Nitto Denko (6988) AI Stock Analysis

• Market Cap: $2.37T
• Dividend Yield: 1.66%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.11
• Revenue Growth: 5.73%
• EPS Growth: 8.99%
• Country: JP
• Employees: 25,300
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 45.68
• Shares Outstanding: 706,760,740
• 10 Day Avg. Volume: 1,929,790
• 30 Day Avg. Volume: 2,405,733
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 4.11
• Enterprise Value/Ebitda: 6.44
• 1Y Price Target: $3,408.32
• Price Target Upside: 1.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥3,414.00 ▲(1.43% Upside)

Nitto Denko's overall stock score is driven by its strong financial performance, characterized by robust profitability and minimal leverage, which underpins its financial stability. Technical analysis shows bullish momentum but indicates caution due to overbought conditions. The valuation is fair, with a reasonable P/E ratio and modest dividend yield. The absence of earnings call and corporate events data did not impact the score.

Nitto Denko Business Overview & Revenue Model

Company Description

Nitto Denko Corporation, a leading Japanese multinational, operates primarily in the sectors of industrial materials, life sciences, and electronics. The company is renowned for its innovative products, including adhesive tapes, optical films for displays, and medical products, which serve a diverse range of industries from automotive to healthcare. Nitto Denko’s commitment to research and development ensures a steady flow of advanced materials and solutions that meet the evolving needs of its global clientele.

How the Company Makes Money

Nitto Denko generates revenue through its diversified product lines across several key segments. The company's major revenue streams include industrial tapes used in automotive and construction industries, and optical films essential for manufacturing displays in consumer electronics such as smartphones and televisions. Additionally, Nitto Denko earns from its life sciences segment by providing medical products like transdermal drug delivery systems and surgical tapes. The company maintains strategic partnerships and investments in R&D to innovate and improve its product offerings, thereby enhancing its competitive edge and market presence. These factors, combined with its global operational footprint, contribute significantly to its earnings.

Nitto Denko Financial Statement Overview

Summary

Nitto Denko demonstrates robust financial health with strong revenue and profit growth, minimal leverage, and excellent cash flow management. The company maintains a strong asset base with high equity and low debt, contributing to financial stability.

Income Statement

Nitto Denko has demonstrated strong revenue growth with a significant increase from the previous year, rising by approximately 10.8%. The company maintains robust profitability with a gross profit margin of 39.0% and a net profit margin of 13.5% for the latest year. EBIT and EBITDA margins are also healthy at 19.4% and 25.1%, respectively, reflecting efficient operations and strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet is exceptionally strong, with a very low debt-to-equity ratio of 0.004, indicating minimal leverage and a highly stable financial position. Return on equity is impressive at 13.1%, showcasing effective utilization of shareholder funds. The equity ratio stands at an impressive 79.0%, highlighting a solid asset base predominantly financed by equity.

Cash Flow

Nitto Denko exhibits strong cash flow performance, with a free cash flow growth rate of 27.5% from the previous year. The operating cash flow to net income ratio is 1.59, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is robust at 0.82, suggesting substantial free cash flow relative to earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.01T	915.14B	929.04B	853.45B	761.32B
Gross Profit	395.51B	330.86B	337.44B	302.39B	243.45B
EBITDA	254.16B	200.84B	201.54B	177.20B	139.07B
Net Income	137.24B	102.68B	109.17B	97.13B	70.23B
Balance Sheet
Total Assets	1.32T	1.25T	1.15T	1.09T	965.90B
Cash, Cash Equivalents and Short-Term Investments	363.34B	342.27B	332.11B	366.99B	302.29B
Total Debt	455.00M	30.46B	272.00M	241.00M	545.00M
Total Liabilities	276.80B	266.04B	250.45B	272.36B	249.22B
Stockholders Equity	1.04T	984.02B	902.21B	821.19B	715.87B
Cash Flow
Free Cash Flow	111.91B	87.75B	115.78B	85.53B	58.59B
Operating Cash Flow	217.91B	155.52B	181.70B	144.49B	116.31B
Investing Cash Flow	-115.11B	-67.93B	-159.91B	-57.59B	-57.54B
Financing Cash Flow	-78.89B	-90.78B	-57.63B	-36.64B	-68.30B

Nitto Denko Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3366.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 3366 is above the 20-day moving average (MA) of 3289.80, above the 50-day MA of 3006.44, and above the 200-day MA of 2735.14, indicating a bullish trend. The MACD of 93.18 indicates Positive momentum. The RSI at 68.09 is Neutral, neither overbought nor oversold. The STOCH value of 86.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6988.

Nitto Denko Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6988	75 Outperform	$2.37T	17.72	13.21%	1.66%	5.73%	8.99%
Sector *	61 Neutral	$10.26B	6.13	0.71%	2.93%	3.45%	-36.02%
NPCPF	―	$17.15B	21.16	9.77%	1.87%	―	―
ASGLF	―	$6.68B	29.12	2.45%	6.50%	―	―
MBGCF	―	$3.53B	13.48	6.42%	3.35%	―	―
MITUF	―	$4.70B	46.61	1.78%	0.03%	―	―
NOFCF	―	$4.43B	19.64	12.59%	1.63%	―	―

Nitto Denko Corporate Events

Nitto Denko Reports Decline in Q1 2025 Financial Performance

Nitto Denko Corporation reported a decline in its financial performance for the first quarter ended June 30, 2025, with revenue and profits showing a decrease compared to the same period in the previous year. The company has revised its consolidated forecasts for the fiscal year ending March 31, 2026, indicating adjustments in its financial expectations due to the current market conditions.

The most recent analyst rating on (JP:6988) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Nitto Denko stock, see the JP:6988 Stock Forecast page.

Nitto Denko Reports Decline in Q1 2025 Financial Performance

Nitto Denko Corporation reported a decline in its financial performance for the first quarter ended June 30, 2025, with revenue and profit figures showing a decrease compared to the same period in the previous year. The company has revised its consolidated forecasts for the fiscal year ending March 31, 2026, indicating adjustments in its financial expectations, which may impact stakeholders and its market positioning.

The most recent analyst rating on (JP:6988) stock is a Hold with a Yen14000.00 price target. To see the full list of analyst forecasts on Nitto Denko stock, see the JP:6988 Stock Forecast page.

Nitto Denko Announces Progress in Share Repurchase Program

Nitto Denko Corporation announced the status of its share repurchase program, which was initiated following a board resolution in January 2025. The company repurchased 2,640,000 shares of common stock for a total of JPY 6,938,534,160 through market transactions on the Tokyo Stock Exchange between June 1 and June 30, 2025. This move is part of a larger plan to repurchase up to 34,000,000 shares, reflecting Nitto Denko’s strategic efforts to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:6988) stock is a Hold with a Yen14000.00 price target. To see the full list of analyst forecasts on Nitto Denko stock, see the JP:6988 Stock Forecast page.

Nitto Denko Advances Share Repurchase Program

Nitto Denko Corporation announced the status of its share repurchase program, which was initiated following a resolution by the Board of Directors in January 2025. The company repurchased 3,388,400 shares of common stock for a total of JPY 8,956,772,411 through market transactions on the Tokyo Stock Exchange during May 2025. This move is part of a larger plan to repurchase up to 34 million shares, representing 4.84% of the total issued shares, with a maximum budget of JPY 80 billion. As of the end of May 2025, the company has repurchased 16,777,700 shares, totaling JPY 45,061,079,558, indicating a significant commitment to returning value to shareholders.

The most recent analyst rating on (JP:6988) stock is a Hold with a Yen14000.00 price target. To see the full list of analyst forecasts on Nitto Denko stock, see the JP:6988 Stock Forecast page.

Nitto Denko Establishes Voluntary Advisory Committee to Enhance Governance

Nitto Denko Corporation announced the formation of a voluntary Nomination and Remuneration Advisory Committee to enhance the fairness and transparency of its management processes. This committee, composed of outside directors and auditors, aims to provide independent advice on important management issues, particularly regarding the nomination and remuneration of the management team, thereby strengthening the company’s governance framework.

The most recent analyst rating on (JP:6988) stock is a Hold with a Yen14000.00 price target. To see the full list of analyst forecasts on Nitto Denko stock, see the JP:6988 Stock Forecast page.

Nitto Denko Reports Strong Financial Growth for FY 2025

Nitto Denko Corporation reported strong financial results for the fiscal year ending March 31, 2025, with a notable 10.8% increase in revenue and a 33.4% rise in operating profit compared to the previous year. The company’s strategic initiatives and market positioning have resulted in improved profitability and shareholder returns, as evidenced by an increase in basic earnings per share and a favorable return on equity.

The most recent analyst rating on (JP:6988) stock is a Hold with a Yen14000.00 price target. To see the full list of analyst forecasts on Nitto Denko stock, see the JP:6988 Stock Forecast page.

Nitto Denko Announces Share Repurchase Progress

Nitto Denko Corporation has announced the status of its share repurchase program, which was initiated following a Board of Directors’ resolution in January 2025. The company repurchased 6,471,800 shares amounting to JPY 16,104,669,047 through market transactions on the Tokyo Stock Exchange between April 1 and April 30, 2025. This strategic move is part of a broader plan to repurchase up to 34,000,000 shares by August 31, 2025, with a maximum budget of JPY 80,000,000,000, aiming to enhance shareholder value and optimize capital structure.