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Nichiden Corporation
(9902)
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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)
Market Cap
¥89.29B
Dividend Yield2.28%
Average Volume (3M)29.66K
Price to Earnings (P/E)15.7
Beta (1Y)0.65
Revenue Growth9.00%
EPS Growth21.98%
CountryJP
Employees1,050
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)173.17
Shares Outstanding30,000,800
10 Day Avg. Volume19,440
30 Day Avg. Volume29,663
Financial Highlights & Ratios
PEG Ratio2.57
Price to Book (P/B)0.77
Price to Sales (P/S)0.50
P/FCF Ratio47.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 141.03B | 134.77B | 126.91B | 131.61B | 123.96B |
| Gross Profit | 21.62B | 19.43B | 17.84B | 17.98B | 16.46B |
| EBITDA | 9.10B | 8.87B | 8.27B | 8.98B | 7.81B |
| Net Income | 5.11B | 4.89B | 4.67B | 4.97B | 4.25B |
Balance Sheet | |||||
| Total Assets | 127.64B | 121.33B | 127.69B | 122.81B | 120.56B |
| Cash, Cash Equivalents and Short-Term Investments | 22.96B | 21.80B | 25.05B | 23.87B | 27.55B |
| Total Debt | 4.39B | 4.76B | 4.73B | 5.33B | 5.75B |
| Total Liabilities | 35.74B | 35.10B | 39.50B | 36.48B | 37.25B |
| Stockholders Equity | 91.90B | 86.23B | 88.19B | 86.32B | 83.31B |
Cash Flow | |||||
| Free Cash Flow | 1.48B | 2.06B | 3.36B | 620.00M | -10.00M |
| Operating Cash Flow | 4.30B | 4.47B | 5.02B | 2.12B | 3.07B |
| Investing Cash Flow | -479.00M | 3.27B | -2.43B | 46.00M | -3.77B |
| Financing Cash Flow | -2.79B | -6.32B | -4.89B | -2.49B | -1.72B |
Nichiden Corporation Technical Analysis
Positive
2550.00
Price Trends
2815.70
Positive
2646.19
Positive
2550.76
Positive
Market Momentum
66.30
Positive
58.54
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥337.81B | 22.74 | ― | 1.68% | 10.92% | 30.66% | |
77 Outperform | ¥38.90B | 11.40 | ― | 4.05% | 11.32% | -4.47% | |
75 Outperform | ¥63.59B | 11.94 | ― | 3.87% | 7.05% | 7.82% | |
74 Outperform | ¥89.29B | 15.70 | ― | 3.17% | 9.00% | 21.98% | |
69 Neutral | ¥155.89B | 9.84 | ― | 2.46% | 9.75% | -5.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥171.74B | 8.36 | ― | 1.81% | 48.87% | 116.60% |
* Industrials Sector Average
JP:9902
Nichiden Corporation
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329.85
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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.