Nippon Pigment Company, Limited (4119) AI Stock Analysis

• Market Cap: ¥5.34B
• Dividend Yield: 2.97%
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 37.67%
• EPS Growth: -117.29%
• Country: JP
• Employees: 808
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 151.44
• Shares Outstanding: 1,575,899
• 10 Day Avg. Volume: 2,550
• 30 Day Avg. Volume: 2,096
• PEG Ratio: <0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -3.69
• 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: 56 Neutral
• Price Target: ¥3,554.00 ▲(5.62% Upside)

The overall stock score is primarily influenced by strong financial performance, despite cash flow challenges. Technical indicators suggest potential short-term weakness, and valuation concerns are highlighted by a negative P/E ratio. The attractive dividend yield provides some support.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust sales performance and expanding market reach, which can enhance the company's market position and support future profitability.

Stable Balance Sheet

A stable balance sheet with a strong equity ratio reflects financial health and provides a solid foundation for sustainable growth and investment opportunities.

Improved Profitability

Improved profitability through a higher net profit margin suggests effective cost management and pricing strategies, enhancing long-term financial resilience.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash management, which could constrain the company's ability to invest in growth opportunities without external financing.

Inconsistent Return on Equity

Inconsistent return on equity suggests volatility in profitability, which may affect investor confidence and the company's ability to generate sustainable returns.

Low EBIT Margin

A low EBIT margin indicates potential inefficiencies in operations, which could hinder profitability and competitiveness if not addressed.

Nippon Pigment Company, Limited Business Overview & Revenue Model

Company Description

Nippon Pigment Company Limited manufactures and sells liquid dispersion products, colorants, and resin compounds. It primarily offers various resin compounds, such as olefin and styrene resins, and engineering plastic products; coloring agents for automobile interior skin materials, sealing materials, and floor materials; processed colors; colorants for resins; and liquid dispersions for FPD color filters. The company provides coloring agents for automobile interior and exterior parts, plastic containers, such as shampoo, films, sheets, fibers, etc. Nippon Pigment Company Limited was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Pigment Company, Limited generates revenue by manufacturing and selling its pigment products to a wide array of industries that require high-performance coloring solutions. The company's key revenue streams include sales to manufacturers in the plastics, coatings, inks, and textile sectors. Its business model is supported by longstanding partnerships with industrial clients who rely on the quality and consistency of Nippon Pigment's products for their production processes. Additionally, the company invests in research and development to innovate new pigment technologies, which enhances its competitive edge and opens up new market opportunities, thus contributing to its earnings.

Nippon Pigment Company, Limited Financial Statement Overview

Summary

Nippon Pigment Company has shown strong revenue growth and improved profitability, with a stable balance sheet. However, cash flow management issues, particularly negative free cash flow, present a challenge that needs addressing.

Income Statement

Nippon Pigment Company has demonstrated a strong recovery in its net income, achieving a significant increase from 2024 to 2025. The gross profit margin has been stable, and there is a notable improvement in net profit margin with TTM data showing a 13.77% net profit margin. Revenue growth has been impressive, with a 42.1% increase over the last year, indicating robust sales performance. However, the EBIT margin remains relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet shows a healthy equity ratio of 44.97% in 2025, indicating a strong capital structure. The debt-to-equity ratio is moderate at 0.33, suggesting manageable leverage. However, the return on equity has been inconsistent with a significant jump in 2025 due to increased net income, reflecting potential volatility. The overall financial stability is bolstered by a solid asset base, yet the fluctuations in profitability could pose risks.

Cash Flow

Nippon Pigment Company's cash flow analysis reveals challenges with free cash flow, which turned negative in the latest period, mainly due to increased capital expenditures. The operating cash flow to net income ratio is negative, reflecting cash flow management issues. However, the company has shown resilience in past periods with positive operating cash flows, suggesting potential for improvement if investment activities are optimized.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.77B	37.92B	26.68B	27.46B	27.57B	30.12B
Gross Profit	6.00B	5.47B	3.78B	3.19B	4.36B	3.05B
EBITDA	-580.11M	6.10B	2.57B	369.13M	2.61B	1.34B
Net Income	-1.17B	5.03B	740.70M	-519.89M	885.50M	-116.83M
Balance Sheet
Total Assets	43.83B	44.41B	29.63B	29.08B	32.77B	32.34B
Cash, Cash Equivalents and Short-Term Investments	4.10B	4.26B	3.64B	2.80B	5.14B	5.91B
Total Debt	6.40B	6.64B	4.82B	5.43B	8.35B	9.94B
Total Liabilities	22.87B	22.63B	13.93B	13.89B	17.79B	18.55B
Stockholders Equity	19.28B	19.97B	14.50B	14.15B	13.98B	12.92B
Cash Flow
Free Cash Flow	0.00	-1.32B	889.58M	-20.02M	824.08M	871.87M
Operating Cash Flow	0.00	-34.08M	1.52B	993.15M	1.29B	1.76B
Investing Cash Flow	0.00	78.62M	191.69M	-698.65M	-366.67M	-721.52M
Financing Cash Flow	0.00	743.16M	-896.77M	-3.17B	-1.77B	2.34B

Nippon Pigment Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3365.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4119, the sentiment is Positive. The current price of 3365 is above the 20-day moving average (MA) of 3286.50, below the 50-day MA of 3371.00, and above the 200-day MA of 3261.67, indicating a bullish trend. The MACD of 17.41 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4119.

Nippon Pigment Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4116	76 Outperform	¥70.48B	5.97	―	3.14%	1.57%	-33.97%
4633	75 Outperform	¥113.77B	11.35	―	3.96%	5.40%	14.80%
4611	74 Outperform	¥35.78B	4.16	―	3.98%	14.83%	51.42%
4221	67 Neutral	¥57.92B	12.86	―	2.81%	8.28%	0.70%
4092	66 Neutral	¥25.66B	10.19	―	4.13%	-3.41%	-12.83%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4119	56 Neutral	¥5.34B	―	―	2.97%	37.67%	-117.29%