Nippon Chemi-Con Corporation (6997) AI Stock Analysis

• Market Cap: €35.22B
• Dividend Yield: N/A
• Average Volume (3M): 306.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -2.53%
• EPS Growth: -85.61%
• Country: JP
• Employees: 5,796
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 20.84
• Shares Outstanding: 22,440,853
• 10 Day Avg. Volume: 256,730
• 30 Day Avg. Volume: 306,983
• PEG Ratio: -5.19
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -1.96
• 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: €949.45
• Price Target Upside: -38.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥1,449.00 ▼(-6.46% Downside)

The overall stock score is primarily impacted by financial performance concerns, including declining revenue and inconsistent profitability, which are compounded by liquidity challenges. Technical analysis indicates mixed momentum, while the high P/E ratio suggests overvaluation. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Product Demand

The increasing demand for energy-efficient solutions and advanced electronic technologies supports long-term revenue growth, especially in sectors like electric vehicles and renewable energy, where high-performance capacitors are crucial.

Strategic Partnerships

Strategic partnerships with major manufacturers provide stability through long-term contracts and foster innovation, enhancing the company's competitive position and market reach.

Product Quality

A strong reputation for quality enhances customer loyalty and competitive advantage, supporting sustained market presence and pricing power in the global electronics sector.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in market demand or competitive pressures, which can impact long-term growth prospects and necessitate strategic adjustments.

Cash Flow Challenges

Persistent negative cash flow trends limit financial flexibility and ability to invest in growth opportunities, posing a risk to long-term operational stability.

Profitability Volatility

Inconsistent profitability reflects operational challenges and market volatility, potentially affecting investor confidence and the ability to sustain long-term growth.

Nippon Chemi-Con Corporation Business Overview & Revenue Model

Company Description

Nippon Chemi-Con Corporation (6997) is a leading Japanese manufacturer of capacitors, particularly known for its aluminum electrolytic capacitors, conductive polymer capacitors, and other electronic components. The company operates primarily in the electronics sector, providing essential components for a wide range of applications, including consumer electronics, automotive, industrial machinery, and renewable energy systems. With a reputation for high-quality products, Nippon Chemi-Con serves both domestic and international markets, contributing to advancements in technology and energy efficiency.

How the Company Makes Money

Nippon Chemi-Con generates revenue primarily through the sale of its capacitors and electronic components to various industries, including consumer electronics, automotive, and industrial sectors. The company's revenue model is based on direct sales to manufacturers, distributors, and OEMs (original equipment manufacturers). Key revenue streams include standard and custom capacitor products, with a significant portion of sales derived from high-performance capacitors used in advanced applications such as electric vehicles and renewable energy systems. Additionally, Nippon Chemi-Con benefits from strategic partnerships with major electronics manufacturers, which help secure long-term contracts and foster innovation in capacitor technology. Factors contributing to its earnings include the growing demand for energy-efficient solutions, advancements in electronic technologies, and the company's ability to maintain competitive pricing and high-quality standards.

Nippon Chemi-Con Corporation Financial Statement Overview

Summary

Nippon Chemi-Con Corporation shows signs of financial distress, with declining revenue and inconsistent profitability. The balance sheet reflects increased leverage, and cash flow analysis indicates liquidity challenges. While there have been some improvements, the company's financial health remains precarious, requiring careful management to stabilize and improve future performance.

Income Statement

The company experienced a significant decline in revenue from 2024 to 2025, alongside a reduction in gross profit margin from previous years. Net income has been inconsistent, with a significant loss in 2024 turning into a small profit in 2025. Although EBIT margin indicates slight operational efficiency, the volatility in profitability remains a concern.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which slightly increased in 2025, suggesting a higher leverage. However, the equity ratio remains stable. Return on equity improved in 2025 due to positive net income, but historical instability in earnings poses a risk to sustained performance.

Cash Flow

The company has faced negative operating cash flows and free cash flows for consecutive years, indicating challenges in generating cash from operations. Although there is some improvement in free cash flow in 2025, the overall negative trend in cash flow raises concerns about liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.27B	122.68B	150.74B	161.88B	140.32B	110.79B
Gross Profit	23.30B	23.73B	31.86B	36.93B	31.25B	21.15B
EBITDA	9.27B	10.03B	-10.12B	19.27B	-2.89B	9.02B
Net Income	-588.00M	37.00M	-21.29B	2.27B	-12.12B	2.04B
Balance Sheet
Total Assets	162.46B	162.70B	172.92B	162.74B	156.14B	139.45B
Cash, Cash Equivalents and Short-Term Investments	24.13B	23.87B	45.30B	26.14B	24.76B	23.73B
Total Debt	75.92B	78.38B	89.58B	70.35B	58.54B	57.86B
Total Liabilities	108.61B	106.03B	119.31B	112.06B	111.42B	87.54B
Stockholders Equity	53.30B	56.12B	53.10B	50.26B	44.42B	51.60B
Cash Flow
Free Cash Flow	0.00	-9.82B	-22.42B	-11.69B	-294.00M	-1.45B
Operating Cash Flow	0.00	-493.00M	-12.96B	-4.86B	5.11B	2.07B
Investing Cash Flow	0.00	-9.75B	-4.82B	-6.83B	-5.21B	-3.03B
Financing Cash Flow	0.00	-11.93B	35.42B	12.05B	-218.00M	-3.47B

Nippon Chemi-Con Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1549.00
• 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:6997, the sentiment is Positive. The current price of 1549 is above the 20-day moving average (MA) of 1355.70, above the 50-day MA of 1474.12, and above the 200-day MA of 1181.97, indicating a bullish trend. The MACD of -12.18 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6997.

Nippon Chemi-Con Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6787	76 Outperform	¥263.24B	16.78	―	0.88%	15.02%	46.62%
6957	75 Outperform	¥109.52B	36.26	―	2.12%	3.95%	-32.30%
6762	70 Outperform	¥4.92T	28.49	―	1.16%	7.73%	-1.93%
6996	68 Neutral	¥104.38B	19.75	―	2.27%	-0.93%	-45.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	54 Neutral	¥562.88B	-115.10	―	2.14%	4.81%	-49.43%
6997	47 Neutral	€35.22B	-56.98	0.39%	―	-2.53%	-85.61%