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Nitto Denko
(6988)
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Rating:80Outperform
Price Target:
¥4,081.00
▲(14.99% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong financial quality (high margins, low leverage, healthy ROE), supported by positive technical trend signals (price above key moving averages). Valuation is reasonable but not cheap (P/E ~18) and the dividend yield is modest, which keeps the overall score from being higher.
Positive Factors
High Profitability
Sustained high margins for a specialty-chemicals business indicate durable pricing power and product differentiation. These margins support reinvestment in R&D, buffer cyclical revenue swings, and underpin consistent returns on capital, aiding long-term competitiveness.
Negative Factors
Inconsistent Revenue Growth
Growth has been uneven, with a 2024 dip and a sharp deceleration in 2026 despite margin recovery. This suggests maturation in core end-markets and limited organic tailwinds, meaning earnings gains may rely more on margin expansion than durable top-line growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high margins for a specialty-chemicals business indicate durable pricing power and product differentiation. These margins support reinvestment in R&D, buffer cyclical revenue swings, and underpin consistent returns on capital, aiding long-term competitiveness.
Read all positive factors
Nitto Denko (6988) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.15T
Dividend Yield1.8%
Average Volume (3M)2.86M
Price to Earnings (P/E)16.4
Beta (1Y)1.14
Revenue Growth4.24%
EPS Growth6.46%
CountryJP
Employees26,477
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)202.29
Shares Outstanding678,659,700
10 Day Avg. Volume2,953,770
30 Day Avg. Volume2,858,060
Financial Highlights & Ratios
PEG Ratio20.83
Price to Book (P/B)1.81
Price to Sales (P/S)2.02
P/FCF Ratio21.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,000.00Price Target Upside-15.47% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)213.95
Revenue Forecast (FY)¥1.08T
Nitto Denko Business Overview & Revenue Model
Company Description
Nitto Denko Corporation, established in 1918 and headquartered in Osaka, Japan, operates as a global enterprise with a primary focus on adhesive tapes. Its extensive product portfolio caters to a wide array of industries internationally. Offerings...
How the Company Makes Money
Nitto Denko primarily makes money by manufacturing and selling engineered materials and components to business customers (B2B) across electronics, industrial, mobility, and other end markets. Its core revenue model is product sales of (1) adhesive...
Nitto Denko Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05T | 1.03T | 1.01T | 915.14B | 929.04B | 853.45B |
| Gross Profit | 400.43B | 390.76B | 395.51B | 330.86B | 337.44B | 302.39B |
| EBITDA | 265.93B | 257.70B | 252.13B | 200.87B | 205.03B | 183.32B |
| Net Income | 136.07B | 133.50B | 137.24B | 102.68B | 109.17B | 97.13B |
Balance Sheet | ||||||
| Total Assets | 1.44T | 1.44T | 1.32T | 1.25T | 1.15T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 299.06B | 359.81B | 363.34B | 342.27B | 329.97B | 362.05B |
| Total Debt | 3.12B | 0.00 | 31.38B | 30.46B | 24.98B | 25.43B |
| Total Liabilities | 294.37B | 292.65B | 276.80B | 266.04B | 250.45B | 272.36B |
| Stockholders Equity | 1.15T | 1.15T | 1.04T | 984.02B | 902.21B | 821.19B |
Cash Flow | ||||||
| Free Cash Flow | 103.85B | 95.58B | 111.91B | 87.75B | 115.78B | 85.53B |
| Operating Cash Flow | 196.96B | 192.18B | 217.91B | 155.52B | 181.70B | 144.49B |
| Investing Cash Flow | -106.48B | -107.44B | -115.11B | -67.93B | -159.91B | -57.59B |
| Financing Cash Flow | -105.05B | -106.60B | -78.89B | -90.78B | -57.63B | -36.64B |
Nitto Denko Technical Analysis
Positive
3549.00
Price Trends
3212.05
Positive
3178.40
Positive
3413.04
Positive
Market Momentum
70.98
Negative
64.26
Neutral
58.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6988, the sentiment is Positive. The current price of 3549 is above the 20-day moving average (MA) of 3358.90, above the 50-day MA of 3212.05, and above the 200-day MA of 3413.04, indicating a bullish trend. The MACD of 70.98 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 58.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | ¥2.15T | 16.44 | 12.36% | 1.69% | 4.24% | 6.46% | |
69 Neutral | ¥534.89B | 20.99 | 8.52% | 1.62% | 4.95% | 52.93% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥1.29T | 15.10 | 5.92% | 3.35% | 1.39% | ― | |
60 Neutral | ¥828.29B | 23.14 | 4.01% | 3.40% | -7.76% | 7.92% | |
58 Neutral | ¥814.97B | -20.29 | -6.25% | 2.29% | -4.57% | -190.44% | |
55 Neutral | ¥369.75B | 37.09 | 2.75% | 4.15% | 2.16% | -77.64% |
* Basic Materials Sector Average
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Nitto Denko Corporate Events
Nitto Denko Lifts Full-Year Profit Forecast on Q1 Earnings Strength
Jul 28, 2026
Nitto Denko reported higher revenue and operating profit in the first quarter of fiscal 2026, driven by strong performance in industrial tape and human life segments. Electric debonding tape benefited from wider adoption in new models, while semic...
Nitto Denko Lifts Full-Year Outlook as First-Quarter Profit Climbs
Jul 28, 2026
Nitto Denko reported a solid start to fiscal 2026, with first-quarter revenue rising 10.3% year-on-year to ¥271.7 billion and operating profit up 15.4% to ¥49.2 billion, reflecting improved profitability and stronger demand. Net profit a...
Nitto Denko Posts Double-Digit Profit Growth and Lifts Full-Year Outlook
Jul 28, 2026
Nitto Denko reported a solid start to fiscal 2026, with first-quarter revenue rising 10.3% year on year to ¥271.7 billion and operating profit up 15.4% to ¥49.2 billion, lifting net profit attributable to owners by 8.2% to ¥33.9 bil...
Nitto Denko Advances Large-Scale Share Buyback Program
Jul 10, 2026
Nitto Denko Corporation has reported progress on its ongoing share repurchase program authorized by the Board of Directors on March 30, 2026 under Japan’s Companies Act. Between June 1 and June 30, 2026, the company bought back 3,606,600 com...
Nitto Denko to Grant Treasury Shares to Directors Under Performance-Linked Plan
Jun 19, 2026
Nitto Denko’s board has approved the disposal of 22,200 treasury shares, worth about ¥70.6 million at ¥3,180 per share, to four internal directors as remuneration under its performance-linked share plan. The move forms part of a br...
Nitto Denko Reports Progress on ¥50 Billion Share Buyback Program
Jun 10, 2026
Nitto Denko has disclosed the latest status of its ongoing share repurchase program authorized by its board on March 30, 2026, under Japan’s Companies Act. From May 1 to May 31, the company bought back 2,466,000 common shares via market tran...
Nitto Denko Unveils “Nitto RISE 2028” Plan With Profit, ESG and Human Capital Targets
May 29, 2026
Nitto Denko has launched a new three-year medium-term management plan, “Nitto RISE 2028,” covering FY2026 to FY2028 as a key step toward its 2030 goal of becoming an essential ESG-focused niche leader. The plan centers on “Double...
Nitto Denko Advances Share Buyback with ¥11 Billion Repurchase
May 12, 2026
Nitto Denko has repurchased 3,373,900 shares of its common stock for approximately JPY 11.0 billion through market transactions on the Tokyo Stock Exchange between April 8 and April 30, 2026. This move is part of a broader share buyback program au...
Nitto Denko Posts Slight Profit Dip but Lifts Dividend and Eyes Growth in FY2027
May 11, 2026
Nitto Denko reported modest top-line growth for the year ended March 31, 2026, with revenue up 1.4% to ¥1.03 trillion, while operating profit slipped 1.1% and net profit attributable to owners fell 2.7%, reflecting margin pressure despite sta...
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.