Nitto Denko (6988) AI Stock Analysis

• Market Cap: $1.84T
• Dividend Yield: 2.04%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.11
• Revenue Growth: 10.79%
• EPS Growth: 35.98%
• Country: JP
• Employees: 25,300
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): 40.90
• Shares Outstanding: 706,760,740
• 10 Day Avg. Volume: 2,660,660
• 30 Day Avg. Volume: 2,753,400
• PEG Ratio: -1.16
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2,865.36
• Price Target Upside: 8.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: ¥3,025.00 ▲( 15.02% Upside)

Nitto Denko's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and solid cash flow management. The technical analysis provides a neutral outlook, and the valuation suggests moderate attractiveness. The stability and efficiency evident in the financials underpin a positive investment perspective.

Nitto Denko Business Overview & Revenue Model

Company Description

Nitto Denko Corporation, listed on the Tokyo Stock Exchange under the ticker 6988, is a leading global manufacturer of materials and products primarily in the sectors of industrial tape, optronics, and medical. The company is renowned for its innovation in adhesive technologies and polymers, producing a wide range of products including tapes for electronics, automotive components, and healthcare solutions. Nitto Denko serves various industries, providing critical materials for electronics, infrastructure, and environmental applications.

How the Company Makes Money

Nitto Denko Corporation generates revenue through its diverse portfolio of products and solutions, primarily in the industrial, optronics, and medical sectors. The company's revenue streams are predominantly driven by the sales of its adhesive tapes, which are crucial components in the electronics and automotive industries. These tapes are used for various applications such as bonding, sealing, and insulating. In the optronics sector, Nitto Denko produces polarizing films used in LCDs for TVs, computers, and smartphones, contributing significantly to its earnings. Additionally, the company has a growing medical business that includes the production of transdermal drug delivery systems and other medical materials. Strategic partnerships and collaborations with major global manufacturers enhance its market reach and contribute to steady revenue streams.

Nitto Denko Financial Statement Overview

Summary

Nitto Denko's financial health is robust across the board, with strong revenue and profit growth, minimal leverage, and excellent cash flow management. The company is well-positioned within the specialty chemicals industry, demonstrating efficiency in operations and effective asset management. The low debt levels and high equity ratio contribute to financial stability, while strong cash flows underpin its ability to fund operations and investments.

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
	EBIT
196.91B	141.23B	147.17B	132.26B	93.81B
	EBITDA
254.16B	200.84B	201.54B	177.20B	139.07B
	Net Income Common Stockholders
137.24B	102.68B	109.17B	97.13B	70.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
363.34B	342.27B	332.11B	366.99B	302.29B
	Total Assets
1.32T	1.25T	1.15T	1.09T	965.90B
	Total Debt
455.00M	30.46B	272.00M	241.00M	545.00M
	Net Debt
-362.89B	-307.07B	-329.69B	-361.81B	-300.34B
	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: 2630.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 2630 is above the 20-day moving average (MA) of 2614.85, below the 50-day MA of 2655.54, and above the 200-day MA of 2542.49, indicating a neutral trend. The MACD of 7.97 indicates Negative momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 16.17 is Positive, 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	80 Outperform	$1.84T	13.32	13.37%	2.04%	10.79%	35.98%
4612	75 Outperform	¥2.48T	18.53	9.03%	1.34%	10.92%	8.62%
4403	66 Neutral	$534.76B	14.72	13.21%	2.03%	6.06%	5.82%
4183	64 Neutral	¥582.76B	17.97	3.69%	4.68%	5.15%	-8.48%
4182	61 Neutral	$403.22B	9.08	6.78%	4.32%	-3.58%	-21.27%
5201	58 Neutral	$889.54B	―	-4.41%	4.66%	1.96%	-399.31%
Sector *	50 Neutral	$1.99B	-1.06	-21.34%	3.71%	2.03%	-30.65%

Nitto Denko Corporate Events

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.

Nitto Denko Reports Strong Financial Growth and Announces Stock Split

Nitto Denko Corporation reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with a 10.8% rise in revenue and a 33.4% increase in operating profit compared to the previous year. The company also announced a stock split and changes in dividend payouts, which may impact shareholder returns and market positioning.

Nitto Denko Completes Share Repurchase Program

Nitto Denko Corporation announced the completion of a share repurchase program, acquiring 4,173,400 shares for approximately JPY 11.99 billion through market transactions on the Tokyo Stock Exchange. This move is part of a larger strategy approved by the Board of Directors to repurchase up to 34 million shares, reflecting the company’s efforts to enhance shareholder value and optimize capital structure.

Nitto Denko Confirms Board Effectiveness and Plans for Future Enhancements

Nitto Denko Corporation has confirmed the effectiveness of its Board of Directors for fiscal year 2024 following a comprehensive evaluation process involving a third-party survey. The evaluation highlighted the Board’s robust discussions on management issues and identified the need for deeper involvement of Outside Directors in management. Looking ahead, the Board aims to enhance discussions on succession planning for key executive roles to further improve its governance practices.

Nitto Denko Completes Significant Share Repurchase

Nitto Denko Corporation has announced the completion of a share repurchase program, acquiring 2,744,100 shares for approximately JPY 7.99 billion. This move, executed through the Tokyo Stock Exchange, is part of a broader strategy approved by the Board of Directors to repurchase up to 34 million shares by August 2025, potentially impacting the company’s stock value and shareholder returns.