Nitto Denko (NDEKY) AI Stock Analysis

• Market Cap: $13.52B
• Dividend Yield: 1.34%
• Average Volume (3M): 636.00
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.74
• Revenue Growth: 5.20%
• EPS Growth: 100.48%
• Country: US
• Employees: 25,300
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 0.86
• Shares Outstanding: 706,760,740
• 10 Day Avg. Volume: 1,910
• 30 Day Avg. Volume: 636
• PEG Ratio: 0.18
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.19
• 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

• Rating: 71 Outperform
• Price Target: ―

Nitto Denko's overall score reflects its strong financial stability, backed by a robust balance sheet and solid profitability. The mixed technical indicators suggest a period of consolidation, while the reasonable valuation supports moderate upside potential. The company should focus on reversing revenue and cash flow declines to enhance future performance.

Nitto Denko Business Overview & Revenue Model

Company Description

Nitto Denko Corporation (NDEKY) is a leading Japanese company that operates in the diversified materials sector, primarily focusing on the development and production of high-performance materials. The company offers a wide range of products, including adhesive tapes, protective films, industrial tapes, electronic device components, and medical products. Nitto Denko serves various industries, such as automotive, electronics, healthcare, and environmental solutions, providing innovative materials that enhance the functionality and reliability of its customers' products.

How the Company Makes Money

Nitto Denko generates revenue through the sale of its diverse portfolio of high-performance materials, which are tailored to meet the specific needs of different industries. The company's key revenue streams include adhesive products for industrial applications, optical films used in electronic displays, and medical products such as transdermal patches and surgical tapes. Nitto Denko has established significant partnerships with major manufacturers in the automotive and electronics sectors, which contribute to a stable and recurring revenue base. Additionally, the company's ongoing investment in research and development helps maintain its competitive edge by continually improving product performance and expanding into new market segments.

Nitto Denko Financial Statement Overview

Summary

Nitto Denko displays strong profitability with solid gross and net profit margins, a robust balance sheet with minimal leverage, and healthy cash generation capabilities. However, the slight decline in revenue and free cash flow growth suggests a need for focus on reversing these trends.

Income Statement

Nitto Denko shows strong gross and net profit margins of 36.15% and 11.22%, respectively, for 2024, indicating good profitability. However, the company experienced a slight decline in revenue growth with a -1.50% rate from 2023 to 2024. EBIT and EBITDA margins are healthy at 15.44% and 22.10%, respectively. The income statement reflects solid profitability but shows a need to focus on reversing the declining revenue trend.

Balance Sheet

Nitto Denko maintains a strong balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The equity ratio is robust at 78.66%, reflecting a stable financial structure. ROE stands at a solid 10.43%. Overall, the balance sheet is very strong, with high equity and low debt, supporting financial stability.

Cash Flow

The company experienced a decline in free cash flow growth rate of -24.20% from 2023 to 2024, which may be a concern for future liquidity. However, the operating cash flow to net income ratio remains favorable at 1.51, indicating healthy cash generation relative to earnings. Despite the decline in free cash flow, the cash flow statement reflects strong operational cash generation capabilities.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	955.99B	915.14B	929.04B	853.45B	761.32B	741.02B
Gross Profit	363.23B	330.86B	337.44B	302.39B	243.45B	221.93B
EBITDA	225.82B	202.17B	201.54B	177.20B	139.07B	116.29B
Net Income	123.64B	102.68B	109.17B	97.13B	70.23B	47.16B
Balance Sheet
Total Assets	1.30T	1.25T	1.15T	1.09T	965.90B	921.90B
Cash, Cash Equivalents and Short-Term Investments	315.78B	347.49B	332.11B	366.99B	302.29B	307.56B
Total Debt	338.00M	30.46B	272.00M	241.00M	545.00M	90.00M
Total Liabilities	281.78B	266.04B	250.45B	272.36B	249.22B	231.70B
Stockholders Equity	1.02T	984.02B	902.21B	821.19B	715.87B	689.45B
Cash Flow
Free Cash Flow	101.86B	87.75B	115.78B	85.53B	58.59B	63.84B
Operating Cash Flow	175.51B	155.52B	181.70B	144.49B	116.31B	123.64B
Investing Cash Flow	-85.17B	-67.93B	-159.91B	-57.59B	-57.54B	-59.99B
Financing Cash Flow	-78.59B	-90.78B	-57.63B	-36.64B	-68.30B	-51.64B

Nitto Denko Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDEKY, the sentiment is Positive. The current price of 18.82 is above the 20-day moving average (MA) of 18.31, above the 50-day MA of 18.18, and above the 200-day MA of 17.60, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDEKY.

Nitto Denko Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYB	72 Outperform	$19.67B	18.93	7.19%	8.95%	-6.53%	-50.08%
NDEKY	71 Outperform	$13.52B	14.94	13.37%	1.34%	5.20%	100.48%
RPM	71 Outperform	$14.43B	22.51	25.53%	1.81%	-0.61%	15.06%
EMN	69 Neutral	$9.03B	9.96	16.16%	4.25%	2.78%	1.50%
PPG	64 Neutral	$26.43B	19.72	18.47%	2.34%	-7.67%	-0.58%
Sector *	62 Neutral	$10.11B	9.76	-0.15%	2.94%	2.14%	-32.15%
WLK	57 Neutral	$10.32B	27.06	3.71%	2.61%	-1.27%	48.34%