NOF (4403) AI Stock Analysis

• Market Cap: ¥764.00B
• Dividend Yield: 1.55%
• Average Volume (3M): 706.87K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.84
• Revenue Growth: 2.62%
• EPS Growth: 2.81%
• Country: JP
• Employees: 3,879
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 29.60
• Shares Outstanding: 236,524,120
• 10 Day Avg. Volume: 854,260
• 30 Day Avg. Volume: 706,870
• PEG Ratio: 1.46
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 37.91
• 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: ¥3,668.00 ▲(13.42% Upside)

NOF's strong financial performance is the most significant factor, showcasing robust growth and stability. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock is fairly valued, with moderate income potential from dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing flexibility for strategic investments and resilience against economic downturns.

Profitability

Sustained profitability through strong margins highlights efficient operations and cost control, ensuring long-term financial health and shareholder value.

Negative Factors

Operating Cash Flow Decline

A decline in operating cash flow, despite overall strength, may signal potential challenges in cash generation, impacting future liquidity and investment capacity.

Cash Flow Stability

Stability in cash flow is crucial for funding operations and growth; any decline could affect the company's ability to sustain its financial commitments.

Leverage Concerns

While currently low, any increase in leverage could elevate financial risk, potentially affecting the company's creditworthiness and investment capacity.

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 generates revenue through the sale of its specialty chemical products and solutions across multiple sectors. The company has established key revenue streams from its core offerings, including coatings for electronics and automotive applications, which are essential for enhancing product durability and performance. Additionally, NOF has formed strategic partnerships with various manufacturers and suppliers, enabling it to expand its market reach and enhance product innovation. The company also engages in research and development to create new products that meet evolving market demands, thus maintaining a competitive edge and driving growth in revenue.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	239.26B	238.31B	222.25B	217.71B	192.64B	172.65B
Gross Profit	84.44B	85.15B	79.49B	75.94B	68.93B	57.39B
EBITDA	53.66B	58.88B	49.08B	46.98B	43.95B	39.72B
Net Income	34.06B	36.50B	33.99B	33.97B	26.69B	23.30B
Balance Sheet
Total Assets	371.76B	357.20B	341.45B	309.44B	289.63B	271.54B
Cash, Cash Equivalents and Short-Term Investments	100.18B	87.06B	91.74B	92.52B	85.43B	78.67B
Total Debt	4.36B	5.29B	5.17B	4.84B	5.63B	9.94B
Total Liabilities	91.98B	77.64B	75.54B	69.44B	67.93B	68.02B
Stockholders Equity	278.79B	278.53B	265.00B	239.18B	220.93B	202.79B
Cash Flow
Free Cash Flow	0.00	12.64B	12.22B	17.11B	19.98B	24.74B
Operating Cash Flow	0.00	28.98B	29.97B	23.33B	27.39B	30.73B
Investing Cash Flow	0.00	-13.75B	-14.96B	-709.00M	-8.76B	1.89B
Financing Cash Flow	0.00	-22.02B	-17.10B	-16.17B	-15.31B	-8.04B

NOF Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3234.00
• 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:4403, the sentiment is Positive. The current price of 3234 is above the 20-day moving average (MA) of 3139.22, above the 50-day MA of 2883.19, and above the 200-day MA of 2579.91, indicating a bullish trend. The MACD of 120.60 indicates Positive momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 68.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4403.

NOF Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4403	75 Outperform	¥764.00B	21.71	12.15%	1.55%	2.62%	2.81%
4088	69 Neutral	¥490.55B	9.84	10.06%	3.21%	4.35%	7.88%
5201	67 Neutral	$1.11T	21.31	3.63%	4.04%	-1.17%	―
4183	62 Neutral	¥736.77B	40.98	2.02%	3.87%	-4.63%	-65.11%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4208	57 Neutral	¥245.69B	42.53	1.47%	4.37%	-7.45%	-71.68%
4182	55 Neutral	¥553.56B	-73.86	-1.15%	3.56%	-6.83%	-123.67%

NOF Corporate Events

NOF Corporation Announces Treasury Share Purchase

NOF Corporation has completed a purchase of 1,280,300 of its common shares for a total of 3,593,103,300 yen. This move is part of a broader strategy approved by the Board of Directors to buy back up to 2,000,000 shares, aiming to optimize the company’s capital structure and potentially increase shareholder value.

NOF CORPORATION Completes Treasury Share Purchase to Enhance Shareholder Value

NOF CORPORATION announced the completion of a treasury share purchase as part of its Mid-Term Management Plan ‘NOF VISION 2030 Stage II.’ The purchase aligns with the company’s policy of maintaining a stable return of profits, with a target payout ratio of around 50% by the end of FY2025. This move is expected to enhance shareholder value and demonstrates the company’s commitment to its financial strategies.

NOF Corporation Announces Strategic Share Repurchase Plan

NOF Corporation has announced a resolution to repurchase up to 1,000,000 of its common shares through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading. This strategic move, scheduled for November 7, 2025, aims to optimize the company’s capital structure and potentially enhance shareholder value. The repurchase reflects NOF’s commitment to proactive financial management and could impact its stock liquidity and market perception.

NOF Corporation Reports Financial Results and Positive Dividend Outlook

NOF Corporation reported a slight decline in its consolidated financial results for the six months ending September 30, 2025, with net sales decreasing by 1.2% and operating profit dropping by 11.5% compared to the previous year. Despite these declines, the company has announced an increase in its annual dividend forecast, indicating a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales and profits.

NOF Corporation Revises Earnings and Dividend Forecasts for FY 2026

NOF Corporation has revised its consolidated earnings forecasts and dividend predictions for the fiscal year ending March 31, 2026, due to recent business performance and market conditions. The company anticipates higher net sales and profits than previously forecasted, driven by strong performance in the Explosives & Propulsion segment, despite challenges in the Functional Chemicals segment. The outlook remains uncertain due to global economic conditions, but the impact of U.S. tariff policy is expected to be minimal.

NOF Corporation Announces Treasury Share Buyback Plan

NOF Corporation has announced a decision to purchase up to 2,000,000 of its own shares as part of its strategy to ensure stable returns to shareholders, in line with its Mid-Term Management Plan ‘NOF VISION 2030 Stage II’. This move reflects the company’s commitment to maintaining a total payout ratio of around 50% by FY2025, highlighting its focus on shareholder value and financial stability.