Nitto Denko (NDEKY) AI Stock Analysis

• Market Cap: $14.94B
• Dividend Yield: 0.08%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.73
• Revenue Growth: 5.20%
• EPS Growth: 100.48%
• Country: US
• Employees: 25,300
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 0.86
• Shares Outstanding: 706,760,740
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,014
• PEG Ratio: -1.24
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.50
• 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 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 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.01T	915.14B	929.04B	853.45B	761.32B
Gross Profit	395.51B	330.86B	337.44B	302.39B	243.45B
EBITDA	254.06B	202.17B	201.54B	177.20B	139.07B
Net Income	137.24B	102.68B	109.17B	97.13B	70.23B
Balance Sheet
Total Assets	1.32T	1.25T	1.15T	1.09T	965.90B
Cash, Cash Equivalents and Short-Term Investments	371.08B	347.49B	332.11B	366.99B	302.29B
Total Debt	0.00	30.46B	272.00M	241.00M	545.00M
Total Liabilities	276.81B	266.04B	250.45B	272.36B	249.22B
Stockholders Equity	1.04T	984.02B	902.21B	821.19B	715.87B
Cash Flow
Free Cash Flow	111.91B	87.75B	115.78B	85.53B	58.59B
Operating Cash Flow	217.91B	155.52B	181.70B	144.49B	116.31B
Investing Cash Flow	-115.11B	-67.93B	-159.91B	-57.59B	-57.54B
Financing Cash Flow	-78.89B	-90.78B	-57.63B	-36.64B	-68.30B

Nitto Denko Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.28
• 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 21.28 is above the 20-day moving average (MA) of 18.84, above the 50-day MA of 18.49, and above the 200-day MA of 17.73, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 80.66 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
NDEKY	71 Outperform	$14.94B	16.14	13.37%	0.08%	5.20%	100.48%
RPM	71 Outperform	$15.75B	21.11	25.45%	1.66%	-0.61%	15.06%
EMN	69 Neutral	$9.21B	10.15	16.16%	4.27%	2.78%	1.50%
LYB	67 Neutral	$19.51B	20.79	7.19%	8.88%	-6.53%	-50.08%
PPG	64 Neutral	$26.11B	19.75	18.47%	2.36%	-7.67%	-0.58%
WLK	63 Neutral	$10.54B	29.36	3.71%	2.55%	-1.27%	48.34%
Sector *	63 Neutral	$10.49B	9.49	1.49%	2.70%	2.28%	-33.88%