Nippon Carbon Co (5302) AI Stock Analysis

• Market Cap: ¥48.87B
• Dividend Yield: 4.52%
• Average Volume (3M): 41.63K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.69
• Revenue Growth: -1.14%
• EPS Growth: 34.15%
• Country: JP
• Employees: 661
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 207.41
• Shares Outstanding: 11,832,504
• 10 Day Avg. Volume: 35,840
• 30 Day Avg. Volume: 41,626
• PEG Ratio: 18.82
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 85.66
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥4,449.00 ▲(0.54% Upside)

Nippon Carbon Co's overall stock score reflects strong financial performance and attractive valuation, with a solid dividend yield. Technical analysis indicates some bearish trends, but neutral RSI and stochastic values suggest potential for recovery. The absence of earnings call data and corporate events did not influence the score.

Nippon Carbon Co Business Overview & Revenue Model

Company Description

Nippon Carbon Co., Ltd. engages in the manufacture and sale of carbon products in Japan. It offers carbon fiber products, including molded heat insulating materials for high temperature furnaces; CARBORON, a soft felt used in a range of heat insulators for high temperature furnaces; C/C Composite, a lightweight carbon material used in heat resistant composite structural members, high temperature furnace materials, trays, jigs, etc.; and CARBEST, a carbon fiber packing material. The company also provides specialty carbon products, such as isotropic graphite, a graphite material; high purity treatment graphite used for manufacturing device components for silicon semiconductors, compound semiconductors, and optical fibers; carbon products for mechanical components that are used in various fields of science, including electronics, machinery, and the metallurgy industry; VESCOAT, a silicon carbide coated product used for silicon semiconductor, LED, and manufacturing device components for optical fibers; and SC CARBON sliding composites. In addition, it offers artificial graphite electrodes for use in high-power electric arc furnaces; silicon carbide continuous fibers, such as Nicalon, Hi-Nicalon, and Hi-Nicalon TypeS for use as reinforcement fibers in ceramic composite materials, plastic composite materials, and others; and lithium ion secondary batteries used for cellular and smart phones, NBPC, tablet terminals, power tools, hybrid automobiles, and electric automobiles. Further, the company provides impervious graphite RESBON, a corrosion-resistant material; NICABEADS, which are surface-coated micro bead-shape materials; and NICAFILM, a flexible graphite sheet made from natural graphite. The company was incorporated in 1915 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Carbon generates revenue through the production and sale of a diverse range of carbon-based products. Key revenue streams include the sale of carbon fibers used in high-performance applications, graphite products utilized in batteries and other electronic devices, and carbon composites that cater to the aerospace and automotive sectors. The company also engages in research and development, often collaborating with industry partners and educational institutions to innovate and enhance its product offerings. Strategic partnerships with major companies in sectors such as aerospace and automotive are pivotal for driving sales, as they lead to long-term contracts and increased demand for specialized carbon materials.

Nippon Carbon Co Financial Statement Overview

Summary

Nippon Carbon Co exhibits solid financial health with strong profitability, efficient operations, and a robust equity position. The company's cash flow generation is improving, though there is potential for enhanced efficiency. Despite slower revenue growth, the financials indicate a stable and well-managed financial structure, positioning the company for future growth in the specialty chemicals industry.

Income Statement

Nippon Carbon Co has shown stable revenue growth with a modest increase from the previous year. The Gross Profit Margin stands at a healthy 30.3%, and the Net Profit Margin is 10.7%, indicating solid profitability. EBIT and EBITDA margins are strong at 16.6% and 24.1%, respectively, suggesting efficient operational performance. However, revenue growth has slowed compared to past high growth periods.

Balance Sheet

The company maintains a strong equity position with an Equity Ratio of 63.2%, indicating financial stability. The Debt-to-Equity Ratio is low at 0.18, showcasing prudent leverage management. ROE is healthy at 7.8%, reflecting efficient use of equity in generating profits. The balance sheet shows a robust financial foundation with potential for future growth.

Cash Flow

Operating Cash Flow is strong, with a high Operating Cash Flow to Net Income Ratio of 1.28, displaying effective cash generation from operations. Free Cash Flow growth is notable, recovering from low levels in the previous year, but remains relatively modest. The Free Cash Flow to Net Income Ratio is 0.14, indicating room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.46B	37.96B	37.87B	35.80B	31.58B	26.80B
Gross Profit	10.69B	11.48B	11.85B	9.85B	8.04B	7.13B
EBITDA	9.79B	9.94B	9.69B	7.13B	6.88B	5.52B
Net Income	4.08B	4.08B	4.05B	3.19B	2.73B	1.81B
Balance Sheet
Total Assets	84.91B	82.35B	78.47B	74.18B	72.69B	70.93B
Cash, Cash Equivalents and Short-Term Investments	12.29B	12.30B	14.53B	18.32B	17.86B	14.60B
Total Debt	9.62B	9.21B	8.85B	9.09B	10.57B	11.99B
Total Liabilities	22.35B	21.53B	20.79B	20.97B	20.44B	19.93B
Stockholders Equity	53.56B	52.01B	49.45B	45.56B	44.98B	44.14B
Cash Flow
Free Cash Flow	0.00	567.00M	78.00M	3.96B	5.91B	-1.02B
Operating Cash Flow	0.00	5.23B	3.19B	5.80B	7.55B	3.85B
Investing Cash Flow	0.00	-5.55B	-4.43B	-1.60B	-608.00M	-4.72B
Financing Cash Flow	0.00	-1.99B	-2.61B	-3.78B	-3.76B	-2.39B

Nippon Carbon Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4425.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4425 is below the 20-day moving average (MA) of 4456.75, above the 50-day MA of 4400.10, and above the 200-day MA of 4185.00, indicating a neutral trend. The MACD of 5.51 indicates Positive momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 28.19 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4043	75 Outperform	¥294.79B	12.34	8.86%	2.68%	-0.04%	3.15%
4046	75 Outperform	¥279.93B	22.17	―	1.02%	-3.06%	45.21%
5302	69 Neutral	¥48.87B	8.46	10.88%	4.52%	-1.14%	34.15%
5304	65 Neutral	¥47.06B	11.97	―	4.38%	-31.99%	-44.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4208	57 Neutral	¥246.13B	42.61	1.47%	4.36%	-7.45%	-71.68%
5301	54 Neutral	¥205.36B	-4.47	-14.04%	3.12%	-7.36%	-574.56%

Nippon Carbon Co Corporate Events

Nippon Carbon Co. Reports Mixed Financial Results Amid Profit Decline

Nippon Carbon Co. reported a slight increase in net sales for the nine months ending September 30, 2025, with a 0.2% rise compared to the previous year. Despite this, the company experienced a significant decline in operating and ordinary profits, down by 26.9% and 24.2% respectively, while profit attributable to owners of the parent surged by 59.0%. The company’s financial position showed a stable equity ratio, and it maintained its dividend forecast for the year. These results reflect challenges in profitability despite stable sales, impacting its financial performance and market positioning.

Nippon Carbon Co. Reports Fire Incident at Toyama Plant

Nippon Carbon Co., Ltd. reported a fire incident at its Toyama Plant, which occurred on August 29, 2025. The fire, caused by a pressure surge during the graphitization process, resulted in damage to the plant’s facilities but did not cause any human casualties. The company is investigating the cause of the gas generation that led to the incident. The fire has raised concerns among stakeholders, but the carbon particles released are not considered toxic or hazardous.

Nippon Carbon Co. Reports Fire Incident at Toyama Plant

Nippon Carbon Co., Ltd. reported a fire incident at its Toyama Plant, which damaged a significant portion of the facility. Despite the damage, the company expects minimal disruption to its artificial graphite electrode supply chain by leveraging other production facilities. The financial impact of the incident will be assessed after the fire department’s investigation.