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NANKAI CHEMICAL COMPANY LIMITED
(4040)
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Rating:77Outperform
Price Target:
¥4,319.00
▲(39.10% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily supported by stronger profitability and a much healthier balance sheet, plus very attractive valuation (low P/E). These positives are meaningfully tempered by weak cash conversion, with negative operating and free cash flow in the latest year, which is the key risk factor despite favorable technical momentum.
Positive Factors
Stronger Profitability
The sustained expansion in net, gross and EBITDA margins indicates improved operating efficiency and earnings quality. Higher profitability can strengthen internal funding capacity and provide resilience if input costs or market conditions become less favorable.
Negative Factors
Negative Cash Conversion
Negative operating and free cash flow despite strong reported earnings raises concerns about working-capital absorption, earnings quality and funding needs. Unless cash conversion normalizes, financial flexibility may remain weaker than the income statement suggests.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger Profitability
The sustained expansion in net, gross and EBITDA margins indicates improved operating efficiency and earnings quality. Higher profitability can strengthen internal funding capacity and provide resilience if input costs or market conditions become less favorable.
Read all positive factors
NANKAI CHEMICAL COMPANY LIMITED (4040) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.09B
Dividend Yield1.55%
Average Volume (3M)8.89K
Price to Earnings (P/E)2.6
Beta (1Y)1.13
Revenue Growth0.56%
EPS Growth238.99%
CountryJP
Employees319
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)1371.86
Shares Outstanding2,330,330
10 Day Avg. Volume10,130
30 Day Avg. Volume8,893
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.58
Price to Sales (P/S)0.30
P/FCF Ratio-4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NANKAI CHEMICAL COMPANY LIMITED Business Overview & Revenue Model
Company Description
Established in 1906 and headquartered in Osaka, Japan, Nankai Chemical Company, Limited operates a diverse enterprise with a presence in both Japanese and international markets. The company's principal focus is the production and sale of a wide ra...
How the Company Makes Money
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NANKAI CHEMICAL COMPANY LIMITED Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.06B | 20.90B | 19.99B | 19.60B | 17.43B |
| Gross Profit | 5.98B | 5.51B | 5.50B | 4.50B | 4.13B |
| EBITDA | 2.92B | 2.44B | 2.59B | 1.80B | 1.72B |
| Net Income | 2.78B | 1.02B | 1.16B | 504.00M | 462.00M |
Balance Sheet | |||||
| Total Assets | 19.55B | 22.47B | 20.26B | 18.35B | 17.22B |
| Cash, Cash Equivalents and Short-Term Investments | 2.04B | 1.70B | 1.71B | 1.30B | 1.28B |
| Total Debt | 3.68B | 5.64B | 5.21B | 6.07B | 7.41B |
| Total Liabilities | 8.38B | 13.96B | 12.75B | 13.15B | 12.54B |
| Stockholders Equity | 11.05B | 8.40B | 7.42B | 5.13B | 4.63B |
Cash Flow | |||||
| Free Cash Flow | -1.51B | -1.85B | 587.00M | 152.00M | 392.00M |
| Operating Cash Flow | -259.00M | 181.00M | 2.65B | 1.77B | 1.59B |
| Investing Cash Flow | 2.87B | -490.00M | -1.94B | -371.00M | -614.00M |
| Financing Cash Flow | -2.31B | 243.00M | -327.00M | -1.40B | -858.00M |
NANKAI CHEMICAL COMPANY LIMITED Technical Analysis
Positive
3105.00
Price Trends
3632.80
Positive
3563.60
Positive
3358.03
Positive
Market Momentum
70.16
Negative
61.29
Neutral
57.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4040, the sentiment is Positive. The current price of 3105 is below the 20-day moving average (MA) of 3704.50, below the 50-day MA of 3632.80, and below the 200-day MA of 3358.03, indicating a bullish trend. The MACD of 70.16 indicates Negative momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 57.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4040.
NANKAI CHEMICAL COMPANY LIMITED Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥9.09B | 2.58 | ― | 1.96% | 0.56% | 238.99% | |
77 Outperform | ¥8.28B | 8.30 | ― | 1.93% | 19.58% | ― | |
65 Neutral | ¥7.94B | 18.86 | ― | 2.97% | -0.78% | -41.25% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥9.58B | 11.66 | ― | 2.98% | 12.39% | 22.04% | |
45 Neutral | ¥8.56B | 27.74 | ― | 1.06% | -5.34% | 113.57% |
* Basic Materials Sector Average
JP:4040
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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.