Nippon Shikizai, Inc. (4920) AI Stock Analysis

• Market Cap: ¥2.22B
• Dividend Yield: 1.89%
• Average Volume (3M): 943.00
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.60
• Revenue Growth: 17.16%
• EPS Growth: -45.67%
• Country: JP
• Employees: 477
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Household & Personal Products
• EPS (TTM): 8.47
• Shares Outstanding: 2,099,376
• 10 Day Avg. Volume: 1,190
• 30 Day Avg. Volume: 943
• PEG Ratio: 0.00
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.50
• 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

• Rating: 64 Neutral
• Price Target: ¥1,084.00 ▲(1.88%Upside)

The overall stock score is driven primarily by solid revenue growth and an attractive valuation, although these are offset by high leverage and negative free cash flow concerns. The technical indicators suggest potential weakness, but the valuation remains a strong point.

Nippon Shikizai, Inc. Business Overview & Revenue Model

Company Description

Nippon Shikizai, Inc. (4920) is a Japanese company specializing in the research, development, and manufacturing of cosmetics and personal care products. The company operates in the beauty and personal care sector, offering a wide range of products including skincare, makeup, and hair care. Nippon Shikizai is known for its innovative approach, focusing on creating high-quality and safe products that cater to both domestic and international markets.

How the Company Makes Money

Nippon Shikizai, Inc. generates revenue primarily through the manufacturing and sale of cosmetics and personal care products. The company operates as an original equipment manufacturer (OEM), producing products for various brands and retailers who then sell them under their own labels. This OEM model allows Nippon Shikizai to leverage its expertise in product development and manufacturing to serve a diverse clientele. Key revenue streams include sales from skincare and makeup products, with significant contributions from both domestic sales in Japan and exports to international markets. Partnerships with major beauty brands and retailers enhance its market presence and contribute to its earnings, as do investments in research and development to innovate and expand its product offerings.

Nippon Shikizai, Inc. Financial Statement Overview

Summary

Despite solid revenue growth, financial performance is constrained by modest profitability margins and high leverage. The negative free cash flow raises liquidity concerns, although operational cash flow is strong relative to net income.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.35B	17.63B	15.05B	11.76B	8.70B	9.14B
Gross Profit	2.51B	2.19B	2.02B	1.39B	804.24M	402.55M
EBITDA	1.27B	1.44B	1.29B	1.11B	783.38M	193.08M
Net Income	340.09M	216.30M	398.11M	246.29M	-122.03M	-848.67M
Balance Sheet
Total Assets	17.31B	16.89B	17.09B	16.05B	15.35B	15.55B
Cash, Cash Equivalents and Short-Term Investments	1.19B	949.02M	1.39B	1.33B	1.32B	1.08B
Total Debt	9.36B	9.73B	9.51B	10.04B	10.22B	10.53B
Total Liabilities	13.60B	13.09B	13.56B	13.04B	12.40B	12.46B
Stockholders Equity	3.71B	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: 1064.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 1064 is above the 20-day moving average (MA) of 1022.50, above the 50-day MA of 1012.92, and below the 200-day MA of 1165.64, indicating a neutral trend. The MACD of 11.01 indicates Negative momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 73.23 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
4928	74 Outperform	¥148.24B	18.50		5.18%	1.51%	5.48%
4923	73 Outperform	¥42.90B	31.17		1.37%	2.52%	-7.44%
Sector *	65 Neutral	$27.33B	15.36	-4.01%	3.14%	1.00%	1.98%
4920	64 Neutral	¥2.22B	10.27		1.89%	17.16%	-45.67%
4918	63 Neutral	¥1.73B	―		―	7.97%	-117.52%
4925	61 Neutral	¥6.19B	10.74		2.44%	-2.13%	―
4926	45 Neutral	¥4.82B	35.38		1.78%	0.10%	-239.09%