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Nichiden Corporation (JP:9902)
:9902
Japanese Market
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Nichiden Corporation (9902) AI Stock Analysis

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JP:9902

Nichiden Corporation

(9902)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
¥3,076.00
▲(19.36% Upside)
Nichiden Corporation's overall stock score is driven by its strong financial performance and reasonable valuation. While technical analysis presents mixed signals, the company's robust balance sheet and attractive dividend yield support a positive outlook.

Nichiden Corporation (9902) vs. iShares MSCI Japan ETF (EWJ)

Nichiden Corporation Business Overview & Revenue Model

Company DescriptionNICHIDEN Corporation operates as a trading company in Japan. It offers cylinders, valves, coupling, etc.; industrial robots, controllers, etc.; and sensors, touchscreens, measuring devices, etc. for the control equipment field. The company also provides motors, reduction drives, gearboxes, etc.; chains, gear wheels, coupling, etc.; and handles, bearings, linear motions guides, etc. for the power transmission device field. In addition, it offers dust collectors, pumps, compressors, LEDs, etc.; conveyors, lifts, casters, etc.; and containers, palettes, storage shelves, etc. for industrial machinery fields. The company was founded in 1935 and is headquartered in Osaka, Japan.
How the Company Makes MoneyNichiden Corporation generates revenue through the sale and distribution of industrial machinery and equipment. The company partners with numerous manufacturers to offer a diverse portfolio of products, which it sells to businesses across different industries. Nichiden's revenue streams primarily consist of product sales, which are supported by its extensive distribution network. The company leverages its expertise in industrial automation and control systems to provide value-added services, such as technical support and system integration, enhancing its revenue potential. Strategic partnerships with manufacturers and a focus on high-quality products contribute significantly to Nichiden's earnings.

Nichiden Corporation Financial Statement Overview

Summary
Nichiden Corporation demonstrates strong financial health with solid revenue growth and profitability. The balance sheet is robust with low leverage, though there is room for improvement in cash generation and returns on equity.
Income Statement
85
Very Positive
Nichiden Corporation has demonstrated solid revenue growth with a positive trajectory, increasing from 126,912 million yen to 134,771 million yen, marking a growth rate of 6.19% most recently. The Gross Profit Margin stands at 15.34%, and the Net Profit Margin is 3.63%, indicating healthy profitability levels. The EBIT Margin of 5.06% and EBITDA Margin of 6.58% further support the company's efficient operational performance. Overall, the company shows strong and consistent financial results in its income statement.
Balance Sheet
78
Positive
Nichiden Corporation maintains a robust balance sheet with a Debt-to-Equity Ratio of 0.06, highlighting low leverage and financial stability. The Return on Equity (ROE) is 5.67%, which is moderate, indicating efficient use of equity. An Equity Ratio of 71.06% underscores strong equity financing. The company appears well-capitalized, though the moderate ROE suggests room for improvement in generating returns on shareholders' equity.
Cash Flow
72
Positive
The free cash flow has declined recently, but remains positive at 2,058 million yen. The Operating Cash Flow to Net Income Ratio is 0.91, showing a decent conversion of accounting profits into cash. The Free Cash Flow to Net Income Ratio is 0.42, indicating a need for improving cash generation relative to net income. While cash flow generation is stable, the decrease in free cash flow signals potential areas for improvement in cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue135.44B134.77B126.91B131.61B123.96B102.75B
Gross Profit20.69B20.68B19.10B19.57B18.00B14.56B
EBITDA8.24B8.87B8.27B8.98B7.81B5.36B
Net Income4.74B4.89B4.67B4.97B4.25B2.84B
Balance Sheet
Total Assets119.76B121.33B127.56B122.81B120.56B112.02B
Cash, Cash Equivalents and Short-Term Investments20.76B21.80B25.05B23.87B27.55B26.94B
Total Debt8.38B4.76B5.00B5.33B5.75B6.81B
Total Liabilities33.33B35.10B39.36B36.49B37.25B31.71B
Stockholders Equity86.43B86.23B88.19B86.32B83.31B80.31B
Cash Flow
Free Cash Flow462.50M2.06B3.04B556.00M-268.00M2.56B
Operating Cash Flow849.50M4.47B5.02B2.12B3.07B3.61B
Investing Cash Flow987.50M3.27B-2.43B46.00M-3.77B-6.58B
Financing Cash Flow-2.61B-6.32B-4.89B-2.49B-1.72B-1.90B

Nichiden Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2577.00
Price Trends
50DMA
2758.26
Negative
100DMA
2737.49
Negative
200DMA
2795.33
Negative
Market Momentum
MACD
-50.20
Positive
RSI
34.91
Neutral
STOCH
17.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9902, the sentiment is Negative. The current price of 2577 is below the 20-day moving average (MA) of 2675.58, below the 50-day MA of 2758.26, and below the 200-day MA of 2795.33, indicating a bearish trend. The MACD of -50.20 indicates Positive momentum. The RSI at 34.91 is Neutral, neither overbought nor oversold. The STOCH value of 17.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9902.

Nichiden 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
78
Outperform
¥80.76B13.833.57%12.01%-23.10%
76
Outperform
¥106.22B11.671.70%31.26%26.32%
74
Outperform
¥48.36B10.901.59%7.34%60.45%
72
Outperform
¥76.16B16.072.88%5.72%2.77%
69
Neutral
¥54.77B19.863.32%-2.41%-43.98%
68
Neutral
¥51.24B9.253.07%16.43%52.00%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9902
Nichiden Corporation
2,577.00
-495.16
-16.12%
JP:3153
Yashima Denki Co., Ltd.
2,279.00
578.86
34.05%
JP:7128
MARUKA FURUSATO Corporation
2,285.00
236.38
11.54%
JP:7456
Matsuda Sangyo Co., Ltd.
4,300.00
1,262.62
41.57%
JP:8052
Tsubakimoto Kogyo Co., Ltd.
2,661.00
911.78
52.12%
JP:8061
Seika Corporation
2,240.00
1,018.48
83.38%

Nichiden Corporation Corporate Events

Nichiden Corporation to Merge Subsidiary for Operational Efficiency
Aug 21, 2025

Nichiden Corporation announced its decision to merge its wholly owned subsidiary, PROCUEbyNET Corporation, through an absorption-type merger. This strategic move aims to streamline operations and concentrate management resources, with Nichiden Corporation as the surviving entity. The merger is expected to enhance operational efficiency and consolidate the company’s position in the market.

The most recent analyst rating on (JP:9902) stock is a Buy with a Yen3164.00 price target. To see the full list of analyst forecasts on Nichiden Corporation stock, see the JP:9902 Stock Forecast page.

Nichiden Corporation Reports Q1 2025 Financial Results with Mixed Performance
Aug 1, 2025

Nichiden Corporation reported its consolidated financial results for the three months ending June 30, 2025, showing a slight increase in net sales by 2% year-on-year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 11.6%, 13.4%, and 12.5% respectively. Despite these declines, comprehensive income saw a significant increase of 82.6% compared to the previous year. The company also announced a forecast for the fiscal year ending March 31, 2026, with anticipated growth in net sales by 3.9% but slight declines in operating and ordinary profits.

Nichiden Completes Treasury Stock Disposal for Compensation
Jul 18, 2025

Nichiden Corporation has completed the payment for the disposal of its treasury stock as part of a restricted stock compensation plan. This move, resolved by the Board of Directors, involves the disposal of 13,700 shares of common stock, with a total disposal amount of 38,401,100 yen. The shares are allocated to directors and executive officers, aiming to align their interests with the company’s performance and enhance corporate governance.

NICHIDEN Corporation Announces Treasury Share Disposal for Incentive Plan
Jun 20, 2025

NICHIDEN Corporation has announced the disposal of 13,700 treasury shares as part of a Restricted Stock Compensation Plan aimed at incentivizing directors and executive officers to enhance corporate value and align with shareholder interests. This strategic move, approved by the Board of Directors, involves a total disposal amount of 38,401,100 yen and sets a 30-year transfer restriction period, reflecting the company’s commitment to long-term value sharing with stakeholders.

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: Oct 01, 2025