Nichicon Corporation (6996) AI Stock Analysis

• Market Cap: ¥92.25B
• Dividend Yield: 2.57%
• Average Volume (3M): 215.54K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.83
• Revenue Growth: -2.07%
• EPS Growth: -18.83%
• Country: JP
• Employees: 5,394
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 17.68
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 254,040
• 30 Day Avg. Volume: 215,543
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,507.00
• Price Target Upside: 7.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥1,507.00 ▲(7.87% Upside)

Nichicon Corporation's stock score is primarily driven by its stable financial position and positive technical indicators. The company faces challenges in revenue growth and profitability, which are offset by its conservative leverage and strong equity base. The technical analysis indicates bullish momentum, although caution is advised due to approaching overbought levels. The valuation is reasonable, supported by a moderate P/E ratio and dividend yield.

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 a stable financial position with a conservative leverage approach and a strong equity base. However, the company faces challenges in revenue growth and profitability, as reflected in the declining revenue and low profit margins. The cash flow situation also presents concerns with negative free cash flow growth, which could impact future liquidity.

Income Statement

Nichicon Corporation's income statement shows a mixed performance. The company has a declining revenue trend with a negative revenue growth rate of -0.88% in the TTM, indicating challenges in maintaining sales momentum. The gross profit margin is moderate at 16.12%, but the net profit margin is relatively low at 3.34%, suggesting limited profitability. EBIT and EBITDA margins are also on the lower side, reflecting operational inefficiencies. However, the company has managed to maintain a stable gross profit margin over the periods.

Balance Sheet

The balance sheet of Nichicon Corporation reflects a stable financial position with a debt-to-equity ratio of 0.23, indicating a conservative leverage approach. The return on equity is modest at 5.20%, showing moderate efficiency in generating returns from equity. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity. However, the declining trend in stockholders' equity over the periods could be a concern if it continues.

Cash Flow

The cash flow statement reveals some challenges for Nichicon Corporation. The free cash flow growth rate is negative at -20.44% in the TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is moderate at 0.36, suggesting reasonable cash conversion from earnings. The free cash flow to net income ratio is 0.42, showing some ability to generate cash relative to net income. However, the negative growth in free cash flow is a potential risk for future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.20B	175.75B	181.64B	184.72B	142.20B	116.07B
Gross Profit	28.93B	28.33B	31.26B	33.75B	24.40B	16.89B
EBITDA	18.23B	17.10B	17.62B	19.99B	15.69B	8.05B
Net Income	5.34B	5.88B	8.25B	7.81B	7.90B	1.70B
Balance Sheet
Total Assets	188.94B	192.58B	206.94B	192.34B	170.11B	156.01B
Cash, Cash Equivalents and Short-Term Investments	25.19B	25.62B	29.49B	25.67B	18.30B	20.81B
Total Debt	24.32B	25.86B	35.62B	33.46B	25.56B	25.61B
Total Liabilities	75.31B	78.77B	93.10B	90.99B	75.46B	66.74B
Stockholders Equity	110.34B	110.43B	110.90B	98.84B	92.41B	87.19B
Cash Flow
Free Cash Flow	6.12B	7.70B	4.04B	-164.00M	-2.63B	1.17B
Operating Cash Flow	14.21B	18.35B	16.32B	9.19B	5.26B	7.09B
Investing Cash Flow	-5.93B	-8.36B	-12.73B	-8.12B	-5.97B	-4.01B
Financing Cash Flow	-14.34B	-14.32B	-571.00M	5.43B	-2.30B	-2.13B

Nichicon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1397.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1397 is above the 20-day moving average (MA) of 1318.80, above the 50-day MA of 1268.20, and above the 200-day MA of 1168.37, indicating a bullish trend. The MACD of 25.93 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 50.17 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
6996	70 Outperform	¥92.25B	17.46		2.57%	-2.07%	-18.83%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
NCZ	―	€175.72M	980.26	-1.13%	―	―	―
6787	76 Outperform	¥238.02B	15.17		0.82%	15.13%	31.79%
6814	75 Outperform	¥171.90B	12.70		2.02%	9.11%	114.88%
6989	71 Outperform	¥15.81B	10.03		4.28%	4.08%	-33.22%
6976	59 Neutral	¥372.87B	152.85		2.92%	4.21%	-135.36%

Nichicon Corporation Corporate Events

Nichicon Corporation Reports Q1 Financial Results and Outlook

Nichicon Corporation reported a decrease in net sales and profit for the three months ending June 30, 2025, compared to the previous year. Despite a significant increase in operating profit, the company’s overall financial performance was impacted by a decline in ordinary profit and profit attributable to owners. The forecast for the fiscal year ending March 31, 2026, shows a modest increase in net sales and operating profit, indicating a cautious optimism for recovery.

The most recent analyst rating on (JP:6996) stock is a Hold with a Yen920.00 price target. To see the full list of analyst forecasts on Nichicon Corporation stock, see the JP:6996 Stock Forecast page.

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.