NANKAI CHEMICAL COMPANY LIMITED AI Stock Analysis
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NANKAI CHEMICAL COMPANY LIMITED (4040) AI Stock Analysis
NANKAI CHEMICAL COMPANY LIMITED
(TSE/TYO:4040)
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.
NANKAI CHEMICAL COMPANY LIMITED (4040) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 8.13B
- Dividend Yield
- 1.60%
- Average Volume (3M)
- 10.86K
- Price to Earnings (P/E)
- 2.7
- Beta (1Y)
- 1.02
- Revenue Growth
- 0.56%
- EPS Growth
- 238.99%
- Country
- Japan
- Employees
- 319
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals
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 range...
NANKAI CHEMICAL COMPANY LIMITED Financial Statement Overview
Summary
Profitability and leverage trends are strong (income statement score 78; balance sheet score 82), including improved margins, higher ROE, and much lower debt-to-equity. However, cash generation is a major offset (cash flow score 34) with negative operating cash flow and negative free cash flow in the latest year, raising cash-conversion and durability concerns despite strong reported earnings.
Income Statement
78PositiveBalance Sheet
82Very PositiveCash Flow
34Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.18B | 21.06B | 20.90B | 19.99B | 19.60B | 17.43B |
| Gross Profit | 6.21B | 5.98B | 5.51B | 5.50B | 4.50B | 4.13B |
| EBITDA | 3.21B | 2.92B | 2.44B | 2.59B | 1.80B | 1.72B |
| Net Income | 3.02B | 2.78B | 1.02B | 1.16B | 504.00M | 462.00M |
Balance Sheet | ||||||
| Total Assets | 19.49B | 19.55B | 22.47B | 20.26B | 18.35B | 17.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.95B | 2.04B | 1.70B | 1.71B | 1.30B | 1.28B |
| Total Debt | 3.38B | 3.68B | 5.64B | 5.21B | 6.07B | 7.41B |
| Total Liabilities | 7.89B | 8.38B | 13.96B | 12.75B | 13.15B | 12.54B |
| Stockholders Equity | 11.48B | 11.05B | 8.40B | 7.42B | 5.13B | 4.63B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -1.51B | -1.85B | 587.00M | 152.00M | 392.00M |
| Operating Cash Flow | 0 | -259.00M | 181.00M | 2.65B | 1.77B | 1.59B |
| Investing Cash Flow | 0 | 2.87B | -490.00M | -1.94B | -371.00M | -614.00M |
| Financing Cash Flow | 0 | -2.31B | 243.00M | -327.00M | -1.40B | -858.00M |
NANKAI CHEMICAL COMPANY LIMITED Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4040, the sentiment is Neutral. The current price of 4050.00 is below the 20-day moving average (MA) of 4214.50, below the 50-day MA of 4051.31, and above the 200-day MA of 3607.81, indicating a neutral trend. The MACD of -7.31 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 30.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4040.
NANKAI CHEMICAL COMPANY LIMITED Peers Comparison
Overall Rating
- JP:404077Outperform
JP:656873Outperform
JP:436071Outperform
JP:496059Neutral
JP:453149Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4040 | 77Outperform | JPY 9.55B | 2.74 | ― | 1.60% | 0.56% | 238.99% |
| JP:6568 | 73Outperform | JPY 9.10B | 11.24 | ― | 2.81% | 12.39% | 22.04% |
| JP:4360 | 71Outperform | JPY 8.45B | 8.02 | ― | 1.55% | 19.58% | ― |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| JP:4960 | 59Neutral | JPY 8.14B | 22.14 | ― | 1.01% | 6.87% | 300.65% |
| JP:4531 | 49Neutral | JPY 7.29B | 15.03 | ― | 3.00% | 3.90% | -31.32% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4040 | NANKAI CHEMICAL COMPANY LIMITED | 4050.00 | 951.32 | 30.70% | |
| JP:4360 | MANAC Chemical Partners Co.,Ltd | 966.00 | 383.18 | 65.75% | |
| JP:4531 | Yuki Gosei Kogyo Co., Ltd. | 333.00 | 59.91 | 21.94% | |
| JP:4960 | Chemipro Kasei Kaisya,Ltd. | 516.00 | 184.49 | 55.65% | |
| JP:6568 | KNC Laboratories Co.,Ltd. | 1176.00 | 85.19 | 7.81% |
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: Aug 17, 2026