Nippon Chemi-Con Corporation (6997) AI Stock Analysis

• Market Cap: ¥33.30B
• Dividend Yield: N/A
• Average Volume (3M): 306.08K
• Price to Earnings (P/E): 761.6
• Beta (1Y): 1.16
• Revenue Growth: -10.53%
• EPS Growth: 92.12%
• Country: JP
• Employees: 5,796
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -8.21
• Shares Outstanding: 21,939,934
• 10 Day Avg. Volume: 248,310
• 30 Day Avg. Volume: 306,076
• PEG Ratio: -5.19
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -1.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥949.53
• Price Target Upside: -33.92% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: ¥1,452.00 ▲(1.04% Upside)

The overall stock score is primarily influenced by the company's financial performance, which indicates distress due to declining revenue and inconsistent profitability. Technical analysis shows positive momentum, but caution is advised due to the RSI nearing overbought levels. Valuation concerns are significant, with a negative P/E ratio and no dividend yield, further impacting the score.

Nippon Chemi-Con Corporation Business Overview & Revenue Model

Company Description

Nippon Chemi-Con Corporation is a leading Japanese manufacturer specializing in the production of electronic components, primarily aluminum electrolytic capacitors. The company operates in the electronic components sector, providing essential materials for various industries, including automotive, telecommunications, consumer electronics, and industrial equipment. With a strong focus on research and development, Nippon Chemi-Con is committed to delivering high-quality, innovative products that meet the evolving needs of its global clientele.

How the Company Makes Money

Nippon Chemi-Con Corporation generates revenue primarily through the manufacturing and sale of electronic components, with a significant focus on aluminum electrolytic capacitors. These products are crucial for various applications, finding extensive use in automotive electronics, consumer electronics, and industrial equipment. The company's revenue streams are largely derived from sales to original equipment manufacturers (OEMs) and distributors worldwide. Additionally, Nippon Chemi-Con benefits from strategic partnerships and collaborations that enhance its product offerings and expand its market reach. The company's continuous investment in research and development ensures a steady pipeline of advanced products, helping to maintain its competitive edge and drive sales growth.

Nippon Chemi-Con Corporation Financial Statement Overview

Summary

Nippon Chemi-Con Corporation shows signs of financial distress, with declining revenue and inconsistent profitability. The balance sheet reflects increased leverage, and cash flow analysis indicates liquidity challenges. While there have been some improvements, the company's financial health remains precarious, requiring careful management to stabilize and improve future performance.

Income Statement

The company experienced a significant decline in revenue from 2024 to 2025, alongside a reduction in gross profit margin from previous years. Net income has been inconsistent, with a significant loss in 2024 turning into a small profit in 2025. Although EBIT margin indicates slight operational efficiency, the volatility in profitability remains a concern.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which slightly increased in 2025, suggesting a higher leverage. However, the equity ratio remains stable. Return on equity improved in 2025 due to positive net income, but historical instability in earnings poses a risk to sustained performance.

Cash Flow

The company has faced negative operating cash flows and free cash flows for consecutive years, indicating challenges in generating cash from operations. Although there is some improvement in free cash flow in 2025, the overall negative trend in cash flow raises concerns about liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.27B	122.68B	150.74B	161.88B	140.32B	110.79B
Gross Profit	23.30B	23.73B	31.86B	36.93B	31.25B	21.15B
EBITDA	9.27B	10.03B	-10.12B	12.50B	-2.89B	9.02B
Net Income	-588.00M	37.00M	-21.29B	2.27B	-12.12B	2.04B
Balance Sheet
Total Assets	162.46B	162.70B	172.92B	162.74B	156.14B	139.45B
Cash, Cash Equivalents and Short-Term Investments	24.13B	23.87B	45.30B	26.14B	24.76B	23.73B
Total Debt	75.92B	78.38B	89.58B	70.35B	58.54B	57.86B
Total Liabilities	108.61B	106.03B	119.31B	112.06B	111.42B	87.54B
Stockholders Equity	53.30B	56.12B	53.10B	50.26B	44.42B	51.60B
Cash Flow
Free Cash Flow	0.00	-9.82B	-22.42B	-11.69B	-294.00M	-1.45B
Operating Cash Flow	0.00	-493.00M	-12.96B	-4.86B	5.11B	2.07B
Investing Cash Flow	0.00	-9.75B	-4.82B	-6.83B	-5.21B	-3.03B
Financing Cash Flow	0.00	-11.93B	35.42B	12.05B	-218.00M	-3.47B

Nippon Chemi-Con Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1437.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6997, the sentiment is Positive. The current price of 1437 is below the 20-day moving average (MA) of 1546.55, above the 50-day MA of 1426.56, and above the 200-day MA of 1108.42, indicating a neutral trend. The MACD of 20.43 indicates Positive momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 19.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6997.

Nippon Chemi-Con Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6762	77 Outperform	¥4.22T	28.35	―	1.35%	4.83%	-12.18%
6957	75 Outperform	¥110.13B	36.46	―	2.11%	4.48%	-39.40%
6996	70 Outperform	¥100.32B	18.98	―	2.36%	-2.07%	-18.83%
6787	66 Neutral	¥244.97B	15.62	―	0.94%	15.13%	31.79%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	59 Neutral	¥447.34B	152.85	―	2.60%	4.21%	-135.36%
6997	56 Neutral	¥33.30B	761.55	-1.13%	―	-10.53%	92.12%