Nippon Kayaku Co Ltd (JP:4272)
:4272
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Nippon Kayaku Co
(4272)
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Rating:73Outperform
Price Target:
¥1,981.00
▲(17.95% Upside)
Action:ReiteratedDate:11/28/25
Nippon Kayaku Co's stock is supported by strong financial performance and attractive valuation, with a reasonable P/E ratio and high dividend yield. However, technical indicators suggest the stock is currently overbought, which could lead to short-term volatility. The absence of earnings call data and corporate events does not impact the score significantly.
Positive Factors
Balance sheet strength
A 71.6% equity ratio and minimal leverage (D/E 0.16) provide durable financial resilience: supports investment, dividend capacity and shock absorption. Low leverage lowers refinancing risk and gives management flexibility to pursue strategic initiatives over the next 2–6 months.
Negative Factors
Negative free cash flow
Negative FCF and poor FCF conversion signal that earnings are not yet translating into discretionary cash. This can constrain capital allocation, limit room for buybacks/dividends or require external funding if sustained, and suggests capex or working capital demands need addressing.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A 71.6% equity ratio and minimal leverage (D/E 0.16) provide durable financial resilience: supports investment, dividend capacity and shock absorption. Low leverage lowers refinancing risk and gives management flexibility to pursue strategic initiatives over the next 2–6 months.
Read all positive factors
Nippon Kayaku Co (4272) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥283.15B
Dividend Yield3.97%
Average Volume (3M)383.85K
Price to Earnings (P/E)11.3
Beta (1Y)0.47
Revenue Growth6.60%
EPS Growth503.36%
CountryJP
Employees5,902
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)37.32
Shares Outstanding160,000,000
10 Day Avg. Volume382,940
30 Day Avg. Volume383,850
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.86
Price to Sales (P/S)1.04
P/FCF Ratio-61.86
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)139.45
Revenue Forecast (FY)¥248.50B
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 Chemi...
How the Company Makes Money
Nippon Kayaku makes money primarily by manufacturing and selling products across its main operating segments. In its functional chemicals business, it generates revenue from the sale of specialty/functional chemical products and materials supplied...
Nippon Kayaku Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 223.70B | 222.58B | 201.79B | 198.38B | 184.81B | 173.38B |
| Gross Profit | 70.83B | 70.64B | 60.33B | 65.90B | 62.88B | 55.47B |
| EBITDA | 33.53B | 34.48B | 21.74B | 35.75B | 35.15B | 28.67B |
| Net Income | 18.23B | 17.51B | 4.11B | 14.98B | 17.18B | 12.57B |
Balance Sheet | ||||||
| Total Assets | 375.50B | 373.71B | 363.17B | 322.86B | 315.46B | 294.54B |
| Cash, Cash Equivalents and Short-Term Investments | 60.36B | 59.76B | 66.18B | 54.35B | 53.65B | 48.12B |
| Total Debt | 47.09B | 49.54B | 31.68B | 19.84B | 16.85B | 19.74B |
| Total Liabilities | 113.50B | 105.19B | 92.62B | 67.83B | 69.03B | 66.26B |
| Stockholders Equity | 261.07B | 267.53B | 269.56B | 254.02B | 245.48B | 227.51B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -3.73B | 8.21B | 7.82B | 14.45B | 11.58B |
| Operating Cash Flow | 0.00 | 25.53B | 23.24B | 20.04B | 23.14B | 24.41B |
| Investing Cash Flow | 0.00 | -27.31B | -19.41B | -15.16B | -10.64B | -17.61B |
| Financing Cash Flow | 0.00 | -4.76B | 3.82B | -7.95B | -11.09B | -8.40B |
Nippon Kayaku Co Technical Analysis
Positive
1679.50
Price Trends
1817.51
Negative
1723.83
Positive
1530.35
Positive
Market Momentum
-8.36
Negative
50.36
Neutral
69.57
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 1778.11, below the 50-day MA of 1817.51, and above the 200-day MA of 1530.35, indicating a neutral trend. The MACD of -8.36 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 69.57 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 | ¥857.06B | 14.76 | 19.69% | 3.15% | 10.06% | 18.03% | |
73 Outperform | ¥283.15B | 11.26 | 8.05% | 3.97% | 6.60% | 503.36% | |
69 Neutral | ¥337.36B | 10.96 | ― | 5.28% | -0.47% | 25.41% | |
66 Neutral | ¥760.52B | 10.74 | 4.79% | 4.21% | -1.21% | -27.21% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥324.97B | 36.21 | -4.00% | 3.71% | 0.24% | -234.36% | |
60 Neutral | ¥526.91B | 67.20 | 1.02% | 3.37% | -1.94% | -84.08% |
* Basic Materials Sector Average
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Nippon Kayaku Co Corporate Events
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...
Nippon Kayaku Lifts Nine-Month Profit and Holds FY2026 Outlook, Confirms ¥60 Dividend
Feb 6, 2026
Nippon Kayaku reported consolidated net sales of ¥174.6 billion for the first three quarters of the fiscal year ending March 31, 2026, up 4.0% year on year, while operating and ordinary income declined 9.9% and 11.0% respectively; nevertheles...
Nippon Kayaku Advances Share Buyback, Acquiring 783,300 Shares in January
Feb 5, 2026
Nippon Kayaku has repurchased 783,300 of its own common shares on the Tokyo Stock Exchange between January 1 and January 31, 2026, at a total cost of approximately ¥1.38 billion, as part of its ongoing treasury stock acquisition program autho...
Nippon Kayaku Lifts Profit Despite Lower Operating Income, Keeps Full-Year Outlook and Dividend Plan Intact
Feb 2, 2026
Nippon Kayaku reported consolidated net sales of ¥174.6 billion for the first three quarters of the fiscal year ending March 31, 2026, a 4.0% increase year on year, while operating income fell 9.9% to ¥16.3 billion and ordinary income de...
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.