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

• Market Cap: ¥23.36B
• Dividend Yield: 3.85%
• Average Volume (3M): 14.17K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.16
• 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: 17,560
• 30 Day Avg. Volume: 14,166
• 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

• Rating: 78 Outperform
• 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. Business Overview & Revenue Model

Company Description

Nicca 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 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: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4463	78 Outperform	¥23.36B	9.25	―	3.85%	6.41%	-3.59%
4025	77 Outperform	¥32.75B	11.94	―	0.13%	9.61%	53.78%
4531	74 Outperform	¥6.09B	8.43	―	3.23%	19.66%	-13.42%
4368	72 Outperform	¥169.17B	14.29	―	1.58%	12.70%	34.96%
5013	72 Outperform	¥29.17B	5.86	―	4.53%	3.47%	33.32%
4040	67 Neutral	¥6.44B	6.25	―	2.17%	6.80%	-19.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%