Nihon Kagaku Sangyo Co., Ltd. (4094) AI Stock Analysis

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Nihon Kagaku Sangyo Co., Ltd.

(TSE/TYO:4094)

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Rating:72Outperform

Price Target:JPY 2,203.00▲(10.09% Upside)

Action:upgraded

Date:08/17/26

The score is driven primarily by strong financial stability (notably zero debt) and solid operating performance, partially offset by weaker/less consistent cash-flow conversion. Technicals are a secondary drag due to overbought indicators and the price still being below the 200-day average, while valuation is supported by a ~3.95% dividend yield despite a moderate P/E (~19.87).

Positive Factors

Debt-Free Balance SheetA debt-free balance sheet gives Nihon Kagaku Sangyo substantial resilience when input costs or end-market demand fluctuate. Low financial obligations preserve cash for operations, investment, and shareholder returns, while steadily growing equity provides an additional buffer through the business cycle.

Negative Factors

Weak Cash ConversionCash generation is positive, but converting only roughly half of reported earnings into operating and free cash flow limits the quality of earnings. Working-capital drag or reinvestment needs could reduce funds available for debt-free expansion, dividends, or other capital allocation.

Nihon Kagaku Sangyo Co., Ltd. (4094) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 38.99B
Dividend Yield: 4.50%
Average Volume (3M): 14.60K
Price to Earnings (P/E): 17.5
Beta (1Y): 0.63
Revenue Growth: 13.91%
EPS Growth: -6.14%
Country: Japan
Employees: 454
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Nihon Kagaku Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Kagaku Sangyo Co., Ltd., a company founded in Tokyo, Japan, in 1924, specializes in the production and global distribution of a broad spectrum of industrial chemicals and construction supplies. Its chemical offerings include an extensive range...

Nihon Kagaku Sangyo Co., Ltd. Financial Statement Overview

Summary

Financials are anchored by an exceptionally conservative balance sheet (zero debt; Balance Sheet Score 90). Profitability and revenue growth are solid but not at prior-cycle peaks (Income Statement Score 73), and cash-flow quality is the main weak spot due to uneven free-cash-flow consistency and below-earnings cash conversion (Cash Flow Score 62).

Income Statement

73Positive

Balance Sheet

90Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	29.10B	28.03B	25.44B	22.44B	24.06B	23.72B
Gross Profit	7.17B	6.92B	6.15B	5.26B	5.88B	7.19B
EBITDA	4.66B	4.51B	3.94B	3.29B	3.95B	5.26B
Net Income	2.23B	2.28B	2.36B	1.74B	2.23B	3.24B
Balance Sheet
Total Assets	63.18B	61.69B	54.30B	52.93B	50.06B	49.49B
Cash, Cash Equivalents and Short-Term Investments	18.87B	20.78B	15.42B	19.69B	18.81B	16.99B
Total Debt	0	118.00K	264.28M	374.53M	374.74M	374.88M
Total Liabilities	11.14B	10.87B	7.83B	7.27B	6.70B	7.51B
Stockholders Equity	52.04B	50.82B	46.48B	45.66B	43.36B	41.97B
Cash Flow
Free Cash Flow	0	1.84B	1.70B	1.99B	2.42B	1.46B
Operating Cash Flow	0	3.39B	3.30B	3.10B	3.06B	2.76B
Investing Cash Flow	0	4.12B	-11.45B	-1.32B	-655.42M	-954.77M
Financing Cash Flow	0	-2.03B	-1.27B	-999.52M	-633.05M	-981.63M

Nihon Kagaku Sangyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2001.00

Price Trends

50DMA2178.69Negative

100DMA2132.95Negative

200DMA2252.43Negative

Market Momentum

MACD-52.06Positive

RSI29.94Positive

STOCH20.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4094, the sentiment is Negative. The current price of 2001.00 is below the 20-day moving average (MA) of 2104.85, below the 50-day MA of 2178.69, and below the 200-day MA of 2252.43, indicating a bearish trend. The MACD of -52.06 indicates Positive momentum. The RSI at 29.94 is Positive, neither overbought nor oversold. The STOCH value of 20.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4094.

Nihon Kagaku Sangyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4094 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4095	83Outperform	JPY 200.08B	13.86	―	2.91%	5.66%	11.30%
JP:4619	76Outperform	JPY 56.43B	9.74	―	4.95%	-3.74%	19.78%
JP:4094	72Outperform	JPY 39.00B	17.52	―	4.50%	13.91%	-6.14%
JP:4078	66Neutral	JPY 60.77B	22.06	―	4.83%	1.45%	-60.28%
JP:4109	65Neutral	JPY 56.77B	16.79	7.17%	3.97%	3.94%	14.76%
JP:4112	62Neutral	JPY 32.55B	9.25	―	2.73%	16.99%	80.12%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:4094 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4094	Nihon Kagaku Sangyo Co., Ltd.	2001.00	-183.93	-8.42%
JP:4109	Stella Chemifa Corporation	4660.00	654.82	16.35%
JP:4078	Sakai Chemical Industry Co., Ltd.	3315.00	391.21	13.38%
JP:4095	Nihon Parkerizing Co., Ltd.	1720.00	408.44	31.14%
JP:4112	Hodogaya Chemical Co., Ltd.	2013.00	350.33	21.07%
JP:4619	Nihon Tokushu Toryo Co., Ltd.	2626.00	562.99	27.29%

Nihon Kagaku Sangyo Co., Ltd. Corporate Events

Nihon Kagaku Sangyo Reports Sales Growth Despite Profit Declines

Nov 9, 2026

Nihon Kagaku Sangyo reported consolidated net sales of ¥15.119 billion for the six months ended September 30, 2026, up 13.8% year on year. Operating profit fell 14.1% to ¥1.303 billion, ordinary profit edged down 0.4% to ¥1.727 billion, and profit at...

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: Aug 17, 2026

Nihon Kagaku Sangyo Co., Ltd. AI Stock Analysis