Nichiden Corporation (9902) AI Stock Analysis

• Market Cap: ¥82.36B
• Dividend Yield: 2.33%
• Average Volume (3M): 25.96K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.58
• Revenue Growth: 5.72%
• EPS Growth: 2.77%
• Country: JP
• Employees: 998
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 34.73
• Shares Outstanding: 30,000,800
• 10 Day Avg. Volume: 31,490
• 30 Day Avg. Volume: 25,956
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,129.00
• Price Target Upside: 11.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥3,129.00 ▲(11.23% Upside)

Nichiden Corporation's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is the most significant factor driving the score. Technical analysis suggests a neutral to slightly bearish trend, while valuation indicates the stock is fairly valued. The absence of earnings call and corporate events data did not impact the score.

Nichiden Corporation Business Overview & Revenue Model

Company Description

NICHIDEN Corporation operates as a trading company in Japan. It offers cylinders, valves, coupling, etc.; industrial robots, controllers, etc.; and sensors, touchscreens, measuring devices, etc. for the control equipment field. The company also provides motors, reduction drives, gearboxes, etc.; chains, gear wheels, coupling, etc.; and handles, bearings, linear motions guides, etc. for the power transmission device field. In addition, it offers dust collectors, pumps, compressors, LEDs, etc.; conveyors, lifts, casters, etc.; and containers, palettes, storage shelves, etc. for industrial machinery fields. The company was founded in 1935 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nichiden Corporation generates revenue through the sale and distribution of industrial machinery and equipment. The company partners with numerous manufacturers to offer a diverse portfolio of products, which it sells to businesses across different industries. Nichiden's revenue streams primarily consist of product sales, which are supported by its extensive distribution network. The company leverages its expertise in industrial automation and control systems to provide value-added services, such as technical support and system integration, enhancing its revenue potential. Strategic partnerships with manufacturers and a focus on high-quality products contribute significantly to Nichiden's earnings.

Nichiden Corporation Financial Statement Overview

Summary

Nichiden Corporation demonstrates strong financial health with solid revenue growth and profitability. The balance sheet is robust with low leverage, though there is room for improvement in cash generation and returns on equity.

Income Statement

Nichiden Corporation has demonstrated solid revenue growth with a positive trajectory, increasing from 126,912 million yen to 134,771 million yen, marking a growth rate of 6.19% most recently. The Gross Profit Margin stands at 15.34%, and the Net Profit Margin is 3.63%, indicating healthy profitability levels. The EBIT Margin of 5.06% and EBITDA Margin of 6.58% further support the company's efficient operational performance. Overall, the company shows strong and consistent financial results in its income statement.

Balance Sheet

Nichiden Corporation maintains a robust balance sheet with a Debt-to-Equity Ratio of 0.06, highlighting low leverage and financial stability. The Return on Equity (ROE) is 5.67%, which is moderate, indicating efficient use of equity. An Equity Ratio of 71.06% underscores strong equity financing. The company appears well-capitalized, though the moderate ROE suggests room for improvement in generating returns on shareholders' equity.

Cash Flow

The free cash flow has declined recently, but remains positive at 2,058 million yen. The Operating Cash Flow to Net Income Ratio is 0.91, showing a decent conversion of accounting profits into cash. The Free Cash Flow to Net Income Ratio is 0.42, indicating a need for improving cash generation relative to net income. While cash flow generation is stable, the decrease in free cash flow signals potential areas for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.77B	134.77B	126.91B	131.61B	123.96B	102.75B
Gross Profit	20.68B	20.68B	19.10B	19.57B	18.00B	14.56B
EBITDA	8.87B	8.87B	8.27B	8.98B	7.81B	5.36B
Net Income	4.89B	4.89B	4.67B	4.97B	4.25B	2.84B
Balance Sheet
Total Assets	121.33B	121.33B	127.56B	122.81B	120.56B	112.02B
Cash, Cash Equivalents and Short-Term Investments	21.80B	21.80B	25.05B	23.87B	27.55B	26.94B
Total Debt	4.76B	4.76B	5.00B	5.33B	5.75B	6.81B
Total Liabilities	35.10B	35.10B	39.36B	36.49B	37.25B	31.71B
Stockholders Equity	86.23B	86.23B	88.19B	86.32B	83.31B	80.31B
Cash Flow
Free Cash Flow	925.00M	2.06B	3.04B	556.00M	-268.00M	2.56B
Operating Cash Flow	1.70B	4.47B	5.02B	2.12B	3.07B	3.61B
Investing Cash Flow	1.98B	3.27B	-2.43B	46.00M	-3.77B	-6.58B
Financing Cash Flow	-5.23B	-6.32B	-4.89B	-2.49B	-1.72B	-1.90B

Nichiden Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2813.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9902, the sentiment is Negative. The current price of 2813 is below the 20-day moving average (MA) of 2823.50, below the 50-day MA of 2834.28, and below the 200-day MA of 2854.88, indicating a bearish trend. The MACD of -9.69 indicates Positive momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 39.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9902.

Nichiden Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8052	80 Outperform	55.21B	10.03	10.73%	2.44%	16.43%	52.00%
7456	76 Outperform	99.72B	10.77	9.77%	1.81%	31.26%	26.32%
8061	75 Outperform	66.49B	11.80	16.52%	3.79%	12.01%	-23.10%
3153	74 Outperform	49.66B	11.65	13.10%	1.55%	7.34%	60.45%
9902	72 Outperform	¥82.36B	17.52	―	2.33%	5.72%	2.77%
7128	71 Outperform	56.57B	20.61	6.38%	3.19%	-2.41%	-43.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nichiden Corporation Corporate Events

Nichiden Corporation to Merge Subsidiary for Operational Efficiency

Nichiden Corporation announced its decision to merge its wholly owned subsidiary, PROCUEbyNET Corporation, through an absorption-type merger. This strategic move aims to streamline operations and concentrate management resources, with Nichiden Corporation as the surviving entity. The merger is expected to enhance operational efficiency and consolidate the company’s position in the market.

The most recent analyst rating on (JP:9902) stock is a Buy with a Yen3164.00 price target. To see the full list of analyst forecasts on Nichiden Corporation stock, see the JP:9902 Stock Forecast page.

Nichiden Corporation Reports Q1 2025 Financial Results with Mixed Performance

Nichiden Corporation reported its consolidated financial results for the three months ending June 30, 2025, showing a slight increase in net sales by 2% year-on-year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 11.6%, 13.4%, and 12.5% respectively. Despite these declines, comprehensive income saw a significant increase of 82.6% compared to the previous year. The company also announced a forecast for the fiscal year ending March 31, 2026, with anticipated growth in net sales by 3.9% but slight declines in operating and ordinary profits.

Nichiden Completes Treasury Stock Disposal for Compensation

Nichiden Corporation has completed the payment for the disposal of its treasury stock as part of a restricted stock compensation plan. This move, resolved by the Board of Directors, involves the disposal of 13,700 shares of common stock, with a total disposal amount of 38,401,100 yen. The shares are allocated to directors and executive officers, aiming to align their interests with the company’s performance and enhance corporate governance.

NICHIDEN Corporation Announces Treasury Share Disposal for Incentive Plan

NICHIDEN Corporation has announced the disposal of 13,700 treasury shares as part of a Restricted Stock Compensation Plan aimed at incentivizing directors and executive officers to enhance corporate value and align with shareholder interests. This strategic move, approved by the Board of Directors, involves a total disposal amount of 38,401,100 yen and sets a 30-year transfer restriction period, reflecting the company’s commitment to long-term value sharing with stakeholders.