Nippon Paint Holdings Co (4612) AI Stock Analysis

• Market Cap: ¥2.41T
• Dividend Yield: 1.52%
• Average Volume (3M): 3.76M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.72
• Revenue Growth: 9.81%
• EPS Growth: 32.64%
• Country: JP
• Employees: 38,562
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 19.96
• Shares Outstanding: 2,370,512,200
• 10 Day Avg. Volume: 3,958,910
• 30 Day Avg. Volume: 3,758,023
• PEG Ratio: 2.53
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.47
• P/FCF Ratio: 20.30
• 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: ¥1,450.00
• Price Target Upside: 37.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,149.00 ▲(8.60% Upside)

Nippon Paint Holdings Co scores well due to its strong financial performance and reasonable valuation. The technical analysis suggests short-term bullish momentum, although longer-term resistance is present. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Revenue Growth

The company has shown a 3.6% increase in TTM revenue, indicating a positive growth trajectory and expanding market presence, which is crucial for long-term sustainability.

Profit Margins

Enhanced operational efficiency and profitability reflect the company's ability to manage costs and drive earnings, supporting long-term financial health.

Cash Generation

Strong cash generation capabilities indicate effective cash management, providing resources for reinvestment and financial flexibility.

Negative Factors

Debt Levels

While manageable, the increase in total debt requires monitoring as it could impact financial flexibility and increase risk if not controlled.

Operating Cash Flow Coverage

A decrease in operating cash flow coverage could signal potential challenges in meeting short-term obligations, affecting liquidity management.

Debt Monitoring

Continued vigilance on debt levels is necessary to ensure long-term financial stability and avoid potential liquidity constraints.

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 generates revenue primarily through the sale of paints and coatings across its various segments. The architectural coatings segment, which includes decorative paints for residential and commercial use, is a significant revenue driver, benefiting from the ongoing demand in construction and renovation projects. The automotive coatings segment also contributes substantially, providing coatings for vehicle manufacturers and repair shops. Additionally, Nippon Paint engages in strategic partnerships with construction firms and automotive manufacturers to secure long-term contracts, enhancing its market presence and revenue stability. The company's commitment to research and development enables it to introduce innovative products that meet evolving customer preferences, further driving sales growth.

Nippon Paint Holdings Co Financial Statement Overview

Summary

Nippon Paint Holdings Co exhibits strong financial performance with robust revenue growth and improved profit margins. The balance sheet is stable with a manageable debt-to-equity ratio, and cash flow metrics indicate strong liquidity and cash management. Monitoring debt levels will be crucial for sustaining financial health.

Income Statement

Nippon Paint Holdings Co has demonstrated strong revenue growth with a 3.6% increase in TTM (Trailing-Twelve-Months) and consistent improvement in profit margins. The gross profit margin has improved to 41%, and the net profit margin increased to 8.9%, indicating enhanced operational efficiency. EBIT and EBITDA margins have also shown positive trends, reflecting robust profitability. Overall, the income statement reflects a healthy financial performance with a positive growth trajectory.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.94 in TTM, which is manageable but slightly elevated compared to previous years. Return on Equity (ROE) has improved to 9.8%, indicating effective use of equity to generate profits. The equity ratio remains strong at approximately 42.4%, suggesting a solid capital structure. While the increase in total debt warrants attention, the overall balance sheet remains robust.

Cash Flow

Nippon Paint Holdings Co has shown a significant improvement in free cash flow growth at 14.7% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.13, and the free cash flow to net income ratio is 0.72, reflecting efficient cash conversion. Despite a slight decrease in operating cash flow coverage, the cash flow statement indicates a healthy liquidity position and strong cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73T	1.64T	1.44T	1.31T	998.28B	772.56B
Gross Profit	719.88B	657.45B	576.13B	487.53B	378.32B	323.46B
EBITDA	314.34B	251.34B	227.97B	163.42B	123.92B	123.21B
Net Income	163.47B	127.34B	118.48B	79.42B	67.57B	43.92B
Balance Sheet
Total Assets	3.79T	3.07T	2.71T	2.44T	1.96T	1.62T
Cash, Cash Equivalents and Short-Term Investments	349.65B	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	2.17T	1.46T	1.35T	1.29T	986.39B	915.58B
Stockholders Equity	1.61T	1.59T	1.36T	1.15T	959.52B	568.40B
Cash Flow
Free Cash Flow	133.50B	118.40B	151.65B	71.33B	28.05B	59.80B
Operating Cash Flow	174.54B	167.40B	189.75B	112.35B	67.43B	88.56B
Investing Cash Flow	-367.44B	-148.11B	-115.97B	-165.11B	-102.36B	-36.37B
Financing Cash Flow	277.08B	-37.38B	-38.66B	145.77B	-62.31B	60.87B

Nippon Paint Holdings Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1058.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4612, the sentiment is Neutral. The current price of 1058 is above the 20-day moving average (MA) of 1036.06, above the 50-day MA of 1025.00, and below the 200-day MA of 1065.86, indicating a bearish trend. The MACD of -5.83 indicates Positive momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 39.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	¥2.41T	14.72	10.44%	1.52%	9.81%	32.64%
4619	75 Outperform	¥50.89B	9.40	―	5.04%	-3.21%	27.18%
4628	74 Outperform	¥162.56B	12.60	6.87%	1.11%	2.88%	16.60%
4611	74 Outperform	¥38.98B	4.82	―	3.70%	14.83%	51.42%
4631	71 Outperform	¥357.80B	11.04	8.14%	2.61%	-1.45%	―
4613	68 Neutral	¥416.16B	11.25	13.71%	3.38%	0.29%	27.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Nippon Paint Holdings Co Corporate Events

Nippon Paint Holdings Acquires Treasury Stock to Optimize Capital Structure

Nippon Paint Holdings Co., Ltd. has announced the acquisition of 9,539,900 shares of its own common stock, amounting to approximately 9.38 billion yen, during November 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 35 million shares, or 1.5% of total issued shares, by February 2026, with a total acquisition budget of up to 30 billion yen. The acquisition is conducted through market purchases on the Tokyo Stock Exchange, indicating a strategic effort to manage capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:4612) stock is a Buy with a Yen1149.00 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 Financial Growth for 2025

Nippon Paint Holdings Co. reported a significant increase in its consolidated financial results for the nine months ended September 30, 2025, with revenue rising by 7.8% and operating profit by 36.4% compared to the previous year. The company also announced no revisions to its previously forecasted financial results for the fiscal year ending December 31, 2025, indicating stable expectations for continued growth and profitability.

The most recent analyst rating on (JP:4612) stock is a Hold with a Yen1141.00 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 Advances Treasury Stock Acquisition

Nippon Paint Holdings Co., Ltd. has announced the acquisition of 7,342,100 shares of its treasury stock, valued at approximately 7.42 billion yen, as part of a broader initiative approved by the Board of Directors to acquire up to 35 million shares by February 2026. This move is aimed at enhancing shareholder value and optimizing the company’s capital structure, reflecting a strategic approach to managing its financial resources and strengthening its market position.

The most recent analyst rating on (JP:4612) stock is a Hold with a Yen1141.00 price target. To see the full list of analyst forecasts on Nippon Paint Holdings Co stock, see the JP:4612 Stock Forecast page.