Nitto Denko Corporation (NDEKY)
OTHER OTC:NDEKY
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Nitto Denko
(OTC:NDEKY)
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Rating:67Neutral
Price Target:
$20.50
▼(-13.32% Downside)
Action:Reiterated
Date:04/29/26
The score is anchored by strong financial performance—high profitability and an ultra-low leverage balance sheet—partially offset by mixed cash conversion and some margin softening. Technicals are a major drag given the clear downtrend (below key moving averages) and negative momentum indicators, while valuation is reasonable with a moderate P/E and modest dividend yield.
Positive Factors
Ultra-low leverage
Nitto Denko's effectively zero debt provides durable financial flexibility: it can fund capex, R&D, and working-capital swings from internal resources, withstand downturns without refinancing stress, and pursue strategic investments or acquisitions without adding leverage pressure.
Negative Factors
Mixed cash conversion & volatile FCF
OCF below net income and FCF around 50% of net income indicate working-capital swings and significant reinvestment needs. This limits discretionary capital uses (dividends, buybacks) and can constrain agility over months if volatility persists or capex needs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Ultra-low leverage
Nitto Denko's effectively zero debt provides durable financial flexibility: it can fund capex, R&D, and working-capital swings from internal resources, withstand downturns without refinancing stress, and pursue strategic investments or acquisitions without adding leverage pressure.
Read all positive factors
Nitto Denko (NDEKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.98B
Dividend Yield1.48%
Average Volume (3M)1.71K
Price to Earnings (P/E)18.7
Beta (1Y)0.75
Revenue Growth2.60%
EPS Growth1.96%
CountryUS
Employees25,300
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)197.45
Shares Outstanding645,558,650
10 Day Avg. Volume2,129
30 Day Avg. Volume1,708
Financial Highlights & Ratios
PEG Ratio2.17
Price to Book (P/B)1.85
Price to Sales (P/S)1.96
P/FCF Ratio21.05
Enterprise Value/Market Cap141.46
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit4.32
Enterprise Value/Ebitda6.59
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.32
Revenue Forecast (FY)$6.71B
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 rela...
How the Company Makes Money
Nitto Denko makes money primarily by manufacturing and selling high-performance materials and components to business customers (B2B), with revenue recognized largely from product sales. Key revenue streams include: (1) Tapes and adhesives: sales o...
Nitto Denko Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
73
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.09T | 1.01T | 915.14B | 929.04B | 853.45B |
| Gross Profit | 414.33B | 395.51B | 330.86B | 337.44B | 302.39B |
| EBITDA | 272.60B | 254.16B | 200.84B | 205.01B | 183.97B |
| Net Income | 141.55B | 137.24B | 102.68B | 109.17B | 97.13B |
Balance Sheet | |||||
| Total Assets | 1.45T | 1.32T | 1.25T | 1.15T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 361.37B | 363.34B | 342.27B | 329.97B | 362.05B |
| Total Debt | 0.00 | 455.00M | 30.46B | 272.00M | 241.00M |
| Total Liabilities | 293.92B | 276.80B | 266.04B | 250.45B | 272.36B |
| Stockholders Equity | 1.15T | 1.04T | 984.02B | 902.21B | 821.19B |
Cash Flow | |||||
| Free Cash Flow | 101.34B | 111.91B | 87.75B | 115.78B | 85.53B |
| Operating Cash Flow | 203.77B | 217.91B | 155.52B | 181.70B | 144.49B |
| Investing Cash Flow | -113.92B | -115.11B | -67.93B | -159.91B | -57.59B |
| Financing Cash Flow | -113.03B | -78.89B | -90.78B | -57.63B | -36.64B |
Nitto Denko Technical Analysis
Negative
23.65
Price Trends
19.90
Negative
21.43
Negative
22.68
Negative
Market Momentum
-0.34
Positive
41.66
Neutral
6.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDEKY, the sentiment is Negative. The current price of 23.65 is above the 20-day moving average (MA) of 19.47, above the 50-day MA of 19.90, and above the 200-day MA of 22.68, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 6.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NDEKY.
Nitto Denko Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $11.98B | 18.72 | 12.36% | 1.48% | 2.60% | 1.96% | |
66 Neutral | $20.73B | 16.58 | -2.35% | 1.10% | 7.87% | 69.44% | |
66 Neutral | $18.82B | 27.47 | 5.90% | 2.41% | -5.60% | ― | |
64 Neutral | $12.39B | 70.63 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $23.93B | 51.88 | -7.44% | 12.78% | -21.87% | -176.90% | |
46 Neutral | $11.72B | -22.61 | -17.68% | 2.88% | -8.63% | -524.43% |
* Basic Materials Sector Average
NDEKY
Nitto Denko
18.81
0.67
3.72%
ALB
Albemarle
170.21
114.74
206.87%
IFF
International Flavors & Fragrances
74.43
-0.81
-1.08%
LYB
LyondellBasell
71.30
19.54
37.76%
RPM
RPM International
98.51
-12.14
-10.97%
WLK
Westlake Corporation
88.50
16.31
22.59%
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.