Nippon Chemi-Con Corporation (6997) AI Stock Analysis

• Market Cap: €25.87B
• Dividend Yield: N/A
• Average Volume (3M): 176.25K
• Price to Earnings (P/E): 685.4
• Beta (1Y): 1.15
• Revenue Growth: -18.61%
• EPS Growth: N/A
• Country: JP
• Employees: 5,796
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.09
• Shares Outstanding: 21,939,934
• 10 Day Avg. Volume: 169,410
• 30 Day Avg. Volume: 176,253
• PEG Ratio: -0.16
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.65
• 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: €959.32
• Price Target Upside: -19.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,222.00 ▲(2.86%Upside)

The overall stock score is influenced primarily by financial performance concerns due to declining revenue and liquidity issues. However, strong technical indicators provide a positive outlook in the short term. The high P/E ratio suggests overvaluation, which tempers the bullish technical sentiment.

Nippon Chemi-Con Corporation Business Overview & Revenue Model

Company Description

Nippon Chemi-Con Corporation, listed under the ticker 6997, is a leading Japanese company that specializes in the development and manufacturing of electronic components. The company is renowned for its high-quality capacitors, including aluminum electrolytic capacitors, which are crucial in a wide range of electronic devices and applications. Nippon Chemi-Con serves various sectors such as automotive, industrial, consumer electronics, and telecommunications by providing components that enhance the reliability and performance of electronic systems.

How the Company Makes Money

Nippon Chemi-Con Corporation generates revenue primarily through the sale of its electronic components, with a significant portion coming from its flagship product line of aluminum electrolytic capacitors. The company's revenue streams are diversified across multiple industries, including automotive, where its capacitors are used in electric vehicles and other automotive electronics; industrial applications, where they contribute to machinery and equipment functionality; and consumer electronics, where they are integral to devices such as computers and home appliances. Additionally, Nippon Chemi-Con engages in strategic partnerships and collaborations with other technology companies to expand its market reach and drive innovation, contributing further to its earnings.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	125.55B	122.68B	150.74B	161.88B	140.32B	110.79B
Gross Profit	24.94B	23.73B	31.86B	36.93B	31.25B	21.15B
EBITDA	8.54B	10.03B	-10.12B	19.27B	-2.89B	9.02B
Net Income	865.00M	37.00M	-21.29B	2.27B	-12.12B	2.04B
Balance Sheet
Total Assets	160.10B	162.70B	172.92B	162.74B	156.14B	139.45B
Cash, Cash Equivalents and Short-Term Investments	25.15B	23.87B	45.30B	26.14B	24.76B	23.73B
Total Debt	74.46B	74.84B	89.58B	70.35B	58.54B	57.86B
Total Liabilities	105.56B	106.03B	119.31B	112.06B	111.42B	87.54B
Stockholders Equity	53.99B	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: 1188.00
• 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:6997, the sentiment is Positive. The current price of 1188 is above the 20-day moving average (MA) of 1127.70, above the 50-day MA of 1039.38, and above the 200-day MA of 1011.08, indicating a bullish trend. The MACD of 33.86 indicates Positive momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 69.32 is Neutral, 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
6762	76 Outperform	¥3.16T	18.57		1.96%	4.80%	34.02%
6957	73 Outperform	¥92.35B	24.07		2.51%	5.02%	-21.81%
6787	71 Outperform	¥173.95B	11.87		1.18%	15.24%	35.69%
6996	71 Outperform	¥81.07B	13.90		3.01%	-3.24%	-29.08%
6997	61 Neutral	€25.87B	685.40	0.05%	―	-18.61%	―
6976	58 Neutral	¥312.21B	133.16		3.62%	5.82%	-71.97%
Sector *	56 Neutral	$3.18B	5.02	-5.68%	5.66%	8.05%	-41.83%