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

• Market Cap: ¥67.06B
• Dividend Yield: 2.62%
• Average Volume (3M): 35.16K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.05
• Revenue Growth: 5.45%
• EPS Growth: 25.48%
• Country: JP
• Employees: 719
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 44.75
• Shares Outstanding: 25,372,448
• 10 Day Avg. Volume: 35,520
• 30 Day Avg. Volume: 35,160
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,800.00
• Price Target Upside: -0.85% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥2,800.00 ▼(-0.85% Downside)

The overall stock score of 77 reflects Nippon Fine Chemical's strong financial performance and reasonable valuation. Technical indicators point to bullish momentum, but overbought signals suggest caution. The absence of earnings call data and corporate events did not impact the score.

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 Co., Ltd. generates revenue through the sale of its diverse range of chemical products. The company's key revenue streams include the production and distribution of cosmetics ingredients, which are used by cosmetics manufacturers to enhance product efficacy and appeal. Another significant portion of revenue comes from pharmaceutical intermediates, which are critical components in drug manufacturing processes. Additionally, Nippon Fine Chemical produces functional materials that serve various industrial applications, contributing to its earnings. The company may also engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, thereby driving sales and revenue growth.

Nippon Fine Chemical Co., Ltd. Financial Statement Overview

Summary

Nippon Fine Chemical Co., Ltd. exhibits strong financial health with robust revenue growth, impressive profitability, and minimal leverage. The income statement highlights a significant increase in revenue and healthy profit margins. The balance sheet is stable with a low debt-to-equity ratio and high equity ratio. Despite a decrease in free cash flow growth, cash flow generation remains efficient.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	35.66B	33.53B	36.84B	33.45B	30.51B
Gross Profit	10.82B	9.93B	10.96B	10.28B	9.10B
EBITDA	6.76B	6.31B	6.60B	6.09B	5.09B
Net Income	3.87B	3.33B	4.08B	3.47B	2.76B
Balance Sheet
Total Assets	59.80B	59.45B	56.67B	54.81B	53.27B
Cash, Cash Equivalents and Short-Term Investments	14.30B	12.86B	8.94B	12.86B	14.37B
Total Debt	1.10B	27.65M	35.66M	16.32M	15.01M
Total Liabilities	10.73B	11.89B	10.57B	10.25B	10.42B
Stockholders Equity	48.16B	46.65B	45.27B	43.73B	42.12B
Cash Flow
Free Cash Flow	1.75B	5.01B	-1.32B	-542.08M	1.96B
Operating Cash Flow	4.09B	6.28B	1.44B	2.29B	4.70B
Investing Cash Flow	-1.77B	-634.16M	-1.78B	-2.74B	-2.42B
Financing Cash Flow	-602.16M	-2.55B	-3.32B	-1.40B	-874.14M

Nippon Fine Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2824.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2824 is above the 20-day moving average (MA) of 2722.70, above the 50-day MA of 2523.28, and above the 200-day MA of 2288.49, indicating a bullish trend. The MACD of 94.08 indicates Negative momentum. The RSI at 70.81 is Negative, neither overbought nor oversold. The STOCH value of 85.74 is Negative, 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	¥67.06B	15.53		2.62%	5.45%	25.48%
Sector *	62 Neutral	S$945.00M	7.19	-2.49%	4.55%	8.79%	68.42%
NCRBF	―	$315.77M	11.48	7.92%	4.65%	―	―
SLAHF	―	$353.02M	13.38	6.67%	―	―	―
7YE	―	€378.36M	13.11	9.65%	―	―	―
4221	81 Outperform	¥54.34B	11.79		3.28%	8.13%	5.35%
4047	61 Neutral	¥46.48B	17.78		1.83%	-2.91%	―

Nippon Fine Chemical Co., Ltd. Corporate Events

Nippon Fine Chemical Announces Treasury Share Acquisition

Nippon Fine Chemical Co., Ltd. announced the acquisition of 208,100 treasury shares at a cost of JPY 533,285,992, as part of a broader plan approved by its Board of Directors to acquire up to 1,200,000 shares. This strategic move, executed through market purchases on the Tokyo Stock Exchange, aims to optimize the company’s capital structure and potentially enhance shareholder value.

Nippon Fine Chemical Reports Strong Profit Growth Amid Slight Sales Decline

Nippon Fine Chemical Co., Ltd. reported a slight decrease in net sales for the three months ending June 30, 2025, compared to the previous year. Despite this, the company saw significant increases in operating profit, ordinary profit, and profit attributable to owners, reflecting a strong operational performance. The company also announced a forecasted increase in annual dividends per share for the fiscal year ending March 31, 2026, indicating confidence in its financial stability and future growth prospects.

Nippon Fine Chemical Completes Treasury Share Disposal for Remuneration

Nippon Fine Chemical Co., Ltd. has completed the payment procedures for the disposal of 9,700 treasury shares as part of a restricted share-based remuneration plan. This move, resolved by the Board of Directors, involves a total disposal value of ¥23,425,500 and is aimed at aligning the interests of directors and corporate officers with the company’s performance.

Nippon Fine Chemical Announces Treasury Share Acquisition

Nippon Fine Chemical Co., Ltd. has announced the acquisition of 165,400 treasury shares, amounting to JPY 378,534,791, as part of a broader plan to purchase up to 1,200,000 shares by April 2026. This move, conducted through market purchases on the Tokyo Stock Exchange, is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Nippon Fine Chemical Announces Treasury Share Disposal for Remuneration Plan

Nippon Fine Chemical Co., Ltd. has announced a resolution to dispose of 9,700 treasury shares as part of a restricted share-based remuneration plan. This initiative aims to align the interests of directors and corporate officers with shareholders and incentivize the enhancement of the company’s corporate value over the medium to long term.

Nippon Fine Chemical Announces Treasury Share Acquisition

Nippon Fine Chemical Co., Ltd. announced the acquisition of 260,600 treasury shares at a total cost of JPY 566,631,291, as part of a resolution to acquire up to 1,200,000 shares by April 2026. This move is part of a strategic decision to manage its capital structure and potentially enhance shareholder value.

Nippon Fine Chemical Opposes Shareholder Proposal, Focuses on Strategic Growth

Nippon Fine Chemical Co., Ltd. announced its opposition to a shareholder proposal from Nippon Active Value Fund plc, which included the purchase of treasury shares, amendments to the articles of incorporation regarding the number of outside directors, and approval of remuneration for a share-based plan. The company’s board of directors believes that their current strategy, which includes purchasing treasury shares and investing in a new plant for functional esters, aligns better with their medium-term management plan and goals for sustainable growth and shareholder returns. The company is focused on maintaining financial stability while balancing growth investments and shareholder returns, with a target to reduce cross-shareholdings and improve capital efficiency.