Nitto Denko (NDEKY) AI Stock Analysis

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Nitto Denko

(Other OTC:NDEKY)

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Rating:77Outperform

Price Target:$24.50▲(10.33% Upside)

Action:reiterated

Date:10/29/26

The score is supported primarily by exceptional balance-sheet strength, solid profitability, and positive cash generation. Technical momentum is mixed and cash conversion is weaker than earnings quality suggests, while valuation is reasonable but not compelling.

Positive Factors

Strong ProfitabilityHealthy gross, operating, and net margins show that Nitto Denko converts its specialized materials portfolio into substantial earnings. This profitability provides a durable buffer against market fluctuations, supports internal investment, and gives management flexibility to protect competitiveness across multiple end markets.

Negative Factors

Cooling Revenue GrowthRecent revenue expansion has slowed materially from the stronger growth achieved earlier in the period. Near-flat sales growth can limit operating leverage, reduce the pace of earnings compounding, and place greater importance on productivity or mix improvements to sustain profitability over the next several quarters.

Nitto Denko (NDEKY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $14.69B
Dividend Yield: 1.79%
Average Volume (3M): 78.09K
Price to Earnings (P/E): 16.5
Beta (1Y): 0.64
Revenue Growth: 1.05%
EPS Growth: 9.03%
Country: US
Employees: 26,477
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

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 as d...

Nitto Denko Financial Statement Overview

Summary

Strong financial profile, led by zero debt, substantial equity, durable profitability, and positive free cash flow. Slower revenue growth, modest margin pressure, and weaker cash conversion temper the score.

Income Statement

85Very Positive

Balance Sheet

97Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2027	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	1.03T	1.09T	1.01T	915.14B	929.04B	853.45B
Gross Profit	392.38B	414.33B	395.51B	330.86B	337.44B	302.39B
EBITDA	256.58B	272.60B	254.16B	200.84B	205.01B	183.97B
Net Income	134.01B	141.55B	137.24B	102.68B	109.17B	97.13B
Balance Sheet
Total Assets	1.45T	1.45T	1.32T	1.25T	1.15T	1.09T
Cash, Cash Equivalents and Short-Term Investments	361.37B	361.37B	363.34B	342.27B	329.97B	362.05B
Total Debt	0	0	455.00M	30.46B	272.00M	241.00M
Total Liabilities	293.92B	293.92B	276.80B	266.04B	250.45B	272.36B
Stockholders Equity	1.15T	1.15T	1.04T	984.02B	902.21B	821.19B
Cash Flow
Free Cash Flow	96.27B	101.34B	111.91B	87.75B	115.78B	85.53B
Operating Cash Flow	192.12B	203.77B	217.91B	155.52B	181.70B	144.49B
Investing Cash Flow	-106.60B	-113.92B	-115.11B	-67.93B	-159.91B	-57.59B
Financing Cash Flow	-104.00B	-113.03B	-78.89B	-90.78B	-57.63B	-36.64B

Nitto Denko Technical Analysis

Technical Analysis SentimentPositive

Last Price22.21

Price Trends

50DMA21.97Negative

100DMA21.36Positive

200DMA20.80Positive

Market Momentum

MACD-0.18Positive

RSI48.70Neutral

STOCH51.31Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDEKY, the sentiment is Positive. The current price of 22.21 is above the 20-day moving average (MA) of 22.14, above the 50-day MA of 21.97, and above the 200-day MA of 20.80, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 51.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDEKY.

Nitto Denko Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

NDEKY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDEKY	77Outperform	$13.69B	16.52	12.40%	1.79%	1.05%	9.03%
RPM	72Outperform	$13.49B	19.05	21.13%	2.12%	5.96%	0.68%
AVNT	70Outperform	$4.24B	22.98	7.52%	2.45%	5.24%	58.61%
FUL	68Neutral	$2.73B	13.71	9.51%	1.96%	1.48%	72.33%
EMN	65Neutral	$7.61B	11.66	10.63%	5.12%	0.40%	-6.58%
ESI	62Neutral	$8.26B	39.53	7.39%	0.96%	39.62%	-14.83%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

* Basic Materials Sector Average

Performance Comparison

NDEKY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NDEKY	Nitto Denko	22.21	-2.35	-9.57%
EMN	Eastman Chemical Company	65.03	10.28	18.77%
FUL	H.B. Fuller Company	49.29	-6.04	-10.91%
AVNT	Avient Corporation	44.66	17.28	63.11%
RPM	RPM International	103.73	1.92	1.88%
ESI	Element Solutions	33.08	8.38	33.91%

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: Oct 29, 2026

Nitto Denko AI Stock Analysis