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Nippon Kayaku Co Ltd (JP:4272)
:4272
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Nippon Kayaku Co (4272) AI Stock Analysis

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JP:4272

Nippon Kayaku Co

(4272)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥2,383.00
▲(41.89% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid financial performance (profitability rebound and low leverage) but tempered by weak and inconsistent free cash flow. Technicals are supportive with a strong uptrend, though overbought signals raise near-term pullback risk. Valuation adds support via a moderate P/E and a solid dividend yield.
Positive Factors
Revenue and EPS Growth
Re-accelerating revenue and strong EPS growth indicate improving product demand and operating performance across the business. If sustained, this momentum can strengthen earnings capacity and support investment in specialty chemicals, pharmaceuticals, and safety systems.
Negative Factors
Weak Free Cash Flow Conversion
Weak and uneven cash conversion raises concerns about earnings quality and the durability of cash returns. Capital spending or working-capital absorption may continue to limit internally generated funds for investment, debt reduction, or dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and EPS Growth
Re-accelerating revenue and strong EPS growth indicate improving product demand and operating performance across the business. If sustained, this momentum can strengthen earnings capacity and support investment in specialty chemicals, pharmaceuticals, and safety systems.
Read all positive factors

Nippon Kayaku Co (4272) vs. iShares MSCI Japan ETF (EWJ)

Nippon Kayaku Co Business Overview & Revenue Model

Company Description
Nippon Kayaku Co., Ltd., along with its subsidiary companies, is a global enterprise based in Tokyo, Japan. Established in 1916 and originally known as Nihon Kayaku Seizou Co., Ltd. until its rebranding in 1945, the company specializes in the deve...
How the Company Makes Money
Nippon Kayaku makes money primarily by manufacturing and selling products across its main business segments. In its functional chemicals operations, it generates revenue from sales of specialty chemical materials and related products supplied to i...

Nippon Kayaku Co Financial Statement Overview

Summary
Earnings and revenue momentum improved in the latest year (re-accelerating revenue growth and a sharp net margin rebound), supported by a conservatively financed balance sheet with low leverage. The main drag is weak and uneven cash conversion, with negative/very light free cash flow recently and operating cash flow covering less than half of net income in recent years.
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue254.50B241.85B222.58B201.79B198.38B184.81B
Gross Profit77.23B72.88B70.64B60.33B65.90B62.88B
EBITDA46.80B49.82B36.31B21.73B35.31B37.88B
Net Income26.43B24.64B17.51B4.11B14.98B17.18B
Balance Sheet
Total Assets419.88B398.74B373.71B363.17B322.86B315.46B
Cash, Cash Equivalents and Short-Term Investments52.42B54.49B59.76B66.18B54.35B53.65B
Total Debt68.18B49.18B49.54B31.68B19.84B16.85B
Total Liabilities136.21B118.63B105.19B92.62B67.83B69.03B
Stockholders Equity282.56B279.00B267.53B269.56B254.02B245.48B
Cash Flow
Free Cash Flow0.003.76B-3.73B8.21B7.82B14.45B
Operating Cash Flow0.0028.78B25.53B23.24B20.04B23.14B
Investing Cash Flow0.00-17.18B-27.31B-19.41B-15.16B-10.64B
Financing Cash Flow0.00-20.23B-4.76B3.82B-7.95B-11.09B

Nippon Kayaku Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1679.50
Price Trends
50DMA
2027.10
Positive
100DMA
1978.05
Positive
200DMA
1839.16
Positive
Market Momentum
MACD
23.85
Negative
RSI
58.56
Neutral
STOCH
37.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4272, the sentiment is Positive. The current price of 1679.5 is below the 20-day moving average (MA) of 2051.23, below the 50-day MA of 2027.10, and below the 200-day MA of 1839.16, indicating a bullish trend. The MACD of 23.85 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 37.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4272.

Nippon Kayaku Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥306.50B11.989.12%3.97%13.77%54.31%
74
Outperform
¥1.10T20.5520.55%3.15%9.89%18.20%
69
Neutral
¥394.68B17.285.28%3.57%35.54%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
¥536.33B67.530.44%2.91%2.93%-46.99%
57
Neutral
¥844.53B15.215.11%3.52%-0.63%15.92%
49
Neutral
¥292.83B21.695.26%3.71%-2.99%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4272
Nippon Kayaku Co
2,095.50
715.91
51.89%
JP:4061
Denka Co
3,406.00
1,239.96
57.25%
JP:3405
Kuraray Co
1,828.00
116.00
6.78%
JP:4021
Nissan Chemical
8,053.00
2,976.30
58.63%
JP:4042
Tosoh
2,663.50
427.97
19.14%
JP:4114
Nippon Shokubai Co., Ltd.
2,652.50
883.41
49.94%

Nippon Kayaku Co Corporate Events

Nippon Kayaku Advances Share Buyback Under Ongoing Capital Policy
Aug 6, 2026
Nippon Kayaku Co., Ltd. has disclosed the results of a recent share buyback, acquiring 2,145,600 of its own common shares on the Tokyo Stock Exchange between July 1 and July 31, 2026, at a total cost of 4,244,853,300 yen. The repurchase, conducted...
Nippon Kayaku Raises Forecasts on Strong Business and Weak Yen
Aug 3, 2026
Nippon Kayaku has raised its consolidated forecasts for the first half of the fiscal year ending March 31, 2027, projecting higher net sales and profits than previously announced. The upgrade is driven by robust performance in its Safety Systems, ...
Nippon Kayaku Lifts Q1 Earnings, Keeps Full-Year Dividend as Profit Outlook Softens
Aug 3, 2026
Nippon Kayaku reported a strong first quarter for the fiscal year ending March 31, 2027, with net sales rising 23.1% year on year to ¥67.4 billion and operating income jumping 54.3% to ¥6.7 billion. Ordinary income surged 81.7% and profi...
Nippon Kayaku Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Jul 17, 2026
Nippon Kayaku Co., Ltd. has completed the payment procedures for the disposal of 43,463 treasury shares as restricted stock compensation, following a resolution passed by its Board of Directors on June 25, 2026. The shares, issued at 2,056.5 yen p...
Nippon Kayaku Reports Progress on Share Buyback Program
Jul 6, 2026
Nippon Kayaku Co., Ltd. has disclosed the results of a recent share buyback, acquiring 957,200 common shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, at a total cost of approximately 1.99 billion yen. This transaction was exec...
Nippon Kayaku Grants Restricted Stock to Directors via Treasury Share Disposal
Jun 25, 2026
Nippon Kayaku will dispose of 43,463 treasury shares as part of its restricted stock compensation plan for 17 eligible internal directors, with a disposal price of 2,056.5 yen per share and a total value of about 89.38 million yen. The shares, all...
Nippon Kayaku Begins Share Buyback Under ¥15 Billion Authorization
Jun 4, 2026
Nippon Kayaku has repurchased 286,900 of its own common shares on the Tokyo Stock Exchange between May 13 and May 31, 2026, at a total cost of ¥616.6 million, as part of a board-approved share buyback program. This transaction represents the ...
Nippon Kayaku to Take Over Japan Marketing Rights for AstraZeneca’s Zoladex
May 25, 2026
Nippon Kayaku has signed an agreement with AstraZeneca K.K. to take over the marketing approval in Japan for the oncology drug Zoladex 3.6mg depot / LA 10.8mg depot, which AstraZeneca currently manufactures and sells. The company plans to use its ...
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