Nippon Chemi-Con Corporation (6997) AI Stock Analysis

• Market Cap: ¥46.56B
• Dividend Yield: N/A
• Average Volume (3M): 306.98K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.35
• Revenue Growth: -2.53%
• EPS Growth: -85.61%
• Country: JP
• Employees: 5,796
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 44.11
• Shares Outstanding: 24,698,450
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 77.97
• Revenue Forecast (FY): ¥134.47B

• Rating: 47 Neutral
• Price Target: ¥1,860.00 ▲(23.75% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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

Capacitor-focused product specialization

Nippon Chemi-Con's focused product portfolio and technical expertise in capacitors is a durable competitive asset. Deep application knowledge, established OEM relationships, and engineering-driven product specs (e.g., high-reliability and automotive grades) raise switching costs and support long-term design-ins across customer programs.

Diversified end-market exposure

Serving automotive, industrial, power electronics and consumer/IT spreads demand risk across cycles and supports recurring volume from design wins. Structural growth in automotive electronics and industrial automation underpin steady long-term addressable markets for capacitors and reduce dependence on any single sector.

Stable equity ratio and improved ROE in 2025

A stable equity base alongside an ROE improvement from positive 2025 net income signals capacity to restore profitability. If sustained, this enhances capital stability, supports reinvestment and reduces reliance on external financing — a constructive sign for medium-term fundamental recovery.

Negative Factors

Persistent negative cash flow

Consecutive negative operating and free cash flows undermine financial flexibility and constrain the company's ability to fund capex, R&D and working capital internally. Over the medium term this raises dependence on external financing and increases vulnerability to liquidity shocks.

Revenue and margin instability

Material year-over-year revenue decline and margin compression indicate volatile demand or adverse product mix shifts. Persistent top-line and margin instability reduces predictability of cash generation, complicates pricing power and may weaken long-term customer and supplier negotiating positions.

Rising leverage

An uptick in leverage raises interest and refinancing risk, particularly given weak cash generation. Higher debt levels can limit strategic flexibility, increase fixed costs and amplify downside in cyclical end markets over the coming quarters if earnings do not sustainably recover.

Nippon Chemi-Con Corporation Business Overview & Revenue Model

Company Description

Nippon Chemi-Con Corporation manufactures and sells aluminum and other capacitors, precision mechanical components, and electronics equipment in Japan, China, the United States, Europe, and internationally. The company offers aluminum electrolytic capacitors, conductive polymer aluminum solid capacitors, and conductive polymer hybrid aluminum electrolytic capacitors. It also provides multilayer ceramic capacitors, film capacitors, metal oxide varistors TNR, nanocrystalline/amorphous/dust choke coils, cores/reactors, electric double layer capacitors, and camera modules, as well as manufactures and distributes silicon wafers and wafer related products. The company was formerly known as Nippon Chemical Capacitor Inc. and changed its name to Nippon Chemi-Con Corporation in July 1981. Nippon Chemi-Con Corporation was founded in 1931 and is headquartered in Tokyo, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1503.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1503 is below the 20-day moving average (MA) of 1628.15, below the 50-day MA of 1544.72, and above the 200-day MA of 1376.41, indicating a bullish trend. The MACD of 81.09 indicates Negative momentum. The RSI at 71.27 is Negative, neither overbought nor oversold. The STOCH value of 91.41 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
6762	67 Neutral	¥4.60T	24.54	―	1.41%	7.73%	-1.93%
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%