Announcement • Jun 20
Nichicon Corporation to Report Q1, 2027 Results on Aug 05, 2026 Nichicon Corporation announced that they will report Q1, 2027 results on Aug 05, 2026 Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥4,705, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 245% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,930 per share. New Risk • Jun 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 9.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥3,970, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 226% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥7,813 per share. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥2,902, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Electronic industry in Japan. Total returns to shareholders of 125% over the past three years. Price Target Changed • May 11
Price target increased by 8.3% to JP¥2,270 Up from JP¥2,097, the current price target is an average from 6 analysts. New target price is 16% below last closing price of JP¥2,697. Stock is up 136% over the past year. The company is forecast to post earnings per share of JP¥114 for next year compared to JP¥93.96 last year. Reported Earnings • May 09
Full year 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2026 results: EPS: JP¥93.96 (up from JP¥86.04 in FY 2025). Revenue: JP¥169.7b (down 3.4% from FY 2025). Net income: JP¥6.31b (up 7.4% from FY 2025). Profit margin: 3.7% (up from 3.3% in FY 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) exceeded analyst estimates by 8.5%. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Apr 27
Now 20% undervalued Over the last 90 days, the stock has risen 37% to JP¥2,287. The fair value is estimated to be JP¥2,861, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.1% over the last 3 years. Earnings per share has declined by 28%. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 212% in the next 2 years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 30 June 2026. Payout ratio is on the higher end at 89%, however this is supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Price Target Changed • Mar 18
Price target increased by 8.8% to JP¥1,957 Up from JP¥1,798, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥1,994. Stock is up 52% over the past year. The company is forecast to post earnings per share of JP¥84.40 for next year compared to JP¥86.04 last year. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,950, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 17x in the Electronic industry in Japan. Total returns to shareholders of 61% over the past three years. New Risk • Feb 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Reported Earnings • Feb 07
Third quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2026 results: EPS: JP¥35.72 (down from JP¥45.25 in 3Q 2025). Revenue: JP¥43.5b (down 9.8% from 3Q 2025). Net income: JP¥2.40b (down 23% from 3Q 2025). Profit margin: 5.5% (down from 6.4% in 3Q 2025). Revenue missed analyst estimates by 7.3%. Earnings per share (EPS) exceeded analyst estimates by 88%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Price Target Changed • Jan 21
Price target increased by 7.5% to JP¥1,673 Up from JP¥1,557, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of JP¥1,677. Stock is up 46% over the past year. The company is forecast to post earnings per share of JP¥77.21 for next year compared to JP¥86.04 last year. New Risk • Jan 08
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 8.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.0% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (2.0% net profit margin). Announcement • Dec 20
Nichicon Corporation to Report Q3, 2026 Results on Feb 05, 2026 Nichicon Corporation announced that they will report Q3, 2026 results on Feb 05, 2026 Declared Dividend • Dec 06
First half dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 2.1%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (71% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 131% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 07
Second quarter 2026 earnings: EPS and revenues miss analyst expectations Second quarter 2026 results: EPS: JP¥6.45 (down from JP¥34.10 in 2Q 2025). Revenue: JP¥41.1b (down 5.1% from 2Q 2025). Net income: JP¥433.0m (down 81% from 2Q 2025). Profit margin: 1.1% (down from 5.4% in 2Q 2025). Revenue missed analyst estimates by 5.0%. Earnings per share (EPS) also missed analyst estimates by 52%. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. New Risk • Nov 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,253, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Electronic industry in Japan. Total loss to shareholders of 4.1% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 08 December 2025. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Announcement • Sep 04
Nichicon Corporation to Report Q2, 2026 Results on Nov 05, 2025 Nichicon Corporation announced that they will report Q2, 2026 results on Nov 05, 2025 Reported Earnings • Aug 07
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: JP¥17.67 (down from JP¥25.26 in 1Q 2025). Revenue: JP¥39.6b (down 3.8% from 1Q 2025). Net income: JP¥1.19b (down 31% from 1Q 2025). Profit margin: 3.0% (down from 4.2% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.5%. Earnings per share (EPS) exceeded analyst estimates by 51%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Declared Dividend • Jul 09
Final dividend of JP¥18.00 announced Shareholders will receive a dividend of JP¥18.00. Ex-date: 29th September 2025 Payment date: 8th December 2025 Dividend yield will be 2.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (31% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 43% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 17
Nichicon Corporation to Report Q1, 2026 Results on Aug 05, 2025 Nichicon Corporation announced that they will report Q1, 2026 results on Aug 05, 2025 Major Estimate Revision • Jun 03
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from JP¥95.89 to JP¥84.38 per share. Revenue forecast steady at JP¥183.6b. Net income forecast to shrink 2.5% next year vs 9.8% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,354 unchanged from last update. Share price was steady at JP¥1,166 over the past week. Reported Earnings • May 10
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥86.04 (down from JP¥121 in FY 2024). Revenue: JP¥175.8b (down 3.2% from FY 2024). Net income: JP¥5.88b (down 29% from FY 2024). Profit margin: 3.3% (down from 4.5% in FY 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • May 09
Nichicon Corporation, Annual General Meeting, Jun 27, 2025 Nichicon Corporation, Annual General Meeting, Jun 27, 2025. Price Target Changed • Apr 11
Price target increased by 7.9% to JP¥1,360 Up from JP¥1,260, the current price target is an average from 5 analysts. New target price is 26% above last closing price of JP¥1,081. Stock is down 19% over the past year. The company is forecast to post earnings per share of JP¥102 for next year compared to JP¥121 last year. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥998, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 2.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥714 per share. Announcement • Mar 27
Nichicon Corporation to Report Fiscal Year 2025 Results on May 09, 2025 Nichicon Corporation announced that they will report fiscal year 2025 results on May 09, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to JP¥1,280, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 7.8% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥672 per share. Price Target Changed • Feb 08
Price target increased by 10% to JP¥1,220 Up from JP¥1,108, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of JP¥1,258. Stock is up 0.3% over the past year. The company is forecast to post earnings per share of JP¥97.22 for next year compared to JP¥121 last year. Reported Earnings • Feb 07
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: JP¥45.25 (up from JP¥28.55 in 3Q 2024). Revenue: JP¥48.2b (up 4.4% from 3Q 2024). Net income: JP¥3.10b (up 59% from 3Q 2024). Profit margin: 6.4% (up from 4.2% in 3Q 2024). Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) also surpassed analyst estimates by 138%. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 1% per year. Major Estimate Revision • Feb 07
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from JP¥175.6b to JP¥177.6b. EPS estimate increased from JP¥83.67 to JP¥96.16 per share. Net income forecast to grow 1.8% next year vs 13% growth forecast for Electronic industry in Japan. Consensus price target up from JP¥1,108 to JP¥1,170. Share price rose 14% to JP¥1,254 over the past week. Announcement • Feb 07
Nichicon Corporation (TSE:6996) announces an Equity Buyback for 1,600,000 shares, representing 2.34% for ¥1,600 million. Nichicon Corporation (TSE:6996) announces a share repurchase program. Under the program, the company will repurchase 1,600,000 shares, representing 2.34% of its share capital, for ¥1,600 million. The company will repurchase its shares in order to further expand shareholder returns and improving capital efficiency. The program will expire on March 27, 2025. As of December 31, 2024, the company had 68,414,539 shares outstanding (excluding treasury shares) and 9,585,461 shares in treasury. New Risk • Jan 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (353% cash payout ratio). Share price has been volatile over the past 3 months (5.0% average weekly change). Profit margins are more than 30% lower than last year (3.6% net profit margin). Announcement • Dec 07
Nichicon Corporation to Report Q3, 2025 Results on Feb 06, 2025 Nichicon Corporation announced that they will report Q3, 2025 results on Feb 06, 2025 Reported Earnings • Nov 08
Second quarter 2025 earnings: EPS exceeds analyst expectations Second quarter 2025 results: EPS: JP¥34.10 (down from JP¥38.63 in 2Q 2024). Revenue: JP¥43.4b (down 9.0% from 2Q 2024). Net income: JP¥2.33b (down 12% from 2Q 2024). Profit margin: 5.4% (down from 5.5% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.9%. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Major Estimate Revision • Nov 07
Consensus EPS estimates increase by 27% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥67.82 to JP¥85.80. Revenue forecast steady at JP¥175.0b. Net income forecast to shrink 8.9% next year vs 11% growth forecast for Electronic industry in Japan . Consensus price target up from JP¥1,078 to JP¥1,103. Share price rose 13% to JP¥1,134 over the past week. Buy Or Sell Opportunity • Oct 28
Now 22% overvalued Over the last 90 days, the stock has fallen 12% to JP¥973. The fair value is estimated to be JP¥800, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 20%. Revenue is forecast to grow by 7.0% in 2 years. Earnings are forecast to decline by 4.8% in the next 2 years. Major Estimate Revision • Oct 18
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥179.3b to JP¥175.7b. EPS estimate also fell from JP¥74.91 per share to JP¥66.13 per share. Net income forecast to shrink 26% next year vs 8.1% growth forecast for Electronic industry in Japan . Consensus price target of JP¥1,034 unchanged from last update. Share price was steady at JP¥967 over the past week. Price Target Changed • Oct 10
Price target decreased by 8.8% to JP¥1,034 Down from JP¥1,134, the current price target is an average from 5 analysts. New target price is 6.1% above last closing price of JP¥975. Stock is down 28% over the past year. The company is forecast to post earnings per share of JP¥74.91 for next year compared to JP¥121 last year. Announcement • Sep 26
Nichicon Corporation to Report Q2, 2025 Results on Nov 06, 2024 Nichicon Corporation announced that they will report Q2, 2025 results on Nov 06, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥17.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 06 December 2024. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). Buy Or Sell Opportunity • Sep 12
Now 23% overvalued Over the last 90 days, the stock has fallen 15% to JP¥967. The fair value is estimated to be JP¥787, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 20%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. Buy Or Sell Opportunity • Aug 14
Now 23% overvalued Over the last 90 days, the stock has fallen 22% to JP¥963. The fair value is estimated to be JP¥782, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 20%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 27% in the next 2 years. Price Target Changed • Aug 10
Price target decreased by 9.7% to JP¥1,264 Down from JP¥1,400, the current price target is an average from 5 analysts. New target price is 35% above last closing price of JP¥933. Stock is down 33% over the past year. The company is forecast to post earnings per share of JP¥114 for next year compared to JP¥121 last year. Reported Earnings • Aug 09
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: JP¥25.26 (down from JP¥49.83 in 1Q 2024). Revenue: JP¥41.2b (down 8.4% from 1Q 2024). Net income: JP¥1.73b (down 49% from 1Q 2024). Profit margin: 4.2% (down from 7.6% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) exceeded analyst estimates by 15%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥899, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Electronic industry in Japan. Total loss to shareholders of 16% over the past three years. Board Change • Jun 29
High number of new directors There are 5 new directors who have joined the board in the last 3 years. External Independent Director Haruhiko Kato was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jun 21
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥121 (up from JP¥114 in FY 2023). Revenue: JP¥181.6b (down 1.7% from FY 2023). Net income: JP¥8.25b (up 5.6% from FY 2023). Profit margin: 4.5% (up from 4.2% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 10%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • May 11
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥121 (up from JP¥114 in FY 2023). Revenue: JP¥181.6b (down 1.7% from FY 2023). Net income: JP¥8.25b (up 5.6% from FY 2023). Profit margin: 4.5% (up from 4.2% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 10%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • May 11
Nichicon Corporation, Annual General Meeting, Jun 27, 2024 Nichicon Corporation, Annual General Meeting, Jun 27, 2024. Major Estimate Revision • May 10
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from JP¥193.4b to JP¥185.3b. EPS estimate also fell from JP¥125 per share to JP¥107 per share. Net income forecast to shrink 9.6% next year vs 12% growth forecast for Electronic industry in Japan . Consensus price target down from JP¥1,478 to JP¥1,448. Share price fell 7.2% to JP¥1,246 over the past week. Price Target Changed • Apr 12
Price target decreased by 7.2% to JP¥1,478 Down from JP¥1,593, the current price target is an average from 5 analysts. New target price is 11% above last closing price of JP¥1,330. Stock is up 1.9% over the past year. The company is forecast to post earnings per share of JP¥132 for next year compared to JP¥114 last year. New Risk • Apr 03
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥16.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Price Target Changed • Mar 21
Price target decreased by 9.7% to JP¥1,523 Down from JP¥1,688, the current price target is an average from 3 analysts. New target price is 18% above last closing price of JP¥1,294. Stock is down 5.7% over the past year. The company is forecast to post earnings per share of JP¥133 for next year compared to JP¥114 last year. Announcement • Mar 02
Nichicon Corporation to Report Fiscal Year 2024 Results on May 09, 2024 Nichicon Corporation announced that they will report fiscal year 2024 results on May 09, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2024 results: EPS: JP¥28.55 (down from JP¥51.57 in 3Q 2023). Revenue: JP¥46.2b (down 6.9% from 3Q 2023). Net income: JP¥1.95b (down 45% from 3Q 2023). Profit margin: 4.2% (down from 7.1% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Dec 22
Nichicon Corporation to Report Q3, 2024 Results on Feb 09, 2024 Nichicon Corporation announced that they will report Q3, 2024 results on Feb 09, 2024 New Risk • Nov 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,439, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 52% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,356 per share. Reported Earnings • Nov 09
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥38.63 (up from JP¥11.56 loss in 2Q 2023). Revenue: JP¥47.6b (up 2.2% from 2Q 2023). Net income: JP¥2.64b (up JP¥3.43b from 2Q 2023). Profit margin: 5.5% (up from net loss in 2Q 2023). The move to profitability was primarily driven by lower expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 26%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥16.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 07 December 2023. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). Announcement • Aug 30
Nichicon Corporation to Report Q2, 2024 Results on Nov 08, 2023 Nichicon Corporation announced that they will report Q2, 2024 results on Nov 08, 2023 New Risk • Aug 11
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.0% Last year net profit margin: 6.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.0% net profit margin). Reported Earnings • Aug 10
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: JP¥49.83 (down from JP¥52.46 in 1Q 2023). Revenue: JP¥44.9b (up 9.5% from 1Q 2023). Net income: JP¥3.41b (down 5.0% from 1Q 2023). Profit margin: 7.6% (down from 8.8% in 1Q 2023). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) also surpassed analyst estimates by 127%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Jun 28
Nichicon Corporation to Report Q1, 2024 Results on Aug 09, 2023 Nichicon Corporation announced that they will report Q1, 2024 results on Aug 09, 2023 Reported Earnings • May 10
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: JP¥114 (down from JP¥115 in FY 2022). Revenue: JP¥184.7b (up 30% from FY 2022). Net income: JP¥7.81b (down 1.1% from FY 2022). Profit margin: 4.2% (down from 5.6% in FY 2022). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 2.1%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥16.00 per share at 2.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 10
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: JP¥51.57 (up from JP¥40.28 in 3Q 2022). Revenue: JP¥49.6b (up 32% from 3Q 2022). Net income: JP¥3.53b (up 28% from 3Q 2022). Profit margin: 7.1% (down from 7.3% in 3Q 2022). Revenue exceeded analyst estimates by 14%. Earnings per share (EPS) also surpassed analyst estimates by 68%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • Nov 30
Nichicon Corporation to Report Q3, 2023 Results on Feb 08, 2023 Nichicon Corporation announced that they will report Q3, 2023 results on Feb 08, 2023 Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent External Director Shigenobu Aikyo was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.