Nichiden Corporation (9902) AI Stock Analysis

• Market Cap: ¥76.07B
• Dividend Yield: 3.17%
• Average Volume (3M): 29.66K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.57
• Revenue Growth: 5.95%
• EPS Growth: 23.97%
• Country: JP
• Employees: 998
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 39.45
• Shares Outstanding: 30,000,800
• 10 Day Avg. Volume: 19,440
• 30 Day Avg. Volume: 29,663
• PEG Ratio: 2.13
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 41.84
• 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: ¥2,543.00 ▼(-0.27% Downside)

Nichiden Corporation's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, technical indicators show bearish momentum, which negatively impacts the stock score. The valuation is reasonable, with a solid dividend yield providing some support.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial resilience, providing the company with flexibility to invest in growth opportunities.

Profitability

Healthy profitability margins reflect efficient cost management and pricing power, contributing to sustained financial performance and shareholder value.

Negative Factors

Cash Flow Generation

Declining free cash flow suggests potential challenges in cash management, which could impact the company's ability to fund operations and growth initiatives.

Return on Equity

Moderate ROE suggests room for improvement in generating returns on shareholders' equity, which could affect investor confidence and capital efficiency.

Cash Conversion

A less than optimal cash conversion ratio indicates potential inefficiencies in turning profits into cash, which may constrain liquidity and operational flexibility.

Nichiden Corporation Business Overview & Revenue Model

Company Description

NICHIDEN 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 Money

Nichiden Corporation generates revenue primarily through the sale of electronic components and materials, which are essential for the production of a wide range of electronic devices. The company has established key partnerships with major manufacturers in the automotive and electronics sectors, allowing it to secure significant contracts and ongoing orders. Additionally, Nichiden invests in research and development to innovate and enhance its product offerings, which helps maintain its competitive edge and attract new customers. The revenue model is further supported by long-term relationships with clients, resulting in repeat business and stable revenue streams.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.44B	134.77B	126.91B	131.61B	123.96B	102.75B
Gross Profit	20.69B	20.68B	19.10B	19.57B	18.00B	14.56B
EBITDA	8.24B	8.87B	8.27B	8.98B	7.81B	5.36B
Net Income	4.74B	4.89B	4.67B	4.97B	4.25B	2.84B
Balance Sheet
Total Assets	119.76B	121.33B	127.56B	122.81B	120.56B	112.02B
Cash, Cash Equivalents and Short-Term Investments	20.76B	21.80B	25.05B	23.87B	27.55B	26.94B
Total Debt	8.38B	4.76B	5.00B	5.33B	5.75B	6.81B
Total Liabilities	33.33B	35.10B	39.36B	36.49B	37.25B	31.71B
Stockholders Equity	86.43B	86.23B	88.19B	86.32B	83.31B	80.31B
Cash Flow
Free Cash Flow	462.50M	2.06B	3.04B	556.00M	-268.00M	2.56B
Operating Cash Flow	849.50M	4.47B	5.02B	2.12B	3.07B	3.61B
Investing Cash Flow	987.50M	3.27B	-2.43B	46.00M	-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: Positive
• Last Price: 2550.00
• 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 2550 is above the 20-day moving average (MA) of 2547.50, above the 50-day MA of 2503.06, and below the 200-day MA of 2679.48, indicating a neutral trend. The MACD of 23.23 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 43.64 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	¥87.53B	15.37	―	3.38%	10.74%	-26.50%
7456	74 Outperform	¥135.37B	13.66	―	1.72%	32.43%	39.26%
8052	73 Outperform	¥56.60B	10.62	―	3.00%	16.06%	31.78%
3153	71 Outperform	¥62.67B	13.72	―	1.22%	14.41%	85.93%
7128	68 Neutral	¥54.12B	27.40	―	3.24%	-2.85%	-56.68%
9902	64 Neutral	¥76.07B	15.14	―	3.17%	5.95%	23.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nichiden Corporation Corporate Events

Nichiden Corporation Reports Strong Financial Performance for H1 2025

Nichiden Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a 3.6% increase in net sales compared to the previous year. Despite a slight decline in operating profit, the company experienced a significant increase in comprehensive income, indicating a strong financial performance. The company also announced a forecast for the fiscal year ending March 31, 2026, with expected net sales growth and stable profit levels, highlighting its steady market position.

The most recent analyst rating on (JP:9902) stock is a Buy with a Yen3076.00 price target. To see the full list of analyst forecasts on Nichiden Corporation stock, see the JP:9902 Stock Forecast page.