Nippon Pigment Company, Limited (4119) AI Stock Analysis

• Market Cap: ¥5.15B
• Dividend Yield: 3.05%
• Average Volume (3M): 2.22K
• Price to Earnings (P/E): 1.0
• Beta (1Y): 0.63
• Revenue Growth: 42.12%
• EPS Growth: 605.25%
• Country: JP
• Employees: 808
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): -1029.22
• Shares Outstanding: 1,575,899
• 10 Day Avg. Volume: 2,880
• 30 Day Avg. Volume: 2,216
• PEG Ratio: 1.46
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 76 Outperform
• Price Target: ¥3,968.00 ▲(20.98%Upside)

Nippon Pigment Company shows strong technical momentum and attractive valuation due to a low P/E ratio and solid dividend yield. While financial performance is positive with strong revenue growth, challenges in cash flow management need to be addressed to sustain this growth.

Nippon Pigment Company, Limited Business Overview & Revenue Model

Company Description

Nippon 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 Money

Nippon 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

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

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

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.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
33.03B	26.68B	27.46B	27.57B	30.12B	38.41B
	Gross Profit
5.03B	3.78B	3.19B	4.36B	3.05B	3.52B
	EBIT
332.59M	425.84M	-59.12M	1.28B	264.06M	471.00M
	EBITDA
1.05B	2.57B	369.13M	2.61B	1.34B	1.79B
	Net Income Common Stockholders
7.40B	740.70M	-519.89M	885.50M	-116.83M	184.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.77B	3.64B	2.80B	5.14B	5.91B	2.56B
	Total Assets
48.29B	29.63B	29.08B	32.77B	32.34B	29.62B
	Total Debt
6.80B	4.82B	5.43B	8.35B	9.94B	7.58B
	Net Debt
1.03B	1.18B	2.63B	3.21B	4.03B	5.52B
	Total Liabilities
25.05B	13.93B	13.89B	17.79B	18.55B	15.98B
	Stockholders Equity
21.43B	14.50B	14.15B	13.98B	12.92B	12.65B
Cash Flow		Free Cash Flow
0.00	889.58M	-20.02M	824.08M	871.87M	438.00M
	Operating Cash Flow
0.00	1.52B	993.15M	1.29B	1.76B	2.15B
	Investing Cash Flow
0.00	191.69M	-698.65M	-366.67M	-721.52M	-1.73B
	Financing Cash Flow
0.00	-896.77M	-3.17B	-1.77B	2.34B	-708.00M

Nippon Pigment Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3280.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3280 is above the 20-day moving average (MA) of 3263.50, above the 50-day MA of 3111.32, and above the 200-day MA of 3063.34, indicating a neutral trend. The MACD of 48.65 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 10.06 is Positive, 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
4221	81 Outperform	¥51.42B	10.75		2.55%	6.35%	11.03%
4116	79 Outperform	¥55.11B	5.11		4.89%	4.12%	192.18%
4633	77 Outperform	¥96.02B	10.21		4.69%	7.39%	15.07%
4119	76 Outperform	¥5.15B	0.99		3.05%	42.12%	605.25%
4611	73 Outperform	¥32.55B	3.47		4.26%	0.79%	104.91%
4092	70 Outperform	¥17.54B	6.86		4.62%	0.79%	61.23%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	4.14%	2.90%	-30.49%