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Nichiha Corporation (7943) AI Stock Analysis

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JP:7943

Nichiha Corporation

(TSE/TYO:7943)

Select Model
Rating:62Neutral
Price Target:JPY 2,851.00â–²(5.99% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by mixed financial performance: strong balance-sheet conservatism supports stability, but profitability and returns have compressed materially and revenue has recently declined. Technicals add modest support with a stable-to-slightly positive trend and neutral momentum. Valuation is held back by a higher P/E relative to weakened earnings quality, partially offset by a solid dividend yield.

Positive Factors
Conservative balance sheetVery low leverage gives Nichiha financial resilience in a cyclical construction-materials market. A large equity base relative to debt reduces balance-sheet strain, preserves borrowing capacity, and supports continued investment or shareholder distributions through weaker operating periods.
Negative Factors
Declining revenueRevenue has shifted from solid growth in 2022–2024 to a decline in 2026, indicating weaker demand or activity across the company’s construction-linked markets. Sustained top-line contraction would limit operating leverage, reduce investment capacity, and make profit recovery more difficult.

Nichiha Corporation (7943) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:7943-4.64%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 91.01B
Dividend Yield
4.50%
Average Volume (3M)
68.28K
Price to Earnings (P/E)
24.0
Beta (1Y)
0.58
Revenue Growth
-3.82%
EPS Growth
13.79%
Country
Japan
Employees
2,902
Sector
General
Sector Strength
55
Industry
Construction Materials

Nichiha Corporation Business Overview & Revenue Model

Company Description

Nichiha Corporation is a global provider of building materials, supplying both exterior and interior products for residential homes, commercial enterprises, and public facilities across Japan, the United States, China, and other international regions...

Nichiha Corporation Financial Statement Overview

Summary

Financials are mixed: a strong, low-leverage balance sheet (debt-to-equity ~0.12–0.16) provides resilience, but operating performance has weakened versus 2022–2024. Revenue slipped in 2026 (annual -2.5%) and net margins fell to ~1.7–1.8% in 2025–2026, though EBIT margin improved in 2026 vs 2025 (~6.5% vs ~4.7%). Cash flow is positive with improved free cash flow in 2025–2026, but volatility and uneven earnings-to-cash conversion temper the score.

Income Statement

54Neutral

Balance Sheet

76Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue143.74B143.74B148.48B142.79B138.06B128.60B
Gross Profit51.23B51.23B50.57B50.46B51.93B50.81B
EBITDA14.31B14.65B12.40B15.55B15.10B17.41B
Net Income2.48B2.48B2.71B8.07B9.04B10.15B
Balance Sheet
Total Assets168.26B168.26B177.46B175.69B169.34B161.84B
Cash, Cash Equivalents and Short-Term Investments24.70B24.70B26.48B26.70B32.74B44.21B
Total Debt15.91B15.91B16.18B15.15B15.48B15.50B
Total Liabilities47.13B47.13B53.29B49.38B49.71B50.66B
Stockholders Equity121.66B121.66B124.69B126.69B119.88B111.47B
Cash Flow
Free Cash Flow04.26B6.06B1.03B-4.54B7.53B
Operating Cash Flow08.21B10.41B6.92B5.54B14.99B
Investing Cash Flow0-3.78B-3.04B-6.04B-12.62B-7.78B
Financing Cash Flow0-6.64B-8.01B-7.12B-4.89B-3.21B

Nichiha Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price2690.00

Price Trends

50DMA2885.49Negative
100DMA2939.93Negative
200DMA3063.55Negative

Market Momentum

MACD-19.42Positive
RSI37.00Neutral
STOCH41.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7943, the sentiment is Negative. The current price of 2690.00 is below the 20-day moving average (MA) of 2831.75, below the 50-day MA of 2885.49, and below the 200-day MA of 3063.55, indicating a bearish trend. The MACD of -19.42 indicates Positive momentum. The RSI at 37.00 is Neutral, neither overbought nor oversold. The STOCH value of 41.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7943.

Nichiha Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7943 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5930JP:593080OutperformJPY 125.89B10.7910.36%4.00%4.35%-10.47%
JP:7949JP:794970OutperformJPY 46.76B15.24―4.94%4.47%12.02%
JP:7971JP:797165NeutralJPY 38.69B8.39―4.80%2.82%28.13%
JP:7943JP:794362NeutralJPY 97.27B24.03―4.50%-3.82%13.79%
JP:5262JP:526262NeutralJPY 54.77B12.65―2.64%32.97%28.14%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:5938JP:593846NeutralJPY 486.07B2429.710.03%5.42%2.42%-97.84%

* General Sector Average

Performance Comparison

-20%0%20%JP:7943JP:5938JP:5930JP:5262JP:7949JP:7971Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7943 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7943Nichiha Corporation2690.00-112.74-4.02%
JP:5938LIXIL Group Corp1659.50-21.48-1.28%
JP:5930Bunka Shutter Co., Ltd.1849.00-179.33-8.84%
JP:5262Nippon Hume Corp.985.00-535.11-35.20%
JP:7949Komatsu Wall Industry Co., Ltd.2629.00190.267.80%
JP:7971Toli Corporation709.0058.318.96%

Nichiha Corporation Corporate Events

Nichiha Revises Full-Year Profit Forecasts Lower

Nov 10, 2026

Nichiha Corporation, listed on the Tokyo Stock Exchange Prime Market and Nagoya Stock Exchange Premier Market under code 7943, revised its consolidated full-year earnings forecast for the fiscal year ending March 31, 2027. The net sales forecast was...

Nichiha Reports Six-Month Results Through September 2026

Nov 10, 2026

Nichiha Corporation reported consolidated net sales of ¥68,285 million for the six months ended September 30, 2026, down 3.9% year over year, while operating profit fell 0.7% to ¥3,470 million. Ordinary profit declined 5.9% to ¥3,482 million, while p...

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: Aug 17, 2026