Nippon Paint Holdings Co (4612) AI Stock Analysis

• Market Cap: $2.59T
• Dividend Yield: 1.28%
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.89
• Revenue Growth: 13.60%
• EPS Growth: 7.47%
• Country: JP
• Employees: 38,562
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Chemicals - Specialty
• EPS (TTM): 54.22
• Shares Outstanding: 2,370,512,200
• 10 Day Avg. Volume: 1,947,130
• 30 Day Avg. Volume: 3,056,173
• PEG Ratio: 2.72
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,100.53
• Price Target Upside: -0.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Nippon Paint Holdings Co's overall score reflects its strong financial performance, driven by revenue growth and profitability. The technical analysis presents a mixed picture with short-term bearish signals but longer-term support. Valuation metrics suggest a fair market price. The absence of recent earnings call data or significant corporate events resulted in these factors not influencing the final score.

Nippon Paint Holdings Co Business Overview & Revenue Model

Company Description

Nippon Paint Holdings Co., Ltd. is a leading global paint and coatings company based in Japan. Established in 1881, the company specializes in the manufacture and sale of a wide range of paints and coatings for various sectors including automotive, industrial, and decorative applications. Nippon Paint operates in multiple regions worldwide, providing innovative and sustainable solutions that enhance the durability and aesthetics of surfaces.

How the Company Makes Money

Nippon Paint Holdings Co. generates revenue primarily through the sale of its diverse range of paint and coating products. The company serves various industries, including automotive manufacturers, construction firms, and industrial clients, by offering specialized coatings that meet specific needs such as corrosion resistance, heat resistance, and aesthetic finishes. Key revenue streams include the decorative paints sector, which targets residential and commercial buildings, and the industrial coatings segment, which supplies products for heavy machinery and equipment. The company's earnings are bolstered by strategic partnerships and joint ventures that expand its market reach, as well as continuous investment in research and development to innovate and improve its product offerings. Additionally, Nippon Paint benefits from its extensive distribution network and strong brand recognition, which help maintain its competitive edge in the global market.

Nippon Paint Holdings Co Financial Statement Overview

Summary

Nippon Paint Holdings Co exhibits robust financial health with strong revenue growth and profitability. The balance sheet reflects a solid capital structure with moderate leverage, and cash flow metrics indicate efficient cash management, positioning the company well for continued stability and growth in the specialty chemicals industry.

Income Statement

Nippon Paint Holdings Co has demonstrated consistent revenue growth, with a 13.6% increase from 2023 to 2024. The gross profit margin is robust at 40.1% for 2024, indicating effective management of production costs. The net profit margin is also healthy at 7.8%, showcasing profitability. EBIT and EBITDA margins of 10.7% and 15.3% respectively reflect strong operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.48, indicating moderate leverage. The ROE is strong at 8.0%, highlighting effective use of equity to generate profits. An equity ratio of 51.8% suggests a solid capital structure with a good buffer against liabilities.

Cash Flow

The operating cash flow to net income ratio is 1.31, indicating strong cash generation relative to earnings. Free cash flow growth is negative due to a reduction from the previous year, yet the free cash flow to net income ratio of 0.93 shows efficient cash flow utilization.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.64T	1.44T	1.31T	998.28B	781.15B
	Gross Profit
657.45B	576.13B	487.53B	378.32B	323.46B
	EBIT
176.09B	168.75B	111.88B	87.61B	86.93B
	EBITDA
251.34B	227.97B	154.16B	118.26B	123.21B
	Net Income Common Stockholders
127.34B	118.48B	79.42B	67.57B	68.18B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
288.30B	289.65B	259.85B	178.74B	299.05B
	Total Assets
3.07T	2.71T	2.44T	1.96T	1.62T
	Total Debt
760.01B	739.77B	722.06B	523.03B	535.76B
	Net Debt
471.71B	450.12B	479.46B	384.22B	303.63B
	Total Liabilities
1.46T	1.35T	1.29T	986.39B	915.58B
	Stockholders Equity
1.59T	1.36T	1.15T	959.52B	568.40B
Cash Flow		Free Cash Flow
118.40B	151.65B	71.33B	28.05B	59.80B
	Operating Cash Flow
167.40B	189.75B	112.35B	67.43B	88.56B
	Investing Cash Flow
-148.11B	-115.97B	-165.11B	-102.36B	-36.37B
	Financing Cash Flow
-37.38B	-38.66B	145.77B	-62.31B	60.87B

Nippon Paint Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1101.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4612, the sentiment is Positive. The current price of 1101.5 is above the 20-day moving average (MA) of 1044.11, above the 50-day MA of 1097.02, and above the 200-day MA of 1013.47, indicating a bullish trend. The MACD of -2.73 indicates Negative momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 90.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4612.

Nippon Paint Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4612	73 Outperform	$2.59T	20.32	8.50%	1.28%	13.60%	7.47%
4634	73 Outperform	¥141.01B	8.25	7.16%	3.24%	8.98%	92.36%
4613	71 Outperform	$368.75B	9.28	15.22%	1.99%	6.63%	-13.82%
4633	68 Neutral	¥91.06B	10.08		3.84%	7.56%	21.03%
4631	64 Neutral	$258.74B	12.14	5.40%	3.42%	3.12%	―
4635	54 Neutral	¥10.31B	11.53		4.83%	4.08%	―
Sector *	49 Neutral	$1.95B	-1.32	-21.23%	3.72%	0.87%	-29.37%

Nippon Paint Holdings Co Corporate Events

Nippon Paint Announces Treasury Share Disposal for Executive Compensation

Nippon Paint Holdings Co., Ltd. announced the disposal of 83,400 treasury shares as part of a restricted stock compensation plan aimed at aligning the interests of its directors and executive officers with those of shareholders. This move is part of a broader strategy to incentivize long-term growth and corporate value, reflecting the company’s commitment to enhancing executive remuneration in line with their roles and responsibilities.

Nippon Paint Revises 2025 Financial Guidance Upward Post-AOC Acquisition

Nippon Paint Holdings Co., Ltd. has revised its financial guidance for the fiscal year ending December 31, 2025, following its acquisition of equity interests in AOC. The company anticipates higher revenue and profits due to this acquisition, along with other factors such as asset divestitures and favorable exchange rate changes, leading to an upward revision of its financial projections.

Nippon Paint Holdings Consolidates Parent Company Structure

Nippon Paint Holdings Co., Ltd. announced that Nipsea International Limited is now its sole parent company, holding 55.06% of its voting rights. This change consolidates the company’s ownership structure, following the acquisition of joint ventures and equity interests in Asia from the Wuthelam Group. The company maintains operational independence and has measures in place to protect minority shareholders, ensuring that transactions with the parent company are overseen by independent directors.

Nippon Paint Holdings Boosts Subsidiary Capital to Leverage Low Interest Rates

Nippon Paint Holdings Co., Ltd. announced a capital increase for its subsidiaries, LSF11 A5 TopCo LLC, LSF11 A5 MidCo LLC, and LSF11 A5 HoldCo LLC, making them specified subsidiaries. This move is part of a strategic refinancing effort to capitalize on Japan’s low interest rates, enhancing the company’s financial leverage and operational efficiency.

Nippon Paint Completes Acquisition of Global Formulator AOC

Nippon Paint Holdings Co., Ltd. has completed the acquisition of AOC, a global specialty formulator with a strong presence in the Americas and Europe. This strategic move, involving a transaction valued at USD 2,194 million, aims to enhance Nippon Paint’s product offerings in the CASE (Coatings, Adhesives, Sealants, and Elastomers) sector, as well as in colorants and composites, which are essential for construction, infrastructure, and transportation industries. The financial impact of this acquisition is under review and will be disclosed once determined.

Nippon Paint Secures Loan for Strategic Acquisition

Nippon Paint Holdings Co., Ltd. has announced a significant financial move by securing a loan of JPY 670 billion from Sumitomo Mitsui Banking Corporation. This loan will facilitate the acquisition of equity in AOC, a global specialty formulator, making it a subsidiary. The impact of this borrowing on Nippon Paint’s business performance and financial position will be disclosed once determined, indicating a strategic expansion in its operations.

Nippon Paint Holdings Achieves Solid Growth in 2024 Financials and Forecasts Continued Success

Nippon Paint Holdings Co. reported a substantial rise in its consolidated financial results for the fiscal year ended December 31, 2024. The company achieved a 13.6% increase in revenue and an 11.2% growth in operating profit compared to the previous year, reflecting strong operational performance. However, cash flows from operating and investing activities showed a decline, and the company plans to increase its annual dividend payout. Looking forward, Nippon Paint is forecasting continued growth in 2025, expecting a 6.2% rise in revenue and a 5.5% increase in operating profit.