Nichicon Corporation (6996) AI Stock Analysis

• Market Cap: ¥114.01B
• Dividend Yield: 2.18%
• Average Volume (3M): 276.00K
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.91
• Revenue Growth: -0.93%
• EPS Growth: -45.03%
• Country: JP
• Employees: 5,394
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 6.44
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 316,140
• 30 Day Avg. Volume: 276,000
• PEG Ratio: -0.50
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 10.86
• 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: ¥1,600.00
• Price Target Upside: -4.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,843.00 ▲(9.57% Upside)

Nichicon Corporation's overall stock score is driven by strong technical indicators and a stable financial position, particularly in cash flow management and balance sheet strength. However, the high P/E ratio suggests potential overvaluation, which impacts the overall score. Continued focus on improving revenue growth and profitability will be key to enhancing the stock's attractiveness.

Positive Factors

Cash Flow Management

Strong cash flow management indicates the company's ability to generate cash efficiently, supporting reinvestment and financial stability.

Balance Sheet Strength

A low debt-to-equity ratio suggests prudent financial leverage, providing a solid foundation for long-term financial health.

Operational Efficiency

Stable EBIT and EBITDA margins reflect effective cost management and operational efficiency, supporting sustainable profitability.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder the company's ability to expand and compete effectively, impacting long-term market position.

Profitability Concerns

A modest net profit margin indicates difficulties in translating sales into profits, which could affect long-term financial performance.

Earnings Growth Decline

A significant decline in EPS growth suggests challenges in improving earnings, which can impact investor confidence and future growth potential.

Nichicon Corporation Business Overview & Revenue Model

Company Description

Nichicon Corporation, together with its subsidiaries, develops, produces, and sells capacitors and circuit products for electric and electronic products in Japan, the U.S.A, Asia, and internationally. It offers chip type, miniature type, and large can type aluminum electrolytic capacitors; conductive polymer aluminum solid electrolytic capacitors; and electric double layer capacitors, plastic film capacitors, positive thermistors, function and power modules, and inverter smoothing capacitors. The company also provides household energy storage systems; vehicle-to-home systems; EV/PHVs quick chargers; power storage systems for public and industrial use; small Li-Ion rechargeable batteries; switching power supplies; power sources for medical and academic study accelerators; voltage sag compensators; and power outage compensators. Its products have applications in energy, ecology, and medical equipment; automotive and railway-car related appliances; home appliances and industrial inverters; and information and communications equipment. The company was formerly known as Nichicon Capacitor Ltd. and changed its name to Nichicon Corporation in October 1987. Nichicon Corporation was incorporated in 1950 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Nichicon Corporation generates revenue primarily through the sale of its electronic components, with aluminum electrolytic capacitors being its flagship product. The company has a diversified revenue model that includes direct sales to manufacturers in various sectors, including automotive, consumer goods, and industrial markets. Key revenue streams include bulk sales to original equipment manufacturers (OEMs) and distributors, as well as tailored solutions for specific applications. Nichicon also benefits from strategic partnerships and collaborations with major electronics firms, which enhance its market presence and drive sales. The company's continuous investment in research and development allows it to innovate and introduce new products that meet evolving market demands, further contributing to its earnings.

Nichicon Corporation Financial Statement Overview

Summary

Nichicon Corporation demonstrates a stable financial position with strengths in cash flow management and a solid balance sheet. While the income statement shows some challenges in revenue growth and profitability, the company's operational efficiency and prudent financial leverage provide a strong foundation.

Income Statement

Nichicon Corporation's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth rate, but the company maintains a stable gross profit margin of 16.6%. The net profit margin is modest at 3.1%, reflecting challenges in converting revenue into profit. EBIT and EBITDA margins are relatively stable, suggesting operational efficiency. However, the negative revenue growth rate is a concern.

Balance Sheet

The balance sheet of Nichicon Corporation is relatively strong, with a low debt-to-equity ratio of 0.22, indicating prudent financial leverage. The return on equity is moderate at 4.8%, suggesting efficient use of equity capital. The equity ratio stands at a healthy level, reflecting a solid capital structure. Overall, the balance sheet shows stability, but there is room for improvement in profitability.

Cash Flow

Nichicon Corporation's cash flow statement is robust, with a significant free cash flow growth rate of 35.5% in the TTM period. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also solid, reflecting effective cash management. The cash flow position is a strong point for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	171.98B	175.75B	181.64B	184.72B	142.20B	116.07B
Gross Profit	28.40B	28.33B	31.26B	33.75B	24.40B	16.89B
EBITDA	12.68B	17.10B	17.62B	19.99B	15.69B	8.05B
Net Income	3.44B	5.88B	8.25B	7.81B	7.90B	1.70B
Balance Sheet
Total Assets	191.19B	192.58B	206.94B	192.34B	170.11B	156.01B
Cash, Cash Equivalents and Short-Term Investments	26.31B	25.62B	29.49B	25.67B	18.30B	20.81B
Total Debt	25.40B	25.86B	35.62B	33.46B	25.56B	25.61B
Total Liabilities	75.35B	78.77B	93.10B	90.99B	75.46B	66.74B
Stockholders Equity	112.35B	110.43B	110.90B	98.84B	92.41B	87.19B
Cash Flow
Free Cash Flow	8.29B	7.70B	4.04B	-164.00M	-2.63B	1.17B
Operating Cash Flow	15.55B	18.35B	16.32B	9.19B	5.26B	7.09B
Investing Cash Flow	-6.81B	-8.36B	-12.73B	-8.12B	-5.97B	-4.01B
Financing Cash Flow	-11.72B	-14.32B	-571.00M	5.43B	-2.30B	-2.13B

Nichicon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1682.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1682 is above the 20-day moving average (MA) of 1660.50, above the 50-day MA of 1649.20, and above the 200-day MA of 1367.32, indicating a bullish trend. The MACD of 15.21 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 23.16 is Neutral, 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
6814	76 Outperform	¥224.89B	13.88	―	1.88%	6.56%	106.55%
6787	74 Outperform	¥327.05B	18.13	―	0.76%	15.02%	46.62%
6989	71 Outperform	¥22.78B	9.74	―	3.15%	2.48%	39.69%
6996	69 Neutral	¥114.01B	33.43	―	2.18%	-0.93%	-45.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	54 Neutral	¥407.03B	94.12	―	2.57%	4.81%	-49.43%
6997	47 Neutral	¥36.77B	139.71	0.39%	―	-2.53%	-85.61%

Nichicon Corporation Corporate Events

Nichicon Corporation Reports Decline in Six-Month Financial Results

Nichicon Corporation reported a decrease in its consolidated financial results for the six months ended September 30, 2025, with net sales dropping by 4.5% and profit attributable to owners of the parent plummeting by 60.1% compared to the previous year. Despite the downturn, the company maintains a stable equity-to-asset ratio and has announced a slight increase in its annual dividend forecast, indicating a cautious optimism for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:6996) stock is a Buy with a Yen1507.00 price target. To see the full list of analyst forecasts on Nichicon Corporation stock, see the JP:6996 Stock Forecast page.