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Nichiha Corporation (JP:7943)
:7943
Japanese Market
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Nichiha Corporation (7943) AI Stock Analysis

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JP:7943

Nichiha Corporation

(7943)

Rating:62Neutral
Price Target:
¥3,185.00
▲(1.76%Upside)
Nichiha Corporation's stock shows a mixed outlook driven by strong balance sheet and cash flow performance, but offset by declining profitability and high valuation. Technical indicators suggest cautious optimism without strong momentum.

Nichiha Corporation (7943) vs. iShares MSCI Japan ETF (EWJ)

Nichiha Corporation Business Overview & Revenue Model

Company DescriptionNichiha Corporation, listed under the ticker symbol 7943, is a Japanese company that specializes in the manufacturing of fiber cement products. Established in 1956, Nichiha has grown to become a leading provider in the building materials industry, particularly known for its high-quality exterior wall materials. The company caters to both residential and commercial sectors, offering a wide range of architectural wall panels, siding, and other related products that are recognized for their durability, design versatility, and environmentally friendly attributes.
How the Company Makes MoneyNichiha Corporation generates revenue primarily through the production and sale of fiber cement building materials. Its core revenue streams include the sale of exterior wall materials such as siding and architectural wall panels, which are used in both residential and commercial construction projects. The company benefits from its strong distribution network and partnerships with construction firms, architects, and builders. Nichiha's emphasis on innovation and design, combined with its commitment to sustainable building practices, helps drive demand for its products in various markets. Additionally, the company may engage in international operations, which could contribute to its revenue through exports and overseas sales.

Nichiha Corporation Financial Statement Overview

Summary
Nichiha Corporation exhibits mixed financial health. The balance sheet is strong with low leverage, but income statement shows declining margins and profitability. Cash flow is robust but volatile.
Income Statement
65
Positive
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
78
Positive
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
72
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue148.48B142.79B138.06B128.60B119.94B
Gross Profit50.39B50.74B52.31B51.49B46.63B
EBITDA12.60B16.96B16.19B17.41B16.82B
Net Income2.71B8.07B9.04B10.15B8.90B
Balance Sheet
Total Assets177.46B175.69B169.34B161.84B147.60B
Cash, Cash Equivalents and Short-Term Investments26.48B26.70B32.74B44.21B39.69B
Total Debt16.18B15.15B15.48B15.50B15.89B
Total Liabilities53.29B49.38B49.72B50.67B45.91B
Stockholders Equity124.69B126.69B119.88B111.47B102.05B
Cash Flow
Free Cash Flow6.06B819.00M-4.64B7.23B4.54B
Operating Cash Flow10.41B6.92B5.54B14.99B15.81B
Investing Cash Flow-3.04B-6.04B-12.62B-7.78B-11.16B
Financing Cash Flow-8.01B-7.12B-4.89B-3.21B-1.57B

Nichiha Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3130.00
Price Trends
50DMA
3020.82
Positive
100DMA
2986.43
Positive
200DMA
2997.38
Positive
Market Momentum
MACD
24.81
Negative
RSI
66.38
Neutral
STOCH
62.67
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 3130 is above the 20-day moving average (MA) of 3044.55, above the 50-day MA of 3020.82, and above the 200-day MA of 2997.38, indicating a bullish trend. The MACD of 24.81 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 62.67 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥11.12B9.74
4.10%-4.86%31.22%
76
Outperform
¥114.70B14.29
1.62%5.59%11.26%
76
Outperform
¥57.67B18.27
2.65%9.88%62.19%
75
Outperform
¥79.88B7.91
5.26%-0.07%-34.61%
75
Outperform
¥43.51B15.74
2.64%2.77%8.52%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
62
Neutral
¥114.60B39.31
3.64%3.98%-65.20%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7943
Nichiha Corporation
3,130.00
-333.26
-9.62%
JP:5237
Nozawa Corp.
956.00
96.18
11.19%
JP:5262
Nippon Hume Corp.
2,374.00
1,214.52
104.75%
JP:5273
Mitani Sekisan Co., Ltd.
8,250.00
3,046.67
58.55%
JP:5351
Shinagawa Refractories Co., Ltd.
1,710.00
-14.54
-0.84%
JP:7949
Komatsu Wall Industry Co., Ltd.
2,458.00
1,000.82
68.68%

Nichiha Corporation Corporate Events

Nichiha Completes Treasury Share Disposal for Stock Compensation
Jul 23, 2025

Nichiha Corporation announced the completion of payment procedures for the disposal of treasury shares as restricted stock compensation, following a resolution by its Board of Directors. This move involves the disposal of 16,494 common shares at a price of 2,958 yen per share, amounting to a total of 48,789,252 yen, and is aimed at compensating eligible directors and managing officers, potentially impacting the company’s financial strategy and stakeholder interests.

Nichiha Corporation Announces Share Buyback to Boost Shareholder Value
Jul 4, 2025

Nichiha Corporation announced the acquisition of 187,300 of its own shares in June 2025, as part of a strategic move to enhance shareholder returns and improve capital efficiency. This action is aligned with their First Medium-Term Management Plan, allowing the company to adapt to changing business environments and implement flexible capital policies.

Nichiha Corporation Announces Disposal of Treasury Shares for Restricted Stock Units
Jun 26, 2025

Nichiha Corporation has announced a decision by its Board of Directors to dispose of treasury shares as restricted stock units, aimed at motivating directors and managing officers to enhance the company’s stock price and corporate value. This move is part of a broader restricted stock unit plan approved in 2024, designed to align the interests of key company figures with long-term corporate performance, potentially impacting the company’s operational focus and stakeholder engagement.

Nichiha Corporation Enhances Shareholder Value with Share Buyback
Jun 9, 2025

Nichiha Corporation announced the acquisition of 150,100 of its own shares in May, as part of a strategy to enhance shareholder returns and improve capital efficiency. This move is aligned with the company’s First Medium-Term Management Plan, which allows for flexible capital policies in response to business environment changes, with a total acquisition budget of up to 2.5 billion yen.

Nichiha Corporation Announces Board and Audit Changes
May 13, 2025

Nichiha Corporation announced provisional changes in its Board of Directors and Audit & Supervisory Board, which are expected to be finalized at the upcoming Ordinary General Meeting of Shareholders. These changes include the appointment of Kazuhiro Kouchi as a new Director and Kikuhiro Shinoda as a new Audit & Supervisory Board Member, while Kazuyuki Kojima will retire from the Board and Yoshihiro Shibata will resign from the Audit & Supervisory Board. These leadership changes could impact the company’s strategic direction and governance structure.

Nichiha Corporation Announces Treasury Share Acquisition and Cancellation
May 13, 2025

Nichiha Corporation has announced a strategic decision to acquire and subsequently cancel a portion of its treasury shares, aiming to enhance shareholder returns and improve capital efficiency. This move is part of the company’s First Medium-Term Management Plan and reflects its commitment to flexible capital policies in response to changing business environments.

Nichiha Corporation Reports Discrepancy in Fiscal Year Earnings Due to Tax Investigation
May 13, 2025

Nichiha Corporation announced a discrepancy between its forecasted and actual consolidated earnings for the fiscal year ending March 31, 2025. While net sales, operating profit, and ordinary profit were close to expectations, profit attributable to owners of the parent fell significantly short due to a tax investigation by the Nagoya Regional Taxation Bureau concerning transfer pricing with its U.S. subsidiary. This resulted in an anticipated reassessment amount of ¥2,051 million recorded as income taxes for prior periods. Nichiha plans to appeal this assessment and address potential international double taxation issues under the Japan-U.S. Tax Treaty.

Nichiha Corporation Reports Fiscal Year 2025 Financial Results and Optimistic 2026 Forecast
May 13, 2025

Nichiha Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 4% increase in net sales to ¥148,478 million. However, the company experienced a significant decline in profits, with operating profit down by 31.9% and ordinary profit dropping by 38.8%. The profit attributable to owners of the parent fell by 66.4%, reflecting challenges in maintaining profitability despite increased sales. The company forecasts a recovery in the fiscal year ending March 31, 2026, with expectations of a 43.8% increase in operating profit and a 42% rise in ordinary profit, indicating potential improvements in operational efficiency and market conditions.

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.Date of analysis: Jul 03, 2025