Nichicon Corporation (6996) AI Stock Analysis

• Market Cap: ¥85.68B
• Dividend Yield: 2.77%
• Average Volume (3M): 141.75K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.87
• Revenue Growth: -3.24%
• EPS Growth: -29.08%
• Country: JP
• Employees: 5,394
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -18.58
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 151,070
• 30 Day Avg. Volume: 141,746
• PEG Ratio: -0.68
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.59
• 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: ¥1,295.00
• Price Target Upside: 2.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,284.00 ▲(1.58%Upside)

Nichicon Corporation's stock score is driven by solid financial performance and an attractive valuation. The company's healthy balance sheet and income metrics support its stability. The stock appears undervalued, offering potential for growth and income. However, technical indicators suggest cautious market momentum, which tempers the overall score.

Nichicon Corporation Business Overview & Revenue Model

Company Description

Nichicon Corporation is a leading Japanese manufacturer in the electronics sector, specializing in the production of capacitors, circuit products, and power supplies. Founded in 1950, the company has established itself as a key player in the development and supply of electronic components, catering to a wide range of industries including automotive, consumer electronics, and renewable energy. Nichicon's product lineup includes aluminum electrolytic capacitors, film capacitors, and functional modules, which are essential components in various electronic devices and systems.

How the Company Makes Money

Nichicon Corporation generates revenue primarily through the sale of its electronic components and products. The company's core revenue streams include the manufacturing and distribution of capacitors and circuit products to various industries. Key revenue contributors are its automotive and consumer electronics segments, where there is a high demand for reliable and high-performance capacitors. Additionally, Nichicon benefits from its involvement in renewable energy sectors, providing power supplies and energy storage solutions. The company also engages in strategic partnerships and collaborations with other electronics manufacturers and automotive companies, enhancing its market presence and driving sales. Nichicon invests in research and development to innovate and expand its product offerings, thereby maintaining a competitive edge in the global electronics market.

Nichicon Corporation Financial Statement Overview

Summary

Nichicon Corporation demonstrates solid financial performance with stable balance sheet and healthy income statement metrics, despite a decrease in net profit margins and some variability in cash flow management.

Income Statement

Nichicon Corporation has demonstrated steady revenue growth over the years, with a slight decline in the most recent period. Gross profit and EBITDA margins are healthy, indicating efficient cost management. However, the net profit margin has decreased, suggesting increased expenses or lower operational efficiency. The company has maintained a positive trend in EBIT and EBITDA margins, reflecting operational stability.

Balance Sheet

The balance sheet shows a strong equity position with a favorable equity ratio, indicating financial stability. The debt-to-equity ratio has improved, showing better leverage management. There is a solid return on equity, reflecting effective use of shareholder funds. The company's asset base is robust, supporting its growth and operational needs.

Cash Flow

Nichicon Corporation's cash flow statement reveals a positive trend in free cash flow, indicating good cash generation capabilities despite fluctuations. The operating cash flow to net income ratio is sound, showing effective conversion of net income into cash. However, the free cash flow to net income ratio suggests some variability in cash flow management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	175.75B	181.64B	184.72B	142.20B	116.07B
Gross Profit	28.33B	31.26B	33.75B	24.40B	16.89B
EBITDA	17.10B	17.62B	19.99B	12.27B	6.72B
Net Income	5.88B	8.25B	7.81B	7.90B	1.70B
Balance Sheet
Total Assets	192.58B	206.94B	192.34B	170.11B	156.01B
Cash, Cash Equivalents and Short-Term Investments	25.62B	29.49B	25.67B	18.30B	20.81B
Total Debt	25.86B	35.62B	33.46B	25.56B	25.61B
Total Liabilities	78.77B	93.10B	90.99B	75.46B	66.74B
Stockholders Equity	110.43B	110.90B	98.84B	92.41B	87.19B
Cash Flow
Free Cash Flow	7.70B	4.04B	-164.00M	-2.63B	1.17B
Operating Cash Flow	18.35B	16.32B	9.19B	5.26B	7.09B
Investing Cash Flow	-8.36B	-12.73B	-8.12B	-5.97B	-4.01B
Financing Cash Flow	-14.32B	-571.00M	5.43B	-2.30B	-2.13B

Nichicon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1264.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6996, the sentiment is Positive. The current price of 1264 is above the 20-day moving average (MA) of 1216.25, above the 50-day MA of 1183.80, and above the 200-day MA of 1122.36, indicating a bullish trend. The MACD of 19.34 indicates Negative momentum. The RSI at 68.40 is Neutral, neither overbought nor oversold. The STOCH value of 92.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6996.

Nichicon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6989	77 Outperform	¥15.74B	7.68		4.33%	5.82%	-11.79%
6787	76 Outperform	¥184.24B	12.42		1.06%	15.24%	35.69%
6814	75 Outperform	¥129.79B	9.50		2.67%	9.11%	114.88%
6996	71 Outperform	¥85.68B	14.46		2.77%	-3.24%	-29.08%
Sector *	68 Neutral	¥234.20B	14.80	7.50%	2.60%	9.27%	6.74%
6997	61 Neutral	¥26.07B	686.55	0.05%	―	-18.61%	―
6976	58 Neutral	¥346.81B	145.16		3.26%	5.82%	-71.97%

Nichicon Corporation Corporate Events

Nichicon Corporation Records Extraordinary Losses Amid Restructuring

Nichicon Corporation has announced the recording of extraordinary losses due to business restructuring costs in its fiscal year ending March 31, 2025. The losses stem from impairment of non-current assets in its Capacitor Segment and costs related to employee optimization at its Malaysian subsidiary, amounting to 2,087 million yen. This move is part of the company’s efforts to streamline operations and improve financial performance.

Nichicon Corporation Reports Decline in Fiscal Year 2025 Financial Results

Nichicon Corporation reported a decline in its consolidated financial results for the fiscal year ending March 31, 2025, with net sales decreasing by 3.2% and operating profit dropping by 41.6% compared to the previous year. Despite the downturn, the company plans to increase its annual dividend per share, reflecting a commitment to shareholder returns. The financial forecast for the next fiscal year anticipates a modest recovery in net sales and operating profit, signaling potential stabilization in the company’s operations.