Nihon Tokushu Toryo Co., Ltd. (4619) AI Stock Analysis

• Market Cap: ¥55.28B
• Dividend Yield: 5.04%
• Average Volume (3M): 55.96K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.64
• Revenue Growth: -3.21%
• EPS Growth: 27.18%
• Country: JP
• Employees: 1,185
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Chemicals - Specialty
• EPS (TTM): 71.42
• Shares Outstanding: 23,611,200
• 10 Day Avg. Volume: 60,510
• 30 Day Avg. Volume: 55,960
• PEG Ratio: 0.26
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 18.61
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,863.00 ▲(35.49% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Nihon Tokushu Toryo Co., Ltd. scores well due to its strong financial performance and attractive valuation. The technical analysis presents mixed signals, with some bearish trends but neutral momentum indicators. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Robust margins and profitability

Sustained strong gross and improving net margins indicate durable operational efficiency and pricing power in coatings. Higher margins provide buffer vs raw material swings, support reinvestment and dividend capacity, and enhance long-term return on capital.

Conservative balance sheet

Low leverage and a high equity ratio give the company financial flexibility to fund capex, weather cyclical downturns, and pursue strategic opportunities without heavy refinancing. This supports long-term stability and preserves credit optionality.

Strong cash generation

Growing free cash flow and efficient conversion of earnings to cash underpin sustainable investment, dividends and debt reduction. Reliable cash generation strengthens the firm's ability to execute long-term strategies and withstand cyclical stress.

Negative Factors

Recent revenue decline

A negative recent revenue growth rate signals near-term top-line pressure that can challenge sustaining investment and margins. If the decline reflects weaker demand, management will need to offset through new markets or product mix to restore long-term growth.

End-market concentration

High exposure to industrial/manufacturing end markets makes revenues cyclical and tied to capex and production cycles. Prolonged softness in manufacturing demand can yield order volatility and underutilized capacity, pressuring margins and growth sustainably.

Relatively low trading liquidity

Modest average trading volume suggests smaller public float and potentially limited investor breadth. Lower liquidity can restrict access to capital markets, raise transaction costs for investors, and complicate large equity moves when strategic financing is needed.

Nihon Tokushu Toryo Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Tokushu Toryo Co., Ltd. engages in manufacture and sale of automobile products, and paints and coatings in Japan. It operates through two segments, Paints & Coatings-Related Business and Automotive Products Related Business. The company offers soundproofing materials for automobiles, trains, household appliances, and buildings, as well as for housing, schools, music halls, and noise abatement measures for various factories; sealants, which prevent leakage of water; anti-chipping coatings that prevent chipping damage; anti-salt coatings that reduce the damage from rock salt on winter roads; and rust-proof coatings. It also provides exterior wall paints; coatings for the roof; and paints with photocatalytic function. In addition, it is involved in insurance agency business. The company was founded in 1929 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Tokushu Toryo Co., Ltd. generates revenue through the sale of its specialized adhesive and coating products to a wide range of industries. The company has developed a strong revenue model based on both direct sales to manufacturers and partnerships with distributors who help reach broader markets. Key revenue streams include bulk sales to automotive manufacturers, electronic component producers, and construction firms needing high-performance bonding materials. Additionally, the company invests in research and development to create innovative products that address emerging market needs, which further enhances its competitive edge and contributes to sustained revenue growth. Collaborations with other firms for joint product development and technology sharing also play a significant role in bolstering its financial performance.

Nihon Tokushu Toryo Co., Ltd. Financial Statement Overview

Summary

Nihon Tokushu Toryo Co., Ltd. demonstrates strong financial performance with consistent revenue growth, robust profit margins, and efficient cash generation. The balance sheet is healthy with low leverage and strong equity ratios, indicating a solid financial position.

Income Statement

Nihon Tokushu Toryo Co., Ltd. shows strong financial performance with consistent revenue growth over the years. The gross profit margin is robust, reflecting efficient production processes. The net profit margin has improved significantly, indicating effective cost management and increasing profitability. EBIT and EBITDA margins are solid, demonstrating strong operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio, suggesting conservative financial leverage. Return on equity is strong, indicating effective utilization of shareholders' capital. The equity ratio is high, reflecting a solid capital structure with substantial reliance on equity financing.

Cash Flow

Cash flow analysis reveals a positive trend with growing free cash flow, enhancing financial flexibility. The operating cash flow to net income ratio indicates strong cash generation capabilities relative to earnings. Free cash flow to net income ratio shows efficient conversion of earnings into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	64.84B	66.06B	64.69B	60.74B	54.78B	48.00B
Gross Profit	14.51B	14.47B	13.99B	11.09B	10.48B	9.74B
EBITDA	9.13B	9.91B	9.10B	6.94B	6.33B	6.45B
Net Income	4.99B	4.94B	3.95B	2.10B	1.30B	1.30B
Balance Sheet
Total Assets	83.79B	85.24B	87.46B	82.03B	79.79B	75.50B
Cash, Cash Equivalents and Short-Term Investments	16.29B	16.23B	15.89B	10.87B	8.95B	6.54B
Total Debt	4.10B	3.53B	3.98B	7.38B	8.85B	9.29B
Total Liabilities	21.53B	21.13B	27.89B	29.82B	30.07B	28.35B
Stockholders Equity	56.30B	57.46B	53.40B	46.19B	44.27B	42.56B
Cash Flow
Free Cash Flow	0.00	1.72B	8.07B	3.91B	2.78B	-2.07B
Operating Cash Flow	0.00	3.12B	9.32B	6.20B	5.02B	3.08B
Investing Cash Flow	0.00	-1.24B	533.00M	-1.59B	-1.27B	-5.64B
Financing Cash Flow	0.00	-2.04B	-5.09B	-2.82B	-1.70B	1.06B

Nihon Tokushu Toryo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2113.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4619, the sentiment is Positive. The current price of 2113 is below the 20-day moving average (MA) of 2420.30, below the 50-day MA of 2390.92, and below the 200-day MA of 2119.99, indicating a bullish trend. The MACD of 24.99 indicates Negative momentum. The RSI at 72.99 is Negative, neither overbought nor oversold. The STOCH value of 84.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4619.

Nihon Tokushu Toryo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4619	75 Outperform	¥55.28B	9.57	―	5.04%	-3.21%	27.18%
4626	75 Outperform	¥619.65B	39.14	―	3.26%	11.78%	8.98%
4628	74 Outperform	¥174.29B	14.96	6.87%	1.11%	2.88%	16.60%
4611	74 Outperform	¥42.32B	5.50	―	3.70%	14.83%	51.42%
4612	69 Neutral	¥2.72T	15.09	10.44%	1.52%	9.81%	32.64%
4613	68 Neutral	¥466.36B	13.77	13.71%	3.38%	0.29%	27.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nihon Tokushu Toryo Co., Ltd. Corporate Events

Nihon Tokushu Toryo Lifts Profit and Dividend Despite Lower Sales

Nihon Tokushu Toryo reported consolidated results for the nine months ended December 31, 2025, with net sales declining 6.7% year on year to ¥46.07 billion, while operating profit fell 13.1% to ¥2.74 billion. Ordinary profit edged up 3.3% to ¥4.77 billion and profit attributable to owners of parent surged 25.0% to ¥4.14 billion, lifting basic earnings per share to ¥190.74 and supporting a stronger equity-to-asset ratio of 68.5%.

Despite softer sales, the company maintained balance sheet strength, with total assets essentially flat at ¥85.46 billion and equity rising to ¥58.50 billion, while also keeping its full-year forecast unchanged, projecting an 8.4% drop in net sales but a 31.6% increase in operating profit. The firm plans to reward shareholders with a higher annual dividend for the year ending March 31, 2026, targeting a total payout of ¥110 per share, up from ¥90 in the prior fiscal year, signaling confidence in earnings resilience and cash generation.

The most recent analyst rating on (JP:4619) stock is a Buy with a Yen2707.00 price target. To see the full list of analyst forecasts on Nihon Tokushu Toryo Co., Ltd. stock, see the JP:4619 Stock Forecast page.