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Nippon Paint Holdings Co Ltd (JP:4612)
:4612
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Nippon Paint Holdings Co
(4612)
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Rating:65Neutral
Price Target:
¥1,035.00
▲(4.37% Upside)
Nippon Paint Holdings Co's overall stock score is driven by strong financial performance and reasonable valuation. However, the technical analysis indicates bearish momentum, which negatively impacts the score. The lack of earnings call data and corporate events limits further insights.
Nippon Paint Holdings Co (4612) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$2.31T
Dividend Yield1.61%
Average Volume (3M)3.76M
Price to Earnings (P/E)15.5
Beta (1Y)0.74
Revenue Growth9.81%
EPS Growth32.64%
CountryJP
Employees38,562
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)19.96
Shares Outstanding2,370,512,200
10 Day Avg. Volume3,958,910
30 Day Avg. Volume3,758,023
Financial Highlights & Ratios
PEG Ratio2.53
Price to Book (P/B)1.51
Price to Sales (P/S)1.47
P/FCF Ratio20.30
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit5.60
Enterprise Value/Ebitda13.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon Paint Holdings Co Business Overview & Revenue Model
Company DescriptionNippon 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 MoneyNippon 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 Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Feb 18, 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.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 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.85
Very Positive
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.78
Positive
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.72
Positive
| 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
Neutral
991.70
Price Trends
1005.58
Negative
1090.81
Negative
1081.20
Negative
Market Momentum
-9.82
Negative
48.69
Neutral
23.19
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 991.7 is above the 20-day moving average (MA) of 987.95, below the 50-day MA of 1005.58, and below the 200-day MA of 1081.20, indicating a neutral trend. The MACD of -9.82 indicates Negative momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 23.19 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥47.61B | 8.79 | ― | 5.46% | -3.21% | 27.18% | |
74 Outperform | ¥35.78B | 4.16 | ― | 3.98% | 14.83% | 51.42% | |
72 Outperform | ¥11.71B | 10.63 | ― | 3.34% | 8.63% | 11.84% | |
68 Neutral | $412.03B | 12.45 | 13.71% | 3.45% | 0.29% | 27.84% | |
66 Neutral | ¥5.25B | 11.57 | ― | 1.43% | 2.67% | 37.55% | |
65 Neutral | $2.31T | 15.54 | 10.44% | 1.61% | 9.81% | 32.64% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4612
Nippon Paint Holdings Co
991.70
1.42
0.14%
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Nippon Paint Holdings Co Corporate Events
Nippon Paint Holdings Reports Strong Nine-Month Growth
Nov 15, 2025
Nippon Paint Holdings Co., Ltd. is a leading company in the paint and coatings industry, known for its diverse range of products including automotive coatings, decorative paints, and industrial coatings, with a significant presence in Asia, Oceania, the Americas, and Europe.
Nippon Paint Holdings Reports Strong Financial Growth for 2025
Nov 14, 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
Nov 7, 2025
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.
Nippon Paint Holdings Announces Strategic Treasury Stock Acquisition
Oct 9, 2025
Nippon Paint Holdings Co., Ltd. announced its decision to acquire treasury stock, a move aimed at maximizing shareholder value by capitalizing on the company’s undervalued stock. This strategic financial decision is supported by the company’s robust cash generation and recent acquisition of AOC, which enhances its ability to pursue both future M&A activities and the share buyback, reflecting confidence in its growth prospects and financial stability.
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 Updates Subsidiary Status
Oct 2, 2025
Nippon Paint Holdings Co., Ltd. announced corrections to its previous notice regarding changes in its specified subsidiaries. The corrections highlight that LSF11 A5 Netherlands B.V., a wholly owned subsidiary of LSF11 A5 HoldCo LLC, now qualifies as a specified subsidiary due to its capital exceeding 10% of NPHD’s capital. This adjustment reflects the company’s strategic financial structuring and may impact its operational and market positioning by strengthening its subsidiary network.
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.
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.