Nitto Denko Corp. (JP:6988)
:6988
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Nitto Denko
(6988)
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Rating:68Neutral
Price Target:
¥3,825.00
▲(20.74% Upside)
Action:DowngradedDate:01/28/26
Strong underlying financial quality (high profitability and extremely low leverage) is the primary support for the score. This is tempered by weak technical signals (below key moving averages with negative MACD and low RSI) and a moderate valuation (P/E ~18.4 with a modest ~1.65% yield).
Positive Factors
High Profitability
Sustained high gross, EBIT and net margins point to persistent pricing power and efficient operations across product lines. This margin structure supports durable earnings generation, funds R&D and capex, and underpins the company’s ability to invest through cycles.
Negative Factors
Uneven cash conversion
Operating cash flow trailing net income and free cash flow under half of net income indicate working-capital swings or heavy investment timing. This variability weakens free-cash-flow predictability, complicating capital allocation, dividends and long-term investment planning.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high gross, EBIT and net margins point to persistent pricing power and efficient operations across product lines. This margin structure supports durable earnings generation, funds R&D and capex, and underpins the company’s ability to invest through cycles.
Read all positive factors
Nitto Denko (6988) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.07T
Dividend Yield1.54%
Average Volume (3M)2.86M
Price to Earnings (P/E)17.0
Beta (1Y)1.09
Revenue Growth1.84%
EPS Growth-6.57%
CountryJP
Employees25,300
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)54.57
Shares Outstanding678,659,700
10 Day Avg. Volume2,953,770
30 Day Avg. Volume2,858,060
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)1.84
Price to Sales (P/S)1.89
P/FCF Ratio17.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,597.48Price Target Upside45.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)197.42
Revenue Forecast (FY)¥1.03T
Nitto Denko Business Overview & Revenue Model
Company Description
Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan and internationally. It provides double sided tapes, surface protective films, sealing materials/NVH related products, masking tapes, membranes, FPD/touch panel rela...
How the Company Makes Money
Nitto Denko generates revenue through multiple streams, primarily by selling its advanced materials and specialty products to a variety of industries. Key revenue streams include the production of adhesive tapes and films, which are used extensive...
Nitto Denko Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.02T | 1.01T | 915.14B | 929.04B | 853.45B | 761.32B |
| Gross Profit | 390.09B | 395.51B | 330.86B | 337.44B | 302.39B | 243.45B |
| EBITDA | 258.03B | 262.50B | 202.04B | 209.19B | 185.70B | 148.42B |
| Net Income | 134.25B | 137.24B | 102.68B | 109.17B | 97.13B | 70.24B |
Balance Sheet | ||||||
| Total Assets | 1.38T | 1.32T | 1.25T | 1.15T | 1.09T | 965.90B |
| Cash, Cash Equivalents and Short-Term Investments | 322.76B | 363.34B | 342.27B | 329.97B | 362.05B | 300.89B |
| Total Debt | 2.96B | 31.38B | 30.46B | 24.98B | 25.43B | 26.49B |
| Total Liabilities | 273.12B | 276.80B | 266.04B | 250.45B | 272.36B | 249.21B |
| Stockholders Equity | 1.10T | 1.04T | 984.02B | 902.21B | 821.19B | 715.87B |
Cash Flow | ||||||
| Free Cash Flow | 90.87B | 111.91B | 87.75B | 115.78B | 85.53B | 58.59B |
| Operating Cash Flow | 192.92B | 217.91B | 155.52B | 181.70B | 144.49B | 116.31B |
| Investing Cash Flow | -110.43B | -115.11B | -67.93B | -159.91B | -57.59B | -57.54B |
| Financing Cash Flow | -126.05B | -78.89B | -90.78B | -57.63B | -36.64B | -68.30B |
Nitto Denko Technical Analysis
Negative
3168.00
Price Trends
3481.48
Negative
3626.67
Negative
3415.86
Negative
Market Momentum
-100.41
Positive
39.59
Neutral
24.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6988, the sentiment is Negative. The current price of 3168 is below the 20-day moving average (MA) of 3325.45, below the 50-day MA of 3481.48, and below the 200-day MA of 3415.86, indicating a bearish trend. The MACD of -100.41 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6988.
Nitto Denko Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥360.83B | 5.46 | 9.34% | 4.27% | -0.48% | -35.29% | |
76 Outperform | ¥418.03B | 17.67 | 6.52% | 1.82% | 3.25% | -11.31% | |
68 Neutral | ¥2.07T | 17.01 | 11.98% | 1.54% | 1.84% | -6.57% | |
67 Neutral | ¥784.70B | 77.75 | -2.50% | 3.49% | -6.83% | -123.67% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥752.63B | 12.79 | 2.01% | 3.82% | -4.63% | -65.11% | |
58 Neutral | ¥1.20T | 15.92 | 3.63% | 3.98% | -1.17% | ― |
* Basic Materials Sector Average
JP:6988
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Nitto Denko Corporate Events
Nitto Denko Posts Slight Sales Rise but Profit Dip, Affirms Outlook and Dividend Plan
Jan 26, 2026
Nitto Denko reported modest revenue growth but lower profits for the nine months ended 31 December 2025, with sales up 1.0% year-on-year to ¥786.2 billion while operating profit fell 3.3% to ¥147.9 billion and net profit attributable to ...
Nitto Denko Taps Akagi as New President in Planned Leadership Transition
Dec 25, 2025
Nitto Denko has announced a leadership reshuffle in which current President and CEO Hideo Takasaki will become Chairman and Representative Director, while Executive Vice President Tatsuya Akagi, a long-time company insider who has led the Informat...
Nitto Denko Reports Decline in Semi-Annual Financial Results
Nov 6, 2025
Nitto Denko Corporation reported a decline in its financial performance for the six months ending September 30, 2025, with revenue and profits showing a decrease compared to the previous year. Despite the downturn, the company maintains a strong e...
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.