Nicca Chemical Co., Ltd. (4463) AI Stock Analysis

• Market Cap: ¥23.14B
• Dividend Yield: 3.88%
• Average Volume (3M): 15.27K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.14
• Revenue Growth: 6.41%
• EPS Growth: -3.59%
• Country: JP
• Employees: 1,531
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 44.43
• Shares Outstanding: 17,710,000
• 10 Day Avg. Volume: 9,380
• 30 Day Avg. Volume: 15,270
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,436.00
• Price Target Upside: -2.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,436.00 ▼(-2.18% Downside)

Nicca Chemical Co., Ltd. exhibits strong financial performance with robust cash flow and reduced leverage, contributing significantly to the overall score. The valuation metrics are also favorable, with a low P/E ratio and high dividend yield, indicating potential undervaluation. However, short-term technical indicators suggest bearish sentiment, which slightly offsets the positive outlook.

Nicca Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Nicca Chemical Co., Ltd. is a Japanese chemical company specializing in the production and sale of chemicals for various industries. The company operates in sectors such as textile chemicals, surfactants, and specialty chemicals. It focuses on providing innovative chemical solutions to enhance product performance across different applications, including textiles, personal care, and industrial processes.

How the Company Makes Money

Nicca Chemical Co., Ltd. generates revenue primarily through the sale of its chemical products to various industries. The company's key revenue streams include textile chemicals, which enhance the quality and functionality of textile products, and surfactants used in personal care products and industrial applications. By developing and marketing specialized chemical formulations, Nicca Chemical Co., Ltd. meets the specific needs of its clients, leading to a steady demand for its products. Strategic partnerships with manufacturers and distributors, as well as ongoing research and development to innovate new chemical solutions, are significant factors contributing to the company's earnings.

Nicca Chemical Co., Ltd. Financial Statement Overview

Summary

Nicca Chemical Co., Ltd. demonstrates solid financial health with consistent revenue growth, improved profitability, and strong cash flow generation. The company has effectively reduced leverage while enhancing shareholder returns. However, some revenue volatility and rising liabilities may require monitoring.

Income Statement

The income statement reveals strong financial performance, highlighted by a consistent increase in total revenue from JPY 41.18 billion in 2020 to JPY 54.10 billion in 2024. The gross profit margin has improved from 33.44% in 2020 to 35.66% in 2024, indicating efficient production and cost management. Net profit margin increased to 5.09% in 2024 from 2.53% in 2020, reflecting enhanced profitability. However, declines in revenue during 2022 and 2023 indicate potential volatility.

Balance Sheet

The balance sheet is robust with a healthy equity ratio, increasing from 39.53% in 2019 to 53.95% in 2024, showing strong financial stability. The debt-to-equity ratio has decreased from 0.97 in 2019 to 0.29 in 2024, indicating reduced leverage. Return on equity improved to 8.18% in 2024 from 4.97% in 2019, signifying better returns for shareholders. However, the total liabilities have been increasing, which could pose long-term risks.

Cash Flow

Cash flow analysis shows a positive trend, with free cash flow growing from JPY -2.70 billion in 2019 to JPY 2.41 billion in 2024. The operating cash flow to net income ratio was strong at 2.19 in 2024, indicating good cash generation relative to net income. Free cash flow to net income ratio was impressive at 0.87 in 2024. However, the capital expenditures have been significant, which could impact future free cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.07B	54.10B	50.17B	50.63B	48.47B	41.18B
Gross Profit	19.80B	19.29B	16.52B	16.17B	16.04B	13.77B
EBITDA	6.21B	5.74B	4.83B	5.72B	6.00B	4.19B
Net Income	2.73B	2.75B	1.69B	2.11B	2.60B	1.04B
Balance Sheet
Total Assets	61.08B	62.37B	56.92B	56.12B	54.53B	53.17B
Cash, Cash Equivalents and Short-Term Investments	10.42B	10.73B	8.34B	7.05B	7.66B	7.96B
Total Debt	11.76B	9.90B	9.27B	10.43B	11.84B	16.49B
Total Liabilities	26.18B	25.81B	24.10B	25.73B	27.21B	30.01B
Stockholders Equity	32.19B	33.65B	30.13B	27.96B	25.05B	21.02B
Cash Flow
Free Cash Flow	0.00	2.41B	2.94B	970.00M	3.28B	5.14B
Operating Cash Flow	0.00	6.03B	4.09B	2.32B	4.72B	6.48B
Investing Cash Flow	0.00	-5.14B	-876.00M	-885.00M	-994.00M	-1.55B
Financing Cash Flow	0.00	-328.00M	-1.74B	-1.96B	-5.02B	-3.63B

Nicca Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1468.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4463, the sentiment is Positive. The current price of 1468 is above the 20-day moving average (MA) of 1420.65, above the 50-day MA of 1350.70, and above the 200-day MA of 1236.85, indicating a bullish trend. The MACD of 32.22 indicates Positive momentum. The RSI at 75.83 is Negative, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4463.

Nicca Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4463	78 Outperform	¥23.14B	9.18	―	3.88%	6.41%	-3.59%
4025	77 Outperform	¥34.27B	12.51	6.07%	0.13%	9.61%	53.78%
5013	76 Outperform	¥31.29B	6.29	9.94%	4.33%	3.47%	33.32%
4531	73 Outperform	¥6.22B	8.68	6.84%	3.15%	19.66%	-13.42%
4368	72 Outperform	¥170.76B	14.42	11.23%	1.55%	12.70%	34.96%
4040	67 Neutral	¥6.54B	6.36	12.10%	2.16%	6.80%	-19.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%