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Nichiha Corporation
(7943)
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Rating:55Neutral
Price Target:
¥3,372.00
▲(3.28% Upside)
Action:Reiterated
Date:05/15/26
The score reflects solid financial resilience from a low-leverage balance sheet, offset by materially weaker profitability/returns versus prior years and only moderately stable cash-flow quality. Technical indicators are bearish with the price below key moving averages and negative MACD. Valuation is mixed, with a strong dividend yield but a high P/E that raises risk if earnings do not recover.
Positive Factors
Low leverage / strong balance sheet
Nichiha’s very low debt-to-equity (~0.12–0.16) provides durable financial resilience for its cyclical construction exposure. Lower leverage reduces refinancing and interest risk, preserves capacity for capex or shareholder returns, and supports stability during demand swings.
Negative Factors
Declining revenue and compressed net margins
Revenue contraction and a sharp compression in net margin to ~1.7–1.8% materially weaken profitability and free reinvestment capacity. Sustained lower margins increase sensitivity to cost shocks and limit the company’s ability to rebuild returns or absorb cyclical downturns without structural changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Nichiha’s very low debt-to-equity (~0.12–0.16) provides durable financial resilience for its cyclical construction exposure. Lower leverage reduces refinancing and interest risk, preserves capacity for capex or shareholder returns, and supports stability during demand swings.
Read all positive factors
Nichiha Corporation (7943) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥104.37B
Dividend Yield3.69%
Average Volume (3M)81.61K
Price to Earnings (P/E)24.4
Beta (1Y)0.47
Revenue Growth-3.10%
EPS Growth144.65%
CountryJP
Employees2,902
SectorGeneral
Sector StrengthN/A
IndustryConstruction Materials
Share Statistics
EPS (TTM)74.61
Shares Outstanding34,487,164
10 Day Avg. Volume74,700
30 Day Avg. Volume81,606
Financial Highlights & Ratios
PEG Ratio-8.16
Price to Book (P/B)0.89
Price to Sales (P/S)0.75
P/FCF Ratio25.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)183.83
Revenue Forecast (FY)¥140.76B
Nichiha Corporation Business Overview & Revenue Model
Company Description
Nichiha Corporation is a global provider of building materials, supplying both exterior and interior products for residential homes, commercial enterprises, and public facilities across Japan, the United States, China, and other international regi...
How the Company Makes Money
Nichiha makes money primarily by manufacturing and selling building-material products, with revenue recognized from the sale of its wall cladding and siding materials into construction and renovation channels. Its core revenue stream is product sa...
Nichiha Corporation Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
76
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 143.74B | 148.48B | 142.79B | 138.06B | 128.60B |
| Gross Profit | 51.23B | 50.57B | 50.46B | 51.93B | 50.81B |
| EBITDA | 14.65B | 12.40B | 15.55B | 15.10B | 17.41B |
| Net Income | 2.48B | 2.71B | 8.07B | 9.04B | 10.15B |
Balance Sheet | |||||
| Total Assets | 168.26B | 177.46B | 175.69B | 169.34B | 161.84B |
| Cash, Cash Equivalents and Short-Term Investments | 24.70B | 26.48B | 26.70B | 32.74B | 44.21B |
| Total Debt | 15.91B | 16.18B | 15.15B | 15.48B | 15.50B |
| Total Liabilities | 47.13B | 53.29B | 49.38B | 49.71B | 50.66B |
| Stockholders Equity | 121.66B | 124.69B | 126.69B | 119.88B | 111.47B |
Cash Flow | |||||
| Free Cash Flow | 4.26B | 6.06B | 1.03B | -4.54B | 7.53B |
| Operating Cash Flow | 8.21B | 10.41B | 6.92B | 5.54B | 14.99B |
| Investing Cash Flow | -3.78B | -3.04B | -6.04B | -12.62B | -7.78B |
| Financing Cash Flow | -6.64B | -8.01B | -7.12B | -4.89B | -3.21B |
Nichiha Corporation Technical Analysis
Positive
3265.00
Price Trends
3005.24
Positive
3102.20
Positive
3118.54
Positive
Market Momentum
45.81
Negative
55.69
Neutral
67.18
Neutral
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 above the 20-day moving average (MA) of 3058.20, above the 50-day MA of 3005.24, and above the 200-day MA of 3118.54, indicating a bullish trend. The MACD of 45.81 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 67.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7943.
Nichiha Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥49.31B | 15.82 | ― | 3.74% | 4.55% | 16.44% | |
71 Outperform | ¥36.40B | 8.29 | ― | 3.59% | 4.49% | 35.25% | |
68 Neutral | ¥127.90B | 10.62 | 11.24% | 3.83% | 3.44% | -2.97% | |
61 Neutral | ¥56.00B | 14.42 | ― | 1.49% | 8.57% | 11.82% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ¥104.37B | 24.45 | ― | 3.53% | -3.10% | 144.65% | |
50 Neutral | ¥499.01B | 89.99 | 1.26% | 4.96% | 1.71% | -20.26% |
* General Sector Average
JP:7943
Nichiha Corporation
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Nichiha Corporation Corporate Events
Nichiha Completes ¥2.1 Billion Share Buyback via ToSTNeT-3
Aug 3, 2026
Nichiha Corporation has completed a share buyback authorized by its board on July 31, 2026, repurchasing 683,700 common shares, equivalent to 2.06% of its outstanding stock excluding treasury shares. The shares were acquired on August 3, 2026, via...
Nichiha Launches ¥2.35 Billion Share Buyback to Boost Capital Efficiency
Jul 31, 2026
Nichiha Corporation’s board has approved a share buyback to enhance shareholder returns and improve capital efficiency, reflecting a more flexible capital policy in light of changing business conditions. The company will repurchase up to 760...
Nichiha Boosts Profits and Ups Dividend with 70th Anniversary Payout
Jul 31, 2026
Nichiha reported consolidated net sales of ¥33.99 billion for the three months ended June 30, 2026, down 2.5% year on year, but operating profit surged 62.6% to ¥1.89 billion and ordinary profit doubled, with profit attributable to owner...
Nichiha Marks 70th Anniversary With Higher Dividend and Signals Payout Boost
Jul 31, 2026
Nichiha Corporation has revised its dividend forecast for the fiscal year ending March 31, 2027, to include a special 70th anniversary commemorative payment. The board approved an increase in the second-quarter dividend to ¥64 per share, made...
Nichiha Completes Treasury Share Disposal for Executive Restricted Stock Compensation
Jul 22, 2026
Nichiha Corporation has completed payment procedures for the disposal of 14,828 treasury shares used as restricted stock compensation for its executives. The transaction, approved by the board on June 25, 2026, involves a disposal price of 2,943 y...
Nichiha to Award Restricted Treasury Shares to Align Executive Pay with Share Performance
Jun 25, 2026
Nichiha Corporation has approved the disposal of 14,828 treasury shares as restricted stock compensation for four internal directors and three senior managing officers, valued at a total of ¥43.64 million at ¥2,943 per share, with paymen...
Nichiha Corrects Segment Asset Data in FY2026 Financial Results
Jun 22, 2026
Nichiha Corporation has announced a partial correction to its consolidated financial results for the fiscal year ended March 31, 2026 under Japanese GAAP. The company identified an error in the segment assets information within its segment disclos...
Nichiha Revamps Board With New Outside Director Appointment
May 13, 2026
Nichiha Corporation has announced a planned change in its board composition, naming Teruo Kawashima as a new outside director, subject to approval at the 89th Ordinary General Meeting of Shareholders on June 25, 2026. Kawashima brings experience a...
Nichiha Boosts Profitability Despite Lower Sales and Signals Sharp Earnings Rebound in FY2027
May 13, 2026
Nichiha Corporation reported consolidated net sales of ¥143.7 billion for the fiscal year ended March 31, 2026, down 3.2% year on year, but operating profit surged 34.6% to ¥9.36 billion and ordinary profit rose 41.3%, indicating improve...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.