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NOF Corporation (JP:4403)
:4403

NOF (4403) AI Stock Analysis

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JP

NOF

(OTC:4403)

Rating:78Outperform
Price Target:
¥2,870.00
▲(11.74%Upside)
NOF's strong financial performance is the primary driver of its overall stock score, supported by robust profitability and financial stability. Technical analysis indicates bullish momentum, though caution is warranted due to overbought signals. The valuation reflects a fair market price with a reasonable P/E ratio and dividend yield. Lack of specific earnings call details and corporate events did not impact the score.

NOF (4403) vs. iShares MSCI Japan ETF (EWJ)

NOF Business Overview & Revenue Model

Company DescriptionNOF Corporation is a Japanese chemical company that operates across multiple sectors, including life sciences, chemicals, and functional materials. The company specializes in the production of a wide range of chemical products, such as oleochemicals, explosives, and life science-related materials. NOF Corporation is known for its innovation in creating high-performance materials that serve various industries, including healthcare, automotive, and electronics.
How the Company Makes MoneyNOF Corporation generates revenue through the sale of its diverse range of chemical products and materials. Its key revenue streams include the life science sector, where it provides materials for pharmaceuticals and biotechnology; the chemicals sector, which involves the production of basic and functional chemicals; and the functional materials sector, where it offers high-performance materials for industries like automotive and electronics. The company also benefits from strategic partnerships and collaborations with other firms to enhance its product offerings and expand its market reach. Additionally, its investment in research and development enables NOF Corporation to innovate and create value-added products, contributing to its financial performance.

NOF Financial Statement Overview

Summary
Overall, NOF demonstrates strong financial health with excellent profitability and stable growth in the specialty chemicals industry. The balance sheet is particularly strong, with low leverage and high equity. The main area for improvement lies in cash flow management, particularly in maintaining consistent free cash flow growth.
Income Statement
85
Very Positive
The company's income statement shows strong performance with a healthy Gross Profit Margin of 35.89% and Net Profit Margin of 15.26% for TTM. Revenue has grown by 4.98% TTM, indicating positive growth trends. EBIT Margin and EBITDA Margin are also robust at 19.13% and 23.52% respectively, reflecting strong operational efficiency.
Balance Sheet
88
Very Positive
The balance sheet is solid with a low Debt-to-Equity Ratio of 0.02, which indicates minimal leverage. The Return on Equity (ROE) is impressive at 12.97%, showing effective use of equity. The Equity Ratio is high at 79.61%, suggesting financial stability and low risk.
Cash Flow
65
Positive
Cash flow analysis is limited due to missing TTM data on operating and free cash flows. However, historically, the company has maintained positive free cash flow, although the growth rate has fluctuated. The Operating Cash Flow to Net Income Ratio was 0.88 previously, indicating a slight underperformance in cash conversion.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
233.32B222.25B217.71B192.64B172.65B180.92B
Gross Profit
83.75B79.49B75.94B68.93B57.39B58.60B
EBIT
44.64B42.14B40.62B35.59B26.60B26.87B
EBITDA
54.88B49.08B46.98B41.51B32.16B32.18B
Net Income Common Stockholders
35.61B33.99B33.97B26.69B23.30B21.14B
Balance SheetCash, Cash Equivalents and Short-Term Investments
79.19B91.74B92.52B85.43B78.67B51.85B
Total Assets
344.91B341.45B309.44B289.63B271.54B235.25B
Total Debt
4.19B5.17B4.84B5.63B9.94B9.86B
Net Debt
-75.00B-86.58B-87.68B-79.80B-68.72B-41.99B
Total Liabilities
69.38B75.54B69.44B67.93B68.02B56.53B
Stockholders Equity
274.59B265.00B239.18B220.93B202.79B177.94B
Cash FlowFree Cash Flow
0.0012.22B17.11B19.98B24.74B20.13B
Operating Cash Flow
0.0029.97B23.33B27.39B30.73B27.84B
Investing Cash Flow
0.00-14.96B-709.00M-8.76B1.89B-4.84B
Financing Cash Flow
0.00-17.10B-16.17B-15.31B-8.04B-11.29B

NOF Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2568.50
Price Trends
50DMA
2119.13
Positive
100DMA
2103.37
Positive
200DMA
2191.04
Positive
Market Momentum
MACD
98.69
Negative
RSI
82.39
Negative
STOCH
92.99
Negative
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 2568.5 is above the 20-day moving average (MA) of 2247.45, above the 50-day MA of 2119.13, and above the 200-day MA of 2191.04, indicating a bullish trend. The MACD of 98.69 indicates Negative momentum. The RSI at 82.39 is Negative, neither overbought nor oversold. The STOCH value of 92.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4403.

NOF Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$448.94B9.259.64%4.49%5.02%10.24%
78
Outperform
¥606.41B16.6913.21%2.03%7.23%8.93%
67
Neutral
$403.22B9.086.78%4.32%-4.90%20.59%
65
Neutral
$582.76B17.973.69%4.63%3.40%-35.14%
58
Neutral
$889.54B-4.41%4.64%1.96%-399.31%
55
Neutral
$219.19B11.14-1.23%4.70%3.96%-116.60%
50
Neutral
$2.00B-1.13-21.16%3.71%2.15%-30.95%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4403
NOF
2,568.50
562.28
28.03%
JP:4208
UBE Industries
2,245.50
-554.88
-19.81%
JP:4183
Mitsui Chemicals
3,096.00
-1,492.72
-32.53%
JP:4088
Air Water
1,998.50
-193.54
-8.83%
JP:4182
Mitsubishi Gas Chemical Company
2,167.50
-683.53
-23.97%
JP:5201
AGC
4,254.00
-981.69
-18.75%

NOF Corporate Events

NOF Corporation Reports Strong Fiscal Year 2025 Financial Results
May 9, 2025

NOF Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable increase in net sales and profits compared to the previous year. The company achieved a 7.2% rise in net sales to 238,310 million yen and a 7.5% increase in operating profit to 45,308 million yen. Despite a decrease in comprehensive income, the company’s financial position remains robust with a slight improvement in the equity-to-asset ratio. The announcement reflects NOF’s continued growth and stability in the chemical industry, with implications for sustained shareholder value and market competitiveness.

NOF Corporation Announces Increased Year-End Dividend
May 9, 2025

NOF Corporation has announced an increase in its year-end dividend per share from the previously forecasted 21 yen to 24 yen, reflecting a strategic decision to enhance shareholder returns. This decision, which will be proposed at the upcoming Annual General Meeting, underscores the company’s commitment to maintaining a flexible approach to dividends and share management, despite a recent share split that affected dividend calculations.

NOF Corporation Announces Treasury Share Buyback to Enhance Shareholder Value
May 9, 2025

NOF Corporation has announced a decision to purchase up to 5,000,000 of its own shares, representing 2.14% of its outstanding shares, as part of its strategy to enhance shareholder value and improve capital efficiency. This move aligns with the company’s Mid-Term Management Plan, which aims for a stable return of profits and sets a target payout ratio of around 50% by the fiscal year 2025.

NOF Corporation Announces Executive Management Restructuring
May 9, 2025

NOF Corporation has announced changes in its executive management, effective June 27, 2025. The restructuring includes the appointment of new directors and operating officers, with the aim of strengthening the company’s leadership and strategic direction. This move is expected to enhance NOF’s operational efficiency and maintain its competitive edge in the industry.

NOF Corporation Completes Treasury Share Purchase
Mar 25, 2025

NOF Corporation has completed the purchase of 1,356,200 treasury shares for a total of 2,887,838,550 yen, as part of a resolution by its Board of Directors. This strategic move, executed on the Tokyo Stock Exchange, is part of a broader plan to purchase up to 2,500,000 shares, reflecting the company’s efforts to enhance shareholder value and optimize its capital structure.

NOF CORPORATION Announces Treasury Share Buyback
Mar 3, 2025

NOF CORPORATION has announced the purchase of 1,005,600 of its common shares for a total of 2,112,041,450 yen. This move is part of a broader strategy approved by the Board of Directors to buy back up to 2,500,000 shares, reflecting a commitment to enhance shareholder value through open-market purchases on the Tokyo Stock Exchange.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.