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Nicca Chemical Co., Ltd. (JP:4463)
:4463
Japanese Market
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Nicca Chemical Co., Ltd. (4463) AI Stock Analysis

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JP:4463

Nicca Chemical Co., Ltd.

(4463)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
¥1,436.00
▼(-2.97% 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. (4463) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNicca Chemical Co.,Ltd. manufactures and sells surfactants for textile chemicals, metals, pulp and paper, paints, dyes, synthetic resins, and dry cleaning and professional cleaning agents in Japan and internationally. The company offers textile chemicals, including oiling, scouring, chelating and dispersing, defoaming, leveling, soaping, fixing, water absorbing quick dry, anti-static, fluorocarbon-based water and oil repellent, soil-release, napping, anti-bacterial, and anti-odor agents, penetrating agent for alkali reduction and mercerization, as well as provides bleaching stabilizer, in-bath quality improver, light fastness improver, machine cleaner, silicone based water repellent, flame retardant, softener, and stiffener. It also provides specialty chemicals comprising agents for pulp and paper, metalworking chemicals, recording paper, and surfactants products. In addition, the company offers performance chemicals comprising abrasive resistance, good shock absorption, high durability, softness, toughness, heat resistance, lubricity, slidability, water and oil repellent, anti-blocking, softness, smoothness, defoaming, high refractive index, optical scattering, high hardness, high coating abrasive, and hydrophilic / anti-fogging, high solubility products, as well as provides antifouling and anti-fingerprint and low dielectric properties. Further, the company offers laundry chemicals for dry cleaning industry. Additionally, it provides detergent for linen supply, as well as offers infection control chemicals for medical and welfare fields. Furthermore, the company offers functional photo-cross-linker, carbon fiber composite material, and femtoreactor products. The company provides ultra dispersed diamonds, a transparent projection screen. It also offers hair and scalp care, styling, pre and post treatment, perm, hair color, skin care, and hair straightener products. Nicca Chemical Co.,Ltd. was founded in 1941 and is headquartered in Fukui, Japan.
How the Company Makes MoneyNicca Chemical generates revenue through the sale of its specialty chemical products, which are utilized across various industries, including textiles and cosmetics. The company maintains key revenue streams from its diverse product lines, focusing on high-value solutions that cater to specific industry requirements. Additionally, Nicca Chemical engages in strategic partnerships with manufacturers and distributors to expand its market reach and enhance product offerings. The company also invests in research and development to innovate and improve its product range, driving demand and revenue growth.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue55.23B54.10B50.17B50.63B48.47B41.18B
Gross Profit19.88B19.29B16.52B16.17B16.04B13.77B
EBITDA5.92B5.74B4.83B5.72B6.00B4.19B
Net Income2.54B2.75B1.69B2.11B2.60B1.04B
Balance Sheet
Total Assets64.77B62.37B56.92B56.12B54.53B53.17B
Cash, Cash Equivalents and Short-Term Investments10.62B10.73B8.34B7.05B7.66B7.96B
Total Debt13.47B9.90B9.27B10.43B11.84B16.49B
Total Liabilities29.17B25.81B24.10B25.73B27.21B30.01B
Stockholders Equity32.72B33.65B30.13B27.96B25.05B21.02B
Cash Flow
Free Cash Flow0.002.41B2.94B970.00M3.28B5.14B
Operating Cash Flow0.006.03B4.09B2.32B4.72B6.48B
Investing Cash Flow0.00-5.14B-876.00M-885.00M-994.00M-1.55B
Financing Cash Flow0.00-328.00M-1.74B-1.96B-5.02B-3.63B

Nicca Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1480.00
Price Trends
50DMA
1401.42
Positive
100DMA
1331.24
Positive
200DMA
1263.11
Positive
Market Momentum
MACD
25.16
Positive
RSI
56.73
Neutral
STOCH
63.81
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 1480 is above the 20-day moving average (MA) of 1463.95, above the 50-day MA of 1401.42, and above the 200-day MA of 1263.11, indicating a bullish trend. The MACD of 25.16 indicates Positive momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 63.81 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥23.36B9.253.85%6.41%-3.59%
77
Outperform
¥32.75B11.940.13%9.61%53.78%
74
Outperform
¥6.09B8.433.23%19.66%-13.42%
72
Outperform
¥169.17B14.291.58%12.70%34.96%
72
Outperform
¥29.17B5.864.53%3.47%33.32%
67
Neutral
¥6.44B6.252.17%6.80%-19.87%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4463
Nicca Chemical Co., Ltd.
1,482.00
316.89
27.20%
JP:4025
Taki Chemical Co., Ltd.
3,785.00
157.01
4.33%
JP:4040
NANKAI CHEMICAL COMPANY LIMITED
2,762.00
537.24
24.15%
JP:4368
Fuso Chemical Co., Ltd.
4,915.00
1,070.81
27.86%
JP:4531
Yuki Gosei Kogyo Co., Ltd.
279.00
18.74
7.20%
JP:5013
Yushiro Chemical Industry Co., Ltd.
2,165.00
641.12
42.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 25, 2025