Nippon Chemiphar Co., Ltd. (4539) AI Stock Analysis

• Market Cap: ¥6.01B
• Dividend Yield: 2.99%
• Average Volume (3M): 1.93K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.25
• Revenue Growth: 5.18%
• EPS Growth: N/A
• Country: JP
• Employees: 887
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -17.74
• Shares Outstanding: 4,261,420
• 10 Day Avg. Volume: 2,080
• 30 Day Avg. Volume: 1,926
• PEG Ratio: -0.07
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -2.87
• 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

• Rating: 64 Neutral
• Price Target: ¥1,702.00 ▲(8.27% Upside)

Nippon Chemiphar's overall stock score reflects its mixed financial performance with improved profitability but ongoing liquidity challenges. The technical indicators suggest potential short-term weakness, while the valuation appears fair with a reasonable P/E ratio and attractive dividend yield.

Nippon Chemiphar Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Chemiphar Co., Ltd. (4539) is a prominent Japanese pharmaceutical company specializing in the development, manufacturing, and marketing of a wide range of pharmaceutical products. Established in 1940, the company operates primarily in the fields of prescription drugs, generic medicines, and over-the-counter (OTC) health products. Its core offerings include medications for various therapeutic areas such as oncology, cardiovascular diseases, and infectious diseases, alongside a focus on research and development to drive innovation in drug formulation and delivery systems.

How the Company Makes Money

Nippon Chemiphar generates revenue through multiple channels, predominantly by selling prescription medications and generics to hospitals, pharmacies, and healthcare providers. The company also earns income from its OTC products, which are marketed directly to consumers. Another significant revenue stream comes from its research and development initiatives, which may include partnerships with other pharmaceutical companies for co-development, licensing agreements, and collaborations that enhance its product pipeline and market reach. Additionally, Nippon Chemiphar benefits from government healthcare programs that reimburse a portion of the costs associated with its prescription drugs, thereby supporting its overall revenue generation.

Nippon Chemiphar Co., Ltd. Financial Statement Overview

Summary

Nippon Chemiphar shows a mixed financial performance. The income statement indicates recovery with improved margins, but inconsistent revenue growth. The balance sheet is stable with manageable leverage and a strong equity base. However, cash flow issues persist, with negative free cash flow indicating liquidity challenges.

Income Statement

Nippon Chemiphar has shown inconsistent revenue growth with a 5.9% increase in the latest year after a decline in the previous year. The gross profit margin stands at 26.8%, which is moderate. However, the net profit margin has improved to 0.9% from a loss last year, indicating a positive turnaround in profitability. The EBITDA margin improved to 5.6%, showing healthier operational efficiency, but the EBIT margin remains low at 1.9%.

Balance Sheet

The company's debt-to-equity ratio of 0.94 indicates a balanced leverage profile. The return on equity is 1.5%, reflecting modest profitability relative to shareholder equity. The equity ratio of 38.5% suggests a solid capital structure, providing stability despite the modest ROE.

Cash Flow

The company faced a free cash flow deficit, although the negative growth rate has slightly improved from the previous year. The operating cash flow to net income ratio is negative due to operating cash flow being negative, indicating potential liquidity challenges. The free cash flow to net income ratio is also negative, signaling difficulties in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.82B	32.57B	30.75B	31.56B	32.51B	31.54B
Gross Profit	8.93B	8.75B	7.74B	8.19B	9.07B	11.44B
EBITDA	2.01B	1.83B	1.40B	2.10B	2.68B	2.23B
Net Income	395.00M	294.00M	-180.00M	339.00M	700.00M	495.00M
Balance Sheet
Total Assets	52.68B	49.85B	49.55B	48.57B	49.45B	47.12B
Cash, Cash Equivalents and Short-Term Investments	9.69B	7.02B	9.20B	10.53B	11.64B	10.58B
Total Debt	19.02B	18.06B	16.98B	15.23B	14.79B	15.37B
Total Liabilities	33.76B	30.68B	31.09B	30.04B	30.95B	29.11B
Stockholders Equity	18.92B	19.17B	18.46B	18.53B	18.50B	18.01B
Cash Flow
Free Cash Flow	0.00	-1.86B	-2.34B	-1.93B	1.07B	-85.00M
Operating Cash Flow	0.00	-265.00M	296.00M	-916.00M	1.80B	1.50B
Investing Cash Flow	0.00	-1.66B	-3.14B	-394.00M	35.00M	-1.02B
Financing Cash Flow	0.00	-305.00M	1.45B	144.00M	-793.00M	29.00M

Nippon Chemiphar Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1572.00
• 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:4539, the sentiment is Positive. The current price of 1572 is below the 20-day moving average (MA) of 1603.25, below the 50-day MA of 1612.70, and above the 200-day MA of 1507.20, indicating a bullish trend. The MACD of 9.31 indicates Negative momentum. The RSI at 65.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4539.

Nippon Chemiphar Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4569	―	¥73.96B	7.84	―	3.70%	9.83%	86.18%
4524	―	¥8.68B	18.72	―	2.58%	-0.09%	-29.95%
4539	―	¥6.01B	15.20	―	2.99%	5.18%	―
4538	―	¥18.58B	―	―	3.87%	8.71%	-325.91%
4582	―	¥6.31B	―	―	―	-50.27%	-3.33%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	―	¥10.13B	-310.28	―	1.04%	4.00%	-933.04%