Nippon Carbon Co (5302) AI Stock Analysis

• Market Cap: ¥47.05B
• Dividend Yield: 4.43%
• Average Volume (3M): 43.32K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.68
• Revenue Growth: -2.94%
• EPS Growth: -11.43%
• Country: JP
• Employees: 661
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 60.96
• Shares Outstanding: 11,832,504
• 10 Day Avg. Volume: 27,630
• 30 Day Avg. Volume: 43,323
• PEG Ratio: -2.13
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Nippon Carbon Co scores well with strong financial performance and attractive valuation. The financial stability and profitability are key strengths, supported by a healthy balance sheet and efficient cash flow management. However, technical analysis suggests bearish trends as the stock trades below key moving averages, indicating potential downside risk. The strong dividend yield and low P/E ratio add to the stock's attractiveness, balancing the technical concerns.

Nippon Carbon Co Business Overview & Revenue Model

Company Description

Nippon Carbon Co., Ltd. engages in the manufacture and sale of carbon products in Japan. It offers carbon fiber products, including molded heat insulating materials for high temperature furnaces; CARBORON, a soft felt used in a range of heat insulators for high temperature furnaces; C/C Composite, a lightweight carbon material used in heat resistant composite structural members, high temperature furnace materials, trays, jigs, etc.; and CARBEST, a carbon fiber packing material. The company also provides specialty carbon products, such as isotropic graphite, a graphite material; high purity treatment graphite used for manufacturing device components for silicon semiconductors, compound semiconductors, and optical fibers; carbon products for mechanical components that are used in various fields of science, including electronics, machinery, and the metallurgy industry; VESCOAT, a silicon carbide coated product used for silicon semiconductor, LED, and manufacturing device components for optical fibers; and SC CARBON sliding composites. In addition, it offers artificial graphite electrodes for use in high-power electric arc furnaces; silicon carbide continuous fibers, such as Nicalon, Hi-Nicalon, and Hi-Nicalon TypeS for use as reinforcement fibers in ceramic composite materials, plastic composite materials, and others; and lithium ion secondary batteries used for cellular and smart phones, NBPC, tablet terminals, power tools, hybrid automobiles, and electric automobiles. Further, the company provides impervious graphite RESBON, a corrosion-resistant material; NICABEADS, which are surface-coated micro bead-shape materials; and NICAFILM, a flexible graphite sheet made from natural graphite. The company was incorporated in 1915 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Carbon Co., Ltd. generates revenue primarily through the production and sale of carbon-related products. Its key revenue streams include graphite electrodes, which are used in electric arc furnaces for steel production; carbon fibers, which are utilized in composite materials for industries like aerospace and automotive; and specialty carbon products, which find applications in electronics, energy storage, and other industrial sectors. The company benefits from strategic partnerships and collaborations with other firms to enhance its technological capabilities and market reach. Additionally, Nippon Carbon invests in research and development to innovate and expand its product offerings, thereby driving growth and profitability.

Nippon Carbon Co Financial Statement Overview

Summary

Nippon Carbon Co exhibits solid financial health with strong profitability, efficient operations, and a robust equity position. The company's cash flow generation is improving, though there is potential for enhanced efficiency. Despite slower revenue growth, the financials indicate a stable and well-managed financial structure, positioning the company for future growth in the specialty chemicals industry.

Income Statement

Nippon Carbon Co has shown stable revenue growth with a modest increase from the previous year. The Gross Profit Margin stands at a healthy 30.3%, and the Net Profit Margin is 10.7%, indicating solid profitability. EBIT and EBITDA margins are strong at 16.6% and 24.1%, respectively, suggesting efficient operational performance. However, revenue growth has slowed compared to past high growth periods.

Balance Sheet

The company maintains a strong equity position with an Equity Ratio of 63.2%, indicating financial stability. The Debt-to-Equity Ratio is low at 0.18, showcasing prudent leverage management. ROE is healthy at 7.8%, reflecting efficient use of equity in generating profits. The balance sheet shows a robust financial foundation with potential for future growth.

Cash Flow

Operating Cash Flow is strong, with a high Operating Cash Flow to Net Income Ratio of 1.28, displaying effective cash generation from operations. Free Cash Flow growth is notable, recovering from low levels in the previous year, but remains relatively modest. The Free Cash Flow to Net Income Ratio is 0.14, indicating room for improvement in cash flow efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
37.96B	37.87B	35.80B	31.58B	26.80B
	Gross Profit
11.48B	11.85B	9.85B	8.04B	7.13B
	EBIT
6.32B	6.57B	4.79B	3.71B	3.02B
	EBITDA
9.94B	9.69B	7.13B	5.94B	5.06B
	Net Income Common Stockholders
4.08B	4.05B	3.19B	2.73B	1.81B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.30B	14.53B	18.32B	17.86B	14.60B
	Total Assets
82.35B	78.47B	74.18B	72.69B	70.93B
	Total Debt
9.21B	8.85B	9.09B	10.57B	11.99B
	Net Debt
-3.09B	-5.53B	-9.23B	-7.30B	-2.61B
	Total Liabilities
21.53B	20.79B	20.97B	20.44B	19.93B
	Stockholders Equity
52.01B	49.45B	45.56B	44.98B	44.14B
Cash Flow		Free Cash Flow
567.00M	78.00M	3.96B	5.91B	-1.02B
	Operating Cash Flow
5.23B	3.19B	5.80B	7.55B	3.85B
	Investing Cash Flow
-5.55B	-4.43B	-1.60B	-608.00M	-4.72B
	Financing Cash Flow
-1.99B	-2.61B	-3.78B	-3.76B	-2.39B

Nippon Carbon Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4260.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5302, the sentiment is Positive. The current price of 4260 is above the 20-day moving average (MA) of 4142.00, above the 50-day MA of 4126.30, and below the 200-day MA of 4282.67, indicating a neutral trend. The MACD of 47.15 indicates Negative momentum. The RSI at 63.01 is Neutral, neither overbought nor oversold. The STOCH value of 83.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5302.

Nippon Carbon Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4043	75 Outperform	¥200.03B	8.55	9.01%	3.46%	0.32%	31.76%
5304	72 Outperform	¥40.40B	6.86		5.10%	-4.72%	-14.12%
5302	71 Outperform	¥47.05B	12.45	7.31%	4.43%	-2.94%	-11.43%
4046	66 Neutral	¥191.74B	18.05		1.29%	2.35%	86.60%
5301	56 Neutral	$213.62B	19.46	-17.71%	2.83%	-3.14%	-388.89%
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.61%
4208	45 Neutral	¥210.21B	11.14	-1.23%	5.06%	7.76%	-171.50%

Nippon Carbon Co Corporate Events

Nippon Carbon Reports Q1 2025 Financial Results

Nippon Carbon Co., Ltd. reported a decline in its financial performance for the first quarter of 2025, with net sales and profits showing a decrease compared to the previous year. Despite the downturn, the company maintains a stable equity ratio and plans to continue its dividend payments, indicating resilience in its financial strategy.

Nippon Carbon Reports Stable Financial Performance with Modest Growth Outlook

Nippon Carbon Co., Ltd. reported its consolidated financial results for the fiscal year ended December 31, 2024, showing a slight increase in net sales by 0.2% to ¥37,956 million. However, operating and ordinary profits decreased by 3.9% and 5.9% respectively, while profit attributable to owners of parent rose marginally by 0.7%. The company maintained its annual dividend at ¥200 per share, reflecting a stable payout ratio. The financial outlook for 2025 anticipates a 5.4% increase in net sales, with modest growth in operating and ordinary profits, indicating a cautious yet optimistic outlook for the coming year.