Nippon Fine Chemical Co., Ltd. (4362) AI Stock Analysis

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Nippon Fine Chemical Co., Ltd.

(TSE/TYO:4362)

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Rating:68Neutral

Price Target:JPY 2,620.00▲(4.17% Upside)

Action:downgraded

Date:11/07/26

Strong balance sheet stability and attractive valuation are the primary positive drivers, while weak technical momentum from negative MACD and price below moving averages limits the overall score.

Positive Factors

Minimal financial leverageExtremely low leverage materially reduces financial risk and interest-burden exposure, giving the company greater resilience through weaker demand periods. A durable balance sheet also preserves flexibility to fund operations, reinvest in products, or pursue opportunities without relying heavily on borrowing.

Negative Factors

Choppy revenue growthRepeated revenue declines and uneven sales performance reduce visibility on demand and make future growth less predictable. Without a steady expansion trajectory, operating leverage may be harder to realize and the company may have less scope to compound earnings consistently over the next several quarters.

Nippon Fine Chemical Co., Ltd. (4362) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 54.60B
Dividend Yield: 4.10%
Average Volume (3M): 38.79K
Price to Earnings (P/E): 11.9
Beta (1Y): 0.82
Revenue Growth: -4.92%
EPS Growth: 2.95%
Country: Japan
Employees: 713
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Nippon Fine Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Fine Chemical Co., Ltd., together with its subsidiaries, manufactures and sells fine chemical, cosmetic, and industrial chemical products in Japan and internationally. It operates through Industrial Products and Household Products segments. Th...

Nippon Fine Chemical Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet with zero debt and growing equity, combined with improved cash flows, supports a solid financial position despite moderate income statement performance with fluctuating revenues.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.80B	33.80B	35.66B	33.53B	36.84B	33.45B
Gross Profit	11.05B	11.05B	10.82B	9.93B	10.96B	10.28B
EBITDA	7.67B	6.82B	6.76B	6.31B	6.60B	6.09B
Net Income	4.43B	4.43B	3.87B	3.33B	4.08B	3.47B
Balance Sheet
Total Assets	65.42B	65.42B	59.80B	59.45B	56.67B	54.81B
Cash, Cash Equivalents and Short-Term Investments	15.20B	15.20B	14.30B	12.86B	8.94B	12.86B
Total Debt	22.58M	22.58M	1.13B	27.65M	27.65M	16.32M
Total Liabilities	13.03B	13.03B	10.73B	11.89B	10.57B	10.25B
Stockholders Equity	51.38B	51.38B	48.16B	46.65B	45.27B	43.73B
Cash Flow
Free Cash Flow	0	3.85B	1.75B	5.01B	-1.32B	-542.08M
Operating Cash Flow	0	6.81B	4.09B	6.28B	1.44B	2.29B
Investing Cash Flow	0	-2.23B	-1.77B	-634.16M	-1.78B	-2.74B
Financing Cash Flow	0	-4.00B	-602.16M	-2.55B	-3.32B	-1.40B

Nippon Fine Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2515.00

Price Trends

50DMA2650.93Negative

100DMA2605.70Negative

200DMA2542.34Negative

Market Momentum

MACD-57.63Positive

RSI39.68Neutral

STOCH53.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4362, the sentiment is Negative. The current price of 2515.00 is below the 20-day moving average (MA) of 2627.95, below the 50-day MA of 2650.93, and below the 200-day MA of 2542.34, indicating a bearish trend. The MACD of -57.63 indicates Positive momentum. The RSI at 39.68 is Neutral, neither overbought nor oversold. The STOCH value of 53.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4362.

Nippon Fine Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4362 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4008	77Outperform	JPY 87.84B	11.51	―	4.34%	5.36%	39.63%
JP:4187	73Outperform	JPY 95.92B	9.93	16.64%	1.94%	17.54%	90.80%
JP:4362	68Neutral	JPY 55.87B	11.86	―	4.10%	-4.92%	2.95%
JP:4043	62Neutral	JPY 277.74B	13.87	7.06%	3.10%	6.77%	-15.96%
JP:4109	61Neutral	JPY 55.26B	21.72	6.68%	4.18%	8.81%	5.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4182	49Neutral	JPY 669.14B	28.23	3.51%	3.15%	8.87%	―

* General Sector Average

Performance Comparison

JP:4362 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4362	Nippon Fine Chemical Co., Ltd.	2515.00	-93.02	-3.57%
JP:4182	Mitsubishi Gas Chemical Company	3338.00	768.04	29.89%
JP:4109	Stella Chemifa Corporation	4425.00	453.60	11.42%
JP:4043	Tokuyama Corporation	3872.00	133.89	3.58%
JP:4187	Osaka Organic Chemical Industry Ltd.	4285.00	477.73	12.55%
JP:4008	Sumitomo Seika Chemicals Co., Ltd.	1359.00	337.38	33.02%

Nippon Fine Chemical Co., Ltd. Corporate Events

Nippon Fine Chemical Posts Mixed First-Half Results but Sticks to Higher Full-Year Dividend Plan

Oct 30, 2026

Nippon Fine Chemical reported marginally higher consolidated net sales of ¥17.7 billion for the six months ended September 30, 2026, but operating and ordinary profits declined year-on-year, indicating pressure on margins despite revenue growth. Prof...

Nippon Fine Chemical Updates Capital-Efficient Management Initiatives

Oct 1, 2026

Nippon Fine Chemical Co., Ltd. has undertaken a renewed review of its approach to managing with an awareness of cost of capital and stock price, following analysis conducted at a Board of Directors meeting on September 30, 2026. The company has ident...

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 05, 2026

Nippon Fine Chemical Co., Ltd. AI Stock Analysis