Nippon Pigment Company, Limited (4119) AI Stock Analysis

• Market Cap: ¥5.55B
• Dividend Yield: 2.84%
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): 1.1
• Beta (1Y): 0.67
• Revenue Growth: 42.12%
• EPS Growth: 578.59%
• Country: JP
• Employees: 808
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals - Specialty
• EPS (TTM): -1029.22
• Shares Outstanding: 1,575,899
• 10 Day Avg. Volume: 1,290
• 30 Day Avg. Volume: 1,716
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥3,358.00
• Price Target Upside: -4.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,680.00 ▲(4.69% 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 Business Overview & Revenue Model

Company Description

Nippon Pigment Company, Limited (4119) is a Japanese corporation specializing in the production and distribution of pigments and related chemical products. The company operates within the chemical industry, focusing on providing high-quality colorants used in a variety of applications, including plastics, coatings, inks, and textiles. With a commitment to innovation and sustainability, Nippon Pigment delivers advanced pigment solutions that meet the diverse needs of its global clientele.

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 shows strong revenue growth and improved profitability with a healthy balance sheet. However, cash flow management is concerning due to negative free cash flows, indicating a need for more effective capital allocation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.92B	26.68B	27.46B	27.57B	30.12B
Gross Profit	5.47B	3.78B	3.19B	4.36B	3.05B
EBITDA	6.10B	2.57B	369.13M	2.61B	1.34B
Net Income	5.22B	740.70M	-519.89M	885.50M	-116.83M
Balance Sheet
Total Assets	44.41B	29.63B	29.08B	32.77B	32.34B
Cash, Cash Equivalents and Short-Term Investments	4.26B	3.64B	2.80B	5.14B	5.91B
Total Debt	6.64B	4.82B	5.43B	8.35B	9.94B
Total Liabilities	22.63B	13.93B	13.89B	17.79B	18.55B
Stockholders Equity	19.97B	14.50B	14.15B	13.98B	12.92B
Cash Flow
Free Cash Flow	-1.32B	889.58M	-20.02M	824.08M	871.87M
Operating Cash Flow	-34.08M	1.52B	993.15M	1.29B	1.76B
Investing Cash Flow	-301.25M	191.69M	-698.65M	-366.67M	-721.52M
Financing Cash Flow	743.16M	-896.77M	-3.17B	-1.77B	2.34B

Nippon Pigment Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3515.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 3515 is above the 20-day moving average (MA) of 3375.25, above the 50-day MA of 3326.60, and above the 200-day MA of 3090.00, indicating a bullish trend. The MACD of 52.48 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 97.44 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
4221	81 Outperform	¥54.16B	11.32		3.34%	8.13%	5.35%
4116	79 Outperform	¥63.83B	5.41		3.44%	4.12%	192.18%
4611	78 Outperform	¥36.55B	3.89		3.99%	0.79%	104.86%
4633	74 Outperform	¥110.12B	10.99		3.99%	7.39%	15.07%
4119	73 Outperform	¥5.55B	1.10		2.84%	42.12%	578.59%
4092	71 Outperform	¥19.12B	7.60		3.74%	0.79%	60.97%
Sector *	44 Neutral	C$873.73M	-6.74	-14.91%	2.76%	16.72%	-26.63%