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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
¥281.46B
Dividend Yield3.43%
Average Volume (3M)383.85K
Price to Earnings (P/E)11.9
Beta (1Y)0.46
Revenue Growth8.66%
EPS Growth49.77%
CountryJP
Employees5,946
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)161.19
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)161.6
Revenue Forecast (FY)¥261.05B
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 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 241.85B | 222.58B | 201.79B | 198.38B | 184.81B |
| Gross Profit | 72.88B | 70.64B | 60.33B | 65.90B | 62.88B |
| EBITDA | 49.82B | 36.31B | 21.73B | 35.31B | 37.88B |
| Net Income | 24.64B | 17.51B | 4.11B | 14.98B | 17.18B |
Balance Sheet | |||||
| Total Assets | 398.74B | 373.71B | 363.17B | 322.86B | 315.46B |
| Cash, Cash Equivalents and Short-Term Investments | 54.49B | 59.76B | 66.18B | 54.35B | 53.65B |
| Total Debt | 49.18B | 49.54B | 31.68B | 19.84B | 16.85B |
| Total Liabilities | 118.63B | 105.19B | 92.62B | 67.83B | 69.03B |
| Stockholders Equity | 279.00B | 267.53B | 269.56B | 254.02B | 245.48B |
Cash Flow | |||||
| Free Cash Flow | 3.76B | -3.73B | 8.21B | 7.82B | 14.45B |
| Operating Cash Flow | 28.78B | 25.53B | 23.24B | 20.04B | 23.14B |
| Investing Cash Flow | -17.18B | -27.31B | -19.41B | -15.16B | -10.64B |
| Financing Cash Flow | -20.23B | -4.76B | 3.82B | -7.95B | -11.09B |
Nippon Kayaku Co Technical Analysis
Positive
1679.50
Price Trends
2023.27
Positive
1936.96
Positive
1792.51
Positive
Market Momentum
-3.23
Negative
58.85
Neutral
84.12
Negative
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 1970.70, below the 50-day MA of 2023.27, and below the 200-day MA of 1792.51, indicating a bullish trend. The MACD of -3.23 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 84.12 is Negative, 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 | ¥1.01T | 20.37 | 20.55% | 3.15% | 11.23% | 17.64% | |
70 Outperform | ¥281.46B | 11.92 | 9.12% | 3.97% | 8.66% | 49.77% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥321.70B | 19.18 | ― | 5.28% | -2.31% | -1.30% | |
60 Neutral | ¥554.09B | 152.07 | 0.44% | 2.91% | -1.80% | -85.21% | |
57 Neutral | ¥862.51B | 20.48 | 5.11% | 3.52% | -4.09% | -26.93% | |
56 Neutral | ¥295.58B | 18.84 | 5.26% | 3.71% | -4.00% | ― |
* Basic Materials Sector Average
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Nippon Kayaku Co Corporate Events
Nippon Kayaku Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Jul 17, 2026
Nippon Kayaku Co., Ltd. has completed the payment procedures for the disposal of 43,463 treasury shares as restricted stock compensation, following a resolution passed by its Board of Directors on June 25, 2026. The shares, issued at 2,056.5 yen p...
Nippon Kayaku Reports Progress on Share Buyback Program
Jul 6, 2026
Nippon Kayaku Co., Ltd. has disclosed the results of a recent share buyback, acquiring 957,200 common shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, at a total cost of approximately 1.99 billion yen. This transaction was exec...
Nippon Kayaku Grants Restricted Stock to Directors via Treasury Share Disposal
Jun 25, 2026
Nippon Kayaku will dispose of 43,463 treasury shares as part of its restricted stock compensation plan for 17 eligible internal directors, with a disposal price of 2,056.5 yen per share and a total value of about 89.38 million yen. The shares, all...
Nippon Kayaku Begins Share Buyback Under ¥15 Billion Authorization
Jun 4, 2026
Nippon Kayaku has repurchased 286,900 of its own common shares on the Tokyo Stock Exchange between May 13 and May 31, 2026, at a total cost of ¥616.6 million, as part of a board-approved share buyback program. This transaction represents the ...
Nippon Kayaku to Take Over Japan Marketing Rights for AstraZeneca’s Zoladex
May 25, 2026
Nippon Kayaku has signed an agreement with AstraZeneca K.K. to take over the marketing approval in Japan for the oncology drug Zoladex 3.6mg depot / LA 10.8mg depot, which AstraZeneca currently manufactures and sells. The company plans to use its ...
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 ...
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.