NOF (4403) AI Stock Analysis

• Market Cap: ¥740.87B
• Dividend Yield: 1.58%
• Average Volume (3M): 706.87K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.86
• Revenue Growth: 2.62%
• EPS Growth: 2.81%
• Country: JP
• Employees: 3,879
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 44.21
• 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: ¥3,666.67
• Price Target Upside: 20.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 167.1
• Revenue Forecast (FY): ¥257.94B

• Rating: 75 Outperform
• Price Target: ¥3,262.00 ▲(6.99% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

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

Strong Balance Sheet

NOF's high equity ratio, low leverage and impressive ROE create durable financial flexibility. This conservative capital structure supports investment, R&D and dividend capacity through cycles, reduces refinancing risk, and strengthens resilience to industry downturns over the next 2–6 months.

Consistent Revenue & Margins

Sustained revenue growth coupled with healthy gross and net margins indicates solid end-market demand and cost discipline in core specialty-chemicals segments. This margin durability underpins earnings stability and capacity to reinvest in products and customer relationships over multiple quarters.

Positive Free Cash Flow

Growing free cash flow and healthy cash-to-income ratios demonstrate NOF's ability to fund capex, pay dividends and invest in growth without heavy new borrowing. Reliable cash generation supports strategic optionality and lowers long-term financing risk for the business.

Negative Factors

Declining Operating Cash Flow

A year-over-year dip in operating cash flow, even from a strong base, could signal tightening working capital or margin pressure. If the decline persists it may constrain short-term liquidity for inventory, customer financing or opportunistic investments, reducing operational flexibility.

Negative EPS Growth

Reported negative EPS growth implies volatility in reported earnings or discrete headwinds to profitability. Continued negative EPS trends would erode retained earnings, limit reinvestment capacity and could weaken the sustainability of ROE and shareholder returns over coming quarters.

Modest Dividend Yield

A modest 1.58% dividend yield reduces NOF's attractiveness to income-focused investors seeking durable payout returns. Structurally, lower yield may limit investor base and reduce passive demand stability, which can matter for long-term share price resilience versus higher-yield peers.

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	Mar 2025	Mar 2024	Mar 2024	Mar 2023	Mar 2022
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: 3049.00
• 50DMA: Positive
• 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 Positive. The current price of 3049 is below the 20-day moving average (MA) of 3049.60, below the 50-day MA of 3060.60, and above the 200-day MA of 2843.33, indicating a bullish trend. The MACD of -4.24 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 70.49 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
4203	76 Outperform	¥527.48B	20.36	6.52%	1.82%	3.25%	-11.31%
4403	75 Outperform	¥740.87B	21.12	12.15%	1.58%	2.62%	2.81%
4118	74 Outperform	¥333.84B	12.62	5.47%	3.41%	2.60%	9.50%
4631	65 Neutral	¥419.23B	12.96	8.14%	2.61%	-1.45%	―
4182	64 Neutral	¥846.59B	-52.21	-1.15%	3.49%	-6.83%	-123.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4183	61 Neutral	¥930.53B	52.39	2.02%	3.82%	-4.63%	-65.11%

NOF Corporate Events

NOF Flags Profit Dip but Lifts Dividend and Full-Year Outlook

NOF Corporation reported consolidated net sales of ¥173.5 billion for the nine months ended Dec. 31, 2025, up 1.3% year on year, while operating profit fell 11.0% to ¥31.8 billion and profit attributable to owners of parent declined 7.5% to ¥25.6 billion. Despite the profit contraction, comprehensive income rose 16.4%, total assets increased to ¥375.0 billion and the equity-to-asset ratio remained high at 75.3%, underscoring the company’s solid financial position.

The company lifted its full-year dividend plan, raising the forecast total payout to ¥61 per share from ¥45 in the previous fiscal year, including a higher interim dividend of ¥26 already paid. Management also revised its full-year earnings outlook, now projecting fiscal 2025 net sales of ¥260.5 billion and an 8.0% rise in full-year profit attributable to owners of parent to ¥39.4 billion, signaling confidence in earnings recovery despite weaker nine-month margins.

The most recent analyst rating on (JP:4403) stock is a Buy with a Yen3668.00 price target. To see the full list of analyst forecasts on NOF stock, see the JP:4403 Stock Forecast page.

NOF Raises FY2026 Earnings and Dividend Outlook on Strength in Defense Business

NOF Corporation has slightly raised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, projecting modest increases in net sales, ordinary profit, and profit attributable to owners, while keeping operating profit unchanged. The revision reflects weaker-than-expected demand for drug delivery system raw materials in its Pharmaceuticals, Medicals and Health segment, offset by stronger earnings from defense-related products in the Explosives & Propulsion segment, aided by faster-than-anticipated progress on certain rapid acquisition contracts and a more favorable foreign-exchange assumption.

In tandem with the earnings upgrade, the company lifted its year-end dividend forecast to ¥35 per share, up from a previously planned ¥26, raising the full-year dividend to ¥61 versus ¥52 initially and ¥45 in the prior year. The revisions signal resilient overall performance and improved shareholder returns despite segmental headwinds, underscoring the growing contribution of defense-related business and the impact of currency movements on profitability for stakeholders.

The most recent analyst rating on (JP:4403) stock is a Buy with a Yen3668.00 price target. To see the full list of analyst forecasts on NOF stock, see the JP:4403 Stock Forecast page.

NOF Launches ¥5 Billion Share Buyback to Boost Shareholder Returns

NOF Corporation’s board has approved a share buyback to enhance shareholder returns and improve capital efficiency in line with its Mid-Term Management Plan, which targets a total payout ratio of around 50% in fiscal 2025. The company will repurchase up to 1.8 million common shares, or 0.79% of outstanding stock, for a maximum of ¥5 billion through open-market purchases on the Tokyo Stock Exchange between February 16 and March 31, 2026, signaling continued commitment to shareholder-friendly capital allocation.

The buyback comes on top of existing treasury share holdings of over 8.2 million shares, excluding stock held in a Board Benefit Trust structure. This move underscores management’s view that stable profit distribution and capital efficiency are key strategic priorities, and may support the company’s share price while reinforcing its positioning as a disciplined capital steward in the Japanese chemical sector.

The most recent analyst rating on (JP:4403) stock is a Buy with a Yen3668.00 price target. To see the full list of analyst forecasts on NOF stock, see the JP:4403 Stock Forecast page.

NOF Nears Authorized Limit as It Completes ¥5 Billion Share Buyback

NOF Corporation has completed a share buyback program authorized by its board on November 6, 2025, acquiring a total of 1,714,300 common shares for 4,999,758,400 yen by December 23, 2025, mainly through open-market purchases on the Tokyo Stock Exchange. Within this framework, the latest tranche from December 1 to 23, 2025 saw the company repurchase 434,000 shares for 1,406,655,100 yen, effectively reaching the upper limit of the authorized purchase amount and underscoring its capital policy focus on shareholder returns and optimization of its share structure.

The most recent analyst rating on (JP:4403) stock is a Buy with a Yen3668.00 price target. To see the full list of analyst forecasts on NOF stock, see the JP:4403 Stock Forecast page.

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.

The most recent analyst rating on (JP:4403) stock is a Buy with a Yen3327.00 price target. To see the full list of analyst forecasts on NOF stock, see the JP:4403 Stock Forecast page.