Nippon Shikizai, Inc. (4920) AI Stock Analysis

• Market Cap: ¥2.19B
• Dividend Yield: 1.87%
• Average Volume (3M): 3.39K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.66
• Revenue Growth: 2.29%
• EPS Growth: -70.23%
• Country: JP
• Employees: 477
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Household & Personal Products
• EPS (TTM): 24.19
• Shares Outstanding: 2,099,376
• 10 Day Avg. Volume: 1,680
• 30 Day Avg. Volume: 3,393
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,167.00
• Price Target Upside: 9.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,167.00 ▲(9.58% Upside)

The overall stock score of 68.1 reflects strong technical indicators and reasonable valuation, offset by financial performance concerns, particularly in profitability and cash flow. The absence of earnings call data and corporate events means the score is primarily driven by financial performance, technical analysis, and valuation.

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. exhibits strong revenue growth but faces challenges in profitability and cash flow. High leverage poses potential financial risks, though operational cash flows remain robust. Improvement in debt management and cost efficiency is essential.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.63B	15.05B	11.76B	8.70B	9.14B
Gross Profit	2.19B	2.02B	1.39B	804.24M	402.55M
EBITDA	1.44B	1.29B	1.11B	783.38M	193.08M
Net Income	216.30M	398.11M	246.29M	-122.03M	-848.67M
Balance Sheet
Total Assets	16.89B	17.09B	16.05B	15.35B	15.55B
Cash, Cash Equivalents and Short-Term Investments	949.02M	1.39B	1.33B	1.32B	1.08B
Total Debt	9.73B	9.51B	10.04B	10.22B	10.53B
Total Liabilities	13.09B	13.56B	13.04B	12.40B	12.46B
Stockholders Equity	3.80B	3.53B	3.01B	2.95B	3.09B
Cash Flow
Free Cash Flow	-572.15M	567.48M	332.14M	533.27M	-1.56B
Operating Cash Flow	567.79M	1.25B	615.40M	781.34M	405.52M
Investing Cash Flow	-1.11B	-438.36M	-252.81M	-187.87M	-2.08B
Financing Cash Flow	95.46M	-697.50M	-413.11M	-338.23M	1.87B

Nippon Shikizai, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1065.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1065 is above the 20-day moving average (MA) of 1057.60, above the 50-day MA of 1047.16, and below the 200-day MA of 1106.26, indicating a neutral trend. The MACD of 4.80 indicates Negative momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 68.79 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	¥161.56B	21.25		4.77%	-1.63%	1.81%
4923	73 Outperform	¥41.05B	28.71		1.44%	6.10%	13.84%
4920	68 Neutral	¥2.19B	18.19		1.87%	2.29%	-70.23%
4918	68 Neutral	¥1.63B	4.88		―	8.96%	―
4925	63 Neutral	¥6.48B	10.13		2.33%	-3.27%	―
Sector *	53 Neutral	C$5.49B	6.46	12.24%	3.30%	3.80%	-1.28%
4926	45 Neutral	¥5.15B	20.40		1.65%	7.21%	―