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Nichicon Corporation
(6996)
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Rating:59Neutral
Price Target:
¥2,220.00
▲(2.07% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by solid underlying financial stability (notably low leverage) and modest recent revenue improvement, but is held back by weak technical momentum and a relatively high P/E with only a modest dividend yield. Cash flow quality (modest cash conversion despite improved FCF) is an additional constraint on the overall rating.
Positive Factors
Conservative Balance Sheet
Low leverage and a growing equity base provide Nichicon with financial resilience and flexibility. This reduces balance-sheet pressure during cyclical demand changes and preserves capacity to support investment, product development, and customer requirements over the next several quarters.
Negative Factors
Thin and Volatile Margins
Thin margins leave limited room to absorb changes in product mix, manufacturing performance, or end-market demand. Their volatility also means modest revenue growth may not translate proportionally into earnings, constraining the durability of profitability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and a growing equity base provide Nichicon with financial resilience and flexibility. This reduces balance-sheet pressure during cyclical demand changes and preserves capacity to support investment, product development, and customer requirements over the next several quarters.
Read all positive factors
Nichicon Corporation (6996) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥143.97B
Dividend Yield1.79%
Average Volume (3M)596.40K
Price to Earnings (P/E)19.5
Beta (1Y)1.57
Revenue Growth0.36%
EPS Growth45.02%
CountryJP
Employees4,982
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)113.07
Shares Outstanding70,000,000
10 Day Avg. Volume626,140
30 Day Avg. Volume596,400
Financial Highlights & Ratios
PEG Ratio1.98
Price to Book (P/B)0.96
Price to Sales (P/S)0.68
P/FCF Ratio108.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,300.00Price Target Upside97.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)133.88
Revenue Forecast (FY)¥190.21B
Nichicon Corporation Business Overview & Revenue Model
Company Description
Nichicon Corporation, established in 1950 and based in Kyoto, Japan, operates internationally through its subsidiaries, specializing in the development, manufacturing, and sale of a diverse range of capacitors and electronic circuit components. It...
How the Company Makes Money
Nichicon primarily makes money by manufacturing and selling electronic components—especially capacitors—through B2B supply relationships with electronics makers, automotive suppliers/OEMs, industrial equipment manufacturers, and power/infrastructu...
Nichicon Corporation Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 174.84B | 169.72B | 175.75B | 181.64B | 184.72B | 142.20B |
| Gross Profit | 32.38B | 29.98B | 33.51B | 36.09B | 38.15B | 27.85B |
| EBITDA | 16.73B | 14.26B | 13.57B | 15.85B | 20.22B | 12.48B |
| Net Income | 7.59B | 6.31B | 5.88B | 8.25B | 7.82B | 7.90B |
Balance Sheet | ||||||
| Total Assets | 205.27B | 195.57B | 192.58B | 206.94B | 192.34B | 170.11B |
| Cash, Cash Equivalents and Short-Term Investments | 27.75B | 24.69B | 25.62B | 29.49B | 25.67B | 18.30B |
| Total Debt | 23.52B | 24.77B | 26.25B | 35.99B | 33.81B | 25.56B |
| Total Liabilities | 76.48B | 72.05B | 78.77B | 93.09B | 90.98B | 75.45B |
| Stockholders Equity | 124.96B | 119.60B | 110.43B | 110.90B | 98.84B | 92.42B |
Cash Flow | ||||||
| Free Cash Flow | 3.86B | 1.06B | 7.70B | 4.04B | -164.00M | -2.63B |
| Operating Cash Flow | 11.20B | 8.16B | 18.35B | 16.32B | 9.19B | 5.26B |
| Investing Cash Flow | -5.98B | -6.56B | -8.36B | -12.73B | -8.12B | -5.97B |
| Financing Cash Flow | -3.92B | -3.84B | -14.32B | -571.00M | 5.43B | -2.30B |
Nichicon Corporation Technical Analysis
Negative
2175.00
Price Trends
2591.61
Negative
3129.10
Negative
2601.14
Negative
Market Momentum
-131.50
Positive
28.00
Positive
11.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6996, the sentiment is Negative. The current price of 2175 is below the 20-day moving average (MA) of 2486.10, below the 50-day MA of 2591.61, and below the 200-day MA of 2601.14, indicating a bearish trend. The MACD of -131.50 indicates Positive momentum. The RSI at 28.00 is Positive, neither overbought nor oversold. The STOCH value of 11.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6996.
Nichicon Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥4.91T | 21.45 | ― | 1.55% | 21.98% | 57.54% | |
65 Neutral | ¥11.44T | 44.58 | 9.94% | 1.13% | 10.31% | 24.82% | |
63 Neutral | ¥37.21B | 17.19 | ― | 4.69% | 9.71% | 23.67% | |
63 Neutral | ¥1.14T | 60.57 | ― | 1.05% | 5.60% | ― | |
59 Neutral | ¥143.97B | 19.52 | ― | 1.79% | 0.36% | 45.02% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
46 Neutral | ¥43.70B | 11.37 | 5.80% | 1.28% | 15.81% | ― |
* General Sector Average
JP:6996
Nichicon Corporation
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Nichicon Corporation Corporate Events
Nichicon Completes ¥5 Billion Share Buyback to Offset Convertible Bond Impact
Sep 3, 2026
Nichicon has completed a ¥5 billion share buyback via the Tokyo Stock Exchange’s ToSTNeT-3 system, repurchasing 1,922,300 common shares at ¥2,601 each. The buyback, executed on 3 September and now finalized, falls slightly below th...
Nichicon Sets Terms for ¥22 Billion Zero-Coupon Convertible Bond Issue
Sep 2, 2026
Nichicon Corporation has approved the issuance of zero-coupon convertible bonds with stock acquisition rights due 2031, setting a total bond amount of 22 billion yen. The bonds, each with a principal of 10 million yen, will be offered at 103.25% o...
Nichicon Sets ¥5 Billion Off-Auction Share Buyback via ToSTNeT-3
Sep 2, 2026
Nichicon Corporation has approved a share buyback using the Tokyo Stock Exchange’s off-auction own share repurchase trading system, known as ToSTNeT-3, scheduled for the morning of September 3, 2026. The company will purchase its common stoc...
Nichicon Raises ¥22 Billion via Euro-yen CBs and Plans Share Buyback
Sep 2, 2026
Nichicon Corporation plans to issue ¥22 billion in Euro-yen convertible bonds with stock acquisition rights in overseas markets focused on Europe and Asia, under English law and with a zero percent coupon. The five-year bonds feature conversi...
Nichicon to Repurchase Up to 3.35% of Shares Alongside Zero-Coupon Bond Issue
Sep 2, 2026
Nichicon Corporation has approved a share repurchase program following its decision to issue zero-coupon convertible bonds due 2031, aiming to counteract any short-term supply-demand distortions in its stock. The buyback will target up to 2,248,00...
Nichicon to Issue Zero-Coupon Convertible Bonds to Fund Expansion and Share Buyback
Sep 2, 2026
Nichicon Corporation has approved the issuance of zero-coupon convertible bonds due 2031 to raise approximately 22 billion yen in low-cost financing. The move aims to diversify funding sources and ensure the company can capture rapid growth opport...
Nichicon Delivers Sharp Profit Rebound and Confirms Guidance for Fiscal 2027
Aug 5, 2026
Nichicon reported a strong rebound in earnings for the quarter ended June 30, 2026, with net sales rising 12.9% year on year to ¥44.7 billion and operating profit surging more than fourfold to ¥2.8 billion. Profit attributable to owners ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.