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6996

Nichicon TSE:6996 Stock Report

Last Price

JP¥1.21k

Market Cap

JP¥82.4b

7D

-6.0%

1Y

2.2%

Updated

05 Jul, 2022

Data

Company Financials +
6996 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends4/6

6996 Stock Overview

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.

Nichicon Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nichicon
Historical stock prices
Current Share PriceJP¥1,205.00
52 Week HighJP¥1,445.00
52 Week LowJP¥987.00
Beta1.36
1 Month Change-12.93%
3 Month Change13.04%
1 Year Change2.21%
3 Year Change34.64%
5 Year Change-0.74%
Change since IPO-5.12%

Recent News & Updates

Shareholder Returns

6996JP ElectronicJP Market
7D-6.0%-2.2%-0.7%
1Y2.2%-13.7%-4.5%

Return vs Industry: 6996 exceeded the JP Electronic industry which returned -13.8% over the past year.

Return vs Market: 6996 exceeded the JP Market which returned -5.7% over the past year.

Price Volatility

Is 6996's price volatile compared to industry and market?
6996 volatility
6996 Average Weekly Movement5.0%
Electronic Industry Average Movement4.5%
Market Average Movement4.1%
10% most volatile stocks in JP Market8.3%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 6996 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6996's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19505,209Ippei Takedahttps://www.nichicon.co.jp

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 offers chip type, miniature type, and large can type aluminum electrolytic capacitors; conductive polymer aluminum solid electrolytic capacitors; and electric double layer capacitors, plastic film capacitors, positive thermistors, function and power modules, and inverter smoothing capacitors. The company also provides household energy storage systems; vehicle-to-home systems; EV/PHVs quick chargers; power storage systems for public and industrial use; small Li-Ion rechargeable batteries; switching power supplies; power sources for medical and academic study accelerators; voltage sag compensators; and power outage compensators.

Nichicon Fundamentals Summary

How do Nichicon's earnings and revenue compare to its market cap?
6996 fundamental statistics
Market CapJP¥82.44b
Earnings (TTM)JP¥7.90b
Revenue (TTM)JP¥142.20b

10.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6996 income statement (TTM)
RevenueJP¥142.20b
Cost of RevenueJP¥117.79b
Gross ProfitJP¥24.40b
Other ExpensesJP¥16.50b
EarningsJP¥7.90b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 08, 2022

Earnings per share (EPS)115.50
Gross Margin17.16%
Net Profit Margin5.56%
Debt/Equity Ratio26.2%

How did 6996 perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

23%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6996 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6996?

Other financial metrics that can be useful for relative valuation.

6996 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA7.5x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does 6996's PE Ratio compare to its peers?

6996 PE Ratio vs Peers
The above table shows the PE ratio for 6996 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.4x
6908 Iriso Electronics
19.2x16.0%JP¥75.0b
6787 Meiko Electronics
7x10.7%JP¥80.6b
7915 Nissha
5.4x-4.5%JP¥74.6b
6804 Hosiden
5.8x-28.7%JP¥68.7b
6996 Nichicon
10.4x3.7%JP¥82.4b

Price-To-Earnings vs Peers: 6996 is expensive based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (9.4x).


Price to Earnings Ratio vs Industry

How does 6996's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 6996 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the JP Electronic industry average (10.7x)


Price to Earnings Ratio vs Fair Ratio

What is 6996's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6996 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.4x
Fair PE Ratio11.8x

Price-To-Earnings vs Fair Ratio: 6996 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).


Share Price vs Fair Value

What is the Fair Price of 6996 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6996 (¥1205) is trading below our estimate of fair value (¥3193.47)

Significantly Below Fair Value: 6996 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 6996 is poor value based on its PEG Ratio (2.8x)


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Future Growth

How is Nichicon forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6996's forecast earnings growth (3.7% per year) is above the savings rate (0.04%).

Earnings vs Market: 6996's earnings (3.7% per year) are forecast to grow slower than the JP market (9% per year).

High Growth Earnings: 6996's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6996's revenue (5.8% per year) is forecast to grow faster than the JP market (4.5% per year).

High Growth Revenue: 6996's revenue (5.8% 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 (8.7%).


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Past Performance

How has Nichicon performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


44.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6996 has high quality earnings.

Growing Profit Margin: 6996's current net profit margins (5.6%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 6996 has become profitable over the past 5 years, growing earnings by 44.1% per year.

Accelerating Growth: 6996's earnings growth over the past year (364%) exceeds its 5-year average (44.1% per year).

Earnings vs Industry: 6996 earnings growth over the past year (364%) exceeded the Electronic industry 46%.


Return on Equity

High ROE: 6996's Return on Equity (8.5%) is considered low.


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Financial Health

How is Nichicon's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6996's short term assets (¥95.0B) exceed its short term liabilities (¥53.1B).

Long Term Liabilities: 6996's short term assets (¥95.0B) exceed its long term liabilities (¥22.4B).


Debt to Equity History and Analysis

Debt Level: 6996's net debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: 6996's debt to equity ratio has increased from 1.8% to 26.2% over the past 5 years.

Debt Coverage: 6996's debt is well covered by operating cash flow (21.2%).

Interest Coverage: 6996 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Nichicon current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6996's dividend (2.32%) is higher than the bottom 25% of dividend payers in the JP market (1.69%).

High Dividend: 6996's dividend (2.32%) is low compared to the top 25% of dividend payers in the JP market (3.7%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.4%), 6996's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 6996 is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average board tenure


CEO

Ippei Takeda (81 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

Experienced Board: 6996's board of directors are considered experienced (6.1 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 employee growth, exchange listings and data sources


Key Information

  • Name: Nichicon Corporation
  • Ticker: 6996
  • Exchange: TSE
  • Founded: 1950
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: JP¥82.443b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.