Nitto Denko (NDEKY) AI Stock Analysis

• Market Cap: $16.36B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.71K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.67
• Revenue Growth: 5.44%
• EPS Growth: 35.16%
• Country: US
• Employees: 25,300
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.92
• Shares Outstanding: 678,659,700
• 10 Day Avg. Volume: 2,129
• 30 Day Avg. Volume: 1,708
• PEG Ratio: -0.89
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 3.84
• P/FCF Ratio: 34.83
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $27.00 ▲(9.00% Upside)

Nitto Denko's strong financial performance, particularly its robust balance sheet and operational efficiency, is the most significant factor in its stock score. Positive technical indicators further support a favorable outlook, although the valuation is only modestly attractive. The absence of earnings call data and corporate events means these factors do not influence the score.

Nitto Denko Business Overview & Revenue Model

Company Description

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan and internationally. It provides double sided tapes, surface protective films, sealing materials/NVH related products, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction, as well as packaging machines. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nitto Denko generates revenue primarily through the sale of its wide range of products across various industries. The company's revenue model is driven by several key streams, including the sale of adhesive products, electronic materials, and medical supplies. A significant portion of its earnings comes from long-term contracts and partnerships with major manufacturers in the automotive and electronics sectors, which provide stable revenue. Additionally, Nitto Denko invests in research and development to innovate and expand its product offerings, allowing it to cater to evolving market needs and maintain a competitive edge. The company's commitment to sustainability and high-quality products further enhances its market position, contributing to its overall profitability.

Nitto Denko Financial Statement Overview

Summary

Nitto Denko demonstrates strong profitability and a robust balance sheet with minimal leverage. However, the significant revenue decline and reduced free cash flow growth in the TTM period pose potential risks. The company maintains operational efficiency and a solid capital structure, positioning it well for future growth if revenue challenges are addressed.

Income Statement

Nitto Denko's income statement shows strong profitability with a consistent gross profit margin around 38.5% and a net profit margin of 13.1% in the TTM period. However, the company experienced a revenue decline of 30.8% in the TTM, indicating potential challenges in maintaining growth. Despite this, EBIT and EBITDA margins remain robust at 17.7% and 24.3%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is very strong with a negligible debt-to-equity ratio of 0.0005, indicating minimal leverage and financial risk. The return on equity is healthy at 12.8%, reflecting efficient use of equity to generate profits. The equity ratio stands at 79.6%, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 19.8% in the TTM, which could be a concern. However, the operating cash flow to net income ratio is nearly 1, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 43.9%, suggesting a reasonable conversion of net income into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01T	1.01T	915.14B	929.04B	853.45B	761.32B
Gross Profit	389.57B	395.51B	330.86B	337.44B	302.39B	243.45B
EBITDA	244.13B	254.06B	202.17B	201.54B	177.20B	139.07B
Net Income	132.41B	137.24B	102.68B	109.17B	97.13B	70.23B
Balance Sheet
Total Assets	1.28T	1.32T	1.25T	1.15T	1.09T	965.90B
Cash, Cash Equivalents and Short-Term Investments	290.96B	371.08B	347.49B	332.11B	366.99B	302.29B
Total Debt	468.00M	455.00M	345.00M	272.00M	241.00M	545.00M
Total Liabilities	260.82B	276.81B	266.04B	250.45B	272.36B	249.22B
Stockholders Equity	1.02T	1.04T	984.02B	902.21B	821.19B	715.87B
Cash Flow
Free Cash Flow	89.80B	111.91B	87.75B	115.78B	85.53B	58.59B
Operating Cash Flow	204.77B	217.91B	155.52B	181.70B	144.49B	116.31B
Investing Cash Flow	-120.14B	-115.11B	-67.93B	-159.91B	-57.59B	-57.54B
Financing Cash Flow	-96.95B	-78.89B	-90.78B	-57.63B	-36.64B	-68.30B

Nitto Denko Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 24.77 is above the 20-day moving average (MA) of 24.49, above the 50-day MA of 23.53, and above the 200-day MA of 19.86, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 31.99 is Neutral, 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
NDEKY	77 Outperform	$16.36B	19.07	13.21%	0.67%	5.44%	35.16%
RPM	69 Neutral	$14.38B	20.94	24.05%	1.86%	3.09%	12.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALB	55 Neutral	$10.91B	―	-8.66%	1.69%	-33.05%	-97.63%
LYB	55 Neutral	$14.67B	60.59	1.08%	11.88%	-14.12%	-89.22%
WLK	52 Neutral	$9.67B	―	-0.64%	2.79%	-3.00%	-124.79%
IFF	50 Neutral	$16.34B	83.39	-2.74%	2.51%	-0.07%	83.36%