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

• Market Cap: ¥28.20B
• Dividend Yield: 3.53%
• Average Volume (3M): 9.92K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.17
• Revenue Growth: 6.99%
• EPS Growth: -0.30%
• Country: JP
• Employees: 1,531
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 48.52
• Shares Outstanding: 17,710,000
• 10 Day Avg. Volume: 8,470
• 30 Day Avg. Volume: 9,916
• PEG Ratio: -0.75
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -3.87
• 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: 66 Neutral
• Price Target: ¥1,862.00 ▲(25.81% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily limited by financial risk signals in 2025 (large negative free cash flow and a sharp rise in debt) despite improving operating performance. Offsetting this are strong technical uptrend indicators and a supportive valuation (low P/E and solid dividend yield).

Positive Factors

Consistent revenue growth and rising operating profit

Steady top-line growth with a clear step-up in EBIT indicates strengthening product demand and operational leverage. Durable operating improvement supports medium-term cash generation and reinvestment capacity, making core earnings more resilient to short-term cycles.

Stable, positive operating cash flow

Consistent operating cash flow in the low billions underpins earnings quality and funds working capital, R&D and routine capex. This repeatable OCF provides a durable base to service operations and supports strategic investments over the next several quarters.

Specialty B2B model with solution-oriented offerings

A specialty chemical B2B model with customized formulations and recurring supply creates customer stickiness and switching costs. Embedding products into clients' processes yields repeat orders and predictable demand, reinforcing medium-term revenue durability.

Negative Factors

Sharp debt increase in 2025

A near-doubling of debt materially raises leverage and financial risk, reducing balance-sheet flexibility. Higher debt amplifies interest and covenant sensitivity, constraining the firm's ability to absorb shocks or fund growth without further external financing over the medium term.

Swing to large negative free cash flow in 2025

A sharp FCF swing suggests heavy capex or working-capital absorption that internal cash did not fund. Combined with higher debt, this raises near-term liquidity and refinancing risk and could force cutbacks to dividends, investment, or require external funding.

Downward pressure below operating line; net income and EPS weakness

Despite higher EBIT, net income and EPS declined, pointing to rising interest, tax, or one-off costs that erode distributable earnings. This weakens earnings quality and limits free cash available for deleveraging or shareholder returns in the coming quarters.

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

Income statement trends are constructive with steady revenue growth and a clear step-up in EBIT, but overall financial quality is held back by a sharp 2025 debt increase and a swing to large negative free cash flow.

Income Statement

Revenue has grown steadily from 2023 to 2025 (annual revenue up from ~¥50.2B to ~¥55.7B), with a clear step-up in operating profit versus 2023 (EBIT ~¥2.0B to ~¥3.8B). Profitability is mid-range for the industry: in 2024 gross margin was ~35.7% and net margin ~5.1% (EBIT margin ~6.5%). However, net income dipped in 2025 versus 2024 (¥2.39B vs ¥2.75B), indicating some pressure below the operating line despite better operating earnings.

Balance Sheet

The balance sheet shows solid equity backing (equity rose to ~¥35.2B in 2025 from ~¥33.6B in 2024), and leverage was reasonable in 2023–2024 (debt-to-equity ~0.31 and ~0.29). The main concern is the sharp increase in total debt in 2025 (to ~¥18.5B from ~¥9.9B in 2024), which likely raises financial risk and reduces flexibility if earnings or cash generation soften.

Cash Flow

Operating cash flow has been positive and fairly stable (¥4.1B–¥6.0B range in 2023–2025), which supports underlying earnings quality. The key weakness is the swing to negative free cash flow in 2025 (about -¥6.4B) after positive free cash flow in 2022–2024, suggesting a heavy investment or working-capital build that is not currently being funded by internally generated cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.23B	55.70B	54.10B	50.17B	50.63B	48.47B
Gross Profit	19.88B	20.20B	19.29B	16.52B	16.17B	16.04B
EBITDA	5.92B	5.98B	5.74B	4.83B	5.72B	6.00B
Net Income	2.54B	2.38B	2.75B	1.69B	2.11B	2.60B
Balance Sheet
Total Assets	64.77B	74.05B	62.37B	56.92B	56.12B	54.53B
Cash, Cash Equivalents and Short-Term Investments	10.62B	11.85B	10.73B	8.34B	7.05B	7.66B
Total Debt	13.47B	18.54B	9.90B	9.27B	10.43B	11.84B
Total Liabilities	29.17B	35.70B	25.81B	24.10B	25.73B	27.21B
Stockholders Equity	32.72B	35.20B	33.65B	30.13B	27.96B	25.05B
Cash Flow
Free Cash Flow	0.00	-6.37B	2.41B	2.94B	970.00M	3.28B
Operating Cash Flow	0.00	5.54B	6.03B	4.09B	2.32B	4.72B
Investing Cash Flow	0.00	-11.54B	-5.14B	-876.00M	-885.00M	-994.00M
Financing Cash Flow	0.00	7.38B	-328.00M	-1.74B	-1.96B	-5.02B

Nicca Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1480.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1480 is below the 20-day moving average (MA) of 1710.05, below the 50-day MA of 1634.70, and above the 200-day MA of 1425.99, indicating a bullish trend. The MACD of 56.93 indicates Negative momentum. The RSI at 66.08 is Neutral, neither overbought nor oversold. The STOCH value of 63.07 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
5013	78 Outperform	¥43.82B	8.53	―	3.53%	-3.45%	30.52%
4041	74 Outperform	¥233.68B	15.32	―	4.09%	1.69%	0.94%
4045	73 Outperform	¥204.68B	16.43	4.41%	3.80%	-1.50%	-32.46%
4189	67 Neutral	¥115.56B	14.28	―	3.88%	2.61%	30.29%
4463	66 Neutral	¥28.20B	11.91	―	3.53%	6.99%	-0.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4061	60 Neutral	¥317.04B	-33.94	-4.00%	3.71%	0.24%	-234.36%