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Nippon Pigment Company, Limited (JP:4119)
:4119
Japanese Market

Nippon Pigment Company, Limited (4119) AI Stock Analysis

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JP

Nippon Pigment Company, Limited

(4119)

Rating:73Outperform
Price Target:
¥3,680.00
▲(13.41%Upside)
Nippon Pigment Company's strong valuation and robust technical indicators are the main drivers of its positive stock score. While the financial performance shows promise with revenue growth and profitability, challenges in cash flow management highlight areas for improvement.

Nippon Pigment Company, Limited (4119) vs. iShares MSCI Japan ETF (EWJ)

Nippon Pigment Company, Limited Business Overview & Revenue Model

Company DescriptionNippon Pigment Company, Limited (4119) is a Japanese company engaged in the production and distribution of pigments, masterbatches, and various color-related products. The company operates primarily in the chemical sector, offering solutions that enhance the appearance and functionality of plastics and other materials. Its products are used across a wide range of industries including automotive, consumer goods, construction, and electronics, contributing to the aesthetic and durability of end products.
How the Company Makes MoneyNippon Pigment Company, Limited generates revenue through the manufacturing and sale of its pigment and masterbatch products. The company's primary revenue streams include the direct sale of pigments and colorants to manufacturers and industrial clients who incorporate these products into their own production processes. Additionally, Nippon Pigment engages in partnerships and collaborations with key players in various industries to co-develop specialized color solutions, thereby expanding its market reach and customer base. The company benefits from its expertise in providing high-quality, customized color solutions that meet the specific needs of its clients, which is a significant factor contributing to its earnings.

Nippon Pigment Company, Limited Financial Statement Overview

Summary
Nippon Pigment Company, Limited shows a mixed financial position. While profitability and equity metrics demonstrate potential strengths, the company struggles with operational efficiency and cash flow sustainability. The recent revenue increase suggests recovery prospects, but the lack of operating and free cash flow is a critical area of concern for long-term stability.
Income Statement
72
Positive
The company shows a strong gross profit margin of 15.2% TTM, indicating efficient production processes. However, the net profit margin at 22.4% TTM is inflated due to non-operational gains. Revenue growth has been inconsistent, with a decline from 2020 to 2023, but a recent TTM increase suggests potential recovery. The EBIT margin of 1.0% TTM is low, reflecting operational inefficiencies. Overall, profitability metrics indicate moderate financial health with room for improvement in operational efficiency.
Balance Sheet
65
Positive
The company maintains a reasonable debt-to-equity ratio of 0.32, indicating a conservative approach to leverage. The equity ratio stands at 44.4%, showcasing a stable financial structure. Return on equity is robust at 34.5% TTM, driven by strong net income figures. However, the high ROE is partially due to non-operational factors, and core business profitability remains a concern.
Cash Flow
40
Negative
Cash flow metrics are concerning due to a lack of operating cash flow in the TTM period, which raises liquidity and sustainability issues. Historically, the company has shown fluctuating free cash flow growth, with a significant decline in recent years. The absence of free cash flow in the latest period limits the ability to assess financial flexibility.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue33.03B26.68B27.46B27.57B30.12B38.41B
Gross Profit5.03B3.78B3.19B4.36B3.05B3.52B
EBITDA1.05B2.57B369.13M2.61B1.34B1.79B
Net Income7.40B740.70M-519.89M885.50M-116.83M184.00M
Balance Sheet
Total Assets48.29B29.63B29.08B32.77B32.34B29.62B
Cash, Cash Equivalents and Short-Term Investments5.77B3.64B2.80B5.14B5.91B2.56B
Total Debt6.80B4.82B5.43B8.35B9.94B7.58B
Total Liabilities25.05B13.93B13.89B17.79B18.55B15.98B
Stockholders Equity21.43B14.50B14.15B13.98B12.92B12.65B
Cash Flow
Free Cash Flow0.00889.58M-20.02M824.08M871.87M438.00M
Operating Cash Flow0.001.52B993.15M1.29B1.76B2.15B
Investing Cash Flow0.00191.69M-698.65M-366.67M-721.52M-1.73B
Financing Cash Flow0.00-896.77M-3.17B-1.77B2.34B-708.00M

Nippon Pigment Company, Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3245.00
Price Trends
50DMA
3228.40
Positive
100DMA
3120.53
Positive
200DMA
3074.79
Positive
Market Momentum
MACD
33.26
Positive
RSI
57.95
Neutral
STOCH
38.82
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 3245 is below the 20-day moving average (MA) of 3303.00, above the 50-day MA of 3228.40, and above the 200-day MA of 3074.79, indicating a bullish trend. The MACD of 33.26 indicates Positive momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 38.82 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥48.85B10.21
4.64%6.35%11.03%
79
Outperform
¥56.73B5.26
4.75%4.12%192.18%
78
Outperform
¥33.06B3.52
4.20%0.79%104.86%
77
Outperform
¥98.87B10.51
4.55%7.39%15.07%
75
Outperform
¥17.88B6.99
4.53%0.79%60.97%
73
Outperform
¥5.18B1.03
3.03%42.12%578.59%
44
Neutral
C$964.86M-6.72-13.73%2.52%17.53%-32.55%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4119
Nippon Pigment Company, Limited
3,300.00
248.44
8.14%
JP:4092
Nippon Chemical Industrial Co., Ltd.
2,040.00
-638.51
-23.84%
JP:4116
Dainichiseika Color & Chemicals Mfg.Co., Ltd.
3,155.00
15.44
0.49%
JP:4221
Okura Industrial Co., Ltd.
4,120.00
1,365.72
49.59%
JP:4611
Dai Nippon Toryo Company, Limited
1,207.00
-30.71
-2.48%
JP:4633
Sakata Inx Corp.
2,013.00
332.02
19.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025