NOF (4403) AI Stock Analysis

• Market Cap: $606.41B
• Dividend Yield: 2.03%
• Average Volume (3M): 583.02K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.98
• Revenue Growth: 7.23%
• EPS Growth: 8.93%
• Country: JP
• Employees: 3,879
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Chemicals - Specialty
• EPS (TTM): 37.74
• Shares Outstanding: 236,524,120
• 10 Day Avg. Volume: 791,990
• 30 Day Avg. Volume: 583,023
• PEG Ratio: 4.62
• Price to Book (P/B): 1.88
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• 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 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 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
233.32B	222.25B	217.71B	192.64B	172.65B	180.92B
	Gross Profit
83.75B	79.49B	75.94B	68.93B	57.39B	58.60B
	EBIT
44.64B	42.14B	40.62B	35.59B	26.60B	26.87B
	EBITDA
54.88B	49.08B	46.98B	41.51B	32.16B	32.18B
	Net Income Common Stockholders
35.61B	33.99B	33.97B	26.69B	23.30B	21.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.19B	91.74B	92.52B	85.43B	78.67B	51.85B
	Total Assets
344.91B	341.45B	309.44B	289.63B	271.54B	235.25B
	Total Debt
4.19B	5.17B	4.84B	5.63B	9.94B	9.86B
	Net Debt
-75.00B	-86.58B	-87.68B	-79.80B	-68.72B	-41.99B
	Total Liabilities
69.38B	75.54B	69.44B	67.93B	68.02B	56.53B
	Stockholders Equity
274.59B	265.00B	239.18B	220.93B	202.79B	177.94B
Cash Flow		Free Cash Flow
0.00	12.22B	17.11B	19.98B	24.74B	20.13B
	Operating Cash Flow
0.00	29.97B	23.33B	27.39B	30.73B	27.84B
	Investing Cash Flow
0.00	-14.96B	-709.00M	-8.76B	1.89B	-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 Price: 2568.50
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4403	78 Outperform	$606.41B	16.69	13.21%	2.03%	7.23%	8.93%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%
ASGLF		$6.25B	―	-4.41%	4.64%	―	―
AWTRF		$3.13B	7.85	9.64%	4.49%	―	―
MBGCF		$2.91B	9.70	6.78%	4.32%	―	―
MITUF		$4.08B	19.36	3.69%	4.63%	―	―
UBEOF		$1.52B	10.29	-1.23%	4.70%	―	―

NOF Corporate Events

NOF Corporation Reports Strong Fiscal Year 2025 Financial Results

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

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

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

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

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

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.