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Nichias
(5393)
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Rating:79Outperform
Price Target:
¥3,649.00
▲(8.41% Upside)
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
Very low leverage
Extremely low debt and a clear deleveraging trend materially reduce financial risk and preserve optionality. This balance sheet strength supports capital spending, tactical M&A or buybacks, and cushions cash flow variability, improving long-term resilience.
Negative Factors
Recent revenue softness
A deceleration or small decline in top line limits the company’s ability to leverage fixed costs and may cap earnings growth. If structural demand weakness persists, margin gains could be offset by falling volumes, pressuring long-term revenue momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low debt and a clear deleveraging trend materially reduce financial risk and preserve optionality. This balance sheet strength supports capital spending, tactical M&A or buybacks, and cushions cash flow variability, improving long-term resilience.
Read all positive factors
Nichias (5393) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥636.55B
Dividend Yield1.63%
Average Volume (3M)124.17K
Price to Earnings (P/E)20.3
Beta (1Y)0.84
Revenue Growth-1.79%
EPS Growth1.14%
CountryJP
Employees6,424
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)178.81
Revenue Forecast (FY)¥274.19B
Nichias Business Overview & Revenue Model
Company Description
Nichias Corporation, a Japanese company, primarily manufactures and distributes thermal insulation materials, predominantly serving the Japanese market. Its operations are organized into five distinct segments: Energy and Industrial Plants, Indust...
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 | 46.24B | 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
3366.00
Price Trends
3623.92
Negative
3379.56
Positive
2853.84
Positive
Market Momentum
-38.72
Negative
50.20
Neutral
79.33
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 3366 is below the 20-day moving average (MA) of 3419.30, below the 50-day MA of 3623.92, and above the 200-day MA of 2853.84, indicating a neutral trend. The MACD of -38.72 indicates Negative momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 79.33 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 | ¥636.55B | 20.28 | 14.07% | 1.62% | -1.79% | 1.14% | |
73 Outperform | ¥189.71B | 13.34 | 9.01% | 2.58% | 3.42% | 13.41% | |
71 Outperform | ¥240.76B | 12.44 | ― | 3.90% | 1.23% | 11.14% | |
66 Neutral | ¥1.01T | 14.58 | 9.12% | 2.93% | 2.53% | 7.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥342.80B | 29.30 | 4.11% | 2.73% | -3.16% | -32.06% | |
50 Neutral | ¥314.45B | -3.59 | -22.50% | 2.97% | -13.16% | -410.41% |
* Industrials Sector Average
JP:5393
Nichias
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Nichias Corporate Events
Nichias Grants Restricted Treasury Shares to Directors and Executive Officers
Jul 13, 2026
Nichias Corporation has approved the disposal of 25,099 shares of its treasury stock as restricted stock to four directors and twelve executive officers, with a total issue value of about ¥93 million and an issue price of ¥3,709 per shar...
Nichias Advances Share Buyback with ¥2.3 Billion June Purchase
Jul 1, 2026
Nichias Corporation has been executing a share buyback program authorized by its board in May 2026, targeting up to 2.3 million common shares for a maximum of ¥5 billion through market purchases on the Tokyo Stock Exchange. As part of this pr...
Nichias Reports No Activity Yet Under Authorized Share Buyback
Jun 1, 2026
Nichias Corporation reported that it did not repurchase any of its own shares in May 2026 under a previously authorized treasury stock buyback program. The board had approved a market-based repurchase of up to 2.3 million shares, or about 1.22% of...
NICHIAS issues FY2025 financial results summary with caution on forecasts
May 22, 2026
NICHIAS Corporation released a brief summary of its financial results for the fiscal year 2025, covering the period from April 1, 2025 to March 31, 2026. The company emphasized that all non-historical statements in the disclosure are forward-looki...
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...
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.