Nichicon Corporation (6996) AI Stock Analysis

• Market Cap: ¥146.21B
• Dividend Yield: 2.18%
• Average Volume (3M): 276.00K
• Price to Earnings (P/E): 52.9
• Beta (1Y): 0.97
• Revenue Growth: -0.93%
• EPS Growth: -45.03%
• Country: JP
• Employees: 5,394
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 35.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 79.11
• Revenue Forecast (FY): ¥174.70B

• Rating: 60 Neutral
• Price Target: ¥2,298.00 ▲(6.54% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by softened financial performance (compressed margins, lower ROE, and weaker/volatile free cash flow) offset by a solid balance sheet and favorable price momentum. The main drag is valuation, with a high P/E that appears difficult to justify while profitability is running below prior-year levels.

Positive Factors

Low leverage / strong balance sheet

A low debt-to-equity (~0.21) and improving leverage provide financial flexibility to fund capex, support customers in hardware cycles, and reduce refinancing risk. This balance-sheet strength supports stability and strategic investments over the next several months.

Diversified end-market exposure

Nichicon's product mix across consumer, automotive, industrial and power markets reduces reliance on any single cyclical segment. Broad end-market exposure and multiple application types support steadier demand and position the company to benefit from structural growth in automotive electronics and power infrastructure.

Positive operating and free cash flow

Positive operating cash flow (~¥12.5B) and positive free cash flow (~¥5.8B) show the business can generate cash to fund reinvestment, dividends or debt service. Consistent cash generation—even if reduced—provides a buffer for cyclical volatility and supports near-term capital allocation.

Negative Factors

Compressed profitability / weak returns

Net margin down to ~1.6% and ROE near ~2.4% show diminished profitability and weaker capital efficiency versus prior years. Sustained low margins and returns reduce the firm's ability to self-fund growth, pay higher dividends, or cushion margin shocks from raw-material or mix pressures.

Volatile and declining free cash flow

A ~30.6% fall in FCF in the TTM and prior-year negative FCF demonstrate inconsistent cash conversion. This volatility raises the risk that the company may need external funding for capex, inventories, or payouts during downturns, limiting financial resilience over a 2–6 month horizon.

Revenue softness / modest top-line decline

A modest TTM revenue decline (-2.7%) signals demand or mix weakness. Persistent top-line contraction pressures scale economics and margin recovery; without clear demand pickup or mix shift to higher-spec products, profitability and cash conversion may lag for multiple quarters.

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

Financials are stable but weakened in the most recent TTM period. Profitability and returns have stepped down (net margin ~1.6% vs ~3–5% historically; ROE ~2.4%), and free cash flow is positive but has declined sharply with a history of volatility. The balance sheet is a relative strength with low-to-moderate leverage (debt-to-equity ~0.21).

Income Statement

Nichicon’s profitability has weakened versus prior years. Revenue is modestly down in TTM (Trailing-Twelve-Months) (-2.7%) and margins have compressed: net margin is ~1.6% in TTM versus ~3.3% in FY2025 and ~4–5% in FY2023–FY2024. Gross margin remains fairly steady around the high-teens, but operating profit has dropped materially from FY2023 levels, suggesting higher costs and/or weaker mix. The positive is that the company remains profitable and EBITDA margin is still ~8.2% in TTM, but the current earnings run-rate is notably softer than the last several years.

Balance Sheet

The balance sheet looks relatively solid with low-to-moderate leverage: debt-to-equity is ~0.21 in TTM (Trailing-Twelve-Months), improving from ~0.32–0.34 in FY2023–FY2024. Equity has grown over time, providing a cushion for a hardware cycle. The main weakness is reduced profitability: return on equity is ~2.4% in TTM versus ~5.3% in FY2025 and ~7–9% in FY2022–FY2024, which limits balance-sheet efficiency even if leverage is controlled.

Cash Flow

Cash generation is positive but less dependable than ideal. Operating cash flow is positive in TTM (Trailing-Twelve-Months) (~¥12.5B) and free cash flow is also positive (~¥5.8B), but free cash flow has declined sharply (about -30.6% growth in TTM). History shows volatility, with negative free cash flow in FY2022 and FY2023, which raises confidence risk in downturns. Also, free cash flow is well below net income in recent periods (about 46% of net income in TTM; ~42% in FY2025), pointing to working-capital or investment demands that can pressure cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	167.26B	175.75B	181.64B	184.72B	142.20B	116.07B
Gross Profit	28.36B	28.33B	31.26B	33.75B	24.40B	16.89B
EBITDA	13.63B	17.10B	17.62B	19.99B	15.69B	8.05B
Net Income	2.74B	5.88B	8.25B	7.81B	7.90B	1.70B
Balance Sheet
Total Assets	197.39B	192.58B	206.94B	192.34B	170.11B	156.01B
Cash, Cash Equivalents and Short-Term Investments	28.29B	25.62B	29.49B	25.67B	18.30B	20.81B
Total Debt	24.77B	25.86B	35.62B	33.46B	25.56B	25.61B
Total Liabilities	78.26B	78.77B	93.10B	90.99B	75.46B	66.74B
Stockholders Equity	115.29B	110.43B	110.90B	98.84B	92.41B	87.19B
Cash Flow
Free Cash Flow	5.76B	7.70B	4.04B	-164.00M	-2.63B	1.17B
Operating Cash Flow	12.50B	18.35B	16.32B	9.19B	5.26B	7.09B
Investing Cash Flow	-7.01B	-8.36B	-12.73B	-8.12B	-5.97B	-4.01B
Financing Cash Flow	-7.47B	-14.32B	-571.00M	5.43B	-2.30B	-2.13B

Nichicon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2157.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2157 is above the 20-day moving average (MA) of 1960.70, above the 50-day MA of 1778.32, and above the 200-day MA of 1450.99, indicating a bullish trend. The MACD of 126.06 indicates Negative momentum. The RSI at 72.08 is Negative, neither overbought nor oversold. The STOCH value of 78.69 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	¥250.13B	15.44	―	1.88%	6.56%	106.55%
6989	71 Outperform	¥22.49B	11.30	―	3.15%	2.48%	39.69%
6787	67 Neutral	¥565.07B	32.87	―	0.76%	15.02%	46.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6996	60 Neutral	¥146.21B	52.89	―	2.18%	-0.93%	-45.03%
6976	56 Neutral	¥602.32B	88.44	―	2.57%	4.81%	-49.43%
6997	47 Neutral	¥46.56B	35.21	0.39%	―	-2.53%	-85.61%

Nichicon Corporation Corporate Events

Nichicon Posts Lower Nine-Month Profit but Maintains Dividend and Full-Year Guidance

Nichicon Corporation reported consolidated net sales of ¥124.3 billion for the nine months ended December 31, 2025, down 6.4% year on year, with operating profit edging up 2.4% to ¥3.9 billion but ordinary profit falling 12.8% and profit attributable to owners of parent plunging 43.8% to ¥4.0 billion; basic earnings per share declined to ¥59.85. Despite the earnings pressure, Nichicon’s financial position improved modestly, with total assets rising to ¥197.4 billion, equity ratio climbing to 58.4%, and the company maintaining its dividend policy with an expected full-year payout of ¥36 per share and unchanged full-year guidance calling for a slight rise in sales and operating profit but lower ordinary profit, signaling a cautious earnings outlook amid a challenging market environment.

The most recent analyst rating on (JP:6996) stock is a Hold with a Yen1817.00 price target. To see the full list of analyst forecasts on Nichicon Corporation stock, see the JP:6996 Stock Forecast page.