Nippon Kayaku Co (4272) AI Stock Analysis

• Market Cap: €222.18B
• Dividend Yield: 4.76%
• Average Volume (3M): 383.85K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.38
• Revenue Growth: 8.14%
• EPS Growth: 274.53%
• Country: JP
• Employees: 5,902
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 27.29
• Shares Outstanding: 160,000,000
• 10 Day Avg. Volume: 382,940
• 30 Day Avg. Volume: 383,850
• PEG Ratio: 0.04
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -61.86
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,607.00 ▲(13.25% Upside)

Nippon Kayaku Co's overall stock score is driven by strong financial performance and attractive valuation. The company's consistent revenue growth and improved profitability margins are significant strengths. The stock's positive technical indicators further support its potential. However, challenges in cash management and capital expenditure optimization, as indicated by negative free cash flow, slightly temper the overall score.

Nippon Kayaku Co Business Overview & Revenue Model

Company Description

Nippon Kayaku Co., Ltd., together with its subsidiaries, develops, manufactures, and sells functional chemicals, pharmaceuticals, safety systems, and agrochemicals and other products in Japan and internationally. The company's Functional and Chemical Business segment offers functional materials, such as epoxy resins, UV-curable resins, sealants for LCD and LED, maleimide resins, photoresists and insulating materials for micro electromechanical systems, and cleaning agents and chemicals. This segment also provides color materials, including inkjet colorants, dyes for textiles and papers, and materials for thermal paper; catalysts for the production of acrylic and methacrylic acid; and polarizing films, inorganic polarizers, liquid crystal display components and projector parts, and components for x-ray analysis. Its Pharmaceuticals Business segment offers anti-cancer and cancer-related drugs, biosimilars, generic drugs, interventional radiology products, cardiovascular drugs, bulk drugs and intermediates of pharmaceuticals, and drugs for diagnosing cancer, as well as GlycoMark, a product as a marker of blood sugar control used for diabetes. The company's Safety Systems Business segment provides airbag inflators, micro gas generators for seatbelt pretensioners, and squibs. Its Agrochemicals Business segment offers agricultural insecticides, herbicides, soil fumigants, and insanitary insecticides. The company also engages in real estate leasing services. The company was formerly known as Nihon Kayaku Seizou Co., Ltd. and changed its name to Nippon Kayaku Co., Ltd. in 1945. Nippon Kayaku Co., Ltd. was incorporated in 1916 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Kayaku generates revenue through multiple streams, with its primary sources being the sale of pharmaceuticals and specialty chemicals. The Pharmaceuticals segment contributes significantly to the company's earnings through the commercialization of proprietary drugs and licensed products, often supported by research collaborations and partnerships with other pharmaceutical firms. Additionally, the Chemicals segment profits from the production and sale of chemical products used in various industries, including agriculture and food production. Strategic partnerships with research institutions and other companies enhance its product offerings and market reach, further driving revenue growth. The company also invests in R&D to innovate and expand its product lines, which helps maintain its competitive edge and ensures a steady flow of income.

Nippon Kayaku Co Financial Statement Overview

Summary

Nippon Kayaku Co exhibits strong financial performance with consistent revenue growth and improved profitability margins. The balance sheet reflects financial stability with a strong equity base and manageable debt levels. However, the negative free cash flow in 2025 highlights potential challenges in cash management and capital expenditure optimization.

Income Statement

Nippon Kayaku Co has shown consistent revenue growth, with a 10.3% increase in revenue from 2024 to 2025. The gross profit margin for 2025 is robust at 32.1%, and the net profit margin improved significantly from 2.0% in 2024 to 7.9% in 2025. The EBIT margin is strong at 9.2%, demonstrating effective cost management. However, the EBITDA margin decreased slightly from 10.8% in 2024 to 16.3% in 2025, indicating slight pressure on operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 71.6% in 2025, indicating financial stability. The debt-to-equity ratio is moderate at 0.16, showcasing prudent leverage management. The return on equity improved to 6.5% in 2025 from 1.5% in 2024, indicating enhanced shareholder value creation. Despite these strengths, the decrease in stockholders' equity from 2024 to 2025 warrants attention.

Cash Flow

Nippon Kayaku Co's operating cash flow to net income ratio is healthy at 1.46 in 2025, reflecting strong cash generation relative to earnings. However, the free cash flow turned negative in 2025, raising concerns about capital expenditure management. The free cash flow to net income ratio is also negative at -0.21, suggesting challenges in converting profits into free cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	222.58B	201.79B	198.38B	184.81B	173.38B
Gross Profit	71.48B	61.30B	66.75B	63.97B	56.32B
EBITDA	36.31B	21.73B	35.32B	37.88B	31.10B
Net Income	17.51B	4.11B	14.98B	17.18B	12.57B
Balance Sheet
Total Assets	373.71B	363.17B	322.86B	315.46B	294.54B
Cash, Cash Equivalents and Short-Term Investments	59.76B	66.18B	54.35B	53.65B	48.12B
Total Debt	42.10B	31.45B	19.58B	16.65B	19.40B
Total Liabilities	105.19B	92.63B	67.83B	69.03B	66.26B
Stockholders Equity	267.53B	269.56B	254.02B	245.48B	227.50B
Cash Flow
Free Cash Flow	-3.73B	7.41B	7.05B	13.67B	10.88B
Operating Cash Flow	25.53B	23.24B	20.04B	23.14B	24.41B
Investing Cash Flow	-27.31B	-19.41B	-15.16B	-10.64B	-17.61B
Financing Cash Flow	-4.76B	3.82B	-7.95B	-11.09B	-8.40B

Nippon Kayaku Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1419.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4272, the sentiment is Positive. The current price of 1419 is above the 20-day moving average (MA) of 1399.85, above the 50-day MA of 1401.63, and above the 200-day MA of 1323.40, indicating a bullish trend. The MACD of 4.91 indicates Negative momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 44.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4272.

Nippon Kayaku Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4368	80 Outperform	¥199.83B	15.50	―	1.48%	8.80%	33.39%
4272	78 Outperform	€222.18B	12.42	7.16%	4.76%	8.14%	274.53%
4041	74 Outperform	¥190.69B	13.54	―	4.29%	3.26%	-13.75%
4045	74 Outperform	$168.26B	17.65	4.41%	4.07%	-1.50%	-32.46%
4114	63 Neutral	¥275.26B	15.69	―	5.84%	-0.47%	25.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4061	56 Neutral	€192.39B	-20.15	-3.41%	4.41%	0.61%	-180.24%

Nippon Kayaku Co Corporate Events

Nippon Kayaku Completes Treasury Share Disposal for Employee Compensation

Nippon Kayaku Co., Ltd. has completed the payment procedures for the disposal of treasury shares as restricted stock compensation for its Employee Shareholding Association. The number of shares to be disposed of has been adjusted due to partial forfeiture, resulting in a slight decrease in the total value of shares disposed. This adjustment reflects the completion of consent confirmation for the employee stock incentive program, impacting the company’s financial operations and aligning with its strategic employee engagement initiatives.

The most recent analyst rating on (JP:4272) stock is a Buy with a Yen1515.00 price target. To see the full list of analyst forecasts on Nippon Kayaku Co stock, see the JP:4272 Stock Forecast page.

Nippon Kayaku Announces Treasury Stock Acquisition

Nippon Kayaku Co., Ltd. has announced the acquisition of its own shares in the market, following the provisions of the Companies Act. The company acquired 853,100 common shares at a total cost of 1,233,077,100 yen through open market transactions on the Tokyo Stock Exchange from September 1 to September 30, 2025. This move is part of a broader resolution made by the Board of Directors to acquire up to 14 million shares, representing 8.76% of total issued shares, with a budget of up to 17 billion yen, during the period from April 14, 2025, to March 31, 2026.

The most recent analyst rating on (JP:4272) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Nippon Kayaku Co stock, see the JP:4272 Stock Forecast page.

Nippon Kayaku Announces Executive Role Change

Nippon Kayaku Co., Ltd. announced a change in executive duties effective November 1, 2025. Shinji Inoue, currently a Member of the Board and Managing Director, will continue in his role with a revised focus, excluding the Purchasing Division from his responsibilities. This change may streamline operations and enhance focus on core divisions, potentially impacting the company’s strategic planning and stakeholder engagement.

The most recent analyst rating on (JP:4272) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Nippon Kayaku Co stock, see the JP:4272 Stock Forecast page.

Nippon Kayaku Corrects Treasury Share Disposal Notice

Nippon Kayaku Co., Ltd. announced a correction to a previous notice regarding the disposal of treasury shares as restricted stock compensation for its Employee Shareholding Association. The correction involved the publication date of the notice. The company is set to dispose of 38,700 shares of common stock to the Employee Shareholding Association as part of an incentive program to grant restricted stock to its employees, with the disposal scheduled for October 17, 2025.

The most recent analyst rating on (JP:4272) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Nippon Kayaku Co stock, see the JP:4272 Stock Forecast page.

Nippon Kayaku Announces Treasury Share Disposal for Employee Incentive Program

Nippon Kayaku Co., Ltd. has announced the disposal of treasury shares as part of a restricted stock compensation program for its employees. This initiative aims to align employee interests with shareholders, incentivize corporate value improvement, and support employee wealth building through the Nippon Kayaku Employee Shareholding Association.

The most recent analyst rating on (JP:4272) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Nippon Kayaku Co stock, see the JP:4272 Stock Forecast page.

Nippon Kayaku Reports Mixed Financial Results for Q1 2026

Nippon Kayaku Co., Ltd. reported its consolidated financial results for the first quarter ending March 31, 2026, showing a slight increase in net sales by 2.1% compared to the previous year. However, operating and ordinary income decreased significantly by 21.6% and 44.1%, respectively. Despite these declines, the profit attributable to owners of the parent rose by 20.3%, indicating a potential shift in financial strategy or cost management. The equity ratio slightly decreased to 69.5%, reflecting changes in the company’s financial position. The dividend forecast remains unchanged, suggesting stability in shareholder returns.

Nippon Kayaku Co. Announces Treasury Stock Acquisition

Nippon Kayaku Co., Ltd. has announced the acquisition of 447,400 of its own common shares from the open market on the Tokyo Stock Exchange, with a total acquisition cost of 596,152,350 yen. This move is part of a broader strategy approved by the Board of Directors to acquire up to 14 million shares, aiming to optimize the company’s capital structure and potentially enhance shareholder value.