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Nippon Paint Holdings (JP:4612)
:4612
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Nippon Paint Holdings Co (4612) AI Stock Analysis

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JP:4612

Nippon Paint Holdings Co

(OTC:4612)

Rating:74Outperform
Price Target:
¥1,319.00
▼(-0.04% Downside)
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 (4612) vs. iShares MSCI Japan ETF (EWJ)

Nippon Paint Holdings Co Business Overview & Revenue Model

Company DescriptionNippon Paint Holdings Co., Ltd. is a leading global paint and coatings manufacturer based in Japan. The company operates in multiple sectors, including decorative paints, industrial coatings, automotive coatings, and fine chemicals. Nippon Paint is renowned for its high-quality products that cater to both consumer and industrial markets, offering innovative solutions that enhance the aesthetic appeal and durability of surfaces.
How the Company Makes MoneyNippon 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 Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q3-2024)
|
% Change Since: 19.87%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with record revenue but a decline in operating profit. While there were positive signs in some regions like the Pacific and Indonesia, challenges in China and Europe highlighted difficulties in certain markets. The company remains optimistic about future quarters with strategic cost management and market expansion.
Q3-2024 Updates
Positive Updates
Record Q3 Revenue
Achieved a record Q3 revenue of JPY 405.6 billion, up 3.2% year-on-year, indicating strong performance in a challenging market environment.
Positive Growth in NIPSEA China
NIPSEA China's decorative business saw TUC grow by 1% and total revenue increased by 2% on a non-GAAP basis despite a tough market environment.
Pacific Segment Growth
Sales in the Pacific region grew by 3.1% with margins improving by 1 percentage point due to small acquisitions in the adjacencies business.
Approval for Indian Business
Received approval from authorities for the Indian business, expected to contribute positively from Q4 onwards.
Indonesia Recovery
Indonesia showed signs of recovery with a 7.9% growth in Q3.
Negative Updates
Decline in Operating Profit
Operating profit decreased by 1.3% year-on-year on a Tanshin basis and by 13.1% on a non-GAAP basis.
Challenges in China
NIPSEA China's operating profit fell by 32% on a non-GAAP basis, with a noted decline in TUB by 16%.
Difficult Market in Europe
DGL faced challenging market conditions in Europe, particularly in France, resulting in a sales decline.
Weak Margin in China
China's margin was reported at 8.8%, which was considered low and impacted by pricing and promotional expenses.
No Significant Demand Recovery in China
The expectation for a significant demand recovery in China remains low despite economic stimulus measures.
Company Guidance
During the Q3 2024 earnings call for Nippon Paint Holdings, Yuichiro Wakatsuki, the company's President, provided guidance on future performance expectations. For Q4, the company anticipates a 15% increase in revenue and operating profit on a Tanshin basis, driven by improvements in operational efficiency and personnel optimization in China. Despite a weakening yen and challenging conditions in some regions like China, Turkey, and Europe, the company expects to exceed its initial full-year forecast by approximately 2 percentage points in revenue and 0.5 to 1 percentage point in operating profit. The company also highlighted strategic moves such as cost reviews in China, with expected margin improvements, and the contribution of its Indian business to consolidated earnings from Q4. Additionally, they discussed the acquisition of AOC and its expected positive impact on EPS, while also acknowledging the challenges and potential in different regional markets.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.64T1.44T1.31T998.28B781.15B
Gross Profit657.45B576.13B487.53B378.32B323.46B
EBITDA251.34B227.97B154.16B118.26B123.21B
Net Income127.34B118.48B79.42B67.57B68.18B
Balance Sheet
Total Assets3.07T2.71T2.44T1.96T1.62T
Cash, Cash Equivalents and Short-Term Investments288.30B289.65B259.85B178.74B299.05B
Total Debt760.01B739.77B722.06B523.03B535.76B
Total Liabilities1.46T1.35T1.29T986.39B915.58B
Stockholders Equity1.59T1.36T1.15T959.52B568.40B
Cash Flow
Free Cash Flow118.40B151.65B71.33B28.05B59.80B
Operating Cash Flow167.40B189.75B112.35B67.43B88.56B
Investing Cash Flow-148.11B-115.97B-165.11B-102.36B-36.37B
Financing Cash Flow-37.38B-38.66B145.77B-62.31B60.87B

Nippon Paint Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1319.50
Price Trends
50DMA
1178.98
Positive
100DMA
1129.66
Positive
200DMA
1077.09
Positive
Market Momentum
MACD
37.21
Negative
RSI
71.76
Negative
STOCH
86.43
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 1319.5 is above the 20-day moving average (MA) of 1259.73, above the 50-day MA of 1178.98, and above the 200-day MA of 1077.09, indicating a bullish trend. The MACD of 37.21 indicates Negative momentum. The RSI at 71.76 is Negative, neither overbought nor oversold. The STOCH value of 86.43 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥45.46B9.21
4.29%2.11%25.18%
78
Outperform
¥36.55B3.89
3.79%0.79%104.86%
77
Outperform
¥5.44B11.98
1.36%2.02%5.55%
74
Outperform
¥3.07T22.899.03%1.21%10.92%8.62%
72
Outperform
$369.25B10.8313.00%2.28%4.72%-30.89%
72
Outperform
$10.86B11.49
3.60%6.76%4.18%
44
Neutral
AU$1.47B-5.90-41.17%4.23%-3.35%-41.14%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4612
Nippon Paint Holdings Co
1,319.50
432.69
48.79%
JP:4611
Dai Nippon Toryo Company, Limited
1,292.00
266.66
26.01%
JP:4619
Nihon Tokushu Toryo Co., Ltd.
2,097.00
1,033.17
97.12%
JP:4624
Isamu Paint Co., Ltd.
3,670.00
800.33
27.89%
JP:4613
Kansai Paint Co
2,189.50
-196.69
-8.24%
JP:4627
Natoco Co
1,446.00
205.78
16.59%

Nippon Paint Holdings Co Corporate Events

Nippon Paint Completes Disposal of Treasury Shares for Compensation
May 16, 2025

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
May 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025