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

• Market Cap: ¥49.76B
• Dividend Yield: 5.04%
• Average Volume (3M): 55.96K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.65
• 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: ¥2,648.00 ▲(25.32% 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

Strong Profitability

Income statement commentary highlights robust gross margins and materially improved net profit margins, reflecting durable production efficiency and disciplined cost control. Sustained margin strength underpins long-term cash generation, competitive pricing flexibility, and resilience versus peers in specialty coatings.

Healthy Balance Sheet

The balance sheet is described as conservative with low leverage, a high equity ratio, and strong return on equity. This capital structure provides durable financial flexibility for capex, R&D, or downturns, reducing refinancing risk and preserving the ability to pursue strategic investments over the medium term.

Robust Cash Generation

Cash flow analysis points to rising free cash flow and strong operating cash conversion, indicating reliable internal funding for dividends, working capital, and reinvestment. Persistent cash generation supports sustainable shareholder returns and finances product development or capacity without heavy external financing.

Negative Factors

Top-line Decline

Reported revenue decline of ~3.6% signals weakening demand or market share pressure. Persistent top-line contraction can limit the company's ability to leverage fixed costs, cap long-term profit expansion, and make margin gains harder to sustain if the decline continues across reporting periods.

Cyclical End-Market Exposure

Business concentration in industrial and manufacturing coatings ties revenue to cyclical capital expenditure and industrial activity. Structural sensitivity to cycles can produce recurring revenue volatility over 2–6 months and raises exposure to macro slowdowns that materially affect order books and utilization.

Earnings Mix Risk

Strong EPS growth alongside declining revenue suggests margin-driven earnings improvement. Without published guidance, there's less visibility on sustainability. If margin tailwinds reverse (raw materials, pricing), reported EPS gains could be volatile and less durable than organic revenue growth.

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

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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	7.27B	7.41B	7.00B	4.81B	4.68B	4.51B
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	30.06B	28.34B
Stockholders Equity	56.30B	57.46B	53.40B	46.19B	44.27B	42.57B
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: Negative
• Last Price: 2113.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4619, the sentiment is Negative. The current price of 2113 is below the 20-day moving average (MA) of 2395.50, below the 50-day MA of 2398.50, and below the 200-day MA of 2163.20, indicating a neutral trend. The MACD of -22.31 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 19.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥49.76B	8.18	―	5.04%	-3.21%	27.18%
4626	75 Outperform	¥588.84B	20.62	―	3.26%	11.78%	8.98%
4628	74 Outperform	¥167.89B	8.76	6.23%	1.11%	2.88%	16.60%
4611	74 Outperform	¥36.35B	15.61	―	3.70%	14.83%	51.42%
4612	69 Neutral	¥2.32T	13.66	11.64%	1.52%	9.81%	32.64%
4613	68 Neutral	¥408.31B	7.90	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.