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Nitto Denko
(OTC:NDEKY)
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Rating:78Outperform
Price Target:
$24.50
â–²(12.85% Upside)
Action:Upgraded
Date:07/30/26
The score is primarily supported by strong and improving margins and an exceptionally conservative, low-debt balance sheet. Offsetting factors include uneven cash conversion versus earnings and modest top-line growth. Technically, the stock is above key shorter/intermediate moving averages but remains slightly below the 200-day average, and valuation appears fair with a modest dividend yield.
Positive Factors
High and improving margins
Sustained high gross and operating margins indicate durable product differentiation and pricing power in specialty materials. Improved net margin versus FY2024 suggests the company can convert revenue into profits consistently, supporting reinvestment, dividends, and resilience through industry cycles.
Negative Factors
Modest revenue growth
Top-line expansion is tepid, reflecting a mature demand profile in core markets. Sluggish sales momentum limits scalability and makes earnings growth reliant on margin improvement or share gains, increasing execution risk if product cycles or end-market demand weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Sustained high gross and operating margins indicate durable product differentiation and pricing power in specialty materials. Improved net margin versus FY2024 suggests the company can convert revenue into profits consistently, supporting reinvestment, dividends, and resilience through industry cycles.
Read all positive factors
Nitto Denko (NDEKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.47B
Dividend Yield1.66%
Average Volume (3M)10.81K
Price to Earnings (P/E)17.0
Beta (1Y)0.69
Revenue Growth1.07%
EPS Growth3.29%
CountryUS
Employees26,477
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)203.43
Shares Outstanding645,558,650
10 Day Avg. Volume13,902
30 Day Avg. Volume10,806
Financial Highlights & Ratios
PEG Ratio2.17
Price to Book (P/B)1.85
Price to Sales (P/S)1.96
P/FCF Ratio21.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.35
Revenue Forecast (FY)$6.83B
Nitto Denko Business Overview & Revenue Model
Company Description
Headquartered in Osaka, Japan, and established in 1918, Nitto Denko Corporation operates globally with a primary focus on the manufacturing of adhesive tapes. The company boasts an extensive product lineup, which includes various tape types such a...
How the Company Makes Money
Nitto Denko makes money primarily by manufacturing and selling engineered materials—most notably specialty adhesive tapes and functional films—at scale to business customers (B2B). Revenue is generated through (1) product sales to industrial and O...
Nitto Denko Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06T | 1.09T | 1.01T | 915.14B | 929.04B | 853.45B |
| Gross Profit | 403.39B | 414.33B | 395.51B | 330.86B | 337.44B | 302.39B |
| EBITDA | 267.58B | 272.60B | 254.16B | 200.84B | 205.01B | 183.97B |
| Net Income | 137.02B | 141.55B | 137.24B | 102.68B | 109.17B | 97.13B |
Balance Sheet | ||||||
| Total Assets | 1.43T | 1.45T | 1.32T | 1.25T | 1.15T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 297.08B | 361.37B | 363.34B | 342.27B | 329.97B | 362.05B |
| Total Debt | 3.10B | 0.00 | 455.00M | 30.46B | 272.00M | 241.00M |
| Total Liabilities | 292.43B | 293.92B | 276.80B | 266.04B | 250.45B | 272.36B |
| Stockholders Equity | 1.14T | 1.15T | 1.04T | 984.02B | 902.21B | 821.19B |
Cash Flow | ||||||
| Free Cash Flow | 104.47B | 101.34B | 111.91B | 87.75B | 115.78B | 85.53B |
| Operating Cash Flow | 197.20B | 203.77B | 217.91B | 155.52B | 181.70B | 144.49B |
| Investing Cash Flow | -106.12B | -113.92B | -115.11B | -67.93B | -159.91B | -57.59B |
| Financing Cash Flow | -103.14B | -113.03B | -78.89B | -90.78B | -57.63B | -36.64B |
Nitto Denko Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.47B | 16.99 | 12.24% | 1.66% | 1.07% | 3.29% | |
70 Outperform | $8.14B | 18.40 | 7.42% | 4.71% | -4.30% | -46.24% | |
69 Neutral | $3.98B | 23.33 | 7.17% | 2.52% | 2.36% | 42.56% | |
69 Neutral | $13.46B | 20.33 | 20.93% | 2.05% | 6.66% | -3.58% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.90B | 15.80 | 9.16% | 1.78% | -0.57% | 81.10% | |
60 Neutral | $8.78B | 48.98 | 6.57% | 0.89% | 26.61% | -25.95% |
* Basic Materials Sector Average
NDEKY
Nitto Denko
22.01
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-6.96%
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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.