Nichias (5393) AI Stock Analysis

• Market Cap: $360.79B
• Dividend Yield: 2.36%
• Average Volume (3M): 124.17K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.68
• Revenue Growth: 0.72%
• EPS Growth: 5.21%
• Country: JP
• Employees: 6,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 102.28
• Shares Outstanding: 67,811,920
• 10 Day Avg. Volume: 110,340
• 30 Day Avg. Volume: 124,173
• PEG Ratio: 0.45
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 12.30
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 5.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥5,951.00 ▲(6.40% Upside)

Nichias' overall stock score is primarily influenced by its strong valuation, with a low P/E ratio and attractive dividend yield. However, financial performance is challenged by declining revenue and free cash flow growth, and technical analysis indicates weak market momentum. Addressing these financial challenges and improving market sentiment could enhance the stock's attractiveness.

Nichias Business Overview & Revenue Model

Company Description

Nichias Corporation (5393) is a leading Japanese manufacturer specializing in advanced materials and components, primarily operating in the sectors of industrial materials, electronics, and energy. The company offers a diverse range of products, including thermal insulation materials, sealing materials, and various industrial components that cater to an array of industries such as automotive, electronics, and construction. Nichias is recognized for its commitment to innovation and sustainability, focusing on the development of high-performance materials that enhance energy efficiency and reduce environmental impact.

How the Company Makes Money

Nichias generates revenue through the sale of its core products, which include thermal insulation materials, sealing materials, and other specialized industrial components. The company operates on a B2B model, supplying its products to various industries such as automotive, electronics, and construction, which form the backbone of its revenue streams. Key revenue streams include direct sales to manufacturers, long-term contracts with industrial clients, and partnerships with distributors. Nichias also benefits from ongoing demand for energy-efficient materials, contributing to its financial performance. Additionally, strategic collaborations with technology firms and investment in research and development initiatives enable Nichias to innovate and expand its product offerings, further enhancing its revenue potential.

Nichias Financial Statement Overview

Summary

Nichias demonstrates strong financial performance with consistent revenue growth, improved profitability metrics, and a robust balance sheet characterized by low leverage and strong equity financing. Effective cash flow management further reinforces its financial stability.

Income Statement

Nichias demonstrates strong financial performance with consistent revenue growth and improving profitability metrics. The gross profit margin has increased from 22.6% in 2024 to 27.6% in 2025, indicating effective cost management. The net profit margin also improved from 10.8% to 12.5%, reflecting enhanced overall profitability. Revenue growth has been steady, with a 2.9% increase in 2025, showcasing resilience in a competitive market. The EBIT margin increased from 14.1% to 15.5%, and the EBITDA margin also rose from 18.5% to 20.8%, highlighting efficient operations.

Balance Sheet

Nichias has a robust balance sheet characterized by a low debt-to-equity ratio, decreasing from 0.11 in 2024 to 0.05 in 2025, suggesting reduced leverage and financial risk. Return on Equity (ROE) improved from 13.5% to 14.9%, indicating efficient use of equity capital. The equity ratio increased from 68.7% to 74.5%, reflecting strong equity financing and asset management, further enhancing financial stability.

Cash Flow

The company's cash flow position is solid, with significant growth in free cash flow from JPY 6.33 billion in 2024 to JPY 24.48 billion in 2025, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 0.97, suggesting efficient cash management relative to net income. The free cash flow to net income ratio improved significantly, demonstrating better conversion of net income to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	256.51B	256.51B	249.39B	238.12B	216.24B	196.37B
Gross Profit	70.77B	70.77B	64.77B	58.01B	53.38B	46.06B
EBITDA	52.60B	53.22B	46.11B	38.44B	37.44B	24.24B
Net Income	32.07B	32.07B	26.96B	21.40B	22.03B	10.71B
Balance Sheet
Total Assets	289.04B	289.04B	290.79B	266.91B	246.92B	219.60B
Cash, Cash Equivalents and Short-Term Investments	59.68B	59.68B	56.38B	59.43B	54.60B	39.80B
Total Debt	11.04B	11.04B	22.77B	24.51B	24.53B	24.80B
Total Liabilities	72.61B	72.61B	89.87B	93.17B	91.40B	83.15B
Stockholders Equity	215.42B	215.42B	199.68B	172.36B	154.28B	135.43B
Cash Flow
Free Cash Flow	24.48B	24.48B	6.33B	10.02B	15.47B	10.38B
Operating Cash Flow	31.25B	31.25B	19.17B	18.65B	25.07B	18.68B
Investing Cash Flow	-913.00M	-913.00M	-12.90B	-8.65B	-5.52B	-6.80B
Financing Cash Flow	-27.40B	-27.40B	-11.11B	-6.37B	-5.88B	-5.47B

Nichias Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5593.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5393, the sentiment is Positive. The current price of 5593 is above the 20-day moving average (MA) of 5540.98, below the 50-day MA of 5619.64, and above the 200-day MA of 5095.60, indicating a neutral trend. The MACD of -50.13 indicates Positive momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5393.

Nichias Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5706	74 Outperform	$782.54B	21.37	11.71%	1.29%	6.34%	-19.70%
3106	74 Outperform	¥122.27B	10.04	―	3.20%	-2.16%	69.82%
4206	73 Outperform	¥236.38B	13.43	―	3.76%	5.29%	8.21%
5331	73 Outperform	¥133.07B	11.30	8.56%	2.91%	-1.76%	5.55%
5393	67 Neutral	$360.79B	11.72	14.50%	2.36%	0.72%	5.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3401	62 Neutral	¥254.62B	11.04	-19.42%	3.64%	-4.80%	75.22%

Nichias Corporate Events

Nichias Corporation Reports Decline in Q1 2025 Financial Results

Nichias Corporation reported a decline in its financial performance for the first quarter of fiscal year 2025, with net sales and profits showing a year-on-year decrease. The company experienced a 1.9% drop in net sales and a significant reduction in operating and ordinary income, reflecting challenging market conditions. Despite these setbacks, Nichias has adjusted its full-year forecast, indicating a cautious outlook for the remainder of the fiscal year, which may impact stakeholders’ expectations.

Nichias Corporation Reports Decline in Quarterly Earnings

Nichias Corporation, a Tokyo Stock Exchange-listed company, specializes in the manufacturing and sale of industrial products, particularly in the field of thermal insulation and sealing materials.

Nichias Corporation Revises Earnings Forecasts Amid Semiconductor Market Uncertainty

Nichias Corporation has revised its earnings forecasts for the fiscal year ending March 31, 2026, due to weaker-than-expected demand in its Advanced Products Division, particularly affecting semiconductor manufacturing equipment. The revised forecasts indicate a slight decrease in expected net sales, operating income, ordinary income, and profit attributable to owners, reflecting the uncertain recovery outlook in the semiconductor sector.

Nichias Corporation Reports Decline in Q1 2025 Financial Results

Nichias Corporation reported a decline in its financial performance for the first quarter of fiscal year 2025, with net sales and profits showing a year-on-year decrease. The company has adjusted its earnings forecast for the full fiscal year, indicating a cautious outlook amidst challenging market conditions. Despite the downturn, Nichias maintains a strong equity ratio, suggesting stability in its financial position.