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Nichicon Corporation
(6996)
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Rating:61Neutral
Price Target:
¥3,671.00
▲(68.78% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by mixed financial performance—solid balance sheet strength but notably weak and volatile free cash flow—partly offset by strong bullish technical momentum. Valuation is a key headwind due to the very high P/E and low dividend yield.
Positive Factors
Conservative balance sheet
Nichicon's low leverage and improved debt-to-equity provide a durable financial buffer against cyclical demand. A solid equity cushion supports capital spending, working-capacity management and strategic optionality (investment or bolt-ons) without forcing distressed financings.
Negative Factors
Weak and volatile free cash flow
Inconsistent and declining free cash flow undermines the company's ability to sustainably fund capex, repay debt, or raise shareholder returns. Volatility in cash conversion raises execution risk for long-term investments and weakens resilience to prolonged industry downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Nichicon's low leverage and improved debt-to-equity provide a durable financial buffer against cyclical demand. A solid equity cushion supports capital spending, working-capacity management and strategic optionality (investment or bolt-ons) without forcing distressed financings.
Read all positive factors
Nichicon Corporation (6996) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥237.24B
Dividend Yield2.18%
Average Volume (3M)276.00K
Price to Earnings (P/E)37.7
Beta (1Y)1.27
Revenue Growth-3.43%
EPS Growth9.82%
CountryJP
Employees5,394
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)93.95
Shares Outstanding70,000,000
10 Day Avg. Volume316,140
30 Day Avg. Volume276,000
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
¥4,750.00Price Target Upside118.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)116.65
Revenue Forecast (FY)¥192.15B
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 makes money primarily by designing, manufacturing, and selling electronic components—most notably capacitors—to equipment makers and electronics manufacturers. Its core revenue stream is product sales of capacitors (including multiple cap...
Nichicon Corporation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
73
Positive
Cash Flow
44
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 169.72B | 175.75B | 181.64B | 184.72B | 142.20B |
| Gross Profit | 29.98B | 33.51B | 36.09B | 38.15B | 27.85B |
| EBITDA | 14.26B | 13.57B | 15.85B | 20.22B | 12.48B |
| Net Income | 6.31B | 5.88B | 8.25B | 7.82B | 7.90B |
Balance Sheet | |||||
| Total Assets | 195.57B | 192.58B | 206.94B | 192.34B | 170.11B |
| Cash, Cash Equivalents and Short-Term Investments | 24.69B | 25.62B | 29.49B | 25.67B | 18.30B |
| Total Debt | 24.77B | 26.25B | 35.99B | 33.81B | 25.56B |
| Total Liabilities | 72.05B | 78.77B | 93.09B | 90.98B | 75.45B |
| Stockholders Equity | 119.60B | 110.43B | 110.90B | 98.84B | 92.42B |
Cash Flow | |||||
| Free Cash Flow | 1.06B | 7.70B | 4.04B | -164.00M | -2.63B |
| Operating Cash Flow | 8.16B | 18.35B | 16.32B | 9.19B | 5.26B |
| Investing Cash Flow | -6.56B | -8.36B | -12.73B | -8.12B | -5.97B |
| Financing Cash Flow | -3.84B | -14.32B | -571.00M | 5.43B | -2.30B |
Nichicon Corporation Technical Analysis
Neutral
2175.00
Price Trends
3661.88
Negative
2818.88
Positive
2180.57
Positive
Market Momentum
-0.07
Positive
40.89
Neutral
2.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6996, the sentiment is Neutral. The current price of 2175 is below the 20-day moving average (MA) of 4226.25, below the 50-day MA of 3661.88, and below the 200-day MA of 2180.57, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 2.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥16.65T | 76.50 | 8.95% | 1.88% | 5.02% | 2.08% | |
68 Neutral | ¥44.11B | 12.15 | ― | 4.53% | 5.02% | 354.47% | |
64 Neutral | ¥6.26T | 33.29 | ― | 1.41% | 13.61% | 17.02% | |
62 Neutral | ¥1.88T | 125.59 | ― | 2.57% | 4.07% | 533.27% | |
61 Neutral | ¥237.24B | 37.68 | ― | 2.18% | -3.43% | 9.82% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥109.59B | 39.85 | 2.26% | ― | 11.52% | 5651.84% |
* General Sector Average
JP:6996
Nichicon Corporation
3,480.00
2,296.19
193.97%
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Nichicon Corporation Corporate Events
Nichicon Raises Annual Dividend Payout, Signals Confidence in Earnings
May 19, 2026
Nichicon Corporation’s board has approved a year-end dividend of 19 yen per share for the fiscal year with a record date of March 31, 2026, matching its latest forecast and up from 18 yen per share in the previous fiscal year. The total cash...
Nichicon Lifts Dividend Despite Profit Slump and Impairment Charge
May 8, 2026
Nichicon revised its dividend policy for the fiscal year ended March 2026, raising the year-end payout forecast to 19 yen per share from 18 yen and lifting the total annual dividend to 37 yen, up 2 yen from the prior year. Management framed the mo...
Nichicon Lifts Profit and Dividend as It Forecasts Stronger Growth for Fiscal 2027
May 8, 2026
Nichicon Corporation reported consolidated net sales of ¥169.7 billion for the fiscal year ended March 31, 2026, down 3.4% year on year, but achieved a 24.1% rise in operating profit to ¥6.5 billion and a 7.4% increase in profit attribut...
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.