Nichiden Corporation (9902) AI Stock Analysis

• Market Cap: ¥81.85B
• Dividend Yield: 0.72%
• Average Volume (3M): 35.01K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.60
• Revenue Growth: 6.19%
• EPS Growth: 8.48%
• Country: JP
• Employees: 998
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Distribution
• EPS (TTM): 46.23
• Shares Outstanding: 30,000,800
• 10 Day Avg. Volume: 18,820
• 30 Day Avg. Volume: 35,006
• PEG Ratio: 1.89
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 178.30
• 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: ¥3,101.00
• Price Target Upside: 11.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥3,074.00 ▲(10.85%Upside)

Nichiden Corporation's stock is moderately attractive, primarily due to its solid financial performance with strong revenue growth and profitability. Technical analysis presents a mixed picture with slight positive short-term trends but bearish momentum indicators. Valuation is fair, but low dividend yield limits income potential. The absence of recent earnings call data and notable corporate events reduces additional insights.

Nichiden Corporation Business Overview & Revenue Model

Company Description

Nichiden Corporation (9902) is a Japanese company engaged in the distribution and sale of industrial machinery and equipment. The company operates primarily in the sectors of industrial automation, control equipment, and components. Nichiden provides a wide range of products, including sensors, motors, electrical components, and automation systems, serving various industries such as manufacturing, automotive, and electronics.

How the Company Makes Money

Nichiden 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 has solid financial health with strong revenue growth, profitability, and a robust balance sheet. However, cash flow management shows room for improvement, particularly in cash generation relative to net income.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	134.77B	126.91B	131.61B	123.96B	102.75B
Gross Profit	20.68B	19.10B	19.57B	18.00B	14.56B
EBITDA	8.87B	8.27B	7.89B	7.81B	5.09B
Net Income	4.89B	4.67B	4.97B	4.25B	2.84B
Balance Sheet
Total Assets	121.33B	127.56B	122.81B	120.56B	112.02B
Cash, Cash Equivalents and Short-Term Investments	21.80B	25.05B	23.87B	27.55B	26.94B
Total Debt	4.76B	5.00B	5.33B	5.75B	6.81B
Total Liabilities	35.10B	39.36B	36.49B	37.25B	31.71B
Stockholders Equity	86.23B	88.19B	86.32B	83.31B	80.31B
Cash Flow
Free Cash Flow	2.06B	3.04B	556.00M	-268.00M	2.56B
Operating Cash Flow	4.47B	5.02B	2.12B	3.07B	3.61B
Investing Cash Flow	3.27B	-2.43B	46.00M	-3.77B	-6.58B
Financing Cash Flow	-6.32B	-4.89B	-2.49B	-1.72B	-1.90B

Nichiden Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2773.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9902, the sentiment is Positive. The current price of 2773 is above the 20-day moving average (MA) of 2734.90, above the 50-day MA of 2736.60, and below the 200-day MA of 2919.84, indicating a neutral trend. The MACD of 13.12 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 74.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9902.

Nichiden Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8061	79 Outperform	¥54.45B	7.31		5.47%	8.01%	74.26%
8052	75 Outperform	¥47.83B	9.96		4.43%	5.70%	10.65%
7456	74 Outperform	¥88.40B	9.99		2.18%	30.04%	30.26%
3153	74 Outperform	¥38.31B	9.26		2.00%	1.87%	50.73%
9902	72 Outperform	¥81.85B	17.02		0.72%	6.19%	8.48%
7128	68 Neutral	¥56.36B	12.65		2.56%	-4.11%	10.47%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%

Nichiden Corporation Corporate Events

NICHIDEN Corporation Announces Treasury Share Disposal for Incentive Plan

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.

Nichiden Corporation Reports Strong Financial Performance for FY 2025

Nichiden Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 6.2% increase in net sales and a notable rise in operating profit by 17.5%. The company also announced a higher dividend payout, reflecting a positive outlook for stakeholders and indicating a stable financial position despite a decrease in comprehensive income.