Soda Nikka Co., Ltd. (8158) AI Stock Analysis

• Market Cap: ¥25.61B
• Dividend Yield: 3.99%
• Average Volume (3M): 39.80K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.86
• Revenue Growth: 1.66%
• EPS Growth: -31.23%
• Country: JP
• Employees: 409
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 28.18
• Shares Outstanding: 22,968,000
• 10 Day Avg. Volume: 47,910
• 30 Day Avg. Volume: 39,803
• PEG Ratio: 0.56
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 37.79
• 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: 64 Neutral
• Price Target: ¥1,277.00 ▲(17.91% Upside)
• Action: Downgraded Date: 10/01/25
• Date: Action: Downgraded 10/01/25

Soda Nikka Co., Ltd. has a solid financial foundation with improving profitability and a strong balance sheet, which are significant strengths. However, the bearish technical indicators and fair valuation suggest caution. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong balance sheet / Low leverage

A very low debt-to-equity ratio (0.11) and an improving equity ratio provide durable financial flexibility. This conservative capital structure reduces refinancing and interest-rate risks, supports capital investment or M&A optionality, and strengthens resilience through demand cycles.

Improving profitability and margins

Sustained gross margins (~13.5%) together with a multi-year improvement in net margin indicate persistent operational improvements and pricing or cost control gains. Higher margins enhance cash generation capacity and support reinvestment, dividends, or buffer against margin pressure.

Stable revenue growth and recurring wholesale model

A steady multi-year revenue CAGR (~2.7%) reflects a resilient wholesale distribution model with recurring customer relationships in on-premise channels. Predictable revenue supports planning, enables incremental margin expansion, and underpins medium-term cash flow visibility.

Negative Factors

Volatile cash flow conversion

Material variability in free cash flow and volatile operating cash flow to net income ratios constrain reliable internal funding. Even with low leverage, inconsistent cash conversion raises execution risk for capex, working capital management and dividends, requiring close monitoring.

Modest top-line growth

A modest multi-year revenue CAGR suggests the business operates in a mature, low-growth segment. Limited organic growth can cap long-term return potential and increases reliance on margin expansion or strategic initiatives to lift profitability materially.

Concentration in on‑premise channels

Heavy exposure to on-premise customers ties performance to hospitality-sector cycles and structural shifts in consumer behavior. Long-term demand swings or channel displacement toward off-premise or e-commerce could pressure sales stability unless distribution mix is diversified.

Soda Nikka Co., Ltd. Business Overview & Revenue Model

Company Description

Soda Nikka Co., Ltd. engages in the trading of chemicals in Japan, Indonesia, China, and the rest of Asia. It offers caustic soda, sodium carbonate, liquid chlorine, hydrochloric acid, sodium bicarbonate, calcium chloride, chlorate, sodium hypochlorite, sodium sulfate, sodium silicate, sodium sulfate compounds, ammonia, uric acid, thiourea, nitric acid, solvents, and petrochemical products; other secondary products from soda; inorganic chemicals; organic fine chemicals; paper pulp chemicals; environmental chemicals; heavy oils; fuel oils; oils and fats; plasticizers; metal soaps; kerosene; animal feed and fertilizers; stabilizers; lubricants; light oils; medicines; antioxidants; coke; salt; and flame retardants. The company also provides synthetic resin materials, synthetic resin products, synthetic resin sub-materials, film base materials and laminated products; printed circuit boards, primary cells and rechargeable batteries, capacitors, connectors, and switches; environment-related equipment, construction works, and materials; industrial waste treatment products; disaster preparedness tools and equipment; thermal insulation films, solar panels, and various systems; wood and metal products; and materials for logistics. In addition, it undertakes the design, manufacture, and contracting work of chemical industry facilities and equipment; and construction and civil engineering work. Soda Nikka Co., Ltd. was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Soda Nikka Co., Ltd. generates revenue mainly through the sale and distribution of industrial chemicals. The company's key revenue streams include the direct sale of chemical products to businesses in sectors such as pharmaceuticals, food and beverage, and electronics. Additionally, Soda Nikka Co., Ltd. might engage in strategic partnerships with chemical manufacturers, allowing them to act as distributors or agents for specific products, thereby earning commissions or fees. The company's earnings are also influenced by its ability to maintain competitive pricing, optimize supply chain logistics, and offer value-added services such as technical support and product customization, which help in building long-term customer relationships and driving repeat business.

Soda Nikka Co., Ltd. Financial Statement Overview

Summary

Soda Nikka Co., Ltd. demonstrates a positive financial trajectory with consistent revenue growth, improved profitability, and a strong balance sheet. The company has low leverage, enhancing financial stability, although cash flow consistency remains an area for improvement.

Income Statement

Soda Nikka Co., Ltd. has shown consistent revenue growth with a CAGR of approximately 2.7% over the past five years, recovering well from a peak in 2021. Gross profit margins have remained stable, averaging around 13.5%, indicating effective cost management. However, the net profit margin has improved from 0.8% in 2021 to 3.4% in 2025, reflecting better operational efficiency. EBITDA margins have also shown improvement, while EBIT margins have been stable, suggesting sound operational performance.

Balance Sheet

The company's balance sheet is strong, with a consistent increase in stockholders' equity and a low debt-to-equity ratio of 0.11 in 2025, showcasing low leverage and financial stability. The equity ratio has improved, indicating a conservative capital structure. Return on equity has improved to 7.4% in 2025, reflecting enhanced profitability from equity investments.

Cash Flow

Cash flow analysis reveals fluctuating free cash flows, with a significant drop in 2023, but recovery in 2025. The operating cash flow to net income ratio has been volatile, showing inconsistent cash conversion. However, free cash flow to net income has improved, indicating better cash utilization strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	65.40B	65.15B	64.13B	62.74B	55.51B	94.59B
Gross Profit	9.17B	9.07B	8.83B	8.32B	7.32B	6.45B
EBITDA	2.76B	3.78B	3.00B	2.49B	1.47B	1.45B
Net Income	1.59B	2.19B	1.85B	1.51B	1.37B	800.00M
Balance Sheet
Total Assets	72.22B	73.20B	79.50B	69.29B	60.85B	61.44B
Cash, Cash Equivalents and Short-Term Investments	6.53B	7.23B	9.70B	8.40B	7.48B	10.83B
Total Debt	4.21B	3.17B	6.17B	4.76B	2.77B	5.04B
Total Liabilities	42.65B	43.66B	50.04B	42.85B	35.63B	35.44B
Stockholders Equity	29.57B	29.54B	29.46B	26.44B	25.23B	26.00B
Cash Flow
Free Cash Flow	0.00	620.00M	883.00M	-574.00M	293.00M	1.00B
Operating Cash Flow	0.00	3.29B	3.43B	215.00M	452.00M	1.26B
Investing Cash Flow	0.00	-1.84B	-2.31B	-669.00M	594.00M	-399.00M
Financing Cash Flow	0.00	-3.91B	147.00M	1.34B	-4.42B	-351.00M

Soda Nikka Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1083.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8158, the sentiment is Positive. The current price of 1083 is below the 20-day moving average (MA) of 1186.70, below the 50-day MA of 1147.22, and above the 200-day MA of 1072.59, indicating a bullish trend. The MACD of 17.67 indicates Negative momentum. The RSI at 65.32 is Neutral, neither overbought nor oversold. The STOCH value of 63.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8158.

Soda Nikka Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4093	79 Outperform	¥15.80B	12.89	―	3.89%	-3.00%	-29.83%
5013	78 Outperform	¥44.91B	8.53	―	3.53%	-3.45%	30.52%
4040	77 Outperform	¥8.69B	3.04	―	1.96%	8.43%	2.99%
4025	73 Outperform	¥33.19B	10.03	―	0.13%	9.78%	40.00%
4463	66 Neutral	¥28.12B	11.91	―	3.53%	6.99%	-0.30%
8158	64 Neutral	¥25.61B	12.72	―	3.99%	1.66%	-31.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Soda Nikka Co., Ltd. Corporate Events

Soda Nikka Reshapes Organization and Leadership Ahead of FY2026

Soda Nikka Co., Ltd. has approved a reorganization effective April 1, 2026, renaming its Business Support Department as the Logistics Management Department and creating a new Logistics Support Group to strengthen logistics oversight. The Hokkaido Sales Office will also be renamed the Sapporo Sales Office, under which a new Tomakomai Office will be established, signaling a more granular regional sales structure in northern Japan.

On the personnel side, the company has adjusted executive and key management roles to align with its medium-term management plan and business portfolio. A managing executive officer retains his core functions, while two senior managers, Kazutoyo Sakuda and Takashi Ooki, are promoted to executive officer roles, and other key employees, including Naoki Tanabe and Naoki Irisawa, are reassigned to bolster logistics management and regional sales leadership.

The most recent analyst rating on (JP:8158) stock is a Hold with a Yen1279.00 price target. To see the full list of analyst forecasts on Soda Nikka Co., Ltd. stock, see the JP:8158 Stock Forecast page.

Soda Nikka Posts Higher Sales and Profits, Confirms Full-Year Outlook and Dividend Plan

Soda Nikka Co., Ltd. reported a solid performance for the nine months ended December 31, 2025, with net sales rising 2.5% year-on-year to ¥50.1 billion and operating profit up 13.3%, while ordinary profit climbed 15.1% and profit attributable to owners of parent was essentially flat at ¥1.85 billion. The company’s financial position strengthened as total assets increased to ¥83.8 billion and net assets to ¥33.0 billion, even as the equity ratio edged down slightly; it also lifted its interim dividend to ¥20 per share and maintained a full-year dividend forecast of ¥40, alongside a full-year outlook calling for 8.2% net sales growth and higher profits, signaling steady operational momentum and continued shareholder returns despite modest earnings per share movement.

The most recent analyst rating on (JP:8158) stock is a Hold with a Yen1259.00 price target. To see the full list of analyst forecasts on Soda Nikka Co., Ltd. stock, see the JP:8158 Stock Forecast page.