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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)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
¥3,085.00
▼(-5.51% Downside)
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
Conservative balance sheet
Low leverage gives Nichiha durable financial resilience through construction cycles. With debt-to-equity near 0.12–0.16, the company has lower interest burden and capacity to fund downturns, M&A, or capex without stressing liquidity, supporting long-term stability.
Negative Factors
Compressed net margins
Severe margin compression materially reduces earnings resilience and cash available for reinvestment or shareholder returns. Lower net margins imply less buffer vs cost inflation or volume declines, increasing risk that shortfalls in demand translate quickly into weak reported profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage gives Nichiha durable financial resilience through construction cycles. With debt-to-equity near 0.12–0.16, the company has lower interest burden and capacity to fund downturns, M&A, or capex without stressing liquidity, supporting long-term stability.
Read all positive factors

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

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 ext...
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
Financials are mixed: the balance sheet is a clear strength with low leverage (debt-to-equity ~0.12–0.16), but operating results have weakened versus 2022–2024, with revenue slightly down in 2026 (-2.5%) and net margins compressed to ~1.7–1.8% in 2025–2026. Cash flow is positive and free cash flow has recovered in 2025–2026, but year-to-year volatility reduces confidence in consistency.
Income Statement
54
Neutral
Balance Sheet
76
Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue147.42B143.74B148.48B142.79B138.06B128.60B
Gross Profit50.61B51.23B50.57B50.46B51.93B50.81B
EBITDA11.87B14.65B12.40B15.55B15.10B17.41B
Net Income1.74B2.48B2.71B8.07B9.04B10.15B
Balance Sheet
Total Assets169.71B168.26B177.46B175.69B169.34B161.84B
Cash, Cash Equivalents and Short-Term Investments21.49B24.70B26.48B26.70B32.74B44.21B
Total Debt16.14B15.91B16.18B15.15B15.48B15.50B
Total Liabilities50.15B47.13B53.29B49.38B49.71B50.66B
Stockholders Equity120.11B121.66B124.69B126.69B119.88B111.47B
Cash Flow
Free Cash Flow0.004.26B6.06B1.03B-4.54B7.53B
Operating Cash Flow0.008.21B10.41B6.92B5.54B14.99B
Investing Cash Flow0.00-3.78B-3.04B-6.04B-12.62B-7.78B
Financing Cash Flow0.00-6.64B-8.01B-7.12B-4.89B-3.21B

Nichiha Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3265.00
Price Trends
50DMA
3227.35
Negative
100DMA
3307.38
Negative
200DMA
3077.67
Negative
Market Momentum
MACD
-84.99
Positive
RSI
31.09
Neutral
STOCH
18.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7943, the sentiment is Negative. The current price of 3265 is above the 20-day moving average (MA) of 3139.25, above the 50-day MA of 3227.35, and above the 200-day MA of 3077.67, indicating a bearish trend. The MACD of -84.99 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 18.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7943.

Nichiha Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥42.46B8.173.74%4.73%17.57%
71
Outperform
¥31.93B8.573.59%6.27%28.43%
68
Neutral
¥123.53B10.6112.89%3.40%3.44%-3.09%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥57.18B14.861.49%8.57%11.82%
55
Neutral
¥98.42B43.493.53%-3.19%-4.14%
55
Neutral
¥466.47B-31.801.44%4.80%0.40%306.91%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7943
Nichiha Corporation
2,915.00
24.76
0.86%
JP:5938
LIXIL Group
1,639.00
110.88
7.26%
JP:5930
Bunka Shutter Co., Ltd.
1,833.00
-220.07
-10.72%
JP:5262
Nippon Hume Corp.
1,081.00
293.29
37.23%
JP:7949
Komatsu Wall Industry Co., Ltd.
2,408.00
342.28
16.57%
JP:7971
Toli Corporation
599.00
144.95
31.92%

Nichiha Corporation Corporate Events

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.Date of analysis: May 15, 2026