Nippon Pigment Company, Limited (4119) AI Stock Analysis

• Market Cap: ¥7.58B
• Dividend Yield: 2.84%
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 37.67%
• EPS Growth: -117.29%
• Country: JP
• Employees: 808
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 341.19
• 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: 66 Neutral
• Price Target: ¥4,979.00 ▲(36.97% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by strong financial performance (rapid revenue growth and improved profitability with a solid balance sheet), but is held back by recent negative free cash flow. Technicals are supportive due to a strong uptrend, though very overbought momentum raises near-term pullback risk. Valuation is mixed given a moderate dividend but an unhelpful negative P/E.

Positive Factors

Revenue Growth

Sustained high revenue growth signals durable demand for pigment products and expanding customer adoption. Over 2-6 months this supports scale economies, stronger supplier bargaining, and more resources for product development and contract wins, reinforcing competitive position in specialty chemicals.

Profitability

A mid-teens net margin indicates the business can convert sales into sustainable earnings, providing a buffer versus raw-material swings. This profitability supports reinvestment, dividend capacity, and long-term supplier/customer stability, improving resilience across cycles.

Balance Sheet Strength

A solid equity base and modest leverage give flexibility to fund capex, withstand downturns, and pursue strategic investments without heavy refinancing. Over months this enhances credit resilience, supports supplier confidence, and underpins long-term operational planning.

Negative Factors

Cash Flow Weakness

Negative FCF driven by higher capex and a weak operating-cash-to-income conversion reduces internal funding for growth and dividends. If sustained, it pressures liquidity, may force external financing, and limits flexibility for strategic investments over the medium term.

Earnings Volatility

Volatile ROE suggests earnings are uneven and may include one-off items. This undermines predictability of returns, complicates capital allocation and long-term planning, and raises questions about recurring earnings quality across future reporting periods.

Operational Efficiency

Lower operating margins limit the company's ability to absorb raw-material and energy cost inflation and constrain free cash generation. Structural margin improvement is needed to convert sales growth into durable profit expansion and stronger cash flows over time.

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

Strong revenue growth (+42.1% YoY) and improved profitability (TTM net margin ~13.77%) support the score, along with a solid capital structure (equity ratio ~44.97%, debt-to-equity ~0.33). The main constraint is weaker cash-flow quality, with recent negative free cash flow and a negative operating cash flow to net income ratio.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 3635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3635 is below the 20-day moving average (MA) of 4290.25, below the 50-day MA of 3967.10, and above the 200-day MA of 3528.80, indicating a bullish trend. The MACD of 221.07 indicates Negative momentum. The RSI at 81.34 is Negative, neither overbought nor oversold. The STOCH value of 87.62 is Negative, 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
4633	77 Outperform	¥134.02B	11.39	―	3.72%	5.40%	14.80%
4116	76 Outperform	¥90.80B	12.64	―	3.04%	1.57%	-33.97%
4275	73 Outperform	¥69.47B	20.79	―	1.92%	-0.86%	17.65%
4635	71 Outperform	¥24.68B	10.51	―	3.61%	8.85%	110.05%
4022	68 Neutral	¥81.88B	18.48	―	2.22%	5.17%	79.36%
4119	66 Neutral	¥7.58B	-8.15	―	2.84%	37.67%	-117.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%