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Nichiden Corporation (JP:9902)
:9902
Japanese Market
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Nichiden Corporation (9902) AI Stock Analysis

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JP:9902

Nichiden Corporation

(9902)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥3,455.00
▲(35.49% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by solid financial quality (notably a conservative, improving balance sheet) and a strong multi-timeframe uptrend with the stock trading above key moving averages. The main offsets are uneven cash flow conversion and some operating-margin softening, while valuation (P/E ~17.8 with ~2.27% yield) is fair rather than compelling.
Positive Factors
Conservative balance sheet
Nichiden’s low and falling debt-to-equity and steadily growing equity provide durable financial flexibility. This conservative capital structure reduces refinancing risk, supports investment or buybacks when opportunities arise, and cushions cyclical downturns common in component distribution.
Negative Factors
Operating margin pressure
A downward trend in operating margins signals limited pricing power and exposure to cost fluctuations in distribution. Sustained margin erosion reduces retained earnings for reinvestment, limits return on capital, and makes profits more sensitive to volume swings or input-cost inflation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Nichiden’s low and falling debt-to-equity and steadily growing equity provide durable financial flexibility. This conservative capital structure reduces refinancing risk, supports investment or buybacks when opportunities arise, and cushions cyclical downturns common in component distribution.
Read all positive factors

Nichiden Corporation (9902) vs. iShares MSCI Japan ETF (EWJ)

Nichiden Corporation Business Overview & Revenue Model

Company Description
NICHIDEN Corporation is a Japanese trading company that distributes a diverse range of industrial products. Its offerings are categorized across several key areas: Control Equipment: This includes components like cylinders, valves, and couplings, ...
How the Company Makes Money
Nichiden primarily makes money by earning gross profit (the spread between its purchase cost and selling price) on the sale of electronic components and related products to business customers. Revenue is generated mainly through (1) product sales ...

Nichiden Corporation Financial Statement Overview

Summary
Overall fundamentals are solid: revenue has grown over time and profitability is steady-to-improving with net margin around ~3.6% in 2024–2026. The balance sheet is a key strength with low and improving leverage and a growing equity base. Offsetting this, operating margin has softened from 2023–2026 and cash conversion/free cash flow have been inconsistent despite remaining positive in the last three years.
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue141.03B134.77B126.91B131.61B123.96B
Gross Profit21.62B19.43B17.84B17.98B16.46B
EBITDA9.10B8.87B8.27B8.98B7.81B
Net Income5.11B4.89B4.67B4.97B4.25B
Balance Sheet
Total Assets127.64B121.33B127.69B122.81B120.56B
Cash, Cash Equivalents and Short-Term Investments22.96B21.80B25.05B23.87B27.55B
Total Debt4.39B4.76B4.73B5.33B5.75B
Total Liabilities35.74B35.10B39.50B36.48B37.25B
Stockholders Equity91.90B86.23B88.19B86.32B83.31B
Cash Flow
Free Cash Flow1.48B2.06B3.36B620.00M-10.00M
Operating Cash Flow4.30B4.47B5.02B2.12B3.07B
Investing Cash Flow-479.00M3.27B-2.43B46.00M-3.77B
Financing Cash Flow-2.79B-6.32B-4.89B-2.49B-1.72B

Nichiden Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2550.00
Price Trends
50DMA
2815.70
Positive
100DMA
2646.19
Positive
200DMA
2550.76
Positive
Market Momentum
MACD
66.30
Positive
RSI
58.54
Neutral
STOCH
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9902, the sentiment is Positive. The current price of 2550 is below the 20-day moving average (MA) of 3045.10, below the 50-day MA of 2815.70, and below the 200-day MA of 2550.76, indicating a bullish trend. The MACD of 66.30 indicates Positive momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9902.

Nichiden Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥337.81B22.741.68%10.92%30.66%
77
Outperform
¥38.90B11.404.05%11.32%-4.47%
75
Outperform
¥63.59B11.943.87%7.05%7.82%
74
Outperform
¥89.29B15.703.17%9.00%21.98%
69
Neutral
¥155.89B9.842.46%9.75%-5.73%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥171.74B8.361.81%48.87%116.60%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9902
Nichiden Corporation
3,075.00
329.85
12.02%
JP:3176
Sanyo Trading Co., Ltd.
1,130.00
361.21
46.98%
JP:6454
Max Co., Ltd.
1,836.00
453.63
32.82%
JP:7456
Matsuda Sangyo Co., Ltd.
7,080.00
3,309.79
87.79%
JP:8103
Meiwa Corporation
975.00
192.72
24.64%
JP:9830
Trusco Nakayama Corporation
2,440.00
97.02
4.14%

Nichiden Corporation Corporate Events

Nichiden Raises Earnings Outlook and Dividends on Surging Semiconductor Demand
Jul 31, 2026
Nichiden Corporation has sharply raised its interim and full-year consolidated earnings forecasts for the fiscal year ending March 31, 2027, citing stronger-than-expected orders from electronic device and semiconductor equipment industries. Robust...
Nichiden Lifts Earnings and Dividend Outlook on Strong First-Quarter Rebound
Jul 31, 2026
Nichiden reported strong results for the quarter ended June 30, 2026, with net sales up 19.8% to ¥39.9 billion and profit attributable to owners of parent surging 65.6% to ¥1.7 billion. Operating and ordinary profits rose sharply, and co...
Nichiden Completes Restricted Stock Treasury Disposal for Management Compensation
Jul 17, 2026
Nichiden Corporation has completed the payment process for the disposal of 12,800 shares of its treasury stock, which are being used as restricted stock compensation for its management team. This move is part of a previously approved scheme to gra...
Nichiden Reports No Share Buybacks Yet Under 2 Billion Yen Treasury Program
Jul 1, 2026
Nichiden Corporation reported that, during the period from June 1 to June 30, 2026, it did not repurchase any of its own shares under the treasury share program approved by its board in May. The company had authorized the buyback of up to 600,000 ...
Nichiden to Grant Long-Term Restricted Stock to Directors via Treasury Share Disposal
Jun 19, 2026
Nichiden Corporation has approved the disposal of 12,800 shares of its treasury stock, worth ¥32.5 million, to grant restricted shares to 17 internal directors and executive officers as part of a new stock-based compensation plan. The initiat...
Nichiden Launches Share Buyback and Cancellation to Boost Capital Efficiency
May 8, 2026
Nichiden Corporation’s board has approved a share buyback program and subsequent cancellation of the repurchased shares to strengthen its capital policy and improve shareholder returns. The company plans to repurchase up to 600,000 common sh...
Nichiden Raises Dividend Payout Target to Boost Shareholder Returns
May 8, 2026
Nichiden Corporation has resolved to revise its dividend policy from the fiscal year ending March 31, 2027, shifting its consolidated dividend payout ratio target from at least 30% with a minimum annual dividend of ¥15 per share to a higher t...
Nichiden Sets Year-End Dividend at 35 Yen and Accelerates Payout Date
May 8, 2026
Nichiden Corporation’s board has approved a year-end dividend of 35 yen per share for the fiscal year ended March 2026, in line with its prior forecast and funded from retained earnings. The total payout will be 1,033 million yen, with an ef...
Nichiden lifts profits and boosts dividends as earnings and balance sheet strengthen
May 8, 2026
Nichiden Corporation reported fiscal 2026 consolidated net sales of ¥141.0 billion, up 4.6% year on year, with operating profit down 3.0% to ¥6.6 billion but ordinary profit rising 3.7% to ¥7.5 billion and profit attributable to own...
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 01, 2026