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Nippon Carbide Industries Company,Incorporated (4064) AI Stock Analysis

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JP:4064

Nippon Carbide Industries Company,Incorporated

(TSE/TYO:4064)

Select Model
Rating:70Outperform
Price Target:JPY 4,642.00â–²(15.91% Upside)
Action:upgraded
Date:11/12/26

The score reflects a company in a credible turnaround, led by a materially de-risked balance sheet (debt-to-equity down to 0.28) and improving cash generation, alongside double-digit revenue growth and a sharp profit rebound. Technical momentum is supportive, with the stock trading above all key moving averages and a positive MACD, though momentum indicators are stretched after the recent advance. Valuation is undemanding at 13.7x earnings with a 2.8% dividend yield. The main constraints on a higher score are thin net margins (~4.5%), modest return on equity (~6.2%), and the history of significant earnings volatility inherent to the specialty chemicals cycle.

Positive Factors
Revenue and profit recoveryThe recovery in revenue and net income indicates improving demand and operating execution after the 2023–2024 trough. If sustained, stronger business activity can support reinvestment, reinforce customer relationships, and provide a broader earnings base over the next several quarters.
Negative Factors
Volatile profitabilityThe wide margin variation shows that earnings remain sensitive to the operating cycle and business conditions. Even with the recent recovery, unstable profitability can make future results less predictable and may limit confidence in treating current margins as a durable earnings baseline.

Nippon Carbide Industries Company,Incorporated (4064) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%100%JP:4064+76.00%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 37.35B
Dividend Yield
2.95%
Average Volume (3M)
87.82K
Price to Earnings (P/E)
13.0
Beta (1Y)
1.33
Revenue Growth
4.34%
EPS Growth
-1.04%
Country
Japan
Employees
3,400
Sector
General
Sector Strength
55
Industry
Chemicals - Specialty

Nippon Carbide Industries Company,Incorporated Business Overview & Revenue Model

Company Description

Nippon Carbide Industries Co., Inc. is a Japanese company primarily involved in the production of electronic and functional materials, alongside various film and sheeting products. Its extensive product portfolio features a variety of functional chem...

How the Company Makes Money

Nippon Carbide Industries generates revenue primarily through the manufacture and sale of chemical and materials products to business customers (B2B). Its core earnings are driven by (1) product sales of functional chemicals such as resins and adhesi...

Nippon Carbide Industries Company,Incorporated Financial Statement Overview

Summary

Nippon Carbide Industries is in a solid recovery phase. Revenue rose 12.7% in FY2025 to ¥48.7 billion with gross margins improving to ~32%, and net income rebounded sharply to ¥2.2 billion from a ¥332 million trough in FY2023, with further growth guided for FY2026. The balance sheet is the standout strength: debt has been cut from ¥18.7 billion to ¥9.9 billion, taking debt-to-equity down to 0.28, while equity grew to ¥35.7 billion. Cash flow is healthy, with free cash flow up 27.9% to ¥3.1 billion and consistently positive operating cash flow even in weak years. Offsetting these strengths are thin net margins (~4.5%), modest return on equity (~6.2%), and pronounced earnings cyclicality typical of specialty chemicals.

Income Statement

62Positive

Balance Sheet

70Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue51.77B49.91B48.73B43.23B44.01B47.00B
Gross Profit17.50B16.53B15.60B12.20B12.61B14.14B
EBITDA6.84B5.96B5.47B3.88B3.29B4.81B
Net Income2.87B2.61B2.21B999.00M332.00M1.93B
Balance Sheet
Total Assets65.35B62.77B63.36B61.02B61.84B65.04B
Cash, Cash Equivalents and Short-Term Investments14.47B15.55B14.54B13.44B10.91B11.38B
Total Debt6.18B6.85B9.90B11.49B11.86B14.44B
Total Liabilities22.16B21.82B25.45B26.39B28.75B32.99B
Stockholders Equity40.40B38.46B35.72B32.63B31.23B30.32B
Cash Flow
Free Cash Flow04.61B3.11B2.43B1.46B1.76B
Operating Cash Flow05.57B4.11B5.37B3.61B4.30B
Investing Cash Flow0-1.31B-1.21B-2.44B-2.15B-2.36B
Financing Cash Flow0-3.70B-2.54B-1.26B-3.21B-4.21B

Nippon Carbide Industries Company,Incorporated Technical Analysis

Technical Analysis SentimentPositive
Last Price4005.00

Price Trends

50DMA3531.26Positive
100DMA3443.09Positive
200DMA3143.08Positive

Market Momentum

MACD91.00Negative
RSI63.10Neutral
STOCH82.35Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4064, the sentiment is Positive. The current price of 4005.00 is above the 20-day moving average (MA) of 3503.25, above the 50-day MA of 3531.26, and above the 200-day MA of 3143.08, indicating a bullish trend. The MACD of 91.00 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4064.

Nippon Carbide Industries Company,Incorporated Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:4064 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5302JP:530276OutperformJPY 53.23B21.744.48%4.15%1.48%-57.60%
JP:4064JP:406470OutperformJPY 37.70B13.02―2.95%4.34%-1.04%
JP:5304JP:530469NeutralJPY 44.38B89.41―4.65%6.82%-93.76%
JP:4043JP:404362NeutralJPY 278.60B13.877.06%3.10%6.77%-15.96%
JP:5301JP:530160NeutralJPY 332.99B17.176.28%2.15%9.28%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4182JP:418249NeutralJPY 651.00B28.233.51%3.15%8.87%―

* General Sector Average

Performance Comparison

0%50%100%JP:4064JP:4182JP:5302JP:5301JP:4043JP:5304Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4064 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4064Nippon Carbide Industries Company,Incorporated4005.001686.0972.71%
JP:4182Mitsubishi Gas Chemical Company 3338.00768.0429.89%
JP:5302Nippon Carbon Co 4820.00550.4112.89%
JP:5301Tokai Carbon Co 1629.50625.4162.29%
JP:4043Tokuyama Corporation3872.00133.893.58%
JP:5304SEC Carbon Ltd.2152.0023.481.10%

Nippon Carbide Industries Company,Incorporated Corporate Events

Nippon Carbide Reports Strong First-Half Profit Growth

Nov 9, 2026

Nippon Carbide Industries reported six-month consolidated results for the period ended September 30, 2026, with net sales of ¥26.127 billion, up 7.7% year on year, and operating profit of ¥2.846 billion, up 35.9%. Ordinary profit rose 20.6% to ¥2.851...

Nippon Carbide Raises Fiscal 2027 Dividend Forecast

Nov 9, 2026

Nippon Carbide Industries revised its fiscal year ending March 2027 dividend forecast, raising the year-end payment to ¥96 per share from ¥67 and lifting the annual total to ¥163 from ¥134. The revision follows higher projected operating profit, ordi...

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 12, 2026