Nichias (5393) AI Stock Analysis

• Market Cap: $370.21B
• Dividend Yield: 1.93%
• Average Volume (3M): 147.04K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.68
• Revenue Growth: 0.72%
• EPS Growth: 5.21%
• Country: JP
• Employees: 6,431
• Sector: Industrials
• Sector Strength: 80
• Industry: Conglomerates
• EPS (TTM): 102.28
• Shares Outstanding: 67,811,920
• 10 Day Avg. Volume: 154,340
• 30 Day Avg. Volume: 147,040
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 5.92
• 1Y Price Target: $6,416.43
• Price Target Upside: 14.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥6,416.00 ▲(14.78% 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 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 gaskets and packings, including non-asbestos gaskets and packings, rubber type gaskets, other seal products, and peripheral function materials; and thermal insulation materials, such as fiber products, high performance thermal insulation materials, heat-insulation boards, and cryogenic insulation materials, as well as thermal insulation materials for molten aluminum. It also provides various fluoropolymer materials, processed products, and corrosion-resistant linings, as well as tubes, hoses, and bellows; filter products and environmental equipment; and auto parts comprising sealing materials, retaining parts/materials, and sound-proofing parts/materials, as well as heat-protection products, control parts, and materials. In addition, the company offers building materials for buildings and housing; and undertakes hot and cold insulation, refractory, electric heater tracing, acoustic insulation, and aerogel heat-insulation works. Further, it provides furniture sliding pads, and friction and agricultural materials. The company serves electric power and gas; waste incineration plants; chemical, petroleum refinery, and petrochemical; steel and non-ferrous metals; aluminum casting and processing; paper; building and housing construction; semiconductor and flat panel display; foods and pharmaceutical; medical equipment; electric equipment; aerospace; automobiles; ship building, maintenance, and repair; industrial equipment; and others industries. Nichias Corporation was incorporated in 1896 and is headquartered in Tokyo, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	256.51B	249.39B	238.12B	216.24B	196.37B
Gross Profit	70.77B	64.77B	58.01B	53.38B	46.06B
EBITDA	53.22B	46.11B	38.44B	37.44B	24.24B
Net Income	32.07B	26.96B	21.40B	22.03B	10.71B
Balance Sheet
Total Assets	289.04B	290.79B	266.91B	246.92B	219.60B
Cash, Cash Equivalents and Short-Term Investments	59.68B	56.38B	59.43B	54.60B	39.80B
Total Debt	11.04B	22.77B	24.51B	24.53B	24.80B
Total Liabilities	72.61B	89.87B	93.17B	91.40B	83.15B
Stockholders Equity	215.42B	199.68B	172.36B	154.28B	135.43B
Cash Flow
Free Cash Flow	24.48B	6.33B	10.02B	15.47B	10.38B
Operating Cash Flow	31.25B	19.17B	18.65B	25.07B	18.68B
Investing Cash Flow	-913.00M	-12.90B	-8.65B	-5.52B	-6.80B
Financing Cash Flow	-27.40B	-11.11B	-6.37B	-5.88B	-5.47B

Nichias Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5590.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5393, the sentiment is Neutral. The current price of 5590 is below the 20-day moving average (MA) of 5722.40, above the 50-day MA of 5503.48, and above the 200-day MA of 5165.65, indicating a neutral trend. The MACD of 59.45 indicates Positive momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$370.21B	12.03	14.50%	1.93%	0.72%	5.21%
Sector *	71 Outperform	¥267.71B	14.94	8.32%	2.77%	6.08%	11.04%
TINLF	―	$1.67B	11.71	-19.42%	3.54%	―	―
XZJCF	―	$3.51B	10.86	11.71%	3.49%	―	―
NO4	―	€738.44M	9.70	8.56%	―	―	―
4206	78 Outperform	¥243.63B	13.67		3.26%	5.29%	8.21%
3106	71 Outperform	¥142.19B	11.67		1.83%	-2.16%	69.82%

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.