Nippon Fine Chemical Co., Ltd. (4362) AI Stock Analysis

• Market Cap: ¥58.20B
• Dividend Yield: 2.92%
• Average Volume (3M): 18.63K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.04
• Revenue Growth: 3.03%
• EPS Growth: 28.27%
• Country: JP
• Employees: 719
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 23,822,447
• 10 Day Avg. Volume: 16,270
• 30 Day Avg. Volume: 18,626
• PEG Ratio: 0.66
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 25.73
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,909.00 ▲(1.93% Upside)

Overall score is driven primarily by strong financial health and profitability, supported by a solid balance sheet with minimal leverage. Valuation is reasonable with a moderate dividend yield. The main offset is weak technical positioning with the stock trading below key moving averages despite oversold signals.

Positive Factors

Balance Sheet Strength

Exceptionally low leverage and a high equity ratio provide durable financial flexibility. Minimal debt reduces interest burden and supports capital allocation for R&D, facility upkeep, or cyclical downturns, strengthening long-term resilience and funding optionality.

Sustained Profitability

Healthy margins across gross, EBIT and net indicate pricing power and operational efficiency typical of specialty chemical makers. Consistent profitability underpins reinvestment capacity, supports dividend potential, and cushions against raw-material or demand variability over the medium term.

Differentiated Product Mix & Diverse End-Markets

A product portfolio centered on high value-added, formulation-sensitive materials and R&D-driven solutions creates competitive barriers. Serving cosmetics, pharma and industrial clients diversifies demand exposure and fosters repeat, higher-margin business driven by technical know-how and quality requirements.

Negative Factors

Free Cash Flow Volatility

A large YoY FCF decline, despite being positive, suggests variability in cash conversion from operations or one-time outflows. Sustained FCF erosion would constrain capex, R&D or shareholder returns and raise financing reliance, weakening long-term strategic flexibility if not corrected.

Inconsistent Revenue Trend

Conflicting growth signals point to top-line variability across reporting periods, reflecting possible cyclicality, product-mix swings or timing differences. Persistent revenue instability complicates forecasting, capital planning and investment prioritization, reducing predictability of long-term cash flows.

Limited Forward Guidance / Disclosure

Absence of published guidance or earnings highlights reduces investor visibility into management's near-term plans and expected performance. Over the medium term, limited disclosure can hinder stakeholder confidence in strategy execution and makes external monitoring of execution harder.

Nippon Fine Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Fine Chemical Co., Ltd. manufactures and sells fine chemical, cosmetic, and industrial chemical products in Japan and internationally. The company offers cosmetic ingredients for cosmetics and personal care products; natural oils and fats for pharmaceutical, cosmetic, industrial, and feed additive applications; phospholipids used in pharmaceutical raw materials; and Presomes use for preparation of liposomes. It also supplies raw materials and intermediates to pharmaceuticals, functional resins, electronic materials, and various other industries; and manufactures and sells thermal and UV curable coating agents, and functional coatings. In addition, the company offers Neutron, a fatty acid amide for plastics; and leather products. Further, it rents real estate properties. The company was formerly known as Nippon Camphor Co., Ltd. and changed its name to Nippon Fine Chemical Co., Ltd. in 1971. Nippon Fine Chemical Co., Ltd. was founded in 1918 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nippon Fine Chemical generates revenue primarily through the sale of its specialty chemicals and high-performance materials to various industries, including electronics and pharmaceuticals. Key revenue streams include the production of photoresists and semiconductor materials, which are in high demand in the growing electronics market. The company benefits from partnerships with major players in the electronics and pharmaceutical sectors, allowing it to secure long-term contracts and stable revenue. Additionally, Nippon Fine Chemical invests in research and development to innovate and expand its product offerings, which helps to attract new clients and maintain competitive pricing in the market.

Nippon Fine Chemical Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals: revenue grew 6.4% in 2025 with healthy profitability (gross margin 30.3%, EBIT margin 13.6%, net margin 10.9%). Balance sheet strength is a major positive with very low leverage (debt-to-equity 0.02) and high equity ratio (80.5%). Cash generation is solid (OCF/NI 1.06, positive FCF), but the 65.1% YoY decline in free cash flow tempers the score.

Income Statement

Nippon Fine Chemical Co., Ltd. has demonstrated strong revenue growth, with a 6.4% increase in total revenue in 2025. The company maintains impressive profitability metrics with a gross profit margin of 30.3% and a net profit margin of 10.9%. Additionally, the EBIT margin stands at 13.6%, indicating efficient operations. These metrics reflect a robust financial performance in the specialty chemicals industry.

Balance Sheet

The company's balance sheet is solid, characterized by a low debt-to-equity ratio of 0.02, indicating minimal leverage. The return on equity (ROE) is strong at 8.0%, showcasing effective utilization of equity. Furthermore, the equity ratio is high at 80.5%, suggesting a stable financial foundation with substantial equity backing the assets.

Cash Flow

Nippon Fine Chemical's cash flow performance is commendable, with a positive free cash flow of 1,749 million yen in 2025. The operating cash flow to net income ratio is robust at 1.06, indicating effective cash generation from operations. However, the free cash flow has decreased by 65.1% compared to the previous year, suggesting potential challenges in maintaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.52B	35.66B	33.53B	36.84B	33.45B	30.51B
Gross Profit	11.07B	10.82B	9.93B	10.96B	10.28B	9.10B
EBITDA	6.93B	6.76B	6.31B	6.60B	6.09B	5.09B
Net Income	4.08B	3.87B	3.33B	4.08B	3.47B	2.76B
Balance Sheet
Total Assets	59.05B	59.80B	59.45B	56.67B	54.81B	53.27B
Cash, Cash Equivalents and Short-Term Investments	12.45B	14.30B	12.86B	8.94B	12.86B	14.37B
Total Debt	17.21M	1.10B	27.65M	35.66M	16.32M	15.01M
Total Liabilities	9.80B	10.73B	11.89B	10.57B	10.25B	10.42B
Stockholders Equity	48.35B	48.16B	46.65B	45.27B	43.73B	42.12B
Cash Flow
Free Cash Flow	0.00	1.75B	5.01B	-1.32B	-542.08M	1.96B
Operating Cash Flow	0.00	4.09B	6.28B	1.44B	2.29B	4.70B
Investing Cash Flow	0.00	-1.77B	-634.16M	-1.78B	-2.74B	-2.42B
Financing Cash Flow	0.00	-602.16M	-2.55B	-3.32B	-1.40B	-874.14M

Nippon Fine Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2854.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4362, the sentiment is Negative. The current price of 2854 is below the 20-day moving average (MA) of 2886.65, above the 50-day MA of 2848.20, and above the 200-day MA of 2546.59, indicating a neutral trend. The MACD of -14.68 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 22.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4362.

Nippon Fine Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4187	80 Outperform	¥89.94B	12.06	10.57%	1.74%	15.12%	40.72%
4362	75 Outperform	¥58.20B	12.82	―	2.92%	3.03%	28.27%
4109	72 Outperform	¥66.64B	21.52	6.31%	4.01%	6.38%	22.81%
5302	69 Neutral	¥50.80B	8.80	10.88%	4.46%	-1.14%	34.15%
4221	67 Neutral	¥56.84B	12.62	―	2.81%	8.28%	0.70%
4047	64 Neutral	¥74.16B	38.61	―	1.60%	1.20%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Fine Chemical Co., Ltd. Corporate Events

Nippon Fine Chemical Lifts Profit and Dividend Outlook Despite Lower Sales

Nippon Fine Chemical reported consolidated net sales of ¥24.88 billion for the nine months ended December 31, 2025, down 6.5% year on year, but improved profitability, with operating profit up 2.6% to ¥3.85 billion and profit attributable to owners of parent jumping 23.1% to ¥3.45 billion, supported by higher basic earnings per share of ¥157.37 and a rise in comprehensive income. The company maintained a strong financial position with total assets of ¥63.87 billion and an equity-to-asset ratio of 77.8%, and it affirmed its full-year forecast for FY2025/26, projecting only a slight 1.9% decline in net sales to ¥35.0 billion but double-digit growth in operating and ordinary profit and a 16.3% rise in net profit, while also planning to raise annual dividends to ¥94 per share, signaling continued shareholder returns despite a modest top-line slowdown.

The most recent analyst rating on (JP:4362) stock is a Buy with a Yen3386.00 price target. To see the full list of analyst forecasts on Nippon Fine Chemical Co., Ltd. stock, see the JP:4362 Stock Forecast page.

Nippon Fine Chemical Co., Ltd. Announces Retirement of Treasury Stock

Nippon Fine Chemical Co., Ltd. announced the retirement of 1,550,000 common shares, representing 6.1% of issued shares, as part of a strategic move to optimize its capital structure. This decision, effective November 20, 2025, is expected to enhance shareholder value and reflects the company’s proactive approach to managing its financial resources.

The most recent analyst rating on (JP:4362) stock is a Hold with a Yen2764.00 price target. To see the full list of analyst forecasts on Nippon Fine Chemical Co., Ltd. stock, see the JP:4362 Stock Forecast page.

Nippon Fine Chemical Revises Earnings Forecast Upward

Nippon Fine Chemical Co., Ltd. has revised its earnings forecast for the fiscal year ending March 2026, citing better-than-expected results in the second quarter. The company anticipates increases in net sales, operating profit, and profit attributable to owners, reflecting strong performance in its beauty care, healthcare, and fine chemicals segments.

The most recent analyst rating on (JP:4362) stock is a Hold with a Yen2764.00 price target. To see the full list of analyst forecasts on Nippon Fine Chemical Co., Ltd. stock, see the JP:4362 Stock Forecast page.

Nippon Fine Chemical Reports Strong Profit Growth in H1 2025

Nippon Fine Chemical Co., Ltd. reported a modest increase in net sales for the first half of 2025, with significant growth in operating and ordinary profits, reflecting improved operational efficiency. The company has revised its earnings forecast for the fiscal year ending March 31, 2026, indicating a positive outlook despite a slight decrease in expected net sales, which suggests a strategic focus on profitability and shareholder value.

The most recent analyst rating on (JP:4362) stock is a Hold with a Yen2764.00 price target. To see the full list of analyst forecasts on Nippon Fine Chemical Co., Ltd. stock, see the JP:4362 Stock Forecast page.