Nippon Denko Co., Ltd. (JP:5563)
:5563
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Nippon Denko Co., Ltd.
(5563)
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Rating:63Neutral
Price Target:
¥511.00
▲(47.26% Upside)
Action:Reiterated
Date:03/05/26
The score is driven primarily by solid financial resilience (conservative leverage and improved 2025 cash generation) offset by materially weaker profitability versus prior peak years. Technicals are supportive with positive medium/long-term trends, while valuation is a notable headwind due to a high P/E despite a moderate dividend yield.
Positive Factors
Conservative leverage / balance sheet strength
Net debt and leverage have trended materially lower, with debt-to-equity around 0.19 in 2025 versus ~0.31 in 2022. This conservative capital structure provides resilience in downcycles, preserves financial flexibility for capex or working capital, and reduces refinancing risk over the medium term.
Negative Factors
Material margin compression vs prior peak years
Net profitability has deteriorated significantly from the 2021–2022 peak, dragging returns on equity to low single digits. Prolonged margin compression undermines reinvestment capacity, weakens return profiles for shareholders, and raises sensitivity to raw material or energy cost inflation long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage / balance sheet strength
Net debt and leverage have trended materially lower, with debt-to-equity around 0.19 in 2025 versus ~0.31 in 2022. This conservative capital structure provides resilience in downcycles, preserves financial flexibility for capex or working capital, and reduces refinancing risk over the medium term.
Read all positive factors
Nippon Denko Co., Ltd. (5563) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥63.20B
Dividend Yield3.23%
Average Volume (3M)312.88K
Price to Earnings (P/E)29.4
Beta (1Y)0.94
Revenue Growth-3.24%
EPS Growth-39.60%
CountryJP
Employees783
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)22.42
Shares Outstanding137,386,470
10 Day Avg. Volume331,920
30 Day Avg. Volume312,880
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)0.67
Price to Sales (P/S)0.61
P/FCF Ratio4.87
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)N/A
Revenue Forecast (FY)N/A
Nippon Denko Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Denko Co., Ltd., along with its affiliated entities, is a Japanese enterprise primarily engaged in the creation and distribution of ferroalloys, advanced functional materials, and environmental recycling technologies. Their extensive ferroa...
How the Company Makes Money
The company makes money primarily through the sale of ferroalloy and related metallurgical products to customers such as steel manufacturers and other industrial users. Revenue is generated on a volume-and-price basis: customers purchase these mat...
Nippon Denko Co., Ltd. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.84B | 77.28B | 78.23B | 78.39B | 79.34B | 65.98B |
| Gross Profit | 13.68B | 12.49B | 13.61B | 11.35B | 15.38B | 14.36B |
| EBITDA | 9.99B | 8.83B | 10.10B | 7.64B | 11.28B | 10.56B |
| Net Income | 3.08B | 1.42B | 3.14B | 4.33B | 7.95B | 7.77B |
Balance Sheet | ||||||
| Total Assets | 96.79B | 93.41B | 104.16B | 102.54B | 104.94B | 95.89B |
| Cash, Cash Equivalents and Short-Term Investments | 5.91B | 6.02B | 5.95B | 7.87B | 8.91B | 9.78B |
| Total Debt | 13.84B | 13.82B | 17.07B | 18.55B | 21.47B | 18.00B |
| Total Liabilities | 23.14B | 22.39B | 30.48B | 31.10B | 35.72B | 31.56B |
| Stockholders Equity | 73.66B | 71.03B | 73.68B | 71.44B | 69.19B | 64.26B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 9.74B | 1.66B | 3.98B | 1.74B | 2.53B |
| Operating Cash Flow | 0.00 | 14.57B | 5.96B | 8.78B | 6.28B | 5.25B |
| Investing Cash Flow | 0.00 | -5.58B | -4.85B | -4.67B | -4.59B | -2.21B |
| Financing Cash Flow | 0.00 | -8.91B | -3.06B | -5.24B | -2.68B | -2.92B |
Nippon Denko Co., Ltd. Technical Analysis
Neutral
347.00
Price Trends
461.12
Negative
437.23
Positive
384.13
Positive
Market Momentum
-3.16
Positive
45.00
Neutral
20.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5563, the sentiment is Neutral. The current price of 347 is below the 20-day moving average (MA) of 489.65, below the 50-day MA of 461.12, and below the 200-day MA of 384.13, indicating a neutral trend. The MACD of -3.16 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 20.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5563.
Nippon Denko Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥387.84B | 13.55 | ― | 3.26% | -6.84% | 4.65% | |
72 Outperform | ¥197.49B | 10.67 | 6.87% | 5.25% | -6.28% | 29.00% | |
71 Outperform | ¥191.29B | 16.64 | 5.06% | 1.80% | 1.69% | 71.95% | |
63 Neutral | ¥63.20B | 29.38 | 1.97% | 3.23% | -3.24% | -39.60% | |
62 Neutral | ¥472.38B | 14.11 | 6.16% | 2.99% | 0.55% | 20.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | ¥76.49B | 7.75 | ― | 3.70% | -2.40% | -8.59% |
* Basic Materials Sector Average
JP:5563
Nippon Denko Co., Ltd.
460.00
216.04
88.55%
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Nippon Denko Co., Ltd. Corporate Events
Nippon Denko Completes Restricted Stock Treasury Share Disposal for Executive Compensation
May 25, 2026
Nippon Denko has completed the payment procedures for the disposal of treasury shares used as restricted stock compensation, following a resolution by its Board of Directors on April 27, 2026. The transaction involves 91,800 shares of common stock...
Nippon Denko Doubles Quarterly Profit and Raises Full-Year Earnings Outlook
May 12, 2026
Nippon Denko reported consolidated net sales of ¥19.4 billion for the three months ended March 31, 2026, essentially flat year on year, while operating profit nearly doubled to ¥2.0 billion and ordinary profit surged to ¥1.1 billion...
Nippon Denko Expands Restricted Stock Compensation With Treasury Share Disposal
Apr 27, 2026
Nippon Denko has approved the disposal of 91,800 treasury shares as restricted stock compensation for five internal directors, eight executive officers, and three executive counselors, at a price of 422 yen per share, totaling 38.74 million yen. T...
Nippon Denko Details Relationship and Transactions With Major Shareholder Nippon Steel
Mar 27, 2026
Nippon Denko Co., Ltd. disclosed details of its relationship with Nippon Steel Corporation, which holds a 25.3% voting stake and is classified as an other affiliated company, while emphasizing that this shareholding and alliance do not restrict Ni...
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.