Nippon Kodoshi Corporation (3891) AI Stock Analysis

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Nippon Kodoshi Corporation

(TSE/TYO:3891)

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Rating:72Outperform

Price Target:JPY 5,683.00▲(11.00% Upside)

Action:reiterated

Date:11/06/26

Nippon Kodoshi Corporation earns a solid overall score, heavily anchored by its exceptional fundamental performance and an attractive valuation. The company boasts robust top-line growth, margin expansion, and an increasingly defensive balance sheet, making it a compelling value play at a 12.11 P/E ratio. However, the overall score is significantly weighed down by weak technical indicators; the stock remains trapped in a steep bearish trend below all major moving averages, requiring investors to weigh strong underlying business health against persistent near-term downward price momentum.

Positive Factors

Strong profitabilityThe company achieved strong 2026 profitability for its industry, with healthy gross, operating, and net margins. This suggests its specialty materials mix supports meaningful value capture and provides an earnings base that can fund operations and selective reinvestment over the coming quarters.

Negative Factors

Free cash flow volatilityAlthough free cash flow recovered strongly in 2026, its negative record across the prior three years shows that accounting profits have not translated consistently into distributable cash. Continued variability could constrain investment, shareholder returns, and the company’s ability to self-fund expansion.

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

Market Cap: JPY 50.89B
Dividend Yield: 2.54%
Average Volume (3M): 165.70K
Price to Earnings (P/E): 12.1
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

Nippon Kodoshi Corporation demonstrates excellent financial health, highlighted by double-digit revenue growth, expanding margins, and a remarkable turnaround to strong free cash flow generation. A highly defensive balance sheet with steadily decreasing leverage further minimizes fundamental risk.

Income Statement

82Very Positive

Balance Sheet

90Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	20.03B	18.62B	16.03B	14.83B	17.59B	18.07B
Gross Profit	6.71B	5.70B	4.45B	3.65B	5.53B	6.15B
EBITDA	6.06B	5.08B	3.51B	3.46B	4.95B	5.55B
Net Income	3.31B	2.64B	1.78B	1.48B	2.47B	2.92B
Balance Sheet
Total Assets	36.02B	35.61B	35.50B	34.04B	30.70B	26.18B
Cash, Cash Equivalents and Short-Term Investments	4.27B	4.74B	4.13B	4.31B	4.22B	4.44B
Total Debt	5.62B	5.79B	8.29B	8.19B	5.75B	2.85B
Total Liabilities	8.91B	9.40B	11.59B	11.68B	9.13B	6.85B
Stockholders Equity	27.11B	26.21B	23.90B	22.37B	21.57B	19.33B
Cash Flow
Free Cash Flow	0	3.74B	-2.14B	-1.50B	-2.88B	1.02B
Operating Cash Flow	0	5.24B	3.80B	1.91B	685.31M	2.91B
Investing Cash Flow	0	-1.40B	-3.40B	-3.41B	-3.60B	-1.84B
Financing Cash Flow	0	-3.29B	-637.32M	1.50B	2.58B	-1.26B

Nippon Kodoshi Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price5120.00

Price Trends

50DMA6504.56Negative

100DMA7284.41Negative

200DMA5971.58Negative

Market Momentum

MACD-216.12Positive

RSI42.72Neutral

STOCH61.52Neutral

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 5120.00 is below the 20-day moving average (MA) of 6444.50, below the 50-day MA of 6504.56, and below the 200-day MA of 5971.58, indicating a bearish trend. The MACD of -216.12 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.52 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3891	72Outperform	JPY 62.09B	12.11	―	2.54%	26.81%	118.31%
JP:6844	67Neutral	JPY 27.86B	4.99	―	3.84%	7.29%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6996	59Neutral	JPY 137.19B	15.07	―	2.02%	0.36%	45.02%
JP:6817	55Neutral	JPY 36.06B	14.77	―	4.95%	14.18%	9.84%
JP:6997	55Neutral	JPY 43.14B	8.91	5.80%	1.43%	15.81%	―
JP:6768	53Neutral	JPY 62.10B	35.24	2.26%	2.30%	7.59%	-34.90%

* Technology Sector Average

Performance Comparison

JP:3891 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3891	Nippon Kodoshi Corporation	5120.00	2370.59	86.22%
JP:6768	Tamura Corporation	696.00	177.16	34.14%
JP:6997	Nippon Chemi-Con Corporation	1396.00	221.38	18.85%
JP:6817	Sumida Corporation	1071.00	-3.29	-0.31%
JP:6844	Shindengen Electric Mfg Co Ltd	2607.00	-541.44	-17.20%
JP:6996	Nichicon Corporation	1883.00	639.16	51.39%

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: Nov 06, 2026

Nippon Kodoshi Corporation AI Stock Analysis