Nippon Denko Co., Ltd. AI Stock Analysis
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Nippon Denko Co., Ltd. (5563) AI Stock Analysis
Nippon Denko Co., Ltd.
(TSE/TYO:5563)
The overall score of 57 reflects a company with excellent balance sheet stability and strong free cash flows, significantly undermined by a persistent bearish price trend and recent profitability struggles. While the 3.33% dividend yield provides an appealing cushion, the negative trailing P/E and stagnant top-line growth indicate that the stock is facing fundamental industry headwinds that must clear before a sustained turnaround can occur.
Nippon Denko Co., Ltd. (5563) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 49.83B
- Dividend Yield
- 3.14%
- Average Volume (3M)
- 633.42K
- Price to Earnings (P/E)
- -110.2
- Beta (1Y)
- 1.00
- Revenue Growth
- -1.64%
- EPS Growth
- -121.64%
- 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...
Nippon Denko Co., Ltd. Financial Statement Overview
Summary
Nippon Denko exhibits strong foundational health driven by a fortress-like balance sheet with minimal leverage and exceptional cash flow generation. However, this is partially offset by cyclical top-line stagnation and shrinking 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 | 78.32B | 77.28B | 78.23B | 78.39B | 79.34B | 65.98B |
| Gross Profit | 17.05B | 12.49B | 13.61B | 11.35B | 15.38B | 14.36B |
| EBITDA | 13.29B | 8.83B | 10.10B | 7.64B | 11.28B | 10.56B |
| Net Income | -401.00M | 1.42B | 3.14B | 4.33B | 7.95B | 7.77B |
Balance Sheet | ||||||
| Total Assets | 94.40B | 93.41B | 104.16B | 102.54B | 104.94B | 95.89B |
| Cash, Cash Equivalents and Short-Term Investments | 5.75B | 6.02B | 5.95B | 7.87B | 8.91B | 9.78B |
| Total Debt | 14.21B | 13.82B | 17.07B | 18.55B | 21.47B | 18.00B |
| Total Liabilities | 24.29B | 22.39B | 30.48B | 31.10B | 35.72B | 31.56B |
| Stockholders Equity | 70.12B | 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 398.00 is below the 20-day moving average (MA) of 402.85, below the 50-day MA of 421.06, and below the 200-day MA of 431.80, indicating a bearish trend. The MACD of -8.12 indicates Negative momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 82.05 is Negative, 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:546370.75Outperform
JP:544067Neutral
JP:547162Neutral
JP:548262Neutral- JP:556357Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5451 | 84Outperform | JPY 213.59B | 9.44 | 10.70% | 6.49% | -2.46% | 56.68% |
| JP:5463 | 71Outperform | JPY 398.51B | 12.66 | ― | 3.10% | 4.20% | 2.18% |
| JP:5440 | 67Neutral | JPY 74.75B | 9.72 | ― | 5.23% | 6.83% | -31.05% |
| JP:5471 | 62Neutral | JPY 400.65B | 10.25 | 7.98% | 2.83% | 8.38% | 34.65% |
| JP:5482 | 62Neutral | JPY 164.98B | 15.00 | 4.67% | 2.87% | 4.27% | 6.00% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| JP:5563 | 57Neutral | JPY 49.83B | -110.25 | -0.57% | 3.14% | -1.64% | -121.64% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5563 | Nippon Denko Co., Ltd. | 398.00 | 80.39 | 25.31% | |
| JP:5471 | Daido Steel Co | 1943.50 | 470.24 | 31.92% | |
| JP:5451 | Yodogawa Steel Works, Ltd. | 1403.00 | 218.34 | 18.43% | |
| JP:5482 | Aichi Steel Corporation | 2566.00 | -105.14 | -3.94% | |
| JP:5440 | Kyoei Steel Ltd. | 1720.00 | -462.20 | -21.18% | |
| JP:5463 | Maruichi Steel Tube Ltd. | 1660.00 | 344.91 | 26.23% |
Nippon Denko Co., Ltd. Corporate Events
Nippon Denko Reports Higher Operating Profit but Nine-Month Loss
Nippon Denko Co., Ltd. reported consolidated net sales of ¥58.907 billion for the nine months ended September 30, 2026, up 1.8% year on year, while operating profit more than doubled to ¥7.315 billion. However, the company posted ordinary loss of ¥1....
Nippon Denko appoints new CEO to steer 10th Medium-Term Plan
Nippon Denko has announced a leadership change, appointing Jiro Kobayashi as President and CEO effective January 1, 2027, while current chief Yasushi Aoki will become Director and Special Advisor without representative authority. The move is tied to...
Nippon Denko Boosts Core Earnings but Books Investment Loss, Plans New Mid‑Term Strategy
Nippon Denko Co., Ltd. operates in the materials and ferroalloys industry, with a focus on domestic businesses that contribute to its core earnings. The company’s operations include investments such as its stake in Pertama Ferroalloys Sdn. Bhd., whic...
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 07, 2026