	12.71		1.69%	17.86%	39.28%
4041	78 Outperform	¥187.06B	12.29		4.18%	0.50%	-8.77%
4114	77 Outperform	¥261.84B	14.82		6.40%	4.42%	61.92%
4272	74 Outperform	¥212.79B	12.59	6.49%	4.45%	10.30%	333.75%
4045	74 Outperform	¥163.69B	14.84	5.27%	4.26%	5.13%	-8.77%
4061	54 Neutral	€177.64B	15.29	-4.17%	4.85%	2.82%	-202.98%
Sector *	44 Neutral	AU$1.51B	-6.04	-41.37%	3.90%	-3.45%	-43.04%

Nippon Shokubai Co., Ltd. Corporate Events

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.