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Nichicon Corporation (JP:6996)
:6996
Japanese Market

Nichicon Corporation (6996) AI Stock Analysis

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JP

Nichicon Corporation

(6996)

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

Nichicon Corporation Business Overview & Revenue Model

Company DescriptionNichicon 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 MoneyNichicon 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
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 Price1196.00
Price Trends
50DMA
1161.66
Positive
100DMA
1180.40
Positive
200DMA
1097.86
Positive
Market Momentum
MACD
4.46
Negative
RSI
59.09
Neutral
STOCH
83.74
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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥117.18B10.24
3.99%10.54%83.58%
77
Outperform
¥16.74B8.17
4.01%5.82%-11.79%
71
Outperform
¥81.07B13.90
3.01%-3.24%-29.08%
71
Outperform
¥173.95B11.87
1.18%15.24%35.69%
69
Neutral
¥229.55B14.487.64%2.71%9.13%8.50%
61
Neutral
€25.87B685.400.05%-18.61%
58
Neutral
¥312.21B133.16
3.62%5.82%-71.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6996
Nichicon Corporation
1,191.00
12.59
1.07%
JP:6787
Meiko Electronics Co., Ltd.
6,460.00
-894.08
-12.16%
JP:6814
Furuno Electric Co., Ltd.
3,690.00
1,490.94
67.80%
JP:6976
Taiyo Yuden Co., Ltd.
2,493.00
-1,987.96
-44.36%
JP:6989
Hokuriku Electric Industry Co., Ltd.
2,243.00
886.27
65.32%
JP:6997
Nippon Chemi-Con Corporation
1,188.00
-470.00
-28.35%

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