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Nippon Paint Holdings Co Ltd (JP:4612)
:4612
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Nippon Paint Holdings Co
(OTC:4612)
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Rating:62Neutral
Price Target:
¥1,141.00
▲(14.90% Upside)
Nippon Paint Holdings Co's overall stock score is driven by strong financial performance, which is the most significant factor. However, bearish technical indicators weigh down the score, reflecting current market sentiment. The valuation is reasonable, providing some support to the stock's attractiveness.
Nippon Paint Holdings Co (4612) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$2.33T
Dividend Yield1.61%
Average Volume (3M)3.14M
Price to Earnings (P/E)15.7
Beta (1Y)0.78
Revenue Growth6.84%
EPS Growth19.79%
CountryJP
Employees38,562
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)21.48
Shares Outstanding2,370,512,200
10 Day Avg. Volume2,937,490
30 Day Avg. Volume3,144,603
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit5.60
Enterprise Value/Ebitda13.36
Forecast
1Y Price Target
$1,140.35Price Target Upside14.84% Upside
Rating ConsensusHold
Number of Analyst Covering0
Nippon Paint Holdings Co Business Overview & Revenue Model
Company DescriptionNippon Paint Holdings Co., Ltd. is a leading global paint and coatings manufacturer based in Japan. The company operates in multiple sectors, including decorative paints, industrial coatings, automotive coatings, and fine chemicals. Nippon Paint is renowned for its high-quality products that cater to both consumer and industrial markets, offering innovative solutions that enhance the aesthetic appeal and durability of surfaces.
How the Company Makes MoneyNippon Paint Holdings Co., Ltd. generates revenue through the manufacture and sale of paint and coating products across various segments. Its primary revenue streams include decorative paints for residential and commercial buildings, industrial coatings for manufacturing and infrastructure projects, and automotive coatings for vehicle manufacturers. The company benefits from strategic partnerships and joint ventures globally, which help expand its market reach and distribution channels. Additionally, continuous investment in research and development allows Nippon Paint to innovate and maintain a competitive edge, further driving sales and profitability.
Nippon Paint Holdings Co Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with record revenue but a decline in operating profit. While there were positive signs in some regions like the Pacific and Indonesia, challenges in China and Europe highlighted difficulties in certain markets. The company remains optimistic about future quarters with strategic cost management and market expansion.Q3-2024 Updates
Positive Updates
Record Q3 Revenue
Achieved a record Q3 revenue of JPY 405.6 billion, up 3.2% year-on-year, indicating strong performance in a challenging market environment.
Positive Growth in NIPSEA China
NIPSEA China's decorative business saw TUC grow by 1% and total revenue increased by 2% on a non-GAAP basis despite a tough market environment.
Pacific Segment Growth
Sales in the Pacific region grew by 3.1% with margins improving by 1 percentage point due to small acquisitions in the adjacencies business.
Approval for Indian Business
Received approval from authorities for the Indian business, expected to contribute positively from Q4 onwards.
Indonesia Recovery
Indonesia showed signs of recovery with a 7.9% growth in Q3.
Negative Updates
Decline in Operating Profit
Operating profit decreased by 1.3% year-on-year on a Tanshin basis and by 13.1% on a non-GAAP basis.
Challenges in China
NIPSEA China's operating profit fell by 32% on a non-GAAP basis, with a noted decline in TUB by 16%.
Difficult Market in Europe
DGL faced challenging market conditions in Europe, particularly in France, resulting in a sales decline.
Weak Margin in China
China's margin was reported at 8.8%, which was considered low and impacted by pricing and promotional expenses.
No Significant Demand Recovery in China
The expectation for a significant demand recovery in China remains low despite economic stimulus measures.
Company Guidance
During the Q3 2024 earnings call for Nippon Paint Holdings, Yuichiro Wakatsuki, the company's President, provided guidance on future performance expectations. For Q4, the company anticipates a 15% increase in revenue and operating profit on a Tanshin basis, driven by improvements in operational efficiency and personnel optimization in China. Despite a weakening yen and challenging conditions in some regions like China, Turkey, and Europe, the company expects to exceed its initial full-year forecast by approximately 2 percentage points in revenue and 0.5 to 1 percentage point in operating profit. The company also highlighted strategic moves such as cost reviews in China, with expected margin improvements, and the contribution of its Indian business to consolidated earnings from Q4. Additionally, they discussed the acquisition of AOC and its expected positive impact on EPS, while also acknowledging the challenges and potential in different regional markets.Nippon Paint Holdings Co Financial Statement Overview
Summary
Nippon Paint Holdings Co exhibits strong financial performance with impressive revenue growth and profitability. The income statement shows robust demand and market expansion, while the balance sheet reflects financial stability with a moderate debt-to-equity ratio. Cash flow generation is improving, though there is room for enhancement in operational cash flow efficiency.Income Statement
Nippon Paint Holdings Co has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 83.6%, indicating robust demand and market expansion. The gross profit margin remains healthy at 40.65%, and the net profit margin is solid at 8.07%, reflecting efficient cost management. EBIT and EBITDA margins are also strong, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.85
Very Positive
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio of 0.96, indicating a balanced approach to leveraging. Return on equity is decent at 8.74%, suggesting effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure. While the debt level has increased, the company maintains a strong equity base, supporting financial stability.78
Positive
Cash Flow
Nippon Paint Holdings Co has achieved a significant free cash flow growth rate of 22.44% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is lower at 0.12, suggesting potential areas for improvement in cash conversion. However, the free cash flow to net income ratio is healthy at 0.68, reflecting good cash flow management. Overall, the cash flow statement shows positive trends with room for enhancement in operational cash flow efficiency.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67T | 1.64T | 1.44T | 1.31T | 998.28B | 772.56B |
| Gross Profit | 686.36B | 657.45B | 576.13B | 487.53B | 378.32B | 323.46B |
| EBITDA | 287.78B | 251.34B | 227.97B | 163.42B | 123.92B | 123.21B |
| Net Income | 148.45B | 127.34B | 118.48B | 79.42B | 67.57B | 43.92B |
Balance Sheet | ||||||
| Total Assets | 3.67T | 3.07T | 2.71T | 2.44T | 1.96T | 1.62T |
| Cash, Cash Equivalents and Short-Term Investments | 322.68B | 288.30B | 289.65B | 242.60B | 138.81B | 232.13B |
| Total Debt | 1.42T | 760.01B | 739.77B | 722.06B | 523.03B | 535.76B |
| Total Liabilities | 2.14T | 1.46T | 1.35T | 1.29T | 986.39B | 915.58B |
| Stockholders Equity | 1.51T | 1.59T | 1.36T | 1.15T | 959.52B | 568.40B |
Cash Flow | ||||||
| Free Cash Flow | 116.42B | 118.40B | 151.65B | 71.33B | 28.05B | 59.80B |
| Operating Cash Flow | 160.72B | 167.40B | 189.75B | 112.35B | 67.43B | 88.56B |
| Investing Cash Flow | -385.13B | -148.11B | -115.97B | -165.11B | -102.36B | -36.37B |
| Financing Cash Flow | 280.38B | -37.38B | -38.66B | 145.77B | -62.31B | 60.87B |
Nippon Paint Holdings Co Technical Analysis
Negative
993.00
Price Trends
1131.92
Negative
1122.92
Negative
1083.05
Negative
Market Momentum
-34.43
Negative
24.84
Positive
19.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4612, the sentiment is Negative. The current price of 993 is below the 20-day moving average (MA) of 1028.45, below the 50-day MA of 1131.92, and below the 200-day MA of 1083.05, indicating a bearish trend. The MACD of -34.43 indicates Negative momentum. The RSI at 24.84 is Positive, neither overbought nor oversold. The STOCH value of 19.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4612.
Nippon Paint Holdings Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥47.16B | 9.47 | 8.60% | 4.15% | -1.25% | 16.44% | |
78 Outperform | ¥37.20B | 4.32 | 14.48% | 3.73% | 7.99% | 78.17% | |
77 Outperform | ¥5.54B | 12.21 | 3.19% | 1.36% | 1.47% | 17.40% | |
72 Outperform | ¥12.71B | 11.53 | ― | 3.09% | 8.63% | 11.84% | |
68 Neutral | ¥419.20B | 12.67 | 14.22% | 2.25% | 2.95% | 3.19% | |
62 Neutral | $2.33T | 15.71 | 9.77% | 1.61% | 6.84% | 19.79% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4612
Nippon Paint Holdings Co
993.00
-85.96
-7.97%
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Nippon Paint Holdings Co Corporate Events
Nippon Paint Reports Strong First Half 2025 Financial Results
Aug 8, 2025
Nippon Paint Holdings Co., Ltd. reported a 4.3% increase in revenue to 852,428 million yen for the first half of 2025, with a notable 31.1% rise in operating profit. The company attributes this growth to improved operational efficiencies and strategic market expansions. The financial forecast for the full year 2025 anticipates an 11.1% increase in revenue, reflecting continued positive momentum. The announcement highlights the company’s strong financial position and its commitment to delivering shareholder value through consistent dividend payments.
The most recent analyst rating on (JP:4612) stock is a Hold with a Yen1300.00 price target. To see the full list of analyst forecasts on Nippon Paint Holdings Co stock, see the JP:4612 Stock Forecast page.
Nippon Paint Completes Disposal of Treasury Shares for Compensation
May 16, 2025
Nippon Paint Holdings Co., Ltd. has completed the disposal of 83,400 treasury shares as restricted stock compensation, valued at 87,987,000 yen, to six directors of the company. This strategic move, decided by the Compensation Committee and company executives, aims to align the interests of the directors with the company’s performance, potentially impacting its governance and stakeholder relations.
The most recent analyst rating on (JP:4612) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Nippon Paint Holdings Co stock, see the JP:4612 Stock Forecast page.
Nippon Paint Holdings Reports Strong Q1 2025 Financial Results
May 14, 2025
Nippon Paint Holdings Co. reported a 5.6% increase in revenue for the first quarter of 2025, reaching 405,724 million yen, with a notable 28.2% rise in profit to 37,673 million yen. The company also maintained its dividend forecast for the fiscal year ending December 31, 2025, indicating stability and confidence in its financial performance, which could positively impact stakeholders and reinforce its market position.
The most recent analyst rating on (JP:4612) stock is a Hold with a Yen950.00 price target. To see the full list of analyst forecasts on Nippon Paint Holdings Co stock, see the JP:4612 Stock Forecast page.
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.