Nippon Kayaku Co Ltd (JP:4272)
:4272
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Nippon Kayaku Co
(4272)
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Rating:70Outperform
Price Target:
¥2,399.00
▲(42.84% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by solid financial performance (2026 growth and profitability rebound plus low leverage) tempered by weak/uneven free cash flow. Valuation is supportive (low P/E and ~3% yield), while technical indicators are mixed due to negative MACD despite price strength versus moving averages.
Positive Factors
Conservative Balance Sheet
Low leverage and a sizeable equity base provide lasting financial flexibility. With debt-to-equity near 0.18 the company can better withstand cyclical downturns, fund strategic capex or R&D, and maintain optionality on dividends or M&A without immediate refinancing stress.
Negative Factors
Weak/Uneven Free Cash Flow
Negative or very weak free cash flow reduces durable capacity to self-fund growth, pay sustained dividends, or deleverage. Over 2-6 months this can constrain capital allocation choices and force reliance on external funding if capital spending or working capital needs remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and a sizeable equity base provide lasting financial flexibility. With debt-to-equity near 0.18 the company can better withstand cyclical downturns, fund strategic capex or R&D, and maintain optionality on dividends or M&A without immediate refinancing stress.
Read all positive factors
Nippon Kayaku Co (4272) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥308.48B
Dividend Yield3.97%
Average Volume (3M)383.85K
Price to Earnings (P/E)13.1
Beta (1Y)0.44
Revenue Growth8.66%
EPS Growth49.77%
CountryJP
Employees5,902
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)113.39
Shares Outstanding148,700,000
10 Day Avg. Volume382,940
30 Day Avg. Volume383,850
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.96
Price to Sales (P/S)1.11
P/FCF Ratio71.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)166.7
Revenue Forecast (FY)¥262.00B
Nippon Kayaku Co Business Overview & Revenue Model
Company Description
Nippon Kayaku Co., Ltd., along with its subsidiary companies, is a global enterprise based in Tokyo, Japan. Established in 1916 and originally known as Nihon Kayaku Seizou Co., Ltd. until its rebranding in 1945, the company specializes in the deve...
How the Company Makes Money
Nippon Kayaku makes money primarily by manufacturing and selling products across its main business segments. In its functional chemicals operations, it generates revenue from sales of specialty chemical materials and related products supplied to i...
Nippon Kayaku Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 223.70B | 241.85B | 222.58B | 201.79B | 198.38B | 184.81B |
| Gross Profit | 70.83B | 72.88B | 70.64B | 60.33B | 65.90B | 62.88B |
| EBITDA | 36.98B | 49.82B | 36.31B | 21.73B | 35.31B | 37.88B |
| Net Income | 18.23B | 24.64B | 17.51B | 4.11B | 14.98B | 17.18B |
Balance Sheet | ||||||
| Total Assets | 375.50B | 398.74B | 373.71B | 363.17B | 322.86B | 315.46B |
| Cash, Cash Equivalents and Short-Term Investments | 60.36B | 54.49B | 59.76B | 66.18B | 54.35B | 53.65B |
| Total Debt | 47.09B | 49.18B | 49.54B | 31.68B | 19.84B | 16.85B |
| Total Liabilities | 113.50B | 118.63B | 105.19B | 92.62B | 67.83B | 69.03B |
| Stockholders Equity | 261.07B | 279.00B | 267.53B | 269.56B | 254.02B | 245.48B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.76B | -3.73B | 8.21B | 7.82B | 14.45B |
| Operating Cash Flow | 0.00 | 28.78B | 25.53B | 23.24B | 20.04B | 23.14B |
| Investing Cash Flow | 0.00 | -17.18B | -27.31B | -19.41B | -15.16B | -10.64B |
| Financing Cash Flow | 0.00 | -20.23B | -4.76B | 3.82B | -7.95B | -11.09B |
Nippon Kayaku Co Technical Analysis
Positive
1679.50
Price Trends
1949.97
Positive
1883.29
Positive
1687.86
Positive
Market Momentum
38.25
Positive
56.81
Neutral
72.27
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 1679.5 is below the 20-day moving average (MA) of 2098.40, below the 50-day MA of 1949.97, and below the 200-day MA of 1687.86, indicating a bullish trend. The MACD of 38.25 indicates Positive momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 72.27 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥1.12T | 22.67 | 19.69% | 3.15% | 11.23% | 17.64% | |
70 Outperform | ¥308.48B | 13.07 | 8.05% | 3.97% | 8.66% | 49.77% | |
64 Neutral | ¥944.60B | 22.42 | 4.79% | 4.21% | -4.09% | -27.31% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥312.61B | 18.64 | ― | 5.28% | -2.31% | -1.30% | |
60 Neutral | ¥520.97B | 142.98 | 1.02% | 3.37% | -1.80% | -85.21% | |
56 Neutral | ¥390.64B | 24.89 | -4.00% | 3.71% | -4.00% | ― |
* Basic Materials Sector Average
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Nippon Kayaku Co Corporate Events
Nippon Kayaku Books ¥8.5 Billion Dividend from Subsidiary with No Impact on Consolidated Earnings
May 13, 2026
Nippon Kayaku disclosed that it received dividends totaling 8,519 million yen from its consolidated subsidiary, Kayaku Safety Systems Europe a.s., on October 22, 2025. The company apologized for the delay in making this information public and pled...
Nippon Kayaku to Cancel 7% of Shares to Tighten Capital Structure
May 12, 2026
Nippon Kayaku’s board has approved the cancellation of 11.3 million treasury shares, representing 7.06% of its issued stock, in line with its stated policy to promptly cancel holdings exceeding 0.5% of outstanding shares. The move, scheduled...
Nippon Kayaku Launches Up to ¥15 Billion Share Buyback to Boost Capital Efficiency
May 12, 2026
Nippon Kayaku has approved a new share buyback program, authorizing the acquisition of up to 13 million of its own common shares, equivalent to 8.75% of outstanding shares excluding treasury stock, for a maximum total cost of ¥15 billion. The...
Nippon Kayaku Raises Annual Dividend Forecast to 66 Yen per Share
May 12, 2026
Nippon Kayaku Co., Ltd. announced that its board has approved an increase in the dividend forecast for the fiscal year ended March 31, 2026, raising the planned year-end dividend from 30 yen to 36 yen per share. This revision lifts the total annua...
Nippon Kayaku Lifts Earnings and Dividend, Signals Cautious Profit Outlook for FY 2027
May 12, 2026
Nippon Kayaku reported consolidated net sales of ¥241.9 billion for the year ended March 31, 2026, up 8.7% year on year, with operating income rising 10.1% to ¥22.5 billion and profit attributable to owners of parent surging 40.7% to ...
Nippon Kayaku Revamps Audit & Supervisory Board with New Outside Member
Apr 22, 2026
Nippon Kayaku has announced a change in its Audit Supervisory Board, signaling a refresh of its corporate governance structure ahead of the 169th Ordinary General Meeting of Shareholders scheduled for June 25, 2026. The board resolved to appoint ...
Nippon Kayaku Completes ¥16.2 Billion Share Buyback Program
Apr 6, 2026
Nippon Kayaku Co., Ltd. has completed a share repurchase program authorized under Japan’s Companies Act, acquiring 799,200 of its own common shares on the Tokyo Stock Exchange between March 1 and March 31, 2026, at a total cost of approximat...
Nippon Kayaku to Acquire Fuji Yakuhin Injectable Drug Plant Business
Mar 30, 2026
Nippon Kayaku’s board has approved the acquisition of all shares in a new Fuji Yakuhin subsidiary that will take over the Toyama No. 2 Plant business, a contract development and manufacturing operation for medical-use injectable drugs. The m...
Nippon Kayaku Advances Large-Scale Share Buyback Program
Mar 5, 2026
Nippon Kayaku has repurchased 73,000 of its own common shares on the open market of the Tokyo Stock Exchange during February 2026, at a total cost of about ¥129.9 million. This buyback forms part of a broader board-approved program authorizin...
Nippon Kayaku Reshapes Executive Team to Strengthen Mobility, Safety and Communications
Feb 25, 2026
Nippon Kayaku has announced a reshuffle of its executive director lineup, effective April 1, 2026, following a resolution at its February 25 Board of Directors meeting. The move realigns leadership roles within key business areas, including the Mo...
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.