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Nippon Carbon Co Ltd (JP:5302)
:5302
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Nippon Carbon Co (5302) AI Stock Analysis

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JP:5302

Nippon Carbon Co

(5302)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥5,236.00
▲(10.23% Upside)
Action:Reiterated
Date:08/04/26
The score is led by solid financial fundamentals (profitability and a low-leverage balance sheet) but tempered by weak and volatile recent free-cash-flow generation. Valuation is supportive with a moderate P/E and a strong dividend yield, while technicals show a modest uptrend with neutral momentum.
Positive Factors
Revenue and Margin Resilience
A large 2025 revenue rebound combined with sustained net margins around 11–13% indicates the company can scale sales while keeping core profitability. This durability supports reinvestment capacity, creditworthiness, and the ability to fund strategic projects across 2–6 months and beyond.
Negative Factors
Volatile Free Cash Flow
Despite positive operating cash flows, free cash flow volatility and a low FCF-to-net-income share (roughly ~2%–13%) constrain the company's capacity to consistently return cash to shareholders or self-fund growth. Persistent volatility raises risk for funding discretionary investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Resilience
A large 2025 revenue rebound combined with sustained net margins around 11–13% indicates the company can scale sales while keeping core profitability. This durability supports reinvestment capacity, creditworthiness, and the ability to fund strategic projects across 2–6 months and beyond.
Read all positive factors

Nippon Carbon Co (5302) vs. iShares MSCI Japan ETF (EWJ)

Nippon Carbon Co Business Overview & Revenue Model

Company Description
Nippon Carbon Co., Ltd. engages in the manufacture and sale of carbon products in Japan. The company provides carbon fiber products, such as molded heat insulating materials for high temperature furnaces; CARBORON, a soft felt used in heat insulat...
How the Company Makes Money
Nippon Carbon makes money primarily by manufacturing and selling specialty carbon materials and related products to industrial customers. Its revenue model is predominantly product-sales driven (B2B), where earnings are generated through (1) selli...

Nippon Carbon Co Financial Statement Overview

Summary
Strong 2025 revenue rebound and solid net margins (~11–13%) support the score, and leverage remains conservative with improving ROE. The main drag is cash-flow quality: free cash flow has been weak and volatile in recent years and is a low share of net income, reducing confidence in earnings-to-cash conversion.
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue38.63B37.73B37.96B37.87B35.80B31.58B
Gross Profit9.98B10.26B11.48B11.85B9.85B8.04B
EBITDA11.97B8.34B9.94B9.69B7.13B6.88B
Net Income4.64B4.83B4.08B4.05B3.19B2.73B
Balance Sheet
Total Assets83.60B85.61B82.35B78.47B74.18B72.69B
Cash, Cash Equivalents and Short-Term Investments15.17B15.18B12.30B14.53B18.32B17.86B
Total Debt10.39B10.33B9.21B8.85B9.09B10.57B
Total Liabilities20.71B22.00B21.52B20.78B20.97B20.43B
Stockholders Equity53.63B54.39B52.02B49.45B45.56B44.99B
Cash Flow
Free Cash Flow0.00818.00M567.00M78.00M3.96B5.91B
Operating Cash Flow0.006.32B5.23B3.19B5.80B7.55B
Investing Cash Flow0.00-2.20B-5.55B-4.43B-1.60B-608.00M
Financing Cash Flow0.00-1.26B-1.99B-2.61B-3.78B-3.76B

Nippon Carbon Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4750.00
Price Trends
50DMA
4685.36
Positive
100DMA
4659.86
Positive
200DMA
4527.19
Positive
Market Momentum
MACD
41.21
Negative
RSI
66.19
Neutral
STOCH
89.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5302, the sentiment is Positive. The current price of 4750 is above the 20-day moving average (MA) of 4729.25, above the 50-day MA of 4685.36, and above the 200-day MA of 4527.19, indicating a bullish trend. The MACD of 41.21 indicates Negative momentum. The RSI at 66.19 is Neutral, neither overbought nor oversold. The STOCH value of 89.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5302.

Nippon Carbon Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥72.51B16.362.22%5.08%39.85%
70
Outperform
¥52.29B11.298.62%4.21%3.09%22.56%
69
Neutral
¥50.42B-662.604.32%-19.49%-101.29%
67
Neutral
¥30.17B11.463.21%2.43%17.78%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
¥45.32B-57.843.24%2.94%-136.45%
56
Neutral
¥328.12B17.646.21%2.14%-6.88%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5302
Nippon Carbon Co
4,980.00
973.68
24.30%
JP:5301
Tokai Carbon Co
1,757.00
763.62
76.87%
JP:4022
Rasa Industries,Ltd.
2,229.00
1,377.47
161.76%
JP:4027
Tayca Corporation
2,420.00
1,179.87
95.14%
JP:4064
Nippon Carbide Industries Company,Incorporated
3,540.00
1,622.06
84.57%
JP:5304
SEC Carbon Ltd.
2,690.00
663.55
32.74%

Nippon Carbon Co Corporate Events

Nippon Carbon Details Progress of Treasury Share Buyback Program
Jul 3, 2026
Nippon Carbon Co., Ltd. reported the status of its ongoing share buyback program authorized by the Board of Directors on February 10, 2026 under provisions of the Companies Act. In June 2026, the company repurchased 122,800 common shares on the To...
Nippon Carbon Reports Progress on Ongoing Share Buyback Program
Jun 4, 2026
Nippon Carbon Co. has reported the latest progress in its share buyback program authorized by its board on February 10, 2026. During May 2026, the company repurchased 33,100 common shares via market transactions on the Tokyo Stock Exchange for a t...
Nippon Carbon Posts Higher Sales but Weaker Profits, Keeps Dividend Outlook Steady
May 8, 2026
Nippon Carbon reported first-quarter 2026 consolidated net sales of ¥8.86 billion, up 11.3% year on year, but operating profit fell 17.9% to ¥1.06 billion and profit attributable to owners dropped 28.6% to ¥481 million, as margins c...
Nippon Carbon Reports Progress on Share Buyback Program
May 8, 2026
Nippon Carbon Co. has reported the progress of its ongoing share buyback program authorized by its board in February 2026, conducted under provisions of the Companies Act. In April 2026, the company repurchased 40,300 common shares on the Tokyo St...
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: Aug 04, 2026