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Nitto Denko Corporation (NDEKY)
OTHER OTC:NDEKY
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Nitto Denko (NDEKY) AI Stock Analysis

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NDEKY

Nitto Denko

(OTC:NDEKY)

Rating:71Outperform
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 (NDEKY) vs. SPDR S&P 500 ETF (SPY)

Nitto Denko Business Overview & Revenue Model

Company DescriptionNitto 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 MoneyNitto 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
75
Positive
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
82
Very Positive
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
78
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.01T915.14B929.04B853.45B761.32B
Gross Profit395.51B330.86B337.44B302.39B243.45B
EBITDA254.06B202.17B201.54B177.20B139.07B
Net Income137.24B102.68B109.17B97.13B70.23B
Balance Sheet
Total Assets1.32T1.25T1.15T1.09T965.90B
Cash, Cash Equivalents and Short-Term Investments371.08B347.49B332.11B366.99B302.29B
Total Debt0.0030.46B272.00M241.00M545.00M
Total Liabilities276.81B266.04B250.45B272.36B249.22B
Stockholders Equity1.04T984.02B902.21B821.19B715.87B
Cash Flow
Free Cash Flow111.91B87.75B115.78B85.53B58.59B
Operating Cash Flow217.91B155.52B181.70B144.49B116.31B
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 Price21.28
Price Trends
50DMA
18.49
Positive
100DMA
18.46
Positive
200DMA
17.73
Positive
Market Momentum
MACD
0.24
Negative
RSI
62.34
Neutral
STOCH
80.66
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$14.94B16.1413.37%0.08%5.20%100.48%
71
Outperform
$15.75B21.1125.45%1.66%-0.61%15.06%
69
Neutral
$9.21B10.1516.16%4.27%2.78%1.50%
67
Neutral
$19.51B20.797.19%8.88%-6.53%-50.08%
64
Neutral
$26.11B19.7518.47%2.36%-7.67%-0.58%
63
Neutral
$10.54B29.363.71%2.55%-1.27%48.34%
63
Neutral
$10.49B9.491.49%2.70%2.28%-33.88%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NDEKY
Nitto Denko
21.28
4.57
27.35%
EMN
Eastman Chemical
77.33
-19.83
-20.41%
LYB
LyondellBasell
60.70
-29.81
-32.94%
PPG
PPG Industries
115.02
-9.61
-7.71%
RPM
RPM International
122.64
7.10
6.15%
WLK
Westlake Corporation
82.21
-58.13
-41.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025