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

• Market Cap: ¥25.19B
• Dividend Yield: 3.57%
• Average Volume (3M): 10.05K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.15
• Revenue Growth: 6.99%
• EPS Growth: -0.30%
• Country: JP
• Employees: 1,531
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 38.83
• Shares Outstanding: 17,710,000
• 10 Day Avg. Volume: 11,580
• 30 Day Avg. Volume: 10,053
• PEG Ratio: 0.10
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 7.46
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥1,716.00 ▲(15.95% Upside)

Nicca Chemical Co., Ltd. receives a strong overall stock score driven primarily by its solid financial performance and attractive valuation. The company's robust financial health, characterized by revenue growth and improved profitability, is complemented by a low P/E ratio and a high dividend yield, making it appealing to value and income investors. Technical analysis supports a positive outlook, with bullish momentum indicators. However, some caution is warranted due to revenue volatility and rising liabilities.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong market demand and effective sales strategies, contributing to long-term business sustainability.

Balance Sheet Health

Improved equity ratio and reduced leverage enhance financial stability, providing a solid foundation for future growth and investment.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and the ability to fund strategic initiatives without relying heavily on external financing.

Negative Factors

Revenue Volatility

Revenue volatility can disrupt financial planning and investor confidence, posing challenges to maintaining consistent growth and profitability.

Rising Liabilities

Increasing liabilities may strain financial resources and limit the company's ability to invest in growth opportunities, impacting long-term stability.

Capital Expenditures

High capital expenditures may reduce available cash for other investments and operational needs, potentially affecting future cash flow and profitability.

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

Company Description

Nicca Chemical Co., Ltd. (4463) is a Japanese company specializing in the production of specialty chemicals, primarily for the textiles, cosmetics, and personal care industries. Established in 1941, the company has developed a diverse portfolio of products, including surfactants, emulsifiers, and various chemical additives that enhance the performance and quality of consumer goods. Nicca Chemical operates in multiple sectors, providing tailored solutions that meet the evolving needs of its global customer base.

How the Company Makes Money

Nicca 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

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	55.23B	54.10B	50.17B	50.63B	48.47B	41.18B
Gross Profit	19.88B	19.29B	16.52B	16.17B	16.04B	13.77B
EBITDA	5.92B	5.74B	4.83B	5.72B	6.00B	4.19B
Net Income	2.54B	2.75B	1.69B	2.11B	2.60B	1.04B
Balance Sheet
Total Assets	64.77B	62.37B	56.92B	56.12B	54.53B	53.17B
Cash, Cash Equivalents and Short-Term Investments	10.62B	10.73B	8.34B	7.05B	7.66B	7.96B
Total Debt	13.47B	9.90B	9.27B	10.43B	11.84B	16.49B
Total Liabilities	29.17B	25.81B	24.10B	25.73B	27.21B	30.01B
Stockholders Equity	32.72B	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: 1480.00
• 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:4463, the sentiment is Positive. The current price of 1480 is below the 20-day moving average (MA) of 1504.65, below the 50-day MA of 1482.24, and above the 200-day MA of 1321.00, indicating a bullish trend. The MACD of 29.69 indicates Negative momentum. The RSI at 74.39 is Negative, neither overbought nor oversold. The STOCH value of 86.60 is Negative, 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	81 Outperform	¥25.19B	10.05	―	3.57%	6.99%	-0.30%
5013	80 Outperform	¥29.08B	5.85	―	4.33%	-3.45%	30.52%
4368	78 Outperform	¥199.83B	15.50	―	1.48%	8.80%	33.39%
4040	77 Outperform	¥6.30B	6.12	―	1.98%	8.43%	2.99%
4531	74 Outperform	¥6.15B	8.74	―	3.21%	9.92%	-27.64%
4025	66 Neutral	¥31.89B	11.64	―	0.14%	9.78%	40.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%