Nichias (5393) AI Stock Analysis

• Market Cap: $386.46B
• Dividend Yield: 2.1%
• Average Volume (3M): 124.17K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.69
• Revenue Growth: -1.33%
• EPS Growth: 9.21%
• Country: JP
• Employees: 6,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 96.75
• Shares Outstanding: 67,811,920
• 10 Day Avg. Volume: 110,340
• 30 Day Avg. Volume: 124,173
• PEG Ratio: 0.45
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 12.30
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 6.19
• 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: 73 Outperform
• Price Target: ¥6,840.00 ▲(8.02% Upside)

Nichias is well-positioned with strong technical indicators and attractive valuation metrics. The company's financial performance is solid, though the decline in revenue and free cash flow growth needs attention. Overall, the stock presents a compelling investment opportunity with its current market momentum and valuation.

Positive Factors

Strong Profitability

Nichias' strong profitability and operational efficiency, highlighted by robust margins, indicate effective cost management and a competitive advantage in its industry.

Conservative Balance Sheet

A conservative balance sheet with low debt levels enhances financial stability and flexibility, allowing Nichias to navigate economic fluctuations and invest in growth opportunities.

Strong Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, supporting long-term profitability and competitive positioning in the market.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a challenge to sustaining financial health and may indicate weakening demand or competitive pressures, impacting long-term business prospects.

Decreasing Free Cash Flow

A decline in free cash flow growth can limit the company's ability to reinvest in the business, pay down debt, or return capital to shareholders, affecting long-term financial flexibility.

Pressure on Profitability

Decreasing net profit margins suggest pressure on profitability, which could impact the company's ability to sustain earnings growth and maintain competitive pricing strategies.

Nichias Business Overview & Revenue Model

Company Description

Nichias Corporation (5393) is a leading Japanese manufacturer specializing in advanced materials and components, primarily operating in the sectors of industrial materials, electronics, and energy. The company offers a diverse range of products, including thermal insulation materials, sealing materials, and various industrial components that cater to an array of industries such as automotive, electronics, and construction. Nichias is recognized for its commitment to innovation and sustainability, focusing on the development of high-performance materials that enhance energy efficiency and reduce environmental impact.

How the Company Makes Money

Nichias generates revenue through the sale of its core products, which include thermal insulation materials, sealing materials, and other specialized industrial components. The company operates on a B2B model, supplying its products to various industries such as automotive, electronics, and construction, which form the backbone of its revenue streams. Key revenue streams include direct sales to manufacturers, long-term contracts with industrial clients, and partnerships with distributors. Nichias also benefits from ongoing demand for energy-efficient materials, contributing to its financial performance. Additionally, strategic collaborations with technology firms and investment in research and development initiatives enable Nichias to innovate and expand its product offerings, further enhancing its revenue potential.

Nichias Financial Statement Overview

Summary

Nichias demonstrates strong profitability and operational efficiency with robust margins and a conservative balance sheet. However, the decline in revenue and free cash flow growth poses challenges that need to be addressed to sustain financial health.

Income Statement

Nichias shows a strong gross profit margin of approximately 27% in the TTM, indicating efficient cost management. However, the revenue growth rate is negative, reflecting a decline in sales. The net profit margin is healthy at around 11.8%, but has decreased from the previous annual report, suggesting pressure on profitability. The EBIT and EBITDA margins are robust, indicating good operational efficiency despite the revenue decline.

Balance Sheet

The company maintains a low debt-to-equity ratio of about 0.05 in the TTM, reflecting a conservative capital structure. Return on equity is strong at 14.1%, showcasing effective use of equity to generate profits. The equity ratio is solid, indicating a stable financial position with a good proportion of assets financed by equity.

Cash Flow

Nichias faces challenges with a significant decline in free cash flow growth, down by 25.7% in the TTM. The operating cash flow to net income ratio is moderate, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio is healthy, indicating good cash conversion, but the declining free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	255.30B	256.51B	249.39B	238.12B	216.24B	196.37B
Gross Profit	70.04B	70.77B	64.77B	58.01B	53.38B	46.06B
EBITDA	50.30B	53.22B	46.11B	38.44B	37.44B	24.24B
Net Income	30.09B	32.07B	26.96B	21.40B	22.03B	10.71B
Balance Sheet
Total Assets	283.56B	289.04B	290.79B	266.91B	246.92B	219.60B
Cash, Cash Equivalents and Short-Term Investments	55.09B	59.68B	56.38B	59.43B	54.60B	39.80B
Total Debt	10.66B	11.36B	22.77B	24.51B	24.53B	24.80B
Total Liabilities	67.73B	72.61B	89.87B	93.17B	91.40B	83.15B
Stockholders Equity	214.81B	215.42B	199.68B	172.36B	154.28B	135.43B
Cash Flow
Free Cash Flow	18.20B	24.48B	6.33B	10.02B	15.47B	10.38B
Operating Cash Flow	24.69B	31.25B	19.17B	18.65B	25.07B	18.68B
Investing Cash Flow	-548.00M	-913.00M	-12.90B	-8.65B	-5.52B	-6.80B
Financing Cash Flow	-30.02B	-27.40B	-11.11B	-6.37B	-5.88B	-5.47B

Nichias Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6332.00
• 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:5393, the sentiment is Positive. The current price of 6332 is above the 20-day moving average (MA) of 6033.10, above the 50-day MA of 5773.60, and above the 200-day MA of 5212.14, indicating a bullish trend. The MACD of 134.90 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5393.

Nichias Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5331	78 Outperform	€146.23B	12.15	8.27%	2.86%	-2.45%	7.31%
3106	77 Outperform	¥120.70B	10.66	―	3.00%	-1.63%	67.13%
5393	73 Outperform	$386.46B	12.56	13.63%	2.10%	-1.33%	9.21%
4206	73 Outperform	¥231.81B	12.77	―	3.74%	2.65%	7.16%
5706	69 Neutral	$919.31B	25.11	13.77%	1.00%	6.71%	-14.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3401	55 Neutral	$248.95B	9.28	-20.43%	3.73%	-8.20%	―

Nichias Corporate Events

Nichias Corporation Reports Decline in H1 Earnings

Nichias Corporation is a Japanese company listed on the Tokyo Stock Exchange, primarily engaged in the manufacture and sale of industrial products, including insulation materials, gaskets, and sealing products. The company is known for its innovative solutions in the industrial sector.

NICHIAS Corporation Announces Treasury Stock Purchase Plan

NICHIAS Corporation has announced its decision to purchase up to 1,400,000 of its own shares, representing 2.19% of the total shares issued, as part of a strategy to enhance shareholder returns and improve capital efficiency. This move, resolved by the Board of Directors, involves a maximum expenditure of 5 billion yen and will be conducted through market purchases on the Tokyo Stock Exchange, with plans to cancel the acquired shares to optimize capital structure.

The most recent analyst rating on (JP:5393) stock is a Hold with a Yen5951.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.

Nichias Reports Decline in First Half Financial Performance for FY2025

Nichias Corporation reported a decline in its financial performance for the first half of fiscal year 2025, with net sales and profits showing a decrease compared to the previous year. Despite the downturn, the company maintains a strong equity ratio and plans to continue dividend payments, indicating a stable financial position.

The most recent analyst rating on (JP:5393) stock is a Hold with a Yen5951.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.

Nichias Corporation Reports Decline in Q1 2025 Financial Results

Nichias Corporation reported a decline in its financial performance for the first quarter of fiscal year 2025, with net sales and profits showing a year-on-year decrease. The company experienced a 1.9% drop in net sales and a significant reduction in operating and ordinary income, reflecting challenging market conditions. Despite these setbacks, Nichias has adjusted its full-year forecast, indicating a cautious outlook for the remainder of the fiscal year, which may impact stakeholders’ expectations.