Nichiha Corporation (7943) AI Stock Analysis

• Market Cap: ¥115.01B
• Dividend Yield: 3.53%
• Average Volume (3M): 81.61K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 0.43
• Revenue Growth: -0.58%
• EPS Growth: -46.15%
• Country: JP
• Employees: 3,203
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 62.32
• Shares Outstanding: 34,487,164
• 10 Day Avg. Volume: 74,700
• 30 Day Avg. Volume: 81,606
• PEG Ratio: -0.58
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 16.93
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,679.00 ▲(12.68% Upside)

Nichiha Corporation's overall stock score is primarily influenced by its solid balance sheet and robust cash flow generation, which are offset by declining profitability and a high P/E ratio. Technical indicators suggest short-term bullish momentum, but caution is advised due to potential overbought conditions. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance sheet strength

A very high equity ratio and minimal leverage give Nichiha durable financial resilience. This capital structure supports funding of maintenance capex, dividends, or strategic investments without heavy refinancing risk, helping the company withstand cyclical construction downturns.

Cash generation

Strong cash conversion, evidenced by a high operating cash flow to net income ratio and recovering free cash flow, provides lasting internal funding. Reliable cash generation supports reinvestment, steady shareholder distributions, and a buffer for cyclical volatility in construction demand.

Niche product focus

A focused product set—fiber‑cement exterior cladding and system components—creates durable competitive advantages via technical know‑how, builder/spec relationships, and recurring renovation demand. Specialization supports pricing power and long-term channel partnerships.

Negative Factors

Declining profitability

Significant margin deterioration is a structural concern: falling gross, EBIT, and net margins reduce the company’s ability to fund growth and returns. Unless addressed by pricing, cost control, or mix improvement, sustained margin weakness will impair long‑term competitiveness and ROI.

Unstable revenue trend

Fluctuating top‑line growth undermines predictability and scale economics. Persistent revenue instability, driven by cyclical construction demand or market share shifts, makes capacity planning, long‑term contracts, and margin recovery harder, increasing execution risk over the medium term.

Falling capital efficiency

A sharp drop in ROE signals worsening capital efficiency and weaker returns to shareholders. This decline likely reflects margin compression or underutilized assets and, if persistent, indicates structural issues in profitability that can limit reinvestment and shareholder value creation.

Nichiha Corporation Business Overview & Revenue Model

Company Description

Nichiha Corporation manufactures and sells exterior and interior building products for houses, and commercial and public facilities in Japan, the United States, China, and internationally. The company offers exterior building products, such as exterior fiber cement sidings and sidings accessories, roofing materials, face material bearing walls, fire-resistant roofing boards, and remodeling products, as well as interior building products. It also provides thermal insulating products comprising solar heat insulation and underfloor thermal insulation panels; and fiberboards, as well as offers installation, maintenance, and repair services. The company was founded in 1956 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Nichiha generates revenue through the sale of its fiber cement products, which are utilized in various construction applications, including residential homes, commercial buildings, and infrastructure projects. The company’s revenue model is primarily based on direct sales to construction firms, architects, and contractors. Key revenue streams include the sales of its exterior wall panels, cladding products, and interior finishing materials. Additionally, Nichiha benefits from partnerships with construction companies and distributors, which help expand its market reach. Factors contributing to its earnings include the increasing demand for durable and low-maintenance building materials, as well as the trend towards sustainable construction practices.

Nichiha Corporation Financial Statement Overview

Summary

Nichiha Corporation exhibits a mixed financial health profile. The balance sheet is solid with low leverage and strong equity, but the income statement reflects declining margins and profitability. Cash flow generation is robust, though free cash flow has experienced fluctuations. The company should focus on improving profitability to enhance its overall financial performance.

Income Statement

Nichiha Corporation's income statement shows a fluctuating revenue growth, with an increase from 2024 to 2025 but a decrease in gross profit and EBIT margins during the same period. The net profit margin has significantly decreased from 5.65% in 2024 to 1.82% in 2025, indicating reduced profitability. The EBITDA margin also decreased, reflecting higher operating expenses relative to revenue.

Balance Sheet

The balance sheet reflects a solid equity position with a strong equity ratio of 70.25% as of 2025. The debt-to-equity ratio is low at 0.13, indicating a conservative leverage position. Return on equity has decreased over the years, from 9.11% in 2022 to 2.17% in 2025, showing declining efficiency in generating returns from equity.

Cash Flow

Cash flow analysis shows a positive trajectory with an increase in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is high at 3.85 in 2025, indicating strong cash generation relative to net income. However, free cash flow growth is volatile, with a substantial increase in 2025 following a drop in 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.42B	148.48B	142.79B	138.06B	128.60B	119.94B
Gross Profit	50.15B	50.39B	50.74B	52.31B	51.49B	46.63B
EBITDA	10.64B	12.60B	16.96B	16.19B	17.41B	16.82B
Net Income	1.74B	2.71B	8.07B	9.04B	10.15B	8.90B
Balance Sheet
Total Assets	169.71B	177.46B	175.69B	169.34B	161.84B	147.60B
Cash, Cash Equivalents and Short-Term Investments	21.49B	26.48B	26.70B	32.74B	44.21B	39.69B
Total Debt	16.26B	16.18B	15.15B	15.48B	15.50B	15.89B
Total Liabilities	50.15B	53.29B	49.38B	49.72B	50.67B	45.91B
Stockholders Equity	120.11B	124.69B	126.69B	119.88B	111.47B	102.05B
Cash Flow
Free Cash Flow	0.00	6.06B	819.00M	-4.64B	7.23B	4.54B
Operating Cash Flow	0.00	10.41B	6.92B	5.54B	14.99B	15.81B
Investing Cash Flow	0.00	-3.04B	-6.04B	-12.62B	-7.78B	-11.16B
Financing Cash Flow	0.00	-8.01B	-7.12B	-4.89B	-3.21B	-1.57B

Nichiha Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3265.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7943, the sentiment is Positive. The current price of 3265 is below the 20-day moving average (MA) of 3403.00, above the 50-day MA of 3234.80, and above the 200-day MA of 2976.74, indicating a bullish trend. The MACD of 63.55 indicates Positive momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 18.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7943.

Nichiha Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5351	80 Outperform	¥100.87B	10.61	―	4.28%	12.87%	-13.69%
5237	78 Outperform	¥12.46B	12.31	―	3.90%	0.58%	-9.72%
7949	77 Outperform	¥50.18B	16.90	―	3.74%	3.70%	12.26%
5262	67 Neutral	¥86.09B	26.30	―	1.49%	-8.92%	1.67%
7943	66 Neutral	¥115.01B	32.52	―	3.53%	-0.58%	-46.15%
5273	65 Neutral	¥109.41B	11.22	―	1.92%	12.72%	28.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nichiha Corporation Corporate Events

Nichiha Lifts Profit Despite Lower Sales, Keeps Full-Year Outlook and Dividend Plan

Nichiha Corporation reported consolidated net sales of ¥109.3 billion for the nine months ended 31 December 2025, a 2.5% year-on-year decline, but achieved a 12.3% rise in operating profit to ¥6.27 billion and a 20.7% jump in profit attributable to owners of parent to ¥4.55 billion, supported by improved profitability and higher earnings per share. The company maintained a robust financial position with an equity-to-asset ratio of 70.8%, kept its full-year forecast unchanged at ¥145 billion in sales and a 43.8% increase in operating profit, and confirmed an unchanged annual dividend forecast of ¥114 per share, signaling confidence in its earnings outlook despite modest top-line pressure.

The most recent analyst rating on (JP:7943) stock is a Hold with a Yen3603.00 price target. To see the full list of analyst forecasts on Nichiha Corporation stock, see the JP:7943 Stock Forecast page.

Nichiha Corporation Completes Strategic Treasury Stock Acquisition and Cancellation

Nichiha Corporation has completed the acquisition and cancellation of its treasury stock as part of its strategic financial management. This move aims to enhance shareholder returns and improve capital efficiency, reflecting the company’s adaptive capital policies in response to a changing business environment.

The most recent analyst rating on (JP:7943) stock is a Hold with a Yen3207.00 price target. To see the full list of analyst forecasts on Nichiha Corporation stock, see the JP:7943 Stock Forecast page.

Nichiha Corporation Revises Financial Forecast Amid U.S. Market Exit

Nichiha Corporation has revised its full-year financial forecast, reducing its net sales expectation due to a strategic withdrawal from the U.S. residential exterior building materials market. Despite this, operating and ordinary profit forecasts remain unchanged, supported by domestic price increases and cost reductions. However, the profit attributable to owners has been significantly revised downward due to impairment losses and extraordinary expenses related to the U.S. market exit. The company maintains its annual dividend forecast, highlighting its commitment to stable shareholder returns.

The most recent analyst rating on (JP:7943) stock is a Hold with a Yen3207.00 price target. To see the full list of analyst forecasts on Nichiha Corporation stock, see the JP:7943 Stock Forecast page.

Nichiha Corporation Reports Resilient Financial Performance Amid Sales Decline

Nichiha Corporation reported a slight decline in net sales for the six months ending September 30, 2025, with a 2.7% decrease compared to the previous year. Despite this, the company saw a significant increase in profit attributable to owners of the parent, rising by 34.9%. The company has revised its earnings forecasts for the fiscal year ending March 31, 2026, indicating a positive outlook with expected increases in operating and ordinary profits. This financial performance suggests a resilient market position and potential growth opportunities, which could positively impact stakeholders.

The most recent analyst rating on (JP:7943) stock is a Hold with a Yen3207.00 price target. To see the full list of analyst forecasts on Nichiha Corporation stock, see the JP:7943 Stock Forecast page.

Nichiha Corporation Acquires Own Shares to Boost Shareholder Returns

Nichiha Corporation announced the acquisition of 106,900 of its own shares in October, as part of a broader strategy to enhance shareholder returns and improve capital efficiency. This move aligns with the company’s First Medium-Term Management Plan, aiming to adapt to changing business environments and implement flexible capital policies.

The most recent analyst rating on (JP:7943) stock is a Hold with a Yen3207.00 price target. To see the full list of analyst forecasts on Nichiha Corporation stock, see the JP:7943 Stock Forecast page.