Nippon Paint Holdings Co (4612) AI Stock Analysis

• Market Cap: $2.39T
• Dividend Yield: 1.57%
• Average Volume (3M): 3.85M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.75
• Revenue Growth: 6.84%
• EPS Growth: 19.79%
• Country: JP
• Employees: 38,562
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 21.48
• Shares Outstanding: 2,370,512,200
• 10 Day Avg. Volume: 2,835,870
• 30 Day Avg. Volume: 3,848,736
• 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: 1.61
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 13.36
• 1Y Price Target: $1,299.81
• Price Target Upside: 28.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥1,141.00 ▲(12.47% Upside)

Nippon Paint Holdings Co's overall stock score is driven by strong financial performance, which is the most significant factor. However, bearish technical indicators weigh down the score, reflecting current market sentiment. The valuation is reasonable, providing some support to the stock's attractiveness.

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 impressive revenue growth and profitability. The income statement shows robust demand and market expansion, while the balance sheet reflects financial stability with a moderate debt-to-equity ratio. Cash flow generation is improving, though there is room for enhancement in operational cash flow efficiency.

Income Statement

Nippon Paint Holdings Co has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 83.6%, indicating robust demand and market expansion. The gross profit margin remains healthy at 40.65%, and the net profit margin is solid at 8.07%, reflecting efficient cost management. EBIT and EBITDA margins are also strong, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.96, indicating a balanced approach to leveraging. Return on equity is decent at 8.74%, suggesting effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure. While the debt level has increased, the company maintains a strong equity base, supporting financial stability.

Cash Flow

Nippon Paint Holdings Co has achieved a significant free cash flow growth rate of 22.44% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is lower at 0.12, suggesting potential areas for improvement in cash conversion. However, the free cash flow to net income ratio is healthy at 0.68, reflecting good cash flow management. Overall, the cash flow statement shows positive trends with room for enhancement in operational cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67T	1.64T	1.44T	1.31T	998.28B	772.56B
Gross Profit	686.36B	657.45B	576.13B	487.53B	378.32B	323.46B
EBITDA	287.78B	251.34B	227.97B	163.42B	123.92B	123.21B
Net Income	148.45B	127.34B	118.48B	79.42B	67.57B	43.92B
Balance Sheet
Total Assets	3.67T	3.07T	2.71T	2.44T	1.96T	1.62T
Cash, Cash Equivalents and Short-Term Investments	322.68B	288.30B	289.65B	242.60B	138.81B	232.13B
Total Debt	1.42T	760.01B	739.77B	722.06B	523.03B	535.76B
Total Liabilities	2.14T	1.46T	1.35T	1.29T	986.39B	915.58B
Stockholders Equity	1.51T	1.59T	1.36T	1.15T	959.52B	568.40B
Cash Flow
Free Cash Flow	116.42B	118.40B	151.65B	71.33B	28.05B	59.80B
Operating Cash Flow	160.72B	167.40B	189.75B	112.35B	67.43B	88.56B
Investing Cash Flow	-385.13B	-148.11B	-115.97B	-165.11B	-102.36B	-36.37B
Financing Cash Flow	280.38B	-37.38B	-38.66B	145.77B	-62.31B	60.87B

Nippon Paint Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1014.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4612, the sentiment is Negative. The current price of 1014.5 is below the 20-day moving average (MA) of 1061.23, below the 50-day MA of 1163.65, and below the 200-day MA of 1082.73, indicating a bearish trend. The MACD of -38.07 indicates Negative momentum. The RSI at 26.39 is Positive, neither overbought nor oversold. The STOCH value of 9.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4619	80 Outperform	48.37B	9.73	8.60%	4.04%	-1.25%	16.44%
4611	78 Outperform	36.80B	4.34	14.48%	3.77%	7.99%	78.17%
4624	77 Outperform	5.40B	11.93	3.19%	1.39%	1.47%	17.40%
4627	72 Outperform	12.70B	11.39	0.00%	3.09%	8.63%	11.84%
4613	68 Neutral	417.43B	12.96	14.22%	2.02%	2.95%	3.19%
4612	62 Neutral	$2.39T	16.27	9.77%	1.57%	6.84%	19.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Paint Holdings Co Corporate Events

Nippon Paint Reports Strong First Half 2025 Financial Results

Nippon Paint Holdings Co., Ltd. reported a 4.3% increase in revenue to 852,428 million yen for the first half of 2025, with a notable 31.1% rise in operating profit. The company attributes this growth to improved operational efficiencies and strategic market expansions. The financial forecast for the full year 2025 anticipates an 11.1% increase in revenue, reflecting continued positive momentum. The announcement highlights the company’s strong financial position and its commitment to delivering shareholder value through consistent dividend payments.

The most recent analyst rating on (JP:4612) stock is a Hold with a Yen1300.00 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 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.