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Nippon Shikizai, Inc. (JP:4920)
:4920
Japanese Market
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Nippon Shikizai, Inc. (4920) AI Stock Analysis

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JP:4920

Nippon Shikizai, Inc.

(4920)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
¥1,178.00
▲(7.58% Upside)
The overall stock score of 68 reflects strong technical momentum and a reasonable valuation, despite financial performance challenges. The company's revenue growth is a positive indicator, but profitability and cash flow issues need addressing. The absence of significant earnings call data or corporate events means these factors did not influence the score.

Nippon Shikizai, Inc. (4920) vs. iShares MSCI Japan ETF (EWJ)

Nippon Shikizai, Inc. Business Overview & Revenue Model

Company DescriptionNippon Shikizai, Inc. is a leading Japanese company specializing in the manufacturing and development of cosmetic products. It operates primarily in the cosmetics industry, offering a wide range of products including skincare, makeup, and personal care items. The company is known for its innovative approach to cosmetic formulation and its ability to provide high-quality, customized products for both domestic and international markets.
How the Company Makes MoneyNippon Shikizai, Inc. generates revenue primarily through the manufacturing and sale of cosmetic products. The company partners with various brands to develop and produce private label cosmetics, leveraging its expertise in formulation and production. Key revenue streams include contract manufacturing services, where the company produces cosmetic products for other brands, and the sale of its own branded products. Significant factors contributing to its earnings include its strong research and development capabilities, enabling it to innovate and create new products that meet consumer demands, and its strategic partnerships with international and domestic cosmetic brands that expand its market reach.

Nippon Shikizai, Inc. Financial Statement Overview

Summary
Nippon Shikizai, Inc. shows strong revenue growth but faces challenges in profitability and cash flow. The high leverage is a financial risk, although operational cash flows are robust. Improvement in cost management and debt levels is crucial for financial stability.
Income Statement
70
Positive
The company's revenue has shown a strong upward trend, with significant growth from 2022 to 2025. Revenue growth rate from 2024 to 2025 was 17.17%. The gross profit margin for 2025 was 12.43%, indicating moderate profitability. However, the net profit margin declined to 1.23% in 2025, reflecting pressures on net earnings. EBIT and EBITDA margins were also modest, at 2.77% and 8.18% respectively, indicating room for operational efficiency improvements.
Balance Sheet
60
Neutral
The debt-to-equity ratio is elevated at 2.56 for 2025, suggesting a high leverage position, which could pose risks if not managed carefully. Return on equity improved to 5.68% in 2025, indicating better utilization of shareholder funds, but still leaves room for improvement. The equity ratio was 22.52%, showing a moderately leveraged balance sheet.
Cash Flow
55
Neutral
There was a negative free cash flow in 2025, which is a concern for liquidity. Free cash flow to net income ratio is negative, indicating cash flow challenges. Operating cash flow to net income ratio stands at 2.62, showing strong operational cash generation relative to net income. However, the decline in free cash flow growth is a potential risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.68B17.63B15.05B11.76B8.70B9.14B
Gross Profit2.06B2.19B2.02B1.39B804.24M402.55M
EBITDA1.24B1.44B1.29B1.11B783.38M193.08M
Net Income120.87M216.30M398.11M246.29M-122.03M-848.67M
Balance Sheet
Total Assets17.01B16.89B17.09B16.05B15.35B15.55B
Cash, Cash Equivalents and Short-Term Investments873.70M949.02M1.39B1.33B1.32B1.08B
Total Debt9.28B9.73B9.51B10.04B10.22B10.53B
Total Liabilities13.26B13.09B13.56B13.04B12.40B12.46B
Stockholders Equity3.75B3.80B3.53B3.01B2.95B3.09B
Cash Flow
Free Cash Flow0.00-572.15M567.48M332.14M533.27M-1.56B
Operating Cash Flow0.00567.79M1.25B615.40M781.34M405.52M
Investing Cash Flow0.00-1.11B-438.36M-252.81M-187.87M-2.08B
Financing Cash Flow0.0095.46M-697.50M-413.11M-338.23M1.87B

Nippon Shikizai, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1095.00
Price Trends
50DMA
1079.46
Positive
100DMA
1052.08
Positive
200DMA
1091.94
Positive
Market Momentum
MACD
17.40
Positive
RSI
49.82
Neutral
STOCH
67.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4920, the sentiment is Neutral. The current price of 1095 is below the 20-day moving average (MA) of 1112.25, above the 50-day MA of 1079.46, and above the 200-day MA of 1091.94, indicating a neutral trend. The MACD of 17.40 indicates Positive momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 67.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4920.

Nippon Shikizai, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥39.70B28.031.48%6.10%13.84%
70
Outperform
¥150.63B19.8115.26%5.10%-1.63%1.81%
68
Neutral
¥1.86B5.471.74%8.96%
68
Neutral
¥2.32B19.231.74%2.29%-70.23%
63
Neutral
¥6.38B9.966.46%2.38%-3.27%
45
Neutral
¥5.14B20.421.67%7.21%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4920
Nippon Shikizai, Inc.
1,090.00
-459.22
-29.64%
JP:4918
Ivy Cosmetics Corporation
349.00
59.00
20.34%
JP:4923
Cota Co., Ltd.
1,348.00
-312.45
-18.82%
JP:4925
HABA Laboratories, Inc.
1,670.00
-225.23
-11.88%
JP:4926
C'BON COSMETICS Co., Ltd.
1,209.00
-53.78
-4.26%
JP:4928
Noevir Holdings Co., Ltd.
4,425.00
-528.42
-10.67%
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: Sep 04, 2025