Nippon Pigment Company, Limited (4119) AI Stock Analysis

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Nippon Pigment Company, Limited

(TSE/TYO:4119)

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Rating:81Outperform

Price Target:JPY 7,935.00▲(15.50% Upside)

Action:reiterated

Date:11/14/26

The overall stock score of 81 is primarily driven by a highly attractive valuation and robust financial stability. The company's low P/E ratio, pristine balance sheet, and strong cash flow generation are major strengths. Additionally, the stock remains in a solid technical uptrend above key moving averages, despite a recent cooling in short-term momentum. While the thin profit margins common in the specialty chemicals sector remain a minor headwind, they are effectively offset by excellent debt reduction and disciplined financial management.

Positive Factors

Revenue GrowthPositive revenue growth indicates that the company is expanding sales across its industrial customer base. If maintained, this provides a foundation for better capacity utilization, supports investment in product capabilities, and can improve operating leverage over the next several quarters.

Negative Factors

Thin and Volatile MarginsLow FY2026 margins leave limited room to absorb changes in costs or customer demand, while the sharp reversal from FY2025 indicates that earnings power is not yet consistent. This volatility makes sustained profitability and dependable operating leverage harder to establish.

Nippon Pigment Company, Limited (4119) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 9.98B
Dividend Yield: 1.95%
Average Volume (3M): 1,796
Price to Earnings (P/E): 7.5
Beta (1Y): 0.52
Revenue Growth: 6.58%
EPS Growth: ―
Country: Japan
Employees: 1,072
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Nippon Pigment Company, Limited Business Overview & Revenue Model

Company Description

Nippon Pigment Company Limited specializes in the production and sale of liquid dispersions, colorants, and various resin compounds. Their comprehensive product portfolio includes an array of resin formulations, such as olefin, styrene, and high-perf...

How the Company Makes Money

Nippon Pigment Company, Limited primarily makes money by manufacturing and selling pigments and related colorant materials to business customers (B2B) that incorporate these materials into their own products (e.g., coatings, inks, and plastic compoun...

Nippon Pigment Company, Limited Financial Statement Overview

Summary

Solid financial fundamentals highlighted by a pristine balance sheet with low leverage (0.23x debt-to-equity) and a phenomenal turnaround in free cash flow generation, mitigating the risk of relatively thin net profit margins.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	42.97B	42.22B	37.92B	26.68B	27.46B	27.57B
Gross Profit	7.47B	7.09B	5.47B	3.78B	3.19B	4.36B
EBITDA	2.78B	2.28B	1.06B	1.36B	1.09B	2.43B
Net Income	1.43B	1.16B	5.03B	740.70M	-519.89M	885.51M
Balance Sheet
Total Assets	47.44B	45.49B	44.41B	29.63B	29.08B	32.77B
Cash, Cash Equivalents and Short-Term Investments	6.34B	6.33B	4.26B	3.64B	2.80B	5.14B
Total Debt	4.80B	5.13B	6.70B	4.90B	5.55B	8.42B
Total Liabilities	22.60B	21.26B	22.83B	13.93B	13.89B	17.79B
Stockholders Equity	22.96B	22.39B	19.78B	14.50B	14.15B	13.98B
Cash Flow
Free Cash Flow	0	3.74B	-1.34B	910.61M	-7.23M	903.12M
Operating Cash Flow	0	4.71B	-413.96M	1.52B	993.15M	1.29B
Investing Cash Flow	0	-1.03B	78.62M	191.69M	-698.65M	-366.67M
Financing Cash Flow	0	-1.75B	743.16M	-896.77M	-3.17B	-1.77B

Nippon Pigment Company, Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price6870.00

Price Trends

50DMA6146.00Positive

100DMA5929.80Positive

200DMA5459.33Positive

Market Momentum

MACD47.36Negative

RSI72.53Negative

STOCH58.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4119, the sentiment is Positive. The current price of 6870.00 is above the 20-day moving average (MA) of 6218.50, above the 50-day MA of 6146.00, and above the 200-day MA of 5459.33, indicating a bullish trend. The MACD of 47.36 indicates Negative momentum. The RSI at 72.53 is Negative, neither overbought nor oversold. The STOCH value of 58.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4119.

Nippon Pigment Company, Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4119 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4635	84Outperform	JPY 33.22B	11.28	―	3.85%	7.16%	65.58%
JP:4119	81Outperform	JPY 9.65B	7.52	―	1.95%	6.58%	―
JP:4116	74Outperform	JPY 99.80B	9.36	―	3.75%	5.48%	65.96%
JP:4633	69Neutral	JPY 117.75B	10.78	―	3.87%	10.82%	13.57%
JP:4022	62Neutral	JPY 54.68B	10.66	―	3.12%	16.30%	15.02%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4275	55Neutral	JPY 40.71B	11.08	―	2.49%	-1.90%	28.57%

* Basic Materials Sector Average

Performance Comparison

JP:4119 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4119	Nippon Pigment Company, Limited	6870.00	3585.22	109.15%
JP:4022	Rasa Industries,Ltd.	1319.00	317.52	31.71%
JP:4116	Dainichiseika Color & Chemicals Mfg.Co., Ltd.	1366.00	443.71	48.11%
JP:4275	Carlit Holdings Co., Ltd.	1688.00	72.30	4.47%
JP:4633	Sakata Inx Corp.	2585.00	341.01	15.20%
JP:4635	Tokyo Printing Ink Manufacturing Co., Ltd.	2390.00	1097.16	84.86%

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 14, 2026

Nippon Pigment Company, Limited AI Stock Analysis