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Nippon Chemi-Con Corporation (6997) AI Stock Analysis

2 Followers
JP:6997

Nippon Chemi-Con Corporation

(TSE/TYO:6997)

Select Model
Rating:48Neutral
Price Target:JPY 1,568.00▼(-1.01% Downside)
Action:reiterated
Date:11/06/26

The score is held back primarily by below-average financial quality (historically volatile profitability and inconsistent cash generation despite a 2026 rebound) and a clearly bearish technical trend (price below major moving averages with negative MACD). A low P/E provides valuation support, but the modest dividend yield and the current downtrend limit the overall score.

Positive Factors
Broad capacitor portfolio and end-market reachA broad product portfolio serving automotive, industrial, consumer and ICT applications diversifies demand across multiple electronics markets. This range can support customer retention, expand design-in opportunities, and provide resilience when weakness in one end market offsets strength elsewhere.
Negative Factors
Meaningful leverageDebt consistently exceeding equity leaves the company more exposed to earnings weakness and financial pressure during industry down cycles. Meaningful leverage can constrain capital allocation, increase reliance on financing, and reduce the flexibility available to fund growth or absorb prolonged operating volatility.

Nippon Chemi-Con Corporation (6997) vs. iShares MSCI Japan ETF (EWJ)

-100%0%100%200%300%400%JP:6997+25.67%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 41.38B
Dividend Yield
1.26%
Average Volume (3M)
1.00M
Price to Earnings (P/E)
17.3
Beta (1Y)
2.33
Revenue Growth
18.67%
EPS Growth
752.67%
Country
Japan
Employees
5,348
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

Nippon Chemi-Con Corporation Business Overview & Revenue Model

Company Description

Operating globally, with a presence across Japan, China, the United States, Europe, and other international territories, Nippon Chemi-Con Corporation specializes in the manufacture and sale of a diverse portfolio of capacitors, precision mechanical c...

How the Company Makes Money

Nippon Chemi-Con makes money primarily by manufacturing and selling capacitors and related electronic components to OEMs and electronics manufacturers. Its core revenue stream is product sales of capacitors (e.g., aluminum electrolytic and polymer ca...

Nippon Chemi-Con Corporation Financial Statement Overview

Summary

Financial performance is improving but still uneven. Revenue rebounded (~10% growth in 2026) and earnings turned modestly positive after prior losses, but profitability has swung sharply over the period. Leverage is meaningful (debt above equity historically), and while 2026 cash flow improved, the multi-year pattern includes negative operating and free cash flow in 2023–2025, keeping overall financial quality below average.

Income Statement

52Neutral

Balance Sheet

57Neutral

Cash Flow

36Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue143.92B136.82B122.68B150.74B161.88B140.32B
Gross Profit26.36B24.45B23.73B31.86B36.93B31.25B
EBITDA13.42B10.66B10.03B-10.12B19.27B-2.89B
Net Income3.41B2.37B37.00M-21.29B2.27B-12.12B
Balance Sheet
Total Assets171.38B165.99B162.70B172.92B162.74B156.14B
Cash, Cash Equivalents and Short-Term Investments24.05B21.29B23.87B45.30B26.14B24.76B
Total Debt73.92B74.92B78.24B89.39B70.21B58.41B
Total Liabilities110.17B102.85B106.03B119.31B112.06B111.42B
Stockholders Equity60.56B62.48B56.12B53.10B50.26B44.42B
Cash Flow
Free Cash Flow03.25B-9.82B-22.42B-11.69B-294.00M
Operating Cash Flow07.62B-493.00M-12.96B-4.86B5.11B
Investing Cash Flow0-5.29B-9.75B-4.82B-6.83B-5.21B
Financing Cash Flow0-6.23B-11.93B35.42B12.05B-218.00M

Nippon Chemi-Con Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price1584.00

Price Trends

50DMA2223.46Negative
100DMA3050.37Negative
200DMA2688.88Negative

Market Momentum

MACD-224.93Negative
RSI39.40Neutral
STOCH40.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6997, the sentiment is Negative. The current price of 1584.00 is below the 20-day moving average (MA) of 1639.00, below the 50-day MA of 2223.46, and below the 200-day MA of 2688.88, indicating a bearish trend. The MACD of -224.93 indicates Negative momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6997.

Nippon Chemi-Con Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:6997 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6762JP:676268NeutralJPY 4.28T17.42―1.69%25.38%50.76%
JP:6981JP:698164NeutralJPY 9.73T34.2710.61%1.28%14.53%24.27%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:6770JP:677061NeutralJPY 378.53B23.393.75%3.23%5.06%-65.51%
JP:6976JP:697660NeutralJPY 926.02B53.95―1.20%9.27%298.16%
JP:6996JP:699660NeutralJPY 135.50B17.62―1.86%8.34%187.11%
JP:6997JP:699748NeutralJPY 41.38B17.343.56%1.26%18.67%752.67%

* Technology Sector Average

Performance Comparison

0%200%400%JP:6997JP:6770JP:6981JP:6762JP:6976JP:6996Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6997 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6997Nippon Chemi-Con Corporation1584.00328.5126.17%
JP:6770Alps Alpine Co 1982.0056.112.91%
JP:6981Murata Manufacturing Co 5457.002331.3474.59%
JP:6762TDK Corporation2365.50-146.19-5.82%
JP:6976Taiyo Yuden Co., Ltd.7476.004220.28129.63%
JP:6996Nichicon Corporation2041.00769.6560.54%

Nippon Chemi-Con Corporation Corporate Events

Nippon Chemi-Con Reports Higher First-Half Sales and Operating Profit

Nov 10, 2026

Nippon Chemi-Con Corporation, listed on the Tokyo Stock Exchange, reported consolidated net sales of ¥78,155 million for the six months ended September 30, 2026, up 21.6% year on year. Operating profit increased 293.4% to ¥3,763 million and ordinary...

Nippon Chemi-Con Lowers Full-Year Parent Profit Forecast After Litigation Loss

Nov 10, 2026

Nippon Chemi-Con Corporation’s release covers sales in ICT-related, AI-server-related, automobile-related and industrial-equipment-related markets, including power-supply, communications-equipment, high-voltage and high-reliability components. It rec...

Nippon Chemi-Con’s Singapore Unit Appeals Damages Ruling

Oct 16, 2026

Nippon Chemi-Con has disclosed that its Singapore subsidiary, SINGAPORE CHEMI-CON (PTE) LTD., has moved to challenge a damages award issued by the Singapore International Commercial Court. The case stems from a first-instance judgment ordering the su...

Nippon Chemi-Con Faces Major Liability After Singapore Court Ruling in Dyson Dispute

Sep 24, 2026

Nippon Chemi-Con has disclosed that its Singapore subsidiary, Singapore Chemi-Con, was ordered by the Singapore International Commercial Court to pay damages to Dyson Manufacturing Sdn. Bhd. over alleged defects in components supplied since mid-2022....

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.

Date of analysis: Nov 05, 2026