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

• Market Cap: ¥5.81B
• Dividend Yield: 3.11%
• Average Volume (3M): 2.63K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.23
• Revenue Growth: 5.18%
• EPS Growth: N/A
• Country: JP
• Employees: 887
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 62.98
• Shares Outstanding: 4,261,420
• 10 Day Avg. Volume: 2,820
• 30 Day Avg. Volume: 2,626
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,764.00
• Price Target Upside: 9.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥1,764.00 ▲(9.63% Upside)

Nippon Chemiphar's overall stock score is driven by a stable financial performance with potential risks from cash flow constraints. Technical analysis supports a positive trend, and the valuation appears fair with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

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 Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include the production and distribution of generic drugs, which offer cost-effective alternatives to branded medications. Additionally, Nippon Chemiphar invests in research and development to create proprietary drugs, which can command higher prices and profit margins. The company also engages in strategic partnerships and collaborations with other pharmaceutical firms to expand its market reach and leverage shared expertise. These partnerships can include licensing agreements, co-development projects, and distribution arrangements that contribute to the company's earnings. Overall, Nippon Chemiphar's diversified product portfolio and strategic alliances are significant factors in its revenue generation.

Nippon Chemiphar Co., Ltd. Financial Statement Overview

Summary

Nippon Chemiphar displays a mixed financial performance. The income statement shows signs of recovery with improved margins, although revenue growth has been inconsistent. The balance sheet remains stable with manageable leverage and a strong equity base. Cash flow issues persist, with negative free cash flow indicating ongoing liquidity challenges. Overall, while the company shows potential, it faces risks from cash flow constraints and fluctuating profitability.

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	32.57B	32.57B	30.75B	31.56B	32.51B	31.54B
Gross Profit	8.75B	8.75B	7.74B	8.19B	9.07B	11.44B
EBITDA	1.83B	1.83B	1.40B	2.10B	2.68B	2.23B
Net Income	294.00M	294.00M	-180.00M	339.00M	700.00M	495.00M
Balance Sheet
Total Assets	49.85B	49.85B	49.55B	48.57B	49.45B	47.12B
Cash, Cash Equivalents and Short-Term Investments	7.02B	7.02B	9.20B	10.53B	11.64B	10.58B
Total Debt	18.06B	18.06B	16.98B	15.23B	14.79B	15.37B
Total Liabilities	30.68B	30.68B	31.09B	30.04B	30.95B	29.11B
Stockholders Equity	19.17B	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: 1609.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 1609 is below the 20-day moving average (MA) of 1610.65, above the 50-day MA of 1564.32, and above the 200-day MA of 1485.51, indicating a neutral trend. The MACD of 7.46 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 80.05 is Negative, 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
4524	78 Outperform	9.06B	19.54	4.50%	2.48%	-0.09%	-29.95%
4569	77 Outperform	80.33B	8.51	6.67%	3.40%	9.83%	86.18%
4539	70 Outperform	¥5.81B	14.71		3.11%	5.18%	―
4538	58 Neutral	18.87B	-5.32	7.11%	3.81%	8.71%	-325.91%
4512	52 Neutral	10.41B	-316.65	0.56%	1.01%	4.00%	-933.04%
4582	51 Neutral	7.03B	-1.42	0.00%	―	-50.88%	-22.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%