Nichias (5393) AI Stock Analysis

• Market Cap: $386.46B
• Dividend Yield: 1.99%
• 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: 1.23
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 6.31
• 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: 79 Outperform
• Price Target: ¥7,445.00 ▲(12.28% Upside)

Nichias demonstrates strong financial stability and profitability, supported by efficient operations and low leverage. The technical analysis indicates strong bullish momentum, although caution is advised due to potential overbought conditions. The valuation is fair with a reasonable P/E ratio and a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Financial Stability

Nichias's low leverage enhances its financial stability, providing resilience against economic fluctuations and flexibility for strategic investments.

Profitability

Robust profit margins indicate efficient operations and pricing power, supporting sustained earnings and potential reinvestment in growth initiatives.

Innovation and Sustainability

The focus on innovation and sustainability positions Nichias well to capitalize on growing demand for energy-efficient solutions, driving long-term growth.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may signal market saturation or increased competition, potentially impacting future profitability and market share.

Cash Flow Management

Negative free cash flow growth could limit Nichias's ability to fund new projects or return capital to shareholders, affecting long-term financial health.

Revenue Growth Decline

The decline in revenue and cash flow growth indicates potential operational inefficiencies or market challenges, which could hinder future expansion.

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. The company needs to address these areas to sustain its financial health and growth trajectory.

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	252.61B	256.51B	249.39B	238.12B	216.24B	196.37B
Gross Profit	69.53B	70.77B	64.77B	58.01B	53.38B	46.06B
EBITDA	49.33B	53.22B	46.11B	38.44B	37.44B	24.24B
Net Income	30.35B	32.07B	26.96B	21.40B	22.03B	10.71B
Balance Sheet
Total Assets	289.76B	289.04B	290.79B	266.91B	246.92B	219.60B
Cash, Cash Equivalents and Short-Term Investments	60.45B	59.68B	56.38B	59.43B	54.60B	39.80B
Total Debt	10.46B	11.36B	22.77B	24.51B	24.53B	24.80B
Total Liabilities	67.52B	72.61B	89.87B	93.17B	91.40B	83.15B
Stockholders Equity	221.22B	215.42B	199.68B	172.36B	154.28B	135.43B
Cash Flow
Free Cash Flow	16.61B	24.48B	6.33B	10.02B	15.47B	10.38B
Operating Cash Flow	23.29B	31.25B	19.17B	18.65B	25.07B	18.68B
Investing Cash Flow	-1.06B	-913.00M	-12.90B	-8.65B	-5.52B	-6.80B
Financing Cash Flow	-23.56B	-27.40B	-11.11B	-6.37B	-5.88B	-5.47B

Nichias Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6631.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 6631 is above the 20-day moving average (MA) of 6205.20, above the 50-day MA of 5883.76, and above the 200-day MA of 5279.27, indicating a bullish trend. The MACD of 174.89 indicates Negative momentum. The RSI at 69.08 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 is Negative, 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	79 Outperform	$386.46B	12.56	13.63%	1.99%	-1.33%	9.21%
5331	78 Outperform	€146.23B	12.15	8.27%	2.71%	-2.45%	7.31%
3106	77 Outperform	¥120.70B	10.66	―	2.77%	-1.63%	67.13%
4206	73 Outperform	¥231.81B	12.77	―	4.00%	2.65%	7.16%
5706	69 Neutral	$919.31B	25.11	13.77%	0.97%	6.71%	-14.98%
3401	65 Neutral	$248.95B	9.28	-20.43%	3.81%	-8.20%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nichias Corporate Events

Nichias Corporation Announces Treasury Stock Purchase

Nichias Corporation has announced the purchase of 169,300 shares of its own stock in November 2025, with a total cost of 1,027,721,700 yen. This move is part of a broader plan approved by the Board of Directors to buy back up to 1,400,000 shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

Nichias Corporation Reports Decline in H1 FY2025 Financial Performance

Nichias Corporation reported a decrease in its financial performance for the first half of fiscal year 2025, with net sales dropping by 3.1% and operating income declining by 10.5% compared to the same period last year. Despite the downturn, the company maintains a strong equity ratio and has announced a significant increase in its interim dividend, reflecting confidence in its long-term financial stability and commitment to shareholder returns.

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.

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.