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Nippon Denko Co., Ltd. (5563) AI Stock Analysis
Nippon Denko Co., Ltd.
(TSE/TYO:5563)
The score is driven primarily by steady financial resilience (conservative leverage and improved 2025 cash generation) but held back by a clear profitability downshift and volatile cash-flow history. Technical signals are notably weak (price below key moving averages with negative MACD), while valuation is mixed—supported by a ~3.33% dividend yield but clouded by a negative P/E.
Nippon Denko Co., Ltd. (5563) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 49.67B
- Dividend Yield
- 3.33%
- Average Volume (3M)
- 641.89K
- Price to Earnings (P/E)
- -26.2
- 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...
Nippon Denko Co., Ltd. Financial Statement Overview
Summary
Mixed fundamentals: a strong balance sheet (low and improving leverage) and a meaningful 2025 free-cash-flow rebound offset clearly weaker earnings power versus 2021–2022, with margins and net profitability compressing and cash-flow consistency remaining volatile.
Income Statement
52NeutralBalance Sheet
74PositiveCash Flow
66Positive| 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 375.00 is below the 20-day moving average (MA) of 408.55, below the 50-day MA of 426.24, and below the 200-day MA of 431.55, indicating a bearish trend. The MACD of -10.99 indicates Positive momentum. The RSI at 27.04 is Positive, neither overbought nor oversold. The STOCH value of 32.49 is Neutral, 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:547169Neutral
JP:544067Neutral
JP:548266Neutral- JP:556358Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5451 | 84Outperform | JPY 213.59B | 9.06 | 10.70% | 6.76% | -2.46% | 56.68% |
| JP:5463 | 71Outperform | JPY 387.36B | 12.22 | ― | 3.19% | -1.88% | 20.80% |
| JP:5471 | 69Neutral | JPY 388.50B | 9.25 | 7.98% | 3.14% | 8.38% | 34.65% |
| JP:5440 | 67Neutral | JPY 75.36B | 9.33 | ― | 5.45% | 6.83% | -31.05% |
| JP:5482 | 66Neutral | JPY 156.60B | 14.34 | 4.67% | 3.03% | 4.27% | 6.07% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| JP:5563 | 58Neutral | JPY 49.67B | -26.19 | -2.48% | 3.33% | -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. | 375.00 | 67.08 | 21.78% | |
| JP:5471 | Daido Steel Co | 1754.00 | 295.88 | 20.29% | |
| JP:5451 | Yodogawa Steel Works, Ltd. | 1347.00 | 162.34 | 13.70% | |
| JP:5482 | Aichi Steel Corporation | 2390.00 | -241.16 | -9.17% | |
| JP:5440 | Kyoei Steel Ltd. | 1651.00 | -511.03 | -23.64% | |
| JP:5463 | Maruichi Steel Tube Ltd. | 1522.00 | 253.95 | 20.03% |
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 l...
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....
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