Nichias Corporation (JP:5393)
:5393
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Nichias
(5393)
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Rating:79Outperform
Price Target:
¥3,733.00
▼(-48.28% Downside)
Action:Reiterated
Date:05/13/26
The score is primarily supported by strong financial performance, led by an exceptionally low-debt balance sheet and improved margins, with only moderate offsets from latest-year revenue softness and uneven cash conversion. Technicals add support via a clear uptrend, while valuation is neutral-to-slightly negative due to a mid-range P/E and modest dividend yield.
Positive Factors
Conservative balance sheet
Nichias's very low leverage and ongoing deleveraging materially lower financial risk and preserve strategic optionality. A light debt load supports capital spending, M&A flexibility and resilience through cyclical downturns, strengthening multi-quarter stability.
Negative Factors
Recent revenue decline
A modest top-line decline in the most recent year indicates growth momentum has cooled. Slower revenue reduces leverage on fixed costs, constrains reinvestment potential, and makes sustaining improved margins harder if the top line fails to recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Nichias's very low leverage and ongoing deleveraging materially lower financial risk and preserve strategic optionality. A light debt load supports capital spending, M&A flexibility and resilience through cyclical downturns, strengthening multi-quarter stability.
Read all positive factors
Nichias (5393) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥617.79B
Dividend Yield1.95%
Average Volume (3M)124.17K
Price to Earnings (P/E)17.4
Beta (1Y)0.84
Revenue Growth-1.79%
EPS Growth1.03%
CountryJP
Employees6,431
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)165.62
Shares Outstanding190,985,750
10 Day Avg. Volume110,340
30 Day Avg. Volume124,173
Financial Highlights & Ratios
PEG Ratio15.83
Price to Book (P/B)2.31
Price to Sales (P/S)2.19
P/FCF Ratio34.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)167.1
Revenue Forecast (FY)¥269.65B
Nichias Business Overview & Revenue Model
Company Description
Nichias Corporation manufactures and sells thermal insulation materials primarily in Japan. It operates in five segments: Energy and Industrial Plants, Industrial Products, Advanced Products, Autoparts, and Building Materials. The company offers g...
How the Company Makes Money
Nichias makes money primarily by selling manufactured materials and engineered components used for heat insulation, sealing, and fire protection. Revenue is generated through (1) product sales of insulation and fireproofing materials used in const...
Nichias Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 251.91B | 256.51B | 249.39B | 238.12B | 216.24B |
| Gross Profit | 69.90B | 70.77B | 64.77B | 58.01B | 53.38B |
| EBITDA | 44.33B | 53.22B | 46.10B | 38.44B | 37.44B |
| Net Income | 31.63B | 32.07B | 26.96B | 21.40B | 22.03B |
Balance Sheet | |||||
| Total Assets | 307.12B | 289.04B | 290.79B | 266.91B | 246.92B |
| Cash, Cash Equivalents and Short-Term Investments | 57.72B | 59.68B | 56.38B | 59.43B | 54.60B |
| Total Debt | 11.03B | 11.04B | 22.77B | 24.51B | 24.53B |
| Total Liabilities | 67.51B | 72.61B | 89.87B | 93.16B | 91.40B |
| Stockholders Equity | 238.51B | 215.42B | 199.68B | 172.36B | 154.29B |
Cash Flow | |||||
| Free Cash Flow | 15.90B | 24.48B | 6.77B | 10.46B | 15.81B |
| Operating Cash Flow | 23.94B | 31.25B | 19.17B | 18.65B | 25.07B |
| Investing Cash Flow | -10.15B | -913.00M | -12.90B | -8.65B | -5.52B |
| Financing Cash Flow | -16.99B | -27.40B | -11.11B | -6.37B | -5.88B |
Nichias Technical Analysis
Positive
7218.00
Price Trends
3068.71
Positive
2821.13
Positive
2366.80
Positive
Market Momentum
107.36
Positive
51.04
Neutral
26.05
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 7218 is above the 20-day moving average (MA) of 3258.85, above the 50-day MA of 3068.71, and above the 200-day MA of 2366.80, indicating a bullish trend. The MACD of 107.36 indicates Positive momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 26.05 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥617.79B | 17.43 | 13.63% | 1.95% | -1.79% | 1.03% | |
71 Outperform | ¥224.76B | 18.16 | ― | 3.90% | 1.23% | 11.14% | |
69 Neutral | ¥184.13B | 12.23 | 8.27% | 2.68% | 3.42% | 13.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥915.68B | 9.71 | 7.53% | 3.13% | 0.89% | -6.71% | |
58 Neutral | ¥360.57B | 4.33 | 8.35% | 2.73% | -3.16% | -32.06% | |
46 Neutral | ¥307.83B | -3.58 | -20.43% | 3.72% | -13.16% | -410.43% |
* Industrials Sector Average
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Nichias Corporate Events
Nichias Posts Slight Earnings Dip but Boosts Dividend and Forecasts Growth
May 18, 2026
Nichias reported a slight 1.8% decline in net sales to ¥251.9 billion and a 6.8% drop in operating income to ¥37.0 billion for the year to March 31, 2026, while profit attributable to owners of the parent eased 1.4% to ¥31.6 billion...
Nichias Revamps Director Pay to Tie Compensation More Closely to Performance
May 18, 2026
Nichias will overhaul its director remuneration framework, replacing a long-standing monthly cap with an annual ceiling of ¥500 million, including up to ¥60 million for outside directors, subject to shareholder approval. The new scheme i...
NICHIAS Launches ¥5 Billion Share Buyback, Plans Full Cancellation of Repurchased Stock
May 11, 2026
NICHIAS Corporation’s board has authorized a share buyback of up to 2.3 million common shares, representing about 1.22% of its outstanding stock, with a maximum outlay of ¥5 billion. The repurchases will be conducted via market purchase...
Nichias Launches ESOP-Based Stock Grant Plan to Boost Employee Engagement
May 11, 2026
Nichias Corporation has approved the detailed rollout of a new stock-grant plan for employees across the parent company, its subsidiaries, and affiliated entities, coinciding with the group’s 130th anniversary. The initiative uses an ESOP tr...
Nichias to Dispose of Treasury Shares for New Employee Stock-Grant Plan
May 11, 2026
Nichias Corporation has approved the disposal of 156,080 treasury shares to fund a new employee stock-grant plan, pricing the shares at ¥3,179 each for a total value of about ¥496 million. The shares will be placed in an ESOP trust manag...
Nichias Boosts Payouts Ahead of Stock Split as Earnings Dip, Targets Stronger Growth
May 11, 2026
Nichias reported a slight 1.8% decline in fiscal 2025 net sales to ¥251.9 billion, with operating income down 6.8% and profit attributable to owners of the parent slipping 1.4%, even as comprehensive income rose sharply. Despite softer earnin...
Nichias to Launch Stock Grant Trust Plan for Employees Ahead of 130th Anniversary
Mar 23, 2026
Nichias Corporation has approved the introduction of a new stock grant plan that will provide company shares, or equivalent cash, to employees of the parent company, its subsidiaries and other affiliated entities. Timed to coincide with its 130th ...
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.