Nichias (5393) AI Stock Analysis

• Market Cap: ¥541.21B
• Dividend Yield: 1.95%
• Average Volume (3M): 124.17K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.80
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥9,087.00 ▲(25.89% 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

Low leverage / strong balance sheet

Very low debt-to-equity and solid ROE provide durable financial flexibility. This capital structure supports steady investment in operations, cushions cyclical downturns, and lowers refinancing risk, enabling the company to fund projects or weather volatility without stressing cash flow over the next several months.

Healthy profitability and margins

Sustained gross and net margins indicate structural operating efficiency and pricing power in thermal insulation and sealing markets. Margin durability supports cash generation and reinvestment capacity, helping sustain returns even if revenue growth is modest over a 2–6 month horizon.

Diverse, recurring industrial revenue streams

Multiple product lines and a mix of materials sales plus engineering/installation services reduce single-market dependence. Recurring maintenance and retrofit demand in process industries creates steady aftermarket revenue, providing durable baseline cash flows across business cycles.

Negative Factors

Recent revenue decline

A TTM revenue decline signals near-term demand weakness or competitive pressure. Persisting revenue softness can limit operating leverage, curtail reinvestment, and constrain margin expansion, making earnings growth harder to sustain over the coming months absent a recovery in end-market activity.

Negative free cash flow growth

Declining free cash flow growth reduces internal funding for capex, dividends, or strategic initiatives. Even with reasonable cash conversion, negative FCF trajectory can pressure liquidity planning and hamper the firm’s ability to seize investment opportunities or absorb shocks in a multi-month horizon.

Cyclicality tied to capex and maintenance cycles

Reliance on industrial capex and scheduled maintenance creates structural revenue volatility tied to customers' investment timetables. This cyclicality can produce uneven order flows and complicate forecasting, leaving performance exposed if industrial spending softens over the next several months.

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 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 exhibits strong profitability and financial stability, with efficient operations and low leverage. However, the recent decline in revenue and free cash flow growth highlights potential areas of concern. Overall, the company maintains a solid financial position with room for improvement in growth and cash flow management.

Income Statement

Nichias demonstrates strong profitability with a consistent gross profit margin around 27% and a net profit margin over 11% in the TTM. However, the company faced a slight revenue decline of 1.06% in the TTM, indicating potential challenges in maintaining growth. EBIT and EBITDA margins remain healthy, reflecting efficient operations.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.05, indicating strong financial stability and low leverage. Return on equity is robust at 14.14%, showcasing effective use of shareholder funds. The equity ratio is solid, reflecting a strong capital structure.

Cash Flow

Nichias has a healthy operating cash flow to net income ratio of 0.45, indicating good cash generation relative to earnings. However, free cash flow growth is negative at -8.74% in the TTM, suggesting potential challenges in cash flow management. The free cash flow to net income ratio of 0.74 is satisfactory, showing decent cash conversion.

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: 7218.00
• 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 7218 is below the 20-day moving average (MA) of 7698.80, above the 50-day MA of 7035.46, and above the 200-day MA of 5812.47, indicating a bullish trend. The MACD of 271.57 indicates Positive momentum. The RSI at 70.36 is Negative, neither overbought nor oversold. The STOCH value of 47.40 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	79 Outperform	¥541.21B	16.86	13.63%	1.95%	-1.33%	9.21%
5331	78 Outperform	¥180.02B	14.54	8.27%	2.68%	-2.45%	7.31%
3106	77 Outperform	¥156.92B	13.41	―	2.66%	-1.63%	67.13%
5706	74 Outperform	¥1.26T	25.50	13.77%	0.97%	6.71%	-14.98%
4206	73 Outperform	¥239.84B	12.29	―	3.90%	2.65%	7.16%
3401	65 Neutral	¥304.27B	-3.74	-20.43%	3.72%	-8.20%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nichias Corporate Events

Nichias Nearly Maxes Out ¥5 Billion Share Buyback Program

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 tranche brings the cumulative total under the current authorization, which ran from November 2025 to March 2026, to 735,100 shares repurchased for about ¥5.0 billion, effectively utilizing almost the entire budgeted amount and signaling management’s continued focus on capital efficiency and shareholder returns.

The most recent analyst rating on (JP:5393) stock is a Buy with a Yen8892.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.

Nichias Reports Progress on Ongoing Share Buyback Program

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, the company repurchased 278,200 of its own common shares on the Tokyo Stock Exchange at a total cost of approximately ¥1.81 billion, bringing the cumulative total under this program to 447,500 shares for about ¥2.83 billion as of December 31, 2025, indicating continued execution of its capital allocation strategy and efforts to enhance shareholder value through treasury stock acquisition.

The most recent analyst rating on (JP:5393) stock is a Buy with a Yen7445.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.

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.

The most recent analyst rating on (JP:5393) stock is a Buy with a Yen6840.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.

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.

The most recent analyst rating on (JP:5393) stock is a Buy with a Yen6840.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.

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.

The most recent analyst rating on (JP:5393) stock is a Hold with a Yen5951.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.

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.

The most recent analyst rating on (JP:5393) stock is a Hold with a Yen5951.00 price target. To see the full list of analyst forecasts on Nichias stock, see the JP:5393 Stock Forecast page.