Nichias (5393) AI Stock Analysis

• Market Cap: ¥378.43B
• Dividend Yield: 1.89%
• Average Volume (3M): 189.73K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.72
• Revenue Growth: 2.86%
• EPS Growth: 20.93%
• Country: JP
• Employees: 6,431
• Sector: Industrials
• Sector Strength: 94
• Industry: Conglomerates
• EPS (TTM): 139.87
• Shares Outstanding: 67,811,920
• 10 Day Avg. Volume: 121,000
• 30 Day Avg. Volume: 189,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥5,651.53
• Price Target Upside: -1.40% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥6,416.00 ▲(11.93%Upside)

Nichias benefits from strong financial performance and attractive valuation, making it well-positioned in the conglomerates industry. Despite positive technical indicators, overbought signals warrant cautious monitoring. The absence of new earnings call data and corporate events leaves these areas neutral.

Nichias Business Overview & Revenue Model

Company Description

Nichias Corporation (5393) is a Japanese company primarily engaged in the manufacturing and sale of thermal insulation materials, gasket and packing products, and other industrial materials. The company operates across various sectors, including construction, automotive, electronics, and energy, providing essential products that contribute to energy saving, safety, and environmental protection. Nichias is known for its expertise in developing advanced materials that enhance performance and durability in various industrial applications.

How the Company Makes Money

Nichias makes money through the production and sale of its diverse range of products, including thermal insulation materials, gaskets, and packing products, which are essential in numerous industries. The company's revenue model revolves around supplying these materials to sectors such as construction, automotive, electronics, and energy, where they are crucial for ensuring safety, efficiency, and compliance with environmental standards. Nichias also leverages strategic partnerships and collaborations to enhance its product offerings and expand its market reach. By consistently investing in research and development, Nichias maintains its competitive edge, ensuring a steady stream of revenue from its innovative solutions tailored to meet the evolving needs of its clients.

Nichias Financial Statement Overview

Summary

Nichias demonstrates strong financial health with consistent revenue growth, improved profitability, and a robust balance sheet characterized by low leverage and solid cash flow management. These factors support future growth prospects.

Income Statement

Nichias demonstrates strong financial performance with consistent revenue growth and improving profitability metrics. The gross profit margin has increased from 22.6% in 2024 to 27.6% in 2025, indicating effective cost management. The net profit margin also improved from 10.8% to 12.5%, reflecting enhanced overall profitability. Revenue growth has been steady, with a 2.9% increase in 2025, showcasing resilience in a competitive market. The EBIT margin increased from 14.1% to 15.5%, and the EBITDA margin also rose from 18.5% to 20.8%, highlighting efficient operations.

Balance Sheet

Nichias has a robust balance sheet characterized by a low debt-to-equity ratio, decreasing from 0.11 in 2024 to 0.05 in 2025, suggesting reduced leverage and financial risk. Return on Equity (ROE) improved from 13.5% to 14.9%, indicating efficient use of equity capital. The equity ratio increased from 68.7% to 74.5%, reflecting strong equity financing and asset management, further enhancing financial stability.

Cash Flow

The company's cash flow position is solid, with significant growth in free cash flow from JPY 6.33 billion in 2024 to JPY 24.48 billion in 2025, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 0.97, suggesting efficient cash management relative to net income. The free cash flow to net income ratio improved significantly, demonstrating better conversion of net income to cash.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Nichias Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5732.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 5732 is above the 20-day moving average (MA) of 5564.10, above the 50-day MA of 5256.02, and above the 200-day MA of 5151.72, indicating a bullish trend. The MACD of 101.54 indicates Positive momentum. The RSI at 73.15 is Negative, neither overbought nor oversold. The STOCH value of 68.89 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
5393	81 Outperform	¥378.43B	11.61	15.22%	1.89%	2.86%	20.93%
5331	80 Outperform	¥121.94B	9.46	8.66%	3.17%	0.20%	13.68%
5706	79 Outperform	$336.34B	5.20	20.86%	2.81%	10.15%	148.74%
4206	78 Outperform	¥240.62B	13.83		3.31%	5.10%	12.42%
3401	74 Outperform	$245.97B	8.70	-17.62%	3.90%	-2.64%	167.02%
3106	71 Outperform	¥130.44B	14.84		1.90%	-0.43%	42.04%
Sector *	71 Outperform	¥266.83B	14.00	8.47%	2.88%	6.35%	13.13%

Nichias Corporate Events

Nichias Corporation Introduces Restricted Stock Compensation System

Nichias Corporation announced a disposal of treasury stock as restricted stock for its directors and executive officers, aiming to align their interests with shareholders and enhance corporate value. This move introduces a new compensation system involving transfer-restricted stock, incentivizing eligible officers to contribute to the company’s sustainable growth, with implications for increased shareholder value alignment.

NICHIAS Completes July Treasury Stock Purchase

NICHIAS Corporation announced the completion of its treasury stock purchase for July 2025, acquiring 125,200 common shares at a cost of 698,308,400 yen. This purchase is part of a broader strategy approved by the Board of Directors to buy back up to 1,000,000 shares by September 2025, aiming to optimize capital structure and enhance shareholder value.

NICHIAS Corporation Updates on Treasury Stock Purchase

NICHIAS Corporation announced the status of its treasury stock purchase for June 2025, following a board resolution in May. The company purchased 335,400 common shares at a cost of 1,720,912,100 yen through market transactions on the Tokyo Stock Exchange. This move is part of a larger plan to buy back up to 1,000,000 shares by September 2025, potentially impacting shareholder value and market perception.

Nichias Corporation Reports May 2025 Treasury Stock Purchase Status

Nichias Corporation announced the status of its treasury stock purchase for May 2025, following a board resolution. The company acquired 117,600 common shares at a cost of 580,512,400 yen through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan to buy back up to 1,000,000 shares by September 2025, potentially impacting shareholder value and market perception.

Nichias Corporation Reports Strong Fiscal Year 2024 Results with Increased Dividends

Nichias Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 2.9% increase in net sales and a 19% rise in profit attributable to owners of the parent. The company also announced an increase in dividends, reflecting its strong financial position and commitment to returning value to shareholders. The forecast for the next fiscal year indicates a slight growth in net sales but a decrease in operating and ordinary income, suggesting potential challenges ahead.

NICHIAS Corporation to Dissolve KIMITSU ROCKWOOL Subsidiary Amid Rising Costs

NICHIAS Corporation has decided to dissolve its subsidiary, KIMITSU ROCKWOOL CORPORATION, due to unsustainable business performance caused by rising energy and raw material costs. The company has completed the disposal of the subsidiary’s assets and will proceed with special liquidation and a debt waiver, but expects no significant impact on its consolidated financial results.

Nichias Corporation Announces Treasury Stock Purchase Plan

Nichias Corporation has announced a decision to purchase up to 1,000,000 of its own common shares, representing 1.55% of the total shares issued, to improve shareholder returns and capital efficiency. This strategic move, approved by the Board of Directors, involves a maximum expenditure of 3 billion yen and will be executed through market purchases on the Tokyo Stock Exchange between May 13 and September 30, 2025.

Nichias Corporation Reports Strong Financial Results for FY2024

Nichias Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 2.9% increase in net sales and a significant rise in profit attributable to owners of the parent by 19%. The company also announced an increase in dividends, reflecting a strong financial performance and commitment to returning value to shareholders.