Executive Summary
Nichicon Corporation, together with its subsidiaries, develops, produces, and sells capacitors and circuit products for electric and electronic products in Japan, the U.S.A, Asia, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Nichicon's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 6996 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: 6996's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of JP stocks.
Market Performance
7 Day Return
-7.8%
6996
-7.2%
JP Electronic
-3.2%
JP Market
1 Year Return
35.5%
6996
37.3%
JP Electronic
24.1%
JP Market
Return vs Industry: 6996 underperformed the JP Electronic industry which returned 37.3% over the past year.
Return vs Market: 6996 exceeded the JP Market which returned 24.1% over the past year.
Shareholder returns
| 6996 | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.8% | -7.2% | -3.2% |
| 30 Day | -25.7% | -9.3% | 0.2% |
| 90 Day | -3.8% | 1.1% | 4.5% |
| 1 Year | 39.9%35.5% | 39.5%37.3% | 27.2%24.1% |
| 3 Year | -7.7%-14.4% | 37.6%31.3% | 17.2%9.1% |
| 5 Year | 51.2%34.3% | 112.7%96.1% | 52.7%35.8% |
Long-Term Price Volatility Vs. Market
How volatile is Nichicon's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Nichicon undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 6996 (¥1077) is trading below our estimate of fair value (¥2739.95)
Significantly Below Fair Value: 6996 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 6996 is poor value based on its PE Ratio (58.9x) compared to the JP Electronic industry average (16.7x).
PE vs Market: 6996 is poor value based on its PE Ratio (58.9x) compared to the JP market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: 6996 is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: 6996's PB Ratio (0.9x) is in line with the JP Electronic industry average.
Next Steps
Future Growth
How is Nichicon forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
47.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 6996's forecast earnings growth (47.9% per year) is above the savings rate (0%).
Earnings vs Market: 6996's earnings (47.9% per year) are forecast to grow faster than the JP market (17.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 6996's revenue (7.2% per year) is forecast to grow faster than the JP market (5.7% per year).
High Growth Revenue: 6996's revenue (7.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 6996's Return on Equity is forecast to be low in 3 years time (6.8%).
Next Steps
Past Performance
How has Nichicon performed over the past 5 years?
-1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 6996 has high quality earnings.
Growing Profit Margin: 6996's current net profit margins (1.1%) are lower than last year (1.8%).
Past Earnings Growth Analysis
Earnings Trend: 6996 has become profitable over the past 5 years, growing earnings by -1.7% per year.
Accelerating Growth: 6996's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 6996 had negative earnings growth (-42.1%) over the past year, making it difficult to compare to the Electronic industry average (-5.3%).
Return on Equity
High ROE: 6996's Return on Equity (1.7%) is considered low.
Next Steps
Financial Health
How is Nichicon's financial position?
Financial Position Analysis
Short Term Liabilities: 6996's short term assets (¥78.4B) exceed its short term liabilities (¥41.0B).
Long Term Liabilities: 6996's short term assets (¥78.4B) exceed its long term liabilities (¥25.8B).
Debt to Equity History and Analysis
Debt Level: 6996's debt to equity ratio (30.1%) is considered satisfactory.
Reducing Debt: 6996's debt to equity ratio has increased from 0.6% to 30.1% over the past 5 years.
Debt Coverage: 6996's debt is well covered by operating cash flow (24.9%).
Interest Coverage: 6996 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Nichicon current dividend yield, its reliability and sustainability?
2.23%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 6996's dividend (2.23%) is higher than the bottom 25% of dividend payers in the JP market (1.26%).
High Dividend: 6996's dividend (2.23%) is low compared to the top 25% of dividend payers in the JP market (2.91%).
Stability and Growth of Payments
Stable Dividend: 6996's dividends per share have been stable in the past 10 years.
Growing Dividend: 6996's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (131.4%), 6996's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average board tenure
CEO
Ippei Takeda (79 yo)
no data
Tenure
Mr. Ippei Takeda serves as the Chief Executive Officer of Nichicon Corporation. Mr. Takeda served as the President and Chief Executive Officer of Nichicon Corporation. Mr. Takeda serves as the Chairman of ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | no data | no data | 0.022% ¥ 16.2m | |
| President | no data | no data | 0.015% ¥ 10.8m | |
| Managing Senior Executive Officer | no data | no data | 0.010% ¥ 7.5m | |
| Managing Executive Officer | no data | no data | 0.0044% ¥ 3.2m | |
| Standing Corporate Auditor | 4.67yrs | no data | 0.0073% ¥ 5.4m | |
| Independent External Director | 4.67yrs | no data | 0.0015% ¥ 1.1m | |
| Standing Corporate Auditor | 4.67yrs | no data | 0.013% ¥ 9.7m | |
| External Corporate Auditor | no data | no data | 0.0044% ¥ 3.2m | |
| Independent External Director | no data | no data | 0.0029% ¥ 2.2m | |
| External Corporate Auditor | no data | no data | 0.0015% ¥ 1.1m | |
| Independent External Director | no data | no data | 0.0015% ¥ 1.1m | |
| External Standing Corporate Auditor | 1.08yrs | no data | no data |
4.7yrs
Average Tenure
72yo
Average Age
Experienced Board: 6996's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Nichicon Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Nichicon Corporation
- Ticker: 6996
- Exchange: TSE
- Founded: 1950
- Industry: Electronic Components
- Sector: Tech
- Market Cap: JP¥73.687b
- Shares outstanding: 68.42m
- Website: https://www.nichicon.co.jp
Number of Employees
Location
- Nichicon Corporation
- Karasumadori Oike-agaru
- Nakagyo-ku
- Kyoto
- 604-0845
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 6996 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Jan 1992 |
| NH4 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
Biography
Nichicon Corporation, together with its subsidiaries, develops, produces, and sells capacitors and circuit products for electric and electronic products in Japan, the U.S.A, Asia, and internationally. It o...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/27 08:08 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.