Nichiha Corporation (7943) AI Stock Analysis

• Market Cap: ¥115.85B
• Dividend Yield: 3.53%
• Average Volume (3M): 81.61K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.49
• 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): 24.32
• Revenue Forecast (FY): ¥147.54B

• Rating: 66 Neutral
• Price Target: ¥3,647.00 ▲(11.70% Upside)
• Action: Reiterated Date: 11/11/25
• Date: Action: Reiterated 11/11/25

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 financial leverage give the company structural resilience versus cyclical downturns. Low debt reduces fixed interest burdens, preserves borrowing capacity for capex or acquisitions, and supports consistent capital allocation over multiple quarters.

Cash Generation Quality

Strong operating cash conversion and a rebound in free cash flow indicate durable cash-generating ability beyond accounting profits. Robust cash flow supports dividends, working-capital needs and targeted reinvestment even if reported profits remain volatile over several quarters.

Specialized Product Franchise

A focused business model in exterior wall cladding and fiber-cement panels creates product specialization, technical know-how and entrenched distribution ties to builders and wholesalers. These structural market positions support steady specification-led sales and competitive moats over months.

Negative Factors

Margin Compression

Significant margin erosion constrains the company’s ability to fund growth internally and reduces buffer against cost shocks. Persistently lower gross and EBIT margins can limit reinvestment, compress returns on capital and pressure cash available for strategic initiatives over the medium term.

Declining Revenue & EPS

Negative revenue growth and a sharp EPS contraction signal weakening top-line momentum and financial leverage to earnings. If these trends persist, they indicate demand softness or margin pressure that undermines scalability and could require structural cost actions to restore profitability.

Cyclicality of End Markets

Revenue dependence on construction and renovation cycles exposes cash flows and utilization to macro swings. In a cyclical downturn, product demand, order timing and pricing can decline simultaneously, amplifying earnings volatility and stressing fixed-cost absorption over several quarters.

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 makes money primarily by selling exterior wall cladding materials and related building products. Its core revenue stream comes from the manufacture and sale of fiber-cement siding/panels and associated system components (e.g., trim, accessories, and installation-related items) that are specified and purchased for new-build homes, multi-family housing, and non-residential buildings, as well as for renovation/recladding projects. Revenue is generated through product shipments to professional channels such as homebuilders, general contractors, specialty installers, housing manufacturers, and building-material wholesalers/distributors, with demand tied to construction activity, remodeling cycles, and design/architectural specifications. Additional detail on the company’s segment-level revenue breakdown, pricing model, or specific named partnerships is null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	147.42B	148.48B	142.79B	138.06B	128.60B	120.96B
Gross Profit	50.61B	50.57B	50.46B	51.93B	50.81B	47.73B
EBITDA	11.87B	12.40B	15.55B	15.10B	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	147.63B
Cash, Cash Equivalents and Short-Term Investments	21.49B	26.48B	26.70B	32.74B	44.21B	39.69B
Total Debt	16.14B	16.18B	15.15B	15.48B	15.50B	15.83B
Total Liabilities	50.15B	53.29B	49.38B	49.71B	50.66B	45.94B
Stockholders Equity	120.11B	124.69B	126.69B	119.88B	111.47B	102.05B
Cash Flow
Free Cash Flow	0.00	6.06B	1.03B	-4.54B	7.53B	4.96B
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: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 below the 20-day moving average (MA) of 3491.00, below the 50-day MA of 3477.80, and above the 200-day MA of 3077.76, indicating a neutral trend. The MACD of -57.59 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 48.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7971	79 Outperform	¥39.07B	7.75	―	3.59%	6.91%	13.17%
7949	77 Outperform	¥49.42B	14.35	―	3.74%	3.70%	12.26%
7943	66 Neutral	¥115.85B	13.03	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥133.27B	10.42	12.89%	3.40%	2.98%	41.11%
5262	64 Neutral	¥65.60B	20.20	―	1.49%	-8.92%	1.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	50 Neutral	$494.44B	16.11	1.44%	4.80%	0.68%	―

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.