NOF (4403) AI Stock Analysis

• Market Cap: $630.61B
• Dividend Yield: 1.65%
• Average Volume (3M): 637.95K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.90
• Revenue Growth: 4.89%
• EPS Growth: -3.79%
• Country: JP
• Employees: 3,879
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 37.00
• Shares Outstanding: 236,524,120
• 10 Day Avg. Volume: 417,850
• 30 Day Avg. Volume: 637,946
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 6.55
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: $2,928.57
• Price Target Upside: 9.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥2,929.00 ▲(9.17% Upside)

The overall stock score of 68 reflects strong financial performance as the most significant factor, supported by stable profitability and a robust balance sheet. Technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is moderate, providing a balanced view of the stock's potential.

NOF Business Overview & Revenue Model

Company Description

NOF Corporation manufactures chemicals Japan, rest of Asia, and internationally. The company operates through Functional Chemicals, Life Science, and Explosive & Propulsion segments. The Functional Chemicals segment offers fatty acids and glycerin, fatty acid derivatives, and surfactants, ethylene oxide and propylene oxide derivatives, organic peroxides, functional polymers, functional films, and electronic materials, as well as materials for anti-corrosion. The Life Science segment provides MPC-related products, raw materials for DDS drug formulation, edible oils, and functional foods. The Explosive & Propulsion segment offers industrial explosives, defense-related explosives, rocket propellant, automotive safety devices, and metal manufactured products. The company is also involved in logistics, insurance agency, and real estate businesses. NOF Corporation was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NOF Corporation generates revenue through the sale of its chemical products to a variety of industries. Its key revenue streams include the marketing and distribution of functional chemicals like surfactants and polymerizable monomers, which are essential in the manufacturing processes of personal care products and industrial applications. Additionally, the company earns from its life science division by providing pharmaceutical intermediates and raw materials for drug production. The electronic materials sector contributes to revenue by supplying advanced materials used in the production of semiconductors and other electronic components. Strategic partnerships and collaborations with industry leaders further enhance its market reach and revenue potential.

NOF Financial Statement Overview

Summary

NOF exhibits strong financial health with consistent revenue growth, stable profitability, and a robust balance sheet. The company's low leverage and high equity ratio reduce financial risk, while efficient cash flow management supports ongoing operations and investments. Despite slight declines in operating cash flow, the overall financial statements reflect a well-managed company with a promising outlook.

Income Statement

NOF has demonstrated consistent revenue growth over the past years, with a significant increase from 222.25 billion in 2024 to 238.31 billion in 2025, a growth rate of 7.22%. Gross profit margins have remained strong, and net profit margins have improved, reflecting effective cost management and operational efficiency. The EBIT and EBITDA margins are healthy, indicating robust profitability. Overall, NOF's income statement reflects a strong financial performance, marked by growth and profitability.

Balance Sheet

NOF's balance sheet is characterized by a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage and low financial risk. The return on equity is impressive, showcasing efficient use of shareholders' funds to generate profits. Overall, the balance sheet presents a solid financial position with minimal risk exposure.

Cash Flow

The operating cash flow remains strong, although it has seen a slight decline from the previous year. The free cash flow has shown positive growth, indicating effective capital management. The ratios of operating cash flow and free cash flow to net income are healthy, reflecting solid cash generation capabilities. However, the decline in operating cash flow warrants attention for future cash flow stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	238.31B	222.25B	217.71B	192.64B	172.65B
Gross Profit	85.15B	79.49B	75.94B	68.93B	57.39B
EBITDA	58.88B	49.08B	46.98B	41.51B	32.16B
Net Income	36.50B	33.99B	33.97B	26.69B	23.30B
Balance Sheet
Total Assets	357.20B	341.45B	309.44B	289.63B	271.54B
Cash, Cash Equivalents and Short-Term Investments	87.06B	91.74B	92.52B	85.43B	78.67B
Total Debt	5.04B	5.17B	4.84B	5.63B	9.94B
Total Liabilities	77.64B	75.54B	69.44B	67.93B	68.02B
Stockholders Equity	278.53B	265.00B	239.18B	220.93B	202.79B
Cash Flow
Free Cash Flow	12.64B	12.22B	17.11B	19.98B	24.74B
Operating Cash Flow	28.98B	29.97B	23.33B	27.39B	30.73B
Investing Cash Flow	-13.75B	-14.96B	-709.00M	-8.76B	1.89B
Financing Cash Flow	-22.02B	-17.10B	-16.17B	-15.31B	-8.04B

NOF Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2683.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4403, the sentiment is Negative. The current price of 2683 is below the 20-day moving average (MA) of 2713.85, below the 50-day MA of 2848.44, and above the 200-day MA of 2385.22, indicating a neutral trend. The MACD of -39.86 indicates Negative momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of 28.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4403.

NOF Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4088	76 Outperform	592.55B	11.89	9.49%	2.43%	4.35%	7.88%
4182	71 Outperform	532.51B	12.86	6.82%	3.36%	-6.27%	40.98%
4403	68 Neutral	$630.61B	18.59	12.59%	1.65%	4.89%	-3.79%
4183	67 Neutral	707.11B	46.77	1.82%	4.02%	-0.91%	-74.07%
5201	64 Neutral	1.01T	29.30	2.49%	4.40%	-0.06%	0.00%
4208	50 Neutral	233.10B	-44.09	-1.22%	4.60%	-0.53%	-117.46%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

NOF Corporate Events

NOF Corporation Reports Q1 2025 Financial Results with Mixed Performance

NOF Corporation reported its consolidated financial results for the three months ending June 30, 2025, showing a slight increase in net sales by 1.7% compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. The company maintains a strong equity-to-asset ratio, and its earnings forecast for the fiscal year ending March 31, 2026, anticipates modest growth in net sales and profits, suggesting a cautious outlook for the future.

NOF Corporation Completes Treasury Share Purchase

NOF Corporation has completed the purchase of 136,000 treasury shares for a total of 408,877,150 yen, as part of a resolution made by its Board of Directors. This move is part of a broader strategy to purchase up to 5,000,000 shares, indicating a significant investment in its own stock, which could impact shareholder value and market perception.

NOF Corporation Advances Treasury Share Buyback Strategy

NOF Corporation announced the purchase of 1,029,600 treasury shares for approximately 2.75 billion yen, conducted through open-market transactions on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 5 million shares by September 2025, reflecting the company’s efforts to enhance shareholder value and optimize capital structure.