Nichicon Corporation (6996) AI Stock Analysis

• Market Cap: ¥107.30B
• Dividend Yield: 2.27%
• Average Volume (3M): 276.00K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.86
• Revenue Growth: -0.93%
• EPS Growth: -45.03%
• Country: JP
• Employees: 5,394
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 6.44
• 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: ¥1,615.00
• Price Target Upside: 2.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,843.00 ▲(16.42% Upside)

Nichicon Corporation's overall stock score is driven by strong technical indicators and a stable financial position, particularly in cash flow management and balance sheet strength. However, the high P/E ratio suggests potential overvaluation, which impacts the overall score. Continued focus on improving revenue growth and profitability will be key to enhancing the stock's attractiveness.

Positive Factors

Cash Flow Management

Strong cash flow management indicates the company's ability to generate cash efficiently, supporting reinvestment and financial stability.

Balance Sheet Strength

A low debt-to-equity ratio suggests prudent financial leverage, providing a solid foundation for long-term financial health.

Operational Efficiency

Stable EBIT and EBITDA margins reflect effective cost management and operational efficiency, supporting sustainable profitability.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder the company's ability to expand and compete effectively, impacting long-term market position.

Profitability Concerns

A modest net profit margin indicates difficulties in translating sales into profits, which could affect long-term financial performance.

Earnings Growth Decline

A significant decline in EPS growth suggests challenges in improving earnings, which can impact investor confidence and future growth potential.

Nichicon Corporation Business Overview & Revenue Model

Company Description

Nichicon Corporation (6996) is a leading manufacturer of electronic components, particularly known for its high-quality capacitors. Established in Japan, the company operates primarily in the electronic components sector, focusing on products such as aluminum electrolytic capacitors, film capacitors, and other related components. Nichicon serves a diverse range of industries, including automotive, consumer electronics, and industrial applications, providing essential components that contribute to the performance and efficiency of electronic devices.

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

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. The company needs to focus on improving operational efficiency and enhancing cash generation to strengthen its financial health.

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	171.98B	175.75B	181.64B	184.72B	142.20B	116.07B
Gross Profit	28.40B	28.33B	31.26B	33.75B	24.40B	16.89B
EBITDA	12.68B	17.10B	17.62B	19.99B	15.69B	8.05B
Net Income	3.44B	5.88B	8.25B	7.81B	7.90B	1.70B
Balance Sheet
Total Assets	191.19B	192.58B	206.94B	192.34B	170.11B	156.01B
Cash, Cash Equivalents and Short-Term Investments	26.31B	25.62B	29.49B	25.67B	18.30B	20.81B
Total Debt	25.40B	25.86B	35.62B	33.46B	25.56B	25.61B
Total Liabilities	75.35B	78.77B	93.10B	90.99B	75.46B	66.74B
Stockholders Equity	112.35B	110.43B	110.90B	98.84B	92.41B	87.19B
Cash Flow
Free Cash Flow	8.29B	7.70B	4.04B	-164.00M	-2.63B	1.17B
Operating Cash Flow	15.55B	18.35B	16.32B	9.19B	5.26B	7.09B
Investing Cash Flow	-6.81B	-8.36B	-12.73B	-8.12B	-5.97B	-4.01B
Financing Cash Flow	-11.72B	-14.32B	-571.00M	5.43B	-2.30B	-2.13B

Nichicon Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1583.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1583 is below the 20-day moving average (MA) of 1640.10, above the 50-day MA of 1516.38, and above the 200-day MA of 1301.21, indicating a neutral trend. The MACD of 33.83 indicates Positive momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6996.

Nichicon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6787	76 Outperform	¥279.45B	15.49	―	0.78%	15.02%	46.62%
6814	76 Outperform	¥243.19B	14.69	―	1.95%	6.56%	106.55%
6989	71 Outperform	¥20.79B	8.89	―	3.28%	2.48%	39.69%
6996	69 Neutral	¥107.30B	31.46	―	2.27%	-0.93%	-45.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	54 Neutral	¥423.23B	97.87	―	2.67%	4.81%	-49.43%
6997	47 Neutral	¥30.01B	122.75	0.39%	―	-2.53%	-85.61%

Nichicon Corporation Corporate Events

Nichicon Corporation Reports Decline in Six-Month Financial Results

Nichicon Corporation reported a decrease in its consolidated financial results for the six months ended September 30, 2025, with net sales dropping by 4.5% and profit attributable to owners of the parent plummeting by 60.1% compared to the previous year. Despite the downturn, the company maintains a stable equity-to-asset ratio and has announced a slight increase in its annual dividend forecast, indicating a cautious optimism for the fiscal year ending March 31, 2026.