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Nichicon Corporation (JP:6996)
:6996
Japanese Market
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Nichicon Corporation (6996) AI Stock Analysis

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JP:6996

Nichicon Corporation

(6996)

Rating:71Outperform
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 (6996) vs. iShares MSCI Japan ETF (EWJ)

Nichicon Corporation Business Overview & Revenue Model

Company DescriptionNichicon 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 MoneyNichicon 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
70
Positive
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
75
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue175.75B181.64B184.72B142.20B116.07B
Gross Profit28.33B31.26B33.75B24.40B16.89B
EBITDA17.10B17.62B19.99B12.27B6.72B
Net Income5.88B8.25B7.81B7.90B1.70B
Balance Sheet
Total Assets192.58B206.94B192.34B170.11B156.01B
Cash, Cash Equivalents and Short-Term Investments25.62B29.49B25.67B18.30B20.81B
Total Debt25.86B35.62B33.46B25.56B25.61B
Total Liabilities78.77B93.10B90.99B75.46B66.74B
Stockholders Equity110.43B110.90B98.84B92.41B87.19B
Cash Flow
Free Cash Flow7.70B4.04B-164.00M-2.63B1.17B
Operating Cash Flow18.35B16.32B9.19B5.26B7.09B
Investing Cash Flow-8.36B-12.73B-8.12B-5.97B-4.01B
Financing Cash Flow-14.32B-571.00M5.43B-2.30B-2.13B

Nichicon Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1264.00
Price Trends
50DMA
1183.80
Positive
100DMA
1184.38
Positive
200DMA
1122.36
Positive
Market Momentum
MACD
19.34
Negative
RSI
68.40
Neutral
STOCH
92.91
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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥15.74B7.68
4.33%5.82%-11.79%
76
Outperform
¥184.24B12.42
1.06%15.24%35.69%
75
Outperform
¥129.79B9.50
2.67%9.11%114.88%
71
Outperform
¥85.68B14.46
2.77%-3.24%-29.08%
68
Neutral
¥234.20B14.807.50%2.60%9.27%6.74%
61
Neutral
¥26.07B686.550.05%-18.61%
58
Neutral
¥346.81B145.16
3.26%5.82%-71.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6996
Nichicon Corporation
1,270.00
196.25
18.28%
JP:6787
Meiko Electronics Co., Ltd.
7,160.00
1,206.14
20.26%
JP:6814
Furuno Electric Co., Ltd.
4,090.00
2,306.15
129.28%
JP:6976
Taiyo Yuden Co., Ltd.
2,715.50
-1,542.77
-36.23%
JP:6989
Hokuriku Electric Industry Co., Ltd.
2,080.00
781.26
60.16%
JP:6997
Nippon Chemi-Con Corporation
1,180.00
-226.00
-16.07%

Nichicon Corporation Corporate Events

Nichicon Corporation Records Extraordinary Losses Amid Restructuring
May 9, 2025

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
May 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025