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Nippon Denko Co., Ltd. (JP:5563)
:5563
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Nippon Denko Co., Ltd. (5563) Price & Analysis

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5563 Stock Chart & Stats

¥347.00
-¥4.00(-1.42%)
At close: 4:00 PM EST
¥347.00
-¥4.00(-1.42%)

Bulls Say, Bears Say

Bulls Say
Conservative Leverage / Balance Sheet StrengthNet debt and leverage have trended materially lower, with debt-to-equity around 0.19 in 2025 versus ~0.31 in 2022. This conservative capital structure provides resilience in downcycles, preserves financial flexibility for capex or working capital, and reduces refinancing risk over the medium term.
Improved Cash Generation In 2025A meaningful rebound in operating and free cash flow in 2025 (OCF slightly above net income) indicates stronger cash conversion and earnings quality that year, supporting self-funded capex, debt reduction and shareholder distributions without relying on external financing if maintained over time.
Positive Core Operating ProfitabilityDespite cyclical pressures, the company retains mid-single-digit operating margins and double-digit EBITDA margins, reflecting operational competitiveness and cost control. Sustained margins provide a durable earnings buffer and underpin ongoing cash generation through steel industry cycles.
Bears Say
Material Margin Compression Vs Prior Peak YearsNet profitability has deteriorated significantly from the 2021–2022 peak, dragging returns on equity to low single digits. Prolonged margin compression undermines reinvestment capacity, weakens return profiles for shareholders, and raises sensitivity to raw material or energy cost inflation long term.
Flat-to-declining Revenue TrendA multi-year pattern of flat or slightly declining sales reduces the firm's ability to leverage fixed costs and expand scale. Persistent top-line stagnation limits margin recovery opportunities and increases dependence on volume recoveries in the cyclic steel market to restore historical earnings power.
Volatile Cash Flow HistoryAlthough 2025 showed a rebound, prior years exhibited weak OCF conversion and wide free cash flow swings. This inconsistency reduces predictability for capital allocation, heightens refinancing or working-capital risk during downturns, and complicates multi-year investment planning.

Nippon Denko Co., Ltd. News

5563 FAQ

What was Nippon Denko Co., Ltd.’s price range in the past 12 months?
Nippon Denko Co., Ltd. lowest stock price was ¥245.00 and its highest was ¥559.00 in the past 12 months.
    What is Nippon Denko Co., Ltd.’s market cap?
    Nippon Denko Co., Ltd.’s market cap is ¥63.20B.
      When is Nippon Denko Co., Ltd.’s upcoming earnings report date?
      Nippon Denko Co., Ltd.’s upcoming earnings report date is Aug 12, 2026 which is in 58 days.
        How were Nippon Denko Co., Ltd.’s earnings last quarter?
        Nippon Denko Co., Ltd. released its earnings results on May 12, 2026. The company reported ¥4.5 earnings per share for the quarter, beating the consensus estimate of N/A by ¥4.5.
          Is Nippon Denko Co., Ltd. overvalued?
          According to Wall Street analysts Nippon Denko Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Nippon Denko Co., Ltd. pay dividends?
            Nippon Denko Co., Ltd. pays a Notavailable dividend of ¥5.457 which represents an annual dividend yield of 3.23%. See more information on Nippon Denko Co., Ltd. dividends here
              What is Nippon Denko Co., Ltd.’s EPS estimate?
              Nippon Denko Co., Ltd.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Nippon Denko Co., Ltd. have?
              Nippon Denko Co., Ltd. has 137,386,470 shares outstanding.
                What happened to Nippon Denko Co., Ltd.’s price movement after its last earnings report?
                Nippon Denko Co., Ltd. reported an EPS of ¥4.5 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.728%.
                  Which hedge fund is a major shareholder of Nippon Denko Co., Ltd.?
                  Currently, no hedge funds are holding shares in JP:5563
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Nippon Denko Co., Ltd.

                    Nippon Denko Co., Ltd., along with its affiliated entities, is a Japanese enterprise primarily engaged in the creation and distribution of ferroalloys, advanced functional materials, and environmental recycling technologies. Their extensive ferroalloy lineup features various grades of ferromanganese (high-carbon, medium-carbon, low-carbon), ferrosilicomanganese, ferrosilicon, high-carbon ferrochromium, ferrovanadium, and ferroniobium. The company's functional materials division offers products such as ferro boron, metal hydride alloys, cathode materials, zirconium oxides, inorganic manganese chemicals, boron oxide, boric acid, and electrolytic metal manganese. Furthermore, Nippon Denko supplies a range of environmental recycling systems, including solutions for recovering chromic acid (used in industrial chemical production), boron (from wastewater), and nickel (from drainage). They also provide water purification units like the AQUA PACK cartridge demineralizer and the MR-PACK integrated pure water production system. Beyond these core areas, the company's diverse operations span numerous sectors. They produce and market fertilizers, a variety of industrial chemicals, synthetic resins, specialized metals, packaging components, high-pressure gases, abrasive materials, and pollution control devices. Their offerings also include polyethylene pipes, bags, nets, and sheets, as well as PVC pipes, materials for roadbed construction, and solar panel installation components. Nippon Denko is also involved in generating renewable energy. Additionally, their services extend to transportation, warehousing, and the sale of steelmaking raw materials. They perform recycling of both general and industrial waste through melting processes, handle waste collection and haulage, offer ship agency services, and trade in fuels. Established in 1925, Nippon Denko Co., Ltd. is based in Tokyo, Japan.

                    Nippon Denko Co., Ltd. (5563) Earnings & Revenues

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