Nippon Shikizai, Inc. (4920) AI Stock Analysis

• Market Cap: ¥2.36B
• Dividend Yield: 1.82%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.71
• Revenue Growth: 2.29%
• EPS Growth: -70.23%
• Country: JP
• Employees: 477
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 24.19
• Shares Outstanding: 2,099,376
• 10 Day Avg. Volume: 1,140
• 30 Day Avg. Volume: 1,263
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,178.00
• Price Target Upside: 7.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥1,178.00 ▲(7.09% 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.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful product adoption, supporting long-term business sustainability.

Operational Cash Flow

Robust operational cash flow relative to net income suggests efficient core operations, providing a stable foundation for future investments.

R&D Capabilities

Strong R&D capabilities allow the company to innovate and meet consumer demands, maintaining competitive advantage and market relevance.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Profitability Challenges

Declining net profit margins indicate pressure on earnings, which could affect the company's ability to reinvest in growth and sustain operations.

Negative Free Cash Flow

Negative free cash flow suggests liquidity issues, potentially limiting the company's ability to fund operations and strategic initiatives.

Nippon Shikizai, Inc. Business Overview & Revenue Model

Company Description

Nippon 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 Money

Nippon 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 profitability and cash flow metrics indicate areas for improvement. High leverage could pose financial risks, although operational cash flows remain robust. Continuous monitoring of debt levels and cost management is essential to enhance financial stability and profitability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.63B	17.63B	15.05B	11.76B	8.70B	9.14B
Gross Profit	2.40B	2.19B	2.02B	1.39B	804.24M	402.55M
EBITDA	1.42B	1.44B	1.29B	1.11B	783.38M	193.08M
Net Income	216.62M	216.30M	398.11M	246.29M	-122.03M	-848.67M
Balance Sheet
Total Assets	16.89B	16.89B	17.09B	16.05B	15.35B	15.55B
Cash, Cash Equivalents and Short-Term Investments	949.02M	949.02M	1.39B	1.33B	1.32B	1.08B
Total Debt	9.73B	9.73B	9.51B	10.04B	10.22B	10.53B
Total Liabilities	13.09B	13.09B	13.56B	13.04B	12.40B	12.46B
Stockholders Equity	3.80B	3.80B	3.53B	3.01B	2.95B	3.09B
Cash Flow
Free Cash Flow	0.00	-572.15M	567.48M	332.14M	533.27M	-1.56B
Operating Cash Flow	0.00	567.79M	1.25B	615.40M	781.34M	405.52M
Investing Cash Flow	0.00	-1.11B	-438.36M	-252.81M	-187.87M	-2.08B
Financing Cash Flow	0.00	95.46M	-697.50M	-413.11M	-338.23M	1.87B

Nippon Shikizai, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4920, the sentiment is Positive. The current price of 1100 is above the 20-day moving average (MA) of 1069.50, above the 50-day MA of 1062.66, and above the 200-day MA of 1095.54, indicating a bullish trend. The MACD of 8.14 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4920.

Nippon Shikizai, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4923	73 Outperform	¥41.37B	28.93		1.42%	6.10%	13.84%
4928	70 Outperform	¥157.12B	20.60		4.89%	-1.63%	1.81%
4918	68 Neutral	¥1.76B	5.25		―	8.96%	―
4920	68 Neutral	¥2.36B	19.12		1.82%	2.29%	-70.23%
4925	63 Neutral	¥6.60B	10.31		2.29%	-3.27%	―
Sector *	62 Neutral	$20.56B	14.66	-3.18%	3.15%	1.93%	-6.58%
4926	45 Neutral	¥5.16B	20.49		1.66%	7.21%	―