Nippon Paint Holdings Co (4612) AI Stock Analysis

• Market Cap: ¥2.89T
• Dividend Yield: 1.3%
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.85
• Revenue Growth: 10.92%
• EPS Growth: 8.62%
• Country: JP
• Employees: 38,562
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 15.75
• Shares Outstanding: 2,370,512,200
• 10 Day Avg. Volume: 2,615,290
• 30 Day Avg. Volume: 2,648,046
• PEG Ratio: 4.07
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.31
• 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: ¥1,367.13
• Price Target Upside: 11.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: ¥1,319.00 ▲(7.50%Upside)

Nippon Paint Holdings Co's stock score reflects a strong financial performance, supported by robust revenue and cash flow management. Technical indicators suggest bullish momentum, although overbought signals warrant caution. Valuation is moderate, offering fair value relative to peers.

Nippon Paint Holdings Co Business Overview & Revenue Model

Company Description

Nippon Paint Holdings Co., Ltd. engages in the paint and fine chemicals businesses. The company offers automotive coatings, including paints for use in bumpers and plastic components; trade-use paints for homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior building materials, office equipment, and household electrical appliances. It also provides marine coatings, such as antifouling paints for fuel-saving; and paints for automobiles refinish, DIY, and road surface markings. In addition, the company offers surface treatment products comprising hydrophilic surface treatment and eco-friendly surface treatment agents; and fine products that include functional interlayer coatings, as well as coatings for display films. It has operations in Japan, Asia, the Americas, Oceania, and internationally. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1881 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nippon Paint Holdings Co., Ltd. generates revenue through the manufacture and sale of paint and coating products across various segments. Its primary revenue streams include decorative paints for residential and commercial buildings, industrial coatings for manufacturing and infrastructure projects, and automotive coatings for vehicle manufacturers. The company benefits from strategic partnerships and joint ventures globally, which help expand its market reach and distribution channels. Additionally, continuous investment in research and development allows Nippon Paint to innovate and maintain a competitive edge, further driving sales and profitability.

Nippon Paint Holdings Co Financial Statement Overview

Summary

Nippon Paint Holdings Co exhibits strong financial performance with robust revenue growth, solid profitability, and effective cash management. Despite a slight decline in net profit margin in TTM, the overall financial position remains strong. However, attention should be given to the rising debt levels to ensure long-term financial stability.

Income Statement

Nippon Paint Holdings Co has demonstrated strong revenue growth with a consistent upward trajectory from 2020 to TTM (Trailing-Twelve-Months), achieving a significant increase in total revenue. The gross profit margin has remained robust, reflecting effective cost management. The net profit margin has been healthy, indicating solid profitability, although there was a slight decline in TTM compared to the previous year. EBIT and EBITDA margins have also been stable, supporting the company's operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an improving equity ratio over the years, indicating financial stability. The debt-to-equity ratio has increased, which may pose a risk if the trend continues, but it remains manageable within the industry norms. Return on Equity (ROE) has been strong, showcasing effective utilization of shareholder capital. The company's assets have grown significantly, supporting its expansion and operational needs.

Cash Flow

The cash flow statement reveals strong operating cash flows, which have been consistently positive over the years. Free cash flow growth is notable, highlighting efficient capital expenditure management. The operating cash flow to net income ratio indicates a strong conversion of income to cash, underscoring financial health. However, investing cash flow has been negative, reflecting significant investments in growth, which could impact liquidity if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66T	1.64T	1.44T	1.31T	998.28B	781.15B
Gross Profit	674.82B	657.45B	576.13B	487.53B	378.32B	323.46B
EBITDA	268.81B	251.34B	227.97B	154.16B	118.26B	123.21B
Net Income	134.06B	127.34B	118.48B	79.42B	67.57B	68.18B
Balance Sheet
Total Assets	3.66T	3.07T	2.71T	2.44T	1.96T	1.62T
Cash, Cash Equivalents and Short-Term Investments	304.70B	288.30B	289.65B	259.85B	178.74B	299.05B
Total Debt	1.42T	760.01B	739.77B	722.06B	523.03B	535.76B
Total Liabilities	2.15T	1.46T	1.35T	1.29T	986.39B	915.58B
Stockholders Equity	1.49T	1.59T	1.36T	1.15T	959.52B	568.40B
Cash Flow
Free Cash Flow	95.09B	118.40B	151.65B	71.33B	28.05B	59.80B
Operating Cash Flow	140.67B	167.40B	189.75B	112.35B	67.43B	88.56B
Investing Cash Flow	-386.84B	-148.11B	-115.97B	-165.11B	-102.36B	-36.37B
Financing Cash Flow	273.09B	-37.38B	-38.66B	145.77B	-62.31B	60.87B

Nippon Paint Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1227.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4612, the sentiment is Positive. The current price of 1227 is above the 20-day moving average (MA) of 1156.42, above the 50-day MA of 1111.38, and above the 200-day MA of 1056.05, indicating a bullish trend. The MACD of 30.69 indicates Negative momentum. The RSI at 74.06 is Negative, neither overbought nor oversold. The STOCH value of 89.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4612.

Nippon Paint Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4612	74 Outperform	¥2.89T	21.59	9.03%	1.30%	10.92%	8.62%
Sector *	44 Neutral	C$979.30M	-6.66	-13.73%	2.43%	17.55%	-32.57%
KSANF	―	$2.33B	11.06	13.00%	2.55%	―	―
NATOF	―		―		―	―	―
4619	80 Outperform	¥44.38B	8.99		3.72%	2.11%	25.18%
4611	78 Outperform	¥33.85B	3.61		4.10%	0.79%	104.86%
4624	71 Outperform	¥5.12B	11.81		1.47%	2.02%	5.55%

Nippon Paint Holdings Co Corporate Events

Nippon Paint Completes Disposal of Treasury Shares for Compensation

Nippon Paint Holdings Co., Ltd. has completed the disposal of 83,400 treasury shares as restricted stock compensation, valued at 87,987,000 yen, to six directors of the company. This strategic move, decided by the Compensation Committee and company executives, aims to align the interests of the directors with the company’s performance, potentially impacting its governance and stakeholder relations.

The most recent analyst rating on (JP:4612) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Nippon Paint Holdings Co stock, see the JP:4612 Stock Forecast page.

Nippon Paint Holdings Reports Strong Q1 2025 Financial Results

Nippon Paint Holdings Co. reported a 5.6% increase in revenue for the first quarter of 2025, reaching 405,724 million yen, with a notable 28.2% rise in profit to 37,673 million yen. The company also maintained its dividend forecast for the fiscal year ending December 31, 2025, indicating stability and confidence in its financial performance, which could positively impact stakeholders and reinforce its market position.

The most recent analyst rating on (JP:4612) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Nippon Paint Holdings Co stock, see the JP:4612 Stock Forecast page.

Nippon Paint Announces Treasury Share Disposal for Executive Compensation

Nippon Paint Holdings Co., Ltd. announced the disposal of 83,400 treasury shares as part of a restricted stock compensation plan aimed at aligning the interests of its directors and executive officers with those of shareholders. This move is part of a broader strategy to incentivize long-term growth and corporate value, reflecting the company’s commitment to enhancing executive remuneration in line with their roles and responsibilities.