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Nippon Chemiphar Co., Ltd. (4539) AI Stock Analysis
Nippon Chemiphar Co., Ltd.
(TSE/TYO:4539)
Nippon Chemiphar scores poorly, driven primarily by fragile financials: flat revenue, severe gross margin compression, near-breakeven net income, and persistently negative free cash flow that is being funded by rising debt (debt-to-equity now 0.94x). Technicals reinforce the caution, with the shares trading below all major moving averages and a negative MACD, though the low Stochastic reading hints at short-term selling exhaustion. Valuation offers little support given the negative P/E, with the 3.26% dividend yield the one positive - but its sustainability is uncertain given weak cash generation. Investors would need to see margin recovery, debt reduction and a return to positive free cash flow before confidence improves.
Nippon Chemiphar Co., Ltd. (4539) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 5.42B
- Dividend Yield
- 3.35%
- Average Volume (3M)
- 2,636
- Price to Earnings (P/E)
- -11.3
- Beta (1Y)
- 0.16
- 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
Financials are weak across all three statements. Revenue has stagnated near ¥31-33 billion while gross margins collapsed from ~36.3% (FY2021) to ~26.9% (FY2025), leaving net margins at just 0.9% and ROE at 1.5%. Debt climbed from ¥14.8bn to ¥18.1bn, lifting debt-to-equity to 0.94x against barely growing equity. Most concerning, free cash flow has been negative in four of the last five years and operating cash flow was negative again in FY2025, meaning operations and capex are being funded by borrowing. FY2026 estimates point to further EBIT deterioration (¥180 million) and continued negative free cash flow.
Income Statement
28NegativeBalance Sheet
38NegativeCash Flow
22Negative| 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
Price Trends
Market Momentum
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 1494.00 is below the 20-day moving average (MA) of 1540.15, below the 50-day MA of 1556.82, and below the 200-day MA of 1623.18, indicating a bearish trend. The MACD of -13.40 indicates Positive momentum. The RSI at 32.42 is Neutral, neither overbought nor oversold. The STOCH value of 7.72 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
JP:452481.5Outperform
JP:457767Neutral
JP:453864Neutral
JP:457461Neutral
JP:451245Neutral- JP:453935Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4524 | 82Outperform | JPY 8.95B | 11.38 | ― | 2.97% | 0.98% | 69.36% |
| JP:4577 | 67Neutral | JPY 38.17B | 12.13 | ― | 3.03% | -2.83% | 65.69% |
| JP:4538 | 64Neutral | JPY 18.48B | 8.21 | ― | 4.27% | 2.29% | ― |
| JP:4574 | 61Neutral | JPY 13.02B | 19.21 | ― | 1.25% | 13.30% | 66.38% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| JP:4512 | 45Neutral | JPY 10.52B | 30.43 | ― | 1.17% | 25.89% | ― |
| JP:4539 | 35Underperform | JPY 5.47B | -11.34 | ― | 3.35% | 0.31% | -194.72% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4539 | Nippon Chemiphar Co., Ltd. | 1494.00 | 9.29 | 0.63% | |
| JP:4512 | Wakamoto Pharmaceutical Co., Ltd. | 300.00 | 12.42 | 4.32% | |
| JP:4524 | Morishita Jintan Co., Ltd. | 2190.00 | 133.01 | 6.47% | |
| JP:4538 | Fuso Pharmaceutical Industries,Ltd. | 2108.00 | 64.79 | 3.17% | |
| JP:4574 | Taiko Pharmaceutical Co., Ltd. | 263.00 | -12.00 | -4.36% | |
| JP:4577 | Daito Pharmaceutical Co., Ltd. | 1321.00 | 114.26 | 9.47% |
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