Nichicon Corporation (6996) AI Stock Analysis

• Market Cap: ¥81.07B
• Dividend Yield: 3.01%
• Average Volume (3M): 141.01K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.89
• Revenue Growth: -3.24%
• EPS Growth: -29.08%
• Country: JP
• Employees: 5,394
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -18.58
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 134,550
• 30 Day Avg. Volume: 141,013
• PEG Ratio: -10.82
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -575.70
• 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: ¥920.00
• Price Target Upside: -23.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,284.00 ▲(7.36%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, established in 1950, is a leading Japanese manufacturer specializing in electronic components, primarily capacitors, and related products. The company operates within the electronics sector, providing a diverse range of products such as aluminum electrolytic capacitors, film capacitors, and circuit products. Nichicon's components are integral to various applications, including consumer electronics, automotive, energy solutions, and industrial equipment, serving clients globally with high-quality and innovative solutions.

How the Company Makes Money

Nichicon Corporation generates revenue primarily through the manufacture and sale of electronic components. The company's key revenue streams include the sale of capacitors, which are essential components in a wide array of electronic devices and systems. Nichicon's products are utilized in sectors such as automotive, where they play a critical role in electronic control systems, and renewable energy, supporting the efficiency and reliability of power conversion systems. Additionally, Nichicon may engage in partnerships with major electronics manufacturers and distributors, enhancing its market reach and sales capabilities. The company's focus on innovation and quality ensures a competitive edge, aiding in sustained demand and profitability across its product lines.

Nichicon Corporation Financial Statement Overview

Summary

Nichicon Corporation demonstrates solid financial performance with a stable balance sheet and healthy income statement metrics. There is a positive trend in free cash flow despite some variability, and strong operational efficiency is evident. However, the decrease in net profit margin suggests areas for improvement in operational efficiency.

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: 1196.00
• 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 1196 is above the 20-day moving average (MA) of 1171.10, above the 50-day MA of 1161.66, and above the 200-day MA of 1097.86, indicating a bullish trend. The MACD of 4.46 indicates Negative momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 83.74 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
6814	79 Outperform	¥117.18B	10.24		3.99%	10.54%	83.58%
6989	77 Outperform	¥16.74B	8.17		4.01%	5.82%	-11.79%
6996	71 Outperform	¥81.07B	13.90		3.01%	-3.24%	-29.08%
6787	71 Outperform	¥173.95B	11.87		1.18%	15.24%	35.69%
Sector *	69 Neutral	¥229.55B	14.48	7.64%	2.71%	9.13%	8.50%
6997	61 Neutral	€25.87B	685.40	0.05%	―	-18.61%	―
6976	58 Neutral	¥312.21B	133.16		3.62%	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.