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

• Market Cap: ¥63.28B
• Dividend Yield: 2.96%
• Average Volume (3M): 18.63K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.99
• Revenue Growth: 3.03%
• EPS Growth: 28.27%
• Country: JP
• Employees: 719
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 68.84
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥3,072.00 ▲(8.36% Upside)

Nippon Fine Chemical Co., Ltd. demonstrates strong financial performance with solid revenue growth and profitability, supported by a stable balance sheet. The technical analysis shows a positive trend, although there are signs of potential short-term bearish momentum. The valuation is reasonable with an attractive dividend yield, making it a compelling investment in the specialty chemicals industry.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and successful product offerings, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, enabling the company to invest in growth and weather economic downturns.

Profitability Metrics

High profitability margins reflect efficient operations and competitive pricing power, contributing to long-term financial health.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow may impact the company's ability to fund new projects and return capital to shareholders, posing a risk to growth.

Cash Flow Challenges

Challenges in maintaining cash flow growth could limit the company's ability to invest in R&D and strategic initiatives, affecting future competitiveness.

Earnings Call Data Absence

Lack of earnings call data may hinder transparency and investor confidence, potentially affecting the company's market perception and valuation.

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

Company Description

Nippon Fine Chemical Co., Ltd. (4362) is a Japanese company specializing in the development and production of fine chemicals, particularly focusing on high-performance materials and specialty chemicals. The company operates in various sectors, including electronics, pharmaceuticals, and agrochemicals, providing innovative solutions tailored to the specific needs of its clients. Core products include photoresists, semiconductor materials, and various chemical intermediates used in manufacturing processes.

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

Nippon Fine Chemical Co., Ltd. exhibits strong financial health with robust revenue growth, impressive profitability metrics, and a solid balance sheet characterized by low leverage and high equity. Despite a decline in free cash flow growth, the company maintains effective cash generation from operations.

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: Positive
• Last Price: 2835.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2835 is above the 20-day moving average (MA) of 2790.15, above the 50-day MA of 2678.24, and above the 200-day MA of 2409.30, indicating a bullish trend. The MACD of 51.00 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 46.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4362	77 Outperform	¥63.28B	13.85	―	2.96%	3.03%	28.27%
4187	77 Outperform	¥85.73B	17.11	10.57%	1.80%	15.12%	40.72%
4109	72 Outperform	¥53.06B	17.14	6.31%	4.03%	6.38%	22.81%
5302	69 Neutral	¥48.87B	8.46	10.88%	4.52%	-1.14%	34.15%
4221	67 Neutral	¥58.27B	12.94	―	2.82%	8.28%	0.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4047	57 Neutral	¥59.11B	30.77	―	1.65%	1.20%	―

Nippon Fine Chemical Co., Ltd. Corporate Events

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.

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.

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.

Nippon Fine Chemical Updates Management Strategy for Capital and Stock Price Efficiency

Nippon Fine Chemical Co., Ltd. has updated its management strategies to better align with the cost of capital and stock price considerations. This initiative, discussed in a recent Board of Directors meeting, aims to address current challenges and improve operational efficiency, potentially impacting the company’s market positioning and stakeholder relations.