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Nippon Denko Co., Ltd. (5563) AI Stock Analysis
Nippon Denko Co., Ltd.
(TSE/TYO:5563)
The overall stock score of 58 is anchored by the company's pristine balance sheet and stellar cash flow generation, providing a critical buffer against cyclical industry softness. However, the score is weighed down by shrinking profit margins, a comparatively high valuation multiple, and bearish short-term technical indicators.
Nippon Denko Co., Ltd. (5563) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 50.17B
- Dividend Yield
- 3.12%
- Average Volume (3M)
- 676.72K
- Price to Earnings (P/E)
- -27.9
- Beta (1Y)
- 0.99
- Revenue Growth
- -2.35%
- EPS Growth
- -162.14%
- Country
- Japan
- Employees
- 964
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Steel
Nippon Denko Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Denko Co., Ltd., together with its subsidiaries, engages in the ferroalloys, functional materials, incineration ash resource recovery, aqua solutions, and electric power businesses in Japan. The company offers ferroalloys products, including h...
How the Company Makes Money
Nippon Denko primarily makes money by manufacturing and selling ferroalloy products used by steel producers and other industrial customers. Its key revenue stream is the sale of ferromanganese and silicomanganese, where earnings are driven by shipmen...
Nippon Denko Co., Ltd. Financial Statement Overview
Summary
A fortress-like balance sheet and robust free cash flow generation help offset a cyclical downturn marked by recent revenue contraction and significantly compressed net profit margins.
Income Statement
42NeutralBalance Sheet
88Very PositiveCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 77.96B | 77.28B | 78.23B | 78.39B | 79.34B | 65.98B |
| Gross Profit | 15.98B | 12.49B | 13.61B | 11.35B | 15.38B | 14.36B |
| EBITDA | 12.44B | 8.83B | 10.10B | 7.64B | 11.28B | 10.56B |
| Net Income | -1.74B | 1.42B | 3.14B | 4.33B | 7.95B | 7.77B |
Balance Sheet | ||||||
| Total Assets | 93.61B | 93.41B | 104.16B | 102.54B | 104.94B | 95.89B |
| Cash, Cash Equivalents and Short-Term Investments | 4.89B | 6.02B | 5.95B | 7.87B | 8.91B | 9.78B |
| Total Debt | 14.80B | 13.82B | 17.07B | 18.55B | 21.47B | 18.00B |
| Total Liabilities | 25.18B | 22.39B | 30.48B | 31.10B | 35.72B | 31.56B |
| Stockholders Equity | 68.42B | 71.03B | 73.68B | 71.44B | 69.19B | 64.26B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 9.74B | 1.66B | 3.98B | 1.74B | 2.53B |
| Operating Cash Flow | 0 | 14.57B | 5.96B | 8.78B | 6.28B | 5.25B |
| Investing Cash Flow | 0 | -5.58B | -4.85B | -4.67B | -4.59B | -2.21B |
| Financing Cash Flow | 0 | -8.91B | -3.06B | -5.24B | -2.68B | -2.92B |
Nippon Denko Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5563, the sentiment is Negative. The current price of 400.00 is below the 20-day moving average (MA) of 417.50, below the 50-day MA of 430.76, and below the 200-day MA of 430.95, indicating a bearish trend. The MACD of -8.09 indicates Positive momentum. The RSI at 35.92 is Neutral, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5563.
Nippon Denko Co., Ltd. Peers Comparison
Overall Rating
JP:545184Outperform
JP:547174Outperform
JP:546370.75Outperform
JP:548266Neutral
JP:544063Neutral- JP:556358Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5451 | 84Outperform | JPY 206.07B | 10.94 | 8.92% | 6.77% | -6.96% | 30.12% |
| JP:5471 | 74Outperform | JPY 438.00B | 11.22 | 7.98% | 2.58% | 8.38% | 34.65% |
| JP:5463 | 71Outperform | JPY 407.63B | 13.64 | ― | 2.85% | -1.88% | 20.80% |
| JP:5482 | 66Neutral | JPY 149.68B | 13.66 | 4.67% | 3.17% | 4.27% | 6.07% |
| JP:5440 | 63Neutral | JPY 77.66B | 10.09 | ― | 5.04% | 6.83% | -31.05% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| JP:5563 | 58Neutral | JPY 50.17B | -27.93 | -2.48% | 3.12% | -2.35% | -162.14% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5563 | Nippon Denko Co., Ltd. | 400.00 | 73.68 | 22.58% | |
| JP:5471 | Daido Steel Co | 2128.00 | 700.64 | 49.09% | |
| JP:5451 | Yodogawa Steel Works, Ltd. | 1344.00 | 121.76 | 9.96% | |
| JP:5482 | Aichi Steel Corporation | 2338.00 | -192.26 | -7.60% | |
| JP:5440 | Kyoei Steel Ltd. | 1787.00 | -420.17 | -19.04% | |
| JP:5463 | Maruichi Steel Tube Ltd. | 1699.00 | 433.86 | 34.29% |
Nippon Denko Co., Ltd. Corporate Events
Nippon Denko Swings to Loss but Raises 2026 Dividend Forecast
Nippon Denko Co., Ltd. is a Tokyo Stock Exchange-listed Japanese industrial materials manufacturer operating under Japanese GAAP. The company focuses on ferroalloys and related products for steelmaking and heavy industry, serving domestic and oversea...
Nippon Denko Raises Underlying Profit and Dividend Outlook Despite Affiliate Losses
Nippon Denko has revised its full-year 2026 consolidated earnings forecast, now projecting net sales of ¥81.1 billion and disclosing operating profit of ¥11 billion and profit attributable to owners of parent of ¥500 million. The ordin...
Nippon Denko to Cancel 8.69% of Outstanding Shares in Capital Efficiency Move
Nippon Denko Co., Ltd., listed on the TSE Prime Market under securities code 5563, operates in Japan’s industrial materials sector and is known for producing ferroalloys and related metallurgical products used by steelmakers and other heavy ind...
Nippon Denko Books Large Equity-Method Loss on Ferroalloy Affiliate
Nippon Denko Co., Ltd., listed on the TSE Prime Market under securities code 5563, operates in the ferroalloys and related materials industry, supplying key inputs for steelmaking and other heavy industrial applications. The company’s portfolio...
Nippon Denko Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Nippon Denko has completed the payment procedures for the disposal of treasury shares used as restricted stock compensation, following a resolution by its Board of Directors on April 27, 2026. The transaction involves 91,800 shares of common stock at...
Nippon Denko Doubles Quarterly Profit and Raises Full-Year Earnings Outlook
Nippon Denko reported consolidated net sales of ¥19.4 billion for the three months ended March 31, 2026, essentially flat year on year, while operating profit nearly doubled to ¥2.0 billion and ordinary profit surged to ¥1.1 billion. P...
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: Aug 06, 2026