Nichias Corporation (JP:5393)
:5393
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Nichias
(5393)
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Rating:78Outperform
Price Target:
¥10,238.00
▲(41.84% Upside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by strong fundamentals (high profitability and very low leverage), supported by a clear bullish technical trend. Offsetting factors are weaker/volatile cash flow recently and only moderate valuation support (mid P/E and modest dividend yield).
Positive Factors
High Profitability/Margins
Nichias exhibits structurally strong margins across gross, EBIT and net levels, reflecting product and engineering mix with pricing power in specialized thermal and sealing materials. Durable margins support reinvestment, cover capex and dividends, and buffer cyclical revenue volatility over months.
Negative Factors
Weakening Revenue Growth
Trailing revenue momentum has softened to slight negative growth, indicating demand normalization or end-market softness. Over several months this can erode operating leverage, pressure future investment returns, and limit the firm's ability to translate strong margins into expanding scale.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability/Margins
Nichias exhibits structurally strong margins across gross, EBIT and net levels, reflecting product and engineering mix with pricing power in specialized thermal and sealing materials. Durable margins support reinvestment, cover capex and dividends, and buffer cyclical revenue volatility over months.
Read all positive factors
Nichias (5393) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥558.47B
Dividend Yield1.95%
Average Volume (3M)124.17K
Price to Earnings (P/E)12.7
Beta (1Y)0.84
Revenue Growth-1.33%
EPS Growth9.21%
CountryJP
Employees6,431
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)132.96
Shares Outstanding63,661,920
10 Day Avg. Volume110,340
30 Day Avg. Volume124,173
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.40
Price to Sales (P/S)1.17
P/FCF Ratio12.30
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)433.24
Revenue Forecast (FY)¥254.09B
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 industrial materials and components and by providing related engineering/construction services tied to installation, maintenance, and retrofits. Key revenue streams include: (1) Thermal insulation and firep...
Nichias Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 248.59B | 256.51B | 249.39B | 238.12B | 216.24B | 196.37B |
| Gross Profit | 67.45B | 70.77B | 64.77B | 58.01B | 53.38B | 46.06B |
| EBITDA | 46.19B | 53.22B | 46.10B | 38.44B | 37.44B | 24.24B |
| Net Income | 30.23B | 32.07B | 26.96B | 21.40B | 22.03B | 10.71B |
Balance Sheet | ||||||
| Total Assets | 291.89B | 289.04B | 290.79B | 266.91B | 246.92B | 219.60B |
| Cash, Cash Equivalents and Short-Term Investments | 51.67B | 59.68B | 56.38B | 59.43B | 54.60B | 39.80B |
| Total Debt | 10.48B | 11.04B | 22.77B | 24.51B | 24.53B | 24.80B |
| Total Liabilities | 65.81B | 72.61B | 89.87B | 93.16B | 91.40B | 83.15B |
| Stockholders Equity | 225.02B | 215.42B | 199.68B | 172.36B | 154.29B | 135.43B |
Cash Flow | ||||||
| Free Cash Flow | 11.94B | 24.48B | 6.77B | 10.46B | 15.81B | 10.62B |
| Operating Cash Flow | 19.22B | 31.25B | 19.17B | 18.65B | 25.07B | 18.68B |
| Investing Cash Flow | -2.84B | -913.00M | -12.90B | -8.65B | -5.52B | -6.80B |
| Financing Cash Flow | -21.53B | -27.40B | -11.11B | -6.37B | -5.88B | -5.47B |
Nichias Technical Analysis
Neutral
7218.00
Price Trends
8361.54
Positive
7398.07
Positive
6466.69
Positive
Market Momentum
51.59
Positive
48.01
Neutral
23.10
Neutral
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 7218 is below the 20-day moving average (MA) of 8841.95, below the 50-day MA of 8361.54, and above the 200-day MA of 6466.69, indicating a neutral trend. The MACD of 51.59 indicates Positive momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 23.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥558.47B | 12.74 | 13.63% | 1.95% | -1.33% | 9.21% | |
78 Outperform | ¥178.08B | 12.04 | 8.27% | 2.68% | -2.45% | 7.31% | |
73 Outperform | ¥240.76B | 9.23 | ― | 3.90% | 2.65% | 7.16% | |
71 Outperform | ¥1.06T | 16.83 | 7.53% | 3.13% | 1.90% | -6.73% | |
65 Neutral | ¥243.97B | 14.72 | 8.35% | 2.73% | 3.35% | 810.44% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | ¥306.87B | -15.81 | -20.43% | 3.72% | -8.20% | ― |
* Industrials Sector Average
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Nichias Corporate Events
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 ...
Nichias Posts Lower Nine-Month Earnings but Maintains Full-Year Outlook and Higher Dividend
Feb 16, 2026
Nichias reported consolidated net sales of ¥185.0 billion for the first nine months of the fiscal year ending March 31, 2026, down 4.1% year on year, with operating income falling 18.3% to ¥25.3 billion and profit attributable to owners ...
Nichias to Absorb Sealtech Unit in Streamlining Merger
Feb 9, 2026
Nichias Corporation will absorb its wholly owned subsidiary Nichias Sealtech Co., Ltd. through an absorption-type merger effective April 1, 2026, as part of a reorganization aimed at streamlining and integrating the group’s manufacturing str...
Nichias Reshapes Leadership Team With Targeted Officer Changes
Feb 9, 2026
Nichias Corporation announced a series of officer personnel changes, effective April 1, 2026, adjusting roles among directors and executive officers to refine oversight of sales, research and development, and administrative functions. The reshuffl...
Nichias Sets Three-for-One Share Split and Triples Authorized Share Capital
Feb 9, 2026
Nichias Corporation will implement a three-for-one share split of its common stock, effective April 1, 2026, for shareholders of record on March 31, 2026. The move is intended to lower the per-investment unit price, improve share liquidity, and br...
Nichias to Cancel 4.15 Million Treasury Shares, Tightening Share Base
Feb 9, 2026
Nichias Corporation has resolved at a February 9, 2026 board meeting to cancel 4,150,000 shares of its treasury stock, equivalent to 6.12% of its outstanding shares, under Article 178 of the Companies Act. The cancellation, scheduled for February ...
Nichias Lifts Year-End Dividend Forecast, Targets Higher Shareholder Returns
Feb 9, 2026
Nichias Corporation has revised its year-end dividend forecast for the fiscal year ending March 31, 2026, raising the planned year-end dividend from 76 yen to 88 yen per share. This will bring the total annual dividend to 164 yen per share, up 56 ...
Nichias Navigates Semiconductor Weakness as Plant Maintenance and Auto Demand Stay Strong
Feb 9, 2026
Nichias reported that maintenance demand for petroleum refining and petrochemical plants remained strong, supporting its energy and industrial plants segment despite broader market uncertainties. Demand for sealing materials tied to Japanese infra...
Nichias Sees Profit Decline but Lifts Dividend Payout for FY2025
Feb 9, 2026
Nichias reported consolidated net sales of ¥185.0 billion for the nine months to Dec. 31, 2025, down 4.1% year-on-year, with operating income falling 18.3% to ¥25.3 billion and profit attributable to owners of the parent declining 8.0% t...
Nichias Nearly Maxes Out ¥5 Billion Share Buyback Program
Jan 28, 2026
Nichias Corporation has completed a Board-approved share buyback program, announcing that it purchased 287,600 of its own common shares on the Tokyo Stock Exchange in January 2026 at a total cost of approximately ¥2.17 billion. This latest tr...
Nichias Reports Progress on Ongoing Share Buyback Program
Jan 5, 2026
Nichias Corporation has reported the progress of its ongoing share buyback program for December 2025, under a previously approved Board resolution authorizing the purchase of up to 1.4 million shares or ¥5 billion in total. During December, t...
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.