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

• Market Cap: ¥5.57B
• Dividend Yield: 2.99%
• Average Volume (3M): 2.30K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.29
• Revenue Growth: 4.25%
• EPS Growth: N/A
• Country: JP
• Employees: 887
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -17.71
• Shares Outstanding: 4,261,420
• 10 Day Avg. Volume: 1,680
• 30 Day Avg. Volume: 2,300
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,702.00 ▲(11.53% Upside)

Nippon Chemiphar's overall stock score reflects a balanced view of its financial performance and valuation. While the company shows potential with improved profitability and a stable balance sheet, ongoing cash flow challenges and weak technical indicators weigh on the score. The reasonable valuation and attractive dividend yield are positive factors.

Positive Factors

Improved Margins

Improved margins suggest better cost management and operational efficiency, which can enhance profitability and competitive positioning over time.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides financial flexibility and resilience, supporting long-term strategic initiatives and growth.

Equity Ratio

A solid equity ratio indicates a strong capital base, which can support sustained investment in R&D and expansion without excessive reliance on debt.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term planning and investment, potentially affecting market confidence and strategic execution.

Negative Free Cash Flow

Negative free cash flow indicates liquidity challenges, limiting the company's ability to reinvest in growth opportunities and manage debt effectively.

Low Net Profit Margin

While improved, a low net profit margin suggests limited profitability, which may constrain reinvestment in innovation and competitive initiatives.

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

Company Description

Nippon Chemiphar Co., Ltd., together with its subsidiaries, manufactures, markets, imports, exports, and sells, ethical pharmaceuticals and diagnostic agents in Japan and internationally. It offers diagnostic products, such as IgE NC, a diagnostic kit that provides results and reveals total IgE levels, as well as 57 individual allergen reagents; and DP3000, a device for allergen-specific IgE measurements. The company also develops NC-2400, a PPAR-delta agonist; NC-2500, a novel advanced xanthine oxidoreductase inhibitor for the treatment of hyperuricemia/gout; and NC-2600, a P2X4 receptor antagonist for the treatment of neuropathic pain. In addition, it develops NC-2700, a novel urate transporter 1 inhibitor that enhance excretion urate to urine; NC-2800, a delta opioid receptor agonist for the treatment of depression/anxiety; Uralyt-U, an alkalization therapeutic drug; Soleton, an analgesic and anti-inflammatory drug; and Calvan, a hypertension therapeutic drug. Further, the company provides quasi-drugs, nutrients, health foods, cosmetics, and various type of creams. It distributes its generic pharmaceuticals through wholesalers to hospitals and pharmacies. The company was formerly known as Hitachi Chemical Co., Ltd. and changed its name to Nippon Chemiphar Co., Ltd. in 1970. Nippon Chemiphar Co., Ltd. was founded in 1950 and is headquartered in Tokyo, Japan.

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 mixed financial performance. The income statement indicates recovery with improved margins, but revenue growth is inconsistent. The balance sheet is stable with manageable leverage and a strong equity base. 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	19.23B	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: Neutral
• Last Price: 1526.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 1526 is below the 20-day moving average (MA) of 1543.20, below the 50-day MA of 1583.48, and above the 200-day MA of 1515.70, indicating a neutral trend. The MACD of -14.70 indicates Negative momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	69 Neutral	¥78.17B	9.15	―	3.70%	11.65%	93.46%
4524	65 Neutral	¥8.73B	15.08	―	2.58%	3.23%	42.87%
4539	64 Neutral	¥5.57B	11.12	―	2.99%	4.25%	―
4538	60 Neutral	¥19.32B	―	―	3.86%	7.50%	-281.41%
4582	51 Neutral	¥5.73B	―	―	―	-50.27%	-3.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4512	48 Neutral	¥10.07B	-308.15	―	1.05%	5.42%	-62.03%