Nitto Denko Corp. (JP:6988)
:6988
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Nitto Denko
(6988)
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Rating:72Outperform
Price Target:
¥3,333.00
▼(-1.22% Downside)
Action:ReiteratedDate:04/29/26
The score is driven primarily by strong financial performance—expanding margins and a very low-leverage balance sheet—tempered by uneven cash-flow conversion and growth volatility. Technicals are a notable drag with the stock trading below major moving averages, while valuation is supportive with a moderate P/E and ~2% yield.
Positive Factors
Margin Expansion
Sustained margin expansion over 2021–2025 indicates improving product mix and pricing power in specialty materials. Higher gross and net margins suggest durable competitive advantages—ability to command premium pricing and absorb cost fluctuations—supporting long‑term cash generation and reinvestment capacity.
Negative Factors
Revenue Volatility
Revenue volatility, including a 2024 dip, reduces visibility for multi‑period planning and risks earnings consistency. For a materials supplier tied to OEM cycles, uneven top‑line trends can constrain capacity utilization and delay returns on recent investments, making multi‑quarter performance less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained margin expansion over 2021–2025 indicates improving product mix and pricing power in specialty materials. Higher gross and net margins suggest durable competitive advantages—ability to command premium pricing and absorb cost fluctuations—supporting long‑term cash generation and reinvestment capacity.
Read all positive factors
Nitto Denko (6988) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.93T
Dividend Yield1.54%
Average Volume (3M)2.86M
Price to Earnings (P/E)18.5
Beta (1Y)1.13
Revenue Growth1.41%
EPS Growth0.76%
CountryJP
Employees25,300
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)197.22
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
¥4,600.00Price Target Upside36.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)208.72
Revenue Forecast (FY)¥1.05T
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 primarily makes money by manufacturing and selling engineered materials that provide specific functions (e.g., adhesion, protection, insulation, optical control, and process support) to industrial customers. Key revenue streams include...
Nitto Denko Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.03T | 1.01T | 915.14B | 929.04B | 853.45B |
| Gross Profit | 390.76B | 395.51B | 330.86B | 337.44B | 302.39B |
| EBITDA | 257.09B | 262.50B | 202.04B | 209.19B | 185.70B |
| Net Income | 133.50B | 137.24B | 102.68B | 109.17B | 97.13B |
Balance Sheet | |||||
| Total Assets | 1.44T | 1.32T | 1.25T | 1.15T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 359.81B | 363.34B | 342.27B | 329.97B | 362.05B |
| Total Debt | 0.00 | 31.38B | 30.46B | 24.98B | 25.43B |
| Total Liabilities | 292.65B | 276.80B | 266.04B | 250.45B | 272.36B |
| Stockholders Equity | 1.15T | 1.04T | 984.02B | 902.21B | 821.19B |
Cash Flow | |||||
| Free Cash Flow | 95.58B | 111.91B | 87.75B | 115.78B | 85.53B |
| Operating Cash Flow | 192.18B | 217.91B | 155.52B | 181.70B | 144.49B |
| Investing Cash Flow | -107.44B | -115.11B | -67.93B | -159.91B | -57.59B |
| Financing Cash Flow | -106.60B | -78.89B | -90.78B | -57.63B | -36.64B |
Nitto Denko Technical Analysis
Positive
3374.00
Price Trends
3311.81
Positive
3491.62
Negative
3407.22
Negative
Market Momentum
0.71
Negative
60.78
Neutral
86.50
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 3374 is above the 20-day moving average (MA) of 3158.83, above the 50-day MA of 3311.81, and below the 200-day MA of 3407.22, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 86.50 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥326.69B | 5.46 | 9.34% | 4.27% | 0.43% | -23.12% | |
76 Outperform | ¥446.20B | 17.67 | 6.52% | 1.82% | 2.84% | 65.28% | |
72 Outperform | ¥1.93T | 18.54 | 11.98% | 1.54% | 1.41% | 0.76% | |
67 Neutral | ¥847.36B | 77.75 | -2.50% | 3.49% | -4.52% | -148.61% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥742.66B | 12.79 | 2.01% | 3.82% | -6.89% | -65.83% | |
58 Neutral | ¥1.18T | 9.28 | 3.63% | 3.98% | -0.42% | ― |
* Basic Materials Sector Average
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Nitto Denko Corporate Events
Nitto Denko Reshapes Governance Body for Executive Nominations and Pay
Apr 27, 2026
Nitto Denko has overhauled the structure of its voluntary Nomination and Remuneration Advisory Committee as part of efforts to strengthen corporate governance around management appointments and pay. The move follows a period of reviewing the commi...
Nitto Denko Alters Share-Based Pay Plan as It Shifts to New Incentive Scheme
Apr 27, 2026
Nitto Denko has decided to abolish its existing medium-term performance-linked share-based remuneration plan after the completion of the April 2025 to March 2028 evaluation period, as it transitions to a new performance-linked restricted share rem...
Nitto Denko Lifts Fiscal 2026 Outlook as Investment and Earnings Edge Higher
Apr 27, 2026
Nitto Denko reported steady growth for the fiscal year ended March 31, 2025, with revenue rising to ¥1,028.2 billion from ¥1,013.9 billion and operating profit holding firm at ¥183.6 billion, sustaining an operating margin just unde...
Nitto Denko Revamps Executive Pay With Performance-Linked Restricted Shares
Apr 27, 2026
Nitto Denko Corporation has decided to overhaul its executive pay framework by introducing a new performance-linked restricted share remuneration system for internal directors, subject to approval at its June 2026 shareholders’ meeting. The ...
Nitto Denko Posts Steady FY2026 Results and Lifts Dividend Amid Modest Growth Outlook
Apr 27, 2026
Nitto Denko reported modest revenue growth for the year ended March 31, 2026, with sales up 1.4% to ¥1.03 trillion, while operating profit and net profit dipped slightly as margins softened. Earnings per share edged higher due to the prior st...
Nitto Denko to Reclassify ¥47.8 Billion in Legal Capital Surplus to Boost Capital Flexibility
Mar 30, 2026
Nitto Denko has approved a proposal to significantly reduce its legal capital surplus by ¥47.8 billion and reclassify this amount as other capital surplus, subject to shareholder approval at its June 2026 annual general meeting. The move is d...
Nitto Denko Flags Governance Priorities After Board Effectiveness Review
Mar 30, 2026
Nitto Denko has completed its fiscal 2025 evaluation of the effectiveness of its Board of Directors, confirming that the board remains broadly effective while continuing to refine its governance framework. The assessment, conducted via a third-par...
Nitto Denko Launches ¥50 Billion Share Buyback to Bolster Capital Efficiency
Mar 30, 2026
Nitto Denko Corporation has authorized a share repurchase program, allowing the company to buy back up to 20 million shares of its common stock, equivalent to 2.97% of its outstanding shares, for a maximum total of ¥50 billion. The buyback, s...
Nitto Denko Launches ¥50 Billion Share Buyback for Capital Flexibility
Mar 30, 2026
Nitto Denko’s board has approved a share repurchase program, authorizing the buyback of up to 20 million shares, or about 2.97% of its outstanding stock, for a maximum of ¥50 billion. The repurchase, to be carried out between April 8 an...
Nitto Denko Posts Slight Profit Decline Despite Revenue Growth, Maintains Solid Dividend Outlook
Feb 4, 2026
Nitto Denko reported modest revenue growth but weaker profits for the nine months ended 31 December 2025, with revenue edging up 1.0% year on year to ¥786.2 billion while operating profit fell 3.3% to ¥147.9 billion and net profit attrib...
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.