Nippon Paint Holdings Co Ltd (JP:4612)
:4612
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Nippon Paint Holdings Co
(4612)
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Rating:69Neutral
Price Target:
¥1,063.00
▲(0.47% Upside)
Action:DowngradedDate:02/18/26
The score is primarily driven by solid financial performance (growth and improved profitability) but constrained by higher 2025 leverage and subpar cash conversion. Technicals are supportive of an uptrend but are currently overbought, while valuation appears reasonable on a ~14 P/E with a modest dividend yield.
Positive Factors
Diverse end-markets & channels
The business benefits from diversified revenue across decorative, industrial, regional subsidiaries and services. That mix smooths cyclicality, enables cross-selling, leverages scale in procurement/manufacturing, and supports recurring demand from maintenance and specification-driven project sales.
Negative Factors
Sharp increase in leverage in 2025
The large debt increase meaningfully reduces balance-sheet flexibility and raises sensitivity to earnings volatility or funding-market stress. Higher leverage constrains capital allocation, increases interest exposure, and elevates refinancing and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diverse end-markets & channels
The business benefits from diversified revenue across decorative, industrial, regional subsidiaries and services. That mix smooths cyclicality, enables cross-selling, leverages scale in procurement/manufacturing, and supports recurring demand from maintenance and specification-driven project sales.
Read all positive factors
Nippon Paint Holdings Co (4612) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.28T
Dividend Yield1.52%
Average Volume (3M)3.76M
Price to Earnings (P/E)13.7
Beta (1Y)0.76
Revenue Growth9.81%
EPS Growth32.64%
CountryJP
Employees38,562
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)19.47
Shares Outstanding2,370,512,200
10 Day Avg. Volume3,958,910
30 Day Avg. Volume3,758,023
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.36
Price to Sales (P/S)1.38
P/FCF Ratio16.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,200.00Price Target Upside13.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)81.56
Revenue Forecast (FY)¥1.89T
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 industr...
How the Company Makes Money
Nippon Paint Holdings makes money primarily by selling coatings and related products through multiple channels and end markets. Key revenue streams include: (1) Decorative/architectural coatings: sales of interior/exterior paints, primers, sealers...
Nippon Paint Holdings Co Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 20, 2026
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.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.
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.
Read all updates
Q3-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
61
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.77T | 1.64T | 1.44T | 1.31T | 998.28B |
| Gross Profit | 750.24B | 657.45B | 576.13B | 487.53B | 378.32B |
| EBITDA | 317.74B | 243.53B | 213.34B | 154.16B | 118.26B |
| Net Income | 179.80B | 127.34B | 118.48B | 79.42B | 67.57B |
Balance Sheet | |||||
| Total Assets | 4.02T | 3.07T | 2.71T | 2.44T | 1.96T |
| Cash, Cash Equivalents and Short-Term Investments | 424.34B | 288.30B | 289.65B | 242.60B | 138.81B |
| Total Debt | 1.42T | 861.79B | 822.85B | 798.25B | 575.24B |
| Total Liabilities | 2.19T | 1.46T | 1.35T | 1.29T | 986.38B |
| Stockholders Equity | 1.80T | 1.59T | 1.36T | 1.15T | 959.52B |
Cash Flow | |||||
| Free Cash Flow | 145.01B | 118.40B | 154.10B | 74.91B | 32.50B |
| Operating Cash Flow | 187.53B | 167.40B | 189.75B | 112.35B | 67.43B |
| Investing Cash Flow | -321.99B | -148.11B | -115.97B | -165.11B | -102.36B |
| Financing Cash Flow | 254.73B | -37.38B | -38.66B | 145.77B | -62.31B |
Nippon Paint Holdings Co Technical Analysis
Negative
1058.00
Price Trends
1067.00
Negative
1038.60
Negative
1071.10
Negative
Market Momentum
-27.26
Positive
31.34
Neutral
6.74
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 1058 is below the 20-day moving average (MA) of 1062.61, below the 50-day MA of 1067.00, and below the 200-day MA of 1071.10, indicating a bearish trend. The MACD of -27.26 indicates Positive momentum. The RSI at 31.34 is Neutral, neither overbought nor oversold. The STOCH value of 6.74 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥49.72B | 8.18 | ― | 5.04% | -3.21% | 27.18% | |
74 Outperform | ¥166.07B | 8.76 | 6.23% | 1.11% | 2.88% | 16.60% | |
74 Outperform | ¥35.89B | 15.61 | ― | 3.70% | 14.83% | 51.42% | |
69 Neutral | ¥2.28T | 13.66 | 11.64% | 1.52% | 9.81% | 32.64% | |
68 Neutral | ¥406.80B | 7.90 | 13.71% | 3.38% | 0.29% | 27.84% | |
65 Neutral | ¥351.55B | 10.69 | 8.14% | 2.61% | -1.45% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4612
Nippon Paint Holdings Co
981.30
-168.81
-14.68%
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Nippon Paint Holdings Co Corporate Events
Nippon Paint Holdings Completes ¥30 Billion Share Buyback Program
Mar 3, 2026
Nippon Paint Holdings has completed a share repurchase program authorized under its Articles of Incorporation, buying back 3,868,600 common shares in February 2026 for about ¥4.29 billion through market purchases on the Tokyo Stock Exchange. ...
Nippon Paint Extends JPY 670 Billion Loan for AOC Acquisition via Long-Term Refinancing
Feb 13, 2026
Nippon Paint Holdings has refinanced a bank loan used to acquire an equity interest in AOC, a global specialty formulator that has become its subsidiary, by replacing the original borrowing with a new long-term facility. The new loan totals JPY 67...
Nippon Paint Posts Strong 2025 Earnings and Lifts Dividend Outlook for 2026
Feb 13, 2026
Nippon Paint Holdings reported strong results for the fiscal year ended December 31, 2025, with revenue rising 8.3% to ¥1.77 trillion and operating profit surging 38.1%, driven by improved profitability and higher margins that lifted earnings...
Nippon Paint Extends Maturity of ¥670 Billion Loan for AOC Acquisition
Feb 13, 2026
Nippon Paint Holdings has refinanced the bank loan it originally used to acquire an equity stake in AOC, a global specialty formulator that became its subsidiary, converting that borrowing into a long-term facility. The new loan totals JPY 670 bil...
Nippon Paint Holdings Lifts Earnings and Dividend, Signals Further Growth in 2026
Feb 13, 2026
Nippon Paint Holdings reported solid growth for the fiscal year ended December 31, 2025, with revenue rising 8.3% to ¥1.77 trillion and operating profit jumping 38.1%, driving a 42.8% increase in profit attributable to owners of the parent. P...
Nippon Paint Advances Large-Scale Share Buyback Program
Feb 12, 2026
Nippon Paint Holdings has reported progress on its ongoing share buyback program, acquiring 4,643,700 common shares for about 4.8 billion yen via market purchases on the Tokyo Stock Exchange between January 1 and January 31, 2026. These purchases ...
Nippon Paint Holdings Updates Progress on Multi-Billion Yen Share Buyback
Jan 14, 2026
Nippon Paint Holdings has disclosed the latest progress in its ongoing share buyback program, reporting the acquisition of 4,015,700 common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of approximately 4...
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.