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Nippon Kodoshi Corporation (3891) AI Stock Analysis

JP:3891

Nippon Kodoshi Corporation

(TSE/TYO:3891)

Select Model
Rating:68Neutral
Price Target:JPY 7,041.00â–²(15.81% Upside)
Action:reiterated
Date:10/30/26

The score is primarily driven by strong financial performance (healthy margins and low leverage), tempered by a history of volatile free cash flow. Technical indicators are mixed with negative MACD and price below key short-to-mid-term moving averages, while valuation appears moderate with a modest dividend yield.

Positive Factors
Strong ProfitabilityThe company is generating robust gross, operating, and net margins for its industry, indicating that its specialty paper products retain meaningful economic value. Sustained profitability should support internal investment, resilience during weaker demand, and continued funding for customer and product development.
Negative Factors
Volatile Free Cash FlowAlthough cash generation improved sharply in 2026, the preceding three years of negative free cash flow indicate that earnings have not translated consistently into discretionary cash. This volatility can complicate investment planning and makes the durability of current cash generation less certain.

Nippon Kodoshi Corporation (3891) vs. iShares MSCI Japan ETF (EWJ)

-50%0%50%100%150%200%250%300%JP:3891+126.54%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 64.12B
Dividend Yield
2.14%
Average Volume (3M)
170.52K
Price to Earnings (P/E)
16.0
Beta (1Y)
1.50
Revenue Growth
26.81%
EPS Growth
118.31%
Country
Japan
Employees
462
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

Nippon Kodoshi Corporation Business Overview & Revenue Model

Company Description

Nippon Kodoshi Corporation manufactures and sells separators in Japan and internationally. It offers separators for low, medium, and high voltage aluminum electrolytic capacitors; conductive polymer solid capacitors; hybrid capacitors; cellulion sepa...

Nippon Kodoshi Corporation Financial Statement Overview

Summary

Strong 2026 profitability (gross ~30.6%, operating ~19.0%, net ~14.2%) and a conservative balance sheet (debt-to-equity ~0.22) support a solid score. Offsetting factors include multi-year volatility—especially inconsistent free cash flow (negative in 2023–2025 despite a strong 2026 rebound to ~¥3.74B).

Income Statement

76Positive

Balance Sheet

82Very Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue20.03B18.62B16.03B14.83B17.59B18.07B
Gross Profit6.71B5.70B4.45B3.65B5.53B6.15B
EBITDA6.06B5.08B3.51B3.46B4.95B5.55B
Net Income3.31B2.64B1.78B1.48B2.47B2.92B
Balance Sheet
Total Assets36.02B35.61B35.50B34.04B30.70B26.18B
Cash, Cash Equivalents and Short-Term Investments4.27B4.74B4.13B4.31B4.22B4.44B
Total Debt5.62B5.79B8.29B8.19B5.75B2.85B
Total Liabilities8.91B9.40B11.59B11.68B9.13B6.85B
Stockholders Equity27.11B26.21B23.90B22.37B21.57B19.33B
Cash Flow
Free Cash Flow03.74B-2.14B-1.50B-2.88B1.02B
Operating Cash Flow05.24B3.80B1.91B685.31M2.91B
Investing Cash Flow0-1.40B-3.40B-3.41B-3.60B-1.84B
Financing Cash Flow0-3.29B-637.32M1.50B2.58B-1.26B

Nippon Kodoshi Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price6080.00

Price Trends

50DMA6529.75Negative
100DMA7344.41Negative
200DMA5945.41Positive

Market Momentum

MACD-225.08Positive
RSI44.87Neutral
STOCH71.96Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3891, the sentiment is Negative. The current price of 6080.00 is below the 20-day moving average (MA) of 6583.00, below the 50-day MA of 6529.75, and above the 200-day MA of 5945.41, indicating a neutral trend. The MACD of -225.08 indicates Positive momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 71.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3891.

Nippon Kodoshi Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3891 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6844JP:684472OutperformJPY 28.70B5.69―3.59%7.29%―
JP:3891JP:389168NeutralJPY 63.88B15.98―2.14%26.81%118.31%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:6817JP:681757NeutralJPY 36.49B16.73―4.78%9.71%23.67%
JP:6996JP:699654NeutralJPY 144.58B18.86―1.78%0.36%45.02%
JP:6997JP:699753NeutralJPY 46.49B11.545.80%1.20%15.81%―
JP:6768JP:676849NeutralJPY 66.45B45.042.26%1.98%7.59%-34.90%

* Technology Sector Average

Performance Comparison

0%100%200%300%JP:3891JP:6768JP:6997JP:6817JP:6844JP:6996Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3891 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3891Nippon Kodoshi Corporation6080.003414.74128.12%
JP:6768Tamura Corporation809.00290.1655.92%
JP:6997Nippon Chemi-Con Corporation1663.00123.478.02%
JP:6817Sumida Corporation1109.0032.793.05%
JP:6844Shindengen Electric Mfg Co Ltd2784.00-616.31-18.13%
JP:6996Nichicon Corporation2133.00610.1340.06%
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: Oct 30, 2026