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Nippon Denko Co., Ltd.
(5563)
Nippon Denko Co., Ltd. (5563) vs. iShares MSCI Japan ETF (EWJ)
Nippon Denko Co., Ltd. Business Overview & Revenue Model
Nippon Denko Co., Ltd. Financial Statement Overview
| 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 | 11.39B | 15.38B | 14.36B |
| EBITDA | 9.23B | 8.83B | 8.59B | 6.40B | 13.36B | 8.75B |
| Net Income | 3.08B | 1.42B | 3.14B | 4.33B | 7.95B | 7.77B |
Balance Sheet | ||||||
| Total Assets | 96.79B | 93.41B | 102.20B | 101.02B | 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 | 14.01B | 13.82B | 17.08B | 18.56B | 21.47B | 18.00B |
| Total Liabilities | 23.14B | 22.39B | 28.52B | 29.32B | 35.72B | 31.56B |
| Stockholders Equity | 73.66B | 71.03B | 73.68B | 71.70B | 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
Nippon Denko Co., Ltd. Peers Comparison
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥389.40B | 11.54 | ― | 3.26% | -7.77% | 58.84% | |
74 Outperform | ¥482.46B | 17.95 | 6.84% | 2.99% | -0.02% | -40.45% | |
74 Outperform | ¥257.96B | 17.94 | 6.87% | 5.25% | -1.43% | 171.44% | |
71 Outperform | ¥221.19B | 20.19 | 5.06% | 1.80% | 4.10% | 152.90% | |
70 Outperform | ¥114.73B | 12.02 | ― | 3.70% | -3.06% | 1.15% | |
63 Neutral | ¥63.33B | 43.86 | 2.94% | 3.23% | 5.34% | -60.38% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
Nippon Denko Co., Ltd. Corporate Events
Nippon Denko will convene its 126th Annual General Meeting of Shareholders on March 27, 2026, in Tokyo, following a Board resolution on February 26, 2026. The meeting underlines the company’s long corporate history and ongoing engagement with shareholders in a formal governance setting.
Key agenda items include the proposed dividend of surplus, a reduction in legal capital surplus, and the election of seven directors excluding Audit & Supervisory Committee members. Shareholders will also vote on appointing two Audit & Supervisory Committee member directors and one substitute member, signaling continued attention to board composition and oversight.
The most recent analyst rating on (JP:5563) stock is a Hold with a Yen453.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.
Nippon Denko Co., Ltd. has resolved to propose a year-end dividend of ¥7 per share for the fiscal year ended December 31, 2025, matching its previous forecast and the prior year’s payout. The distribution consists of an ordinary dividend of ¥6 and a ¥1 commemorative dividend marking the company’s 100th anniversary, with the total payout funded from retained earnings and an effective payment date set for March 30, 2026.
The decision aligns with Nippon Denko’s shareholder return policy targeting a payout ratio of around 40% based on underlying profit, a minimum annual dividend of ¥10 per share, and the use of share buybacks to supplement dividends. For 2025, the company’s total annual dividend will rise to ¥12 per share from ¥11 in 2024, underscoring a modest enhancement of shareholder returns while maintaining financial discipline and signaling confidence in its earnings base.
The most recent analyst rating on (JP:5563) stock is a Hold with a Yen453.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.
Nippon Denko Co., Ltd. plans to restructure its capital surplus to enhance the agility and flexibility of its future capital policy, while keeping overall net assets unchanged. The board has approved a proposal to reduce legal capital surplus by ¥12 billion, from ¥17.03 billion to ¥5.03 billion, transferring the reduced amount to other capital surplus in accordance with Japan’s Companies Act.
The change, which is subject to shareholder approval at the March 27, 2026 annual meeting, will proceed through a formal process including a creditor objection period from April 15 to May 15, 2026, and is scheduled to take effect on May 18, 2026. As the move is an internal reclassification within net assets, the company expects no impact on its business results or the total amount of shareholders’ equity, suggesting a primarily financial-structure-driven adjustment rather than an operational shift.
The most recent analyst rating on (JP:5563) stock is a Hold with a Yen453.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.
Nippon Denko reported underlying ordinary profit of ¥5.3 billion for fiscal 2025, slightly up year on year and maintaining the ¥5.0 billion scale achieved since 2021, while accounting-basis ordinary profit fell to ¥2.7 billion due to a negative inventory impact of ¥2.2 billion. Management highlighted steady profit growth in businesses other than ferroalloys, progress on its medium-term plan through investments such as the new No. 5 incineration ash melting furnace, and continued shareholder returns, including a ¥4.0 billion share buyback in 2025, a ¥12.0 dividend with a commemorative component, and a projected ¥13.0 dividend for 2026 alongside a higher minimum payout level, signaling confidence in future earnings with a ¥6.0 billion profit projection for 2026.
The company guided for underlying and accounting-basis ordinary profit of ¥6.0 billion in fiscal 2026, assuming no inventory impact, suggesting a recovery in reported earnings and ongoing strengthening of its non-ferroalloy segments. By lifting its minimum dividend per share to ¥11.0 and maintaining an active buyback program, Nippon Denko is positioning itself as a stable income stock within the materials sector, balancing growth investments in new facilities with a clear commitment to enhancing shareholder value and smoothing volatility linked to inventory revaluations.
The most recent analyst rating on (JP:5563) stock is a Hold with a Yen453.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.
Nippon Denko reported fiscal 2025 consolidated net sales of ¥77.3 billion, down 1.2% year on year, with operating profit falling 24.7% to ¥5.2 billion and profit attributable to owners of parent halving to ¥1.4 billion, pressured by weaker profitability and higher equity‑method losses. Despite the earnings decline, the balance sheet remained solid with a 76.0% equity ratio and net assets per share rising, while operating cash flow strengthened to ¥14.6 billion, though investing and financing outflows left year‑end cash roughly flat.
The company raised its annual dividend for 2025 to ¥12 per share, including a ¥1 commemorative payout for its 100th anniversary, and plans to lift the minimum annual dividend to ¥11 from the 2026 fiscal year, signaling a continued focus on shareholder returns even as its payout ratio exceeds 100%. For 2026, Nippon Denko forecasts a further 2.9% decline in sales to ¥75.0 billion but expects ordinary profit to more than double to ¥6.0 billion, implying a recovery in margins that, if achieved, could improve earnings quality and support its enhanced dividend policy.
The most recent analyst rating on (JP:5563) stock is a Hold with a Yen409.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.
Nippon Denko’s board has resolved to abolish its longstanding response policy for large-scale purchases of the company’s shares, effectively discontinuing its anti-takeover measures when the current plan expires at the close of the 126th Annual General Meeting of Shareholders scheduled for late March 2026. Introduced in 2007 and periodically revised, most recently with shareholder approval in March 2023, the plan is being scrapped in light of evolving market practice around poison pills, feedback from domestic and overseas institutional investors, and changes in the company’s operating environment, signaling a more open stance toward potential share accumulations. Even without a formal plan, the company states it will still seek detailed disclosure and sufficient time for shareholder evaluation in the event of any large-scale purchase that could harm corporate value or shareholder interests, and will use measures available under law to protect stakeholders if necessary, underscoring a shift from pre-set takeover defenses to case-by-case governance responses.
The most recent analyst rating on (JP:5563) stock is a Hold with a Yen410.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.
Nippon Denko Co., Ltd. has completed the payment procedures for the disposal of treasury shares as part of its restricted stock incentive plan for employees. The number of shares and total disposal amount were adjusted due to partial forfeiture of rights, reflecting the number of employees who agreed to participate in the plan.
The most recent analyst rating on (JP:5563) stock is a Hold with a Yen318.00 price target. To see the full list of analyst forecasts on Nippon Denko Co., Ltd. stock, see the JP:5563 Stock Forecast page.