Nippon Chemiphar Co., Ltd. (4539) AI Stock Analysis

1 Followers

Nippon Chemiphar Co., Ltd.

(TSE/TYO:4539)

Select Model

Rating:46Neutral

Price Target:JPY 1,505.00▲(2.31% Upside)

Action:reiterated

Date:10/10/26

The score is held back primarily by pressured cash generation (recurring negative free cash flow and volatile operating cash flow) and inconsistent profitability despite strong revenue recovery. Technicals also remain weak with the stock trading below key moving averages and negative MACD. Valuation is mixed: the negative P/E limits comparability, partly offset by a ~3.26% dividend yield.

Positive Factors

Revenue RecoveryThe sharp revenue recovery indicates renewed demand and improved commercial traction after the prior-year decline. If the rebound persists, a larger sales base can support operating leverage, broader product reach, and more resources for maintaining the company’s prescription-drug franchise.

Negative Factors

Weak Cash GenerationRepeated free-cash-flow deficits reduce confidence that reported earnings consistently convert into funding for the business. Volatile operating cash flow can constrain investment, debt reduction, and shareholder distributions, leaving less flexibility if operating conditions weaken.

Nippon Chemiphar Co., Ltd. (4539) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.33B
Dividend Yield: 3.40%
Average Volume (3M): 2,835
Price to Earnings (P/E): -11.2
Beta (1Y): 0.20
Revenue Growth: 0.31%
EPS Growth: -194.72%
Country: Japan
Employees: 878
Sector: Healthcare
Sector Strength: 51
Industry: Drug Manufacturers - Specialty & Generic

Nippon Chemiphar Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Chemiphar Co., Ltd., alongside its subsidiaries, is a global pharmaceutical entity engaged in the research, production, marketing, and sale of ethical drugs and diagnostic agents. Its diagnostic product lineup features the IgE NC kit, which me...

How the Company Makes Money

Nippon Chemiphar makes money primarily by selling pharmaceutical products. Its core revenue stream is domestic sales of prescription medicines to wholesalers and distributors that supply hospitals, clinics, and pharmacies; revenue is recognized based...

Nippon Chemiphar Co., Ltd. Financial Statement Overview

Summary

Revenue has rebounded strongly into 2026, but profitability is thin and inconsistent (losses in 2024, positive in 2025–2026). Cash flow is the key weakness, with mostly negative free cash flow and volatile operating cash flow, limiting confidence in earnings quality despite a steadier balance sheet and moderate leverage.

Income Statement

48Neutral

Balance Sheet

56Neutral

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	32.82B	33.09B	32.57B	30.75B	31.56B	32.51B
Gross Profit	8.93B	8.40B	8.75B	7.74B	8.19B	9.07B
EBITDA	2.01B	2.00B	1.83B	1.40B	2.10B	2.68B
Net Income	395.00M	198.00M	294.00M	-180.00M	339.00M	700.00M
Balance Sheet
Total Assets	52.68B	49.98B	49.85B	49.55B	48.57B	49.45B
Cash, Cash Equivalents and Short-Term Investments	9.69B	5.34B	7.02B	9.20B	10.53B	11.64B
Total Debt	19.02B	16.58B	18.06B	16.98B	15.23B	14.79B
Total Liabilities	33.76B	30.46B	30.68B	31.08B	30.03B	30.95B
Stockholders Equity	18.92B	19.51B	19.17B	18.46B	18.53B	18.50B
Cash Flow
Free Cash Flow	0	-231.00M	-1.86B	-2.34B	-1.93B	1.07B
Operating Cash Flow	0	620.00M	-265.00M	296.00M	-916.00M	1.80B
Investing Cash Flow	0	-661.00M	-1.66B	-3.14B	-394.00M	35.00M
Financing Cash Flow	0	-1.67B	-305.00M	1.45B	144.00M	-793.00M

Nippon Chemiphar Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1471.00

Price Trends

50DMA1544.60Negative

100DMA1568.20Negative

200DMA1619.42Negative

Market Momentum

MACD-24.03Positive

RSI32.53Neutral

STOCH17.94Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4539, the sentiment is Negative. The current price of 1471.00 is below the 20-day moving average (MA) of 1514.60, below the 50-day MA of 1544.60, and below the 200-day MA of 1619.42, indicating a bearish trend. The MACD of -24.03 indicates Positive momentum. The RSI at 32.53 is Neutral, neither overbought nor oversold. The STOCH value of 17.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4539.

Nippon Chemiphar Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:4539 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4524	82Outperform	JPY 8.92B	11.51	―	2.94%	-0.47%	50.82%
JP:4574	69Neutral	JPY 13.07B	18.99	―	1.27%	13.30%	66.38%
JP:4577	67Neutral	JPY 37.73B	12.05	―	3.05%	-2.83%	65.69%
JP:4538	64Neutral	JPY 18.70B	8.35	―	4.22%	2.29%	―
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:4539	46Neutral	JPY 5.31B	-11.17	―	3.40%	0.31%	-194.72%
JP:4512	45Neutral	JPY 9.96B	28.80	―	1.22%	23.41%	149.71%

* Healthcare Sector Average

Performance Comparison

JP:4539 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4539	Nippon Chemiphar Co., Ltd.	1471.00	-15.65	-1.05%
JP:4512	Wakamoto Pharmaceutical Co., Ltd.	286.00	2.39	0.84%
JP:4524	Morishita Jintan Co., Ltd.	2214.00	141.45	6.82%
JP:4538	Fuso Pharmaceutical Industries,Ltd.	2132.00	45.50	2.18%
JP:4574	Taiko Pharmaceutical Co., Ltd.	259.00	-39.00	-13.09%
JP:4577	Daito Pharmaceutical Co., Ltd.	1310.00	98.41	8.12%

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: Oct 09, 2026

Nippon Chemiphar Co., Ltd. AI Stock Analysis