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

• Market Cap: ¥24.07B
• Dividend Yield: 3.99%
• Average Volume (3M): 39.80K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.88
• Revenue Growth: 1.66%
• EPS Growth: -31.23%
• Country: JP
• Employees: 409
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 36.98
• 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: ¥1,207.00 ▲(11.45% Upside)

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

Balance Sheet Strength

Very low leverage and rising equity provide durable financial flexibility. This conservative capital structure reduces refinancing risk, supports capex or M&A optionality, and underpins creditworthiness—helping the company weather cyclical downturns and invest in long-term growth.

Consistent Revenue Growth

Steady top-line expansion indicates persistent demand and stable market positioning. Predictable revenue growth enables better capacity planning, incremental scale benefits, and supports long-term product development and distribution investments versus volatile sales profiles.

Improving Profitability

Rising net margins and stable gross margins point to sustainable operational improvements and better cost control. Improved profitability enhances retained earnings and cash generation capacity, enabling reinvestment in brand, R&D, and distribution for continued secular competitiveness.

Negative Factors

Volatile Cash Flows

Inconsistent cash conversion creates uncertainty for funding capex, dividends, and working capital needs. Volatility raises the risk that management may need external financing during weak cash years, reducing the company’s ability to consistently fund strategic investments or return capital.

Declining EPS Trend

Negative EPS growth signals per-share earnings pressure despite revenue and margin gains. This may reflect one-off items, dilution, or operational volatility and can constrain long-term shareholder returns and limit management flexibility to pursue buybacks or raise distributions consistently.

Modest Return on Equity

While improving, a sub-10% ROE suggests only moderate capital efficiency. Sustaining attractive long-term shareholder value requires higher returns; modest ROE can limit the pace of equity-driven growth and make funding high-return investments or rewarding shareholders more challenging.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 above the 20-day moving average (MA) of 1076.75, above the 50-day MA of 1037.72, and above the 200-day MA of 1042.17, indicating a bullish trend. The MACD of 23.31 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 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
4463	81 Outperform	¥24.30B	9.70	―	3.53%	6.99%	-0.30%
4040	77 Outperform	¥7.53B	6.49	―	1.96%	8.43%	2.99%
4093	77 Outperform	¥12.93B	11.64	―	3.89%	-3.00%	-29.83%
5013	77 Outperform	¥39.30B	8.16	―	3.53%	-3.45%	30.52%
4025	66 Neutral	¥34.66B	11.93	―	0.13%	9.78%	40.00%
8158	64 Neutral	¥24.07B	12.30	―	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 Co., Ltd. Announces Merger with Subsidiary NISSHIN Co., Ltd.

Soda Nikka Co., Ltd. has announced its decision to merge with its wholly owned subsidiary, NISSHIN Co., Ltd., effective April 1, 2026. This strategic move aims to enhance business value by concentrating and streamlining management resources. The merger will result in the dissolution of NISSHIN, with Soda Nikka as the surviving entity. This merger is expected to impact the company’s operational efficiency and market positioning positively.

The most recent analyst rating on (JP:8158) stock is a Hold with a Yen1128.00 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 Co., Ltd. Announces Stable Interim Dividend

Soda Nikka Co., Ltd. has announced an interim dividend of 20 yen per share for the fiscal year ending March 2026, maintaining the same rate as their previous forecast. This decision reflects the company’s commitment to stable profit distribution and financial strengthening, with a total dividend payout of 459 million yen, highlighting an increase from the previous fiscal year’s interim dividend.

The most recent analyst rating on (JP:8158) stock is a Hold with a Yen1128.00 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 Co., Ltd. Reports Strong Financial Performance for H1 2025

Soda Nikka Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 3.7% increase in net sales and a 4.7% rise in operating profit compared to the previous year. Despite a slight decline in profit attributable to owners of the parent, the company experienced significant growth in comprehensive income, reflecting a strong financial position. The company plans to maintain its dividend payments and has forecasted continued growth for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:8158) stock is a Hold with a Yen1128.00 price target. To see the full list of analyst forecasts on Soda Nikka Co., Ltd. stock, see the JP:8158 Stock Forecast page.