Nippon Shikizai, Inc. (4920) AI Stock Analysis

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Nippon Shikizai, Inc.

(TSE/TYO:4920)

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Rating:42Neutral

Price Target:JPY 1,038.00▼(-1.61% Downside)

Action:reiterated

Date:11/06/26

The overall score is very low, driven primarily by severe financial weaknesses including declining revenue, negative free cash flow, and high debt. The bearish technical trend reinforces this negative outlook. A low P/E ratio and moderate dividend yield provide a slight buffer but do not offset the fundamental risks.

Positive Factors

Sustained ProfitabilityThe recovery from losses in 2021–2022 to four consecutive years of positive EBIT and net income indicates that the business has restored operating viability. Maintaining profitability provides an earnings base for investment, debt servicing, and future resilience despite the latest slowdown.

Negative Factors

Revenue and Margin DeclineThe latest deterioration in revenue and operating margins signals that the prior growth trajectory has weakened and that earnings are more exposed to lower demand or cost pressure. If this trend persists, reduced operating scale could limit reinvestment and weigh on profitability.

Nippon Shikizai, Inc. (4920) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.16B
Dividend Yield: 2.82%
Average Volume (3M): 977
Price to Earnings (P/E): 8.2
Beta (1Y): 0.56
Revenue Growth: 9.96%
EPS Growth: 2053.18%
Country: Japan
Employees: 505
Sector: General
Sector Strength: 55
Industry: Household & Personal Products

Nippon Shikizai, Inc. Business Overview & Revenue Model

Company Description

Nippon Shikizai, Inc. operates as a cosmetic company with a global reach, focusing on the innovation, production, and distribution of beauty products both domestically in Japan and across international markets. Their comprehensive catalog includes an...

How the Company Makes Money

Nippon Shikizai primarily makes money by supplying packaging and related manufacturing services to cosmetics and personal care companies. Key revenue streams include (1) sales of cosmetics packaging (e.g., containers and packaging components/systems)...

Nippon Shikizai, Inc. Financial Statement Overview

Summary

Financial health is weak. While net income turned positive, TTM revenue declined 20.1%, operating margins are razor-thin at 1.1%, and cash flow generation is critically low, covering only 1.4% of total debt. High leverage (2.3x debt-to-equity) and negative free cash flow signal significant risk.

Income Statement

42Neutral

Balance Sheet

35Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	17.77B	16.64B	17.63B	15.05B	11.76B	8.70B
Gross Profit	2.26B	2.20B	3.02B	2.75B	2.03B	1.41B
EBITDA	1.08B	1.12B	1.40B	1.32B	975.73M	517.34M
Net Income	264.87M	335.39M	216.30M	398.11M	246.29M	-122.03M
Balance Sheet
Total Assets	17.90B	17.57B	16.95B	17.16B	16.05B	15.35B
Cash, Cash Equivalents and Short-Term Investments	859.91M	1.09B	949.02M	1.39B	1.33B	1.32B
Total Debt	10.16B	9.88B	9.73B	9.51B	10.04B	10.22B
Total Liabilities	13.72B	13.32B	13.15B	13.63B	13.04B	12.40B
Stockholders Equity	4.18B	4.24B	3.80B	3.53B	3.01B	2.95B
Cash Flow
Free Cash Flow	0	-558.29M	-572.15M	591.79M	341.59M	541.45M
Operating Cash Flow	0	140.19M	567.79M	1.25B	615.40M	781.34M
Investing Cash Flow	0	118.67M	-1.11B	-438.36M	-252.81M	-187.87M
Financing Cash Flow	0	-179.28M	95.46M	-697.50M	-413.11M	-338.23M

Nippon Shikizai, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price1055.00

Price Trends

50DMA1118.72Negative

100DMA1122.27Negative

200DMA1126.48Negative

Market Momentum

MACD-19.21Positive

RSI36.71Neutral

STOCH17.54Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4920, the sentiment is Negative. The current price of 1055.00 is below the 20-day moving average (MA) of 1088.25, below the 50-day MA of 1118.72, and below the 200-day MA of 1126.48, indicating a bearish trend. The MACD of -19.21 indicates Positive momentum. The RSI at 36.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4920.

Nippon Shikizai, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4920 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4925	80Outperform	JPY 6.30B	9.22	―	2.40%	-2.92%	-25.96%
JP:4919	78Outperform	JPY 106.67B	19.60	11.17%	2.65%	7.70%	82.64%
JP:4928	72Outperform	JPY 156.61B	19.10	―	5.05%	-3.20%	2.32%
JP:4923	66Neutral	JPY 29.51B	20.72	―	1.89%	3.63%	0.51%
JP:4926	65Neutral	JPY 5.32B	20.89	―	1.61%	1.51%	-18.54%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4920	42Neutral	JPY 2.23B	8.24	―	2.82%	9.96%	2053.18%

* General Sector Average

Performance Comparison

JP:4920 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4920	Nippon Shikizai, Inc.	1055.00	2.57	0.24%
JP:4919	Milbon Co	3320.00	979.77	41.87%
JP:4923	Cota Co., Ltd.	1008.00	-102.15	-9.20%
JP:4925	HABA Laboratories, Inc.	1660.00	33.96	2.09%
JP:4926	C'BON COSMETICS Co., Ltd.	1243.00	61.40	5.20%
JP:4928	Noevir Holdings Co., Ltd.	4595.00	292.26	6.79%

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 Shikizai, Inc. AI Stock Analysis