Nippon Chemi-Con (TSE:6997) - Share price, News & Analysis

6997 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

6997 Stock Overview

Rewards

Trading at 28.1% below our estimate of its fair value

Earnings are forecast to grow 81.2% per year

Risk Analysis

No risks detected for 6997 from our risk checks.

Nippon Chemi-Con Competitors

Murata Manufacturing

TSE:6981

JP¥5.2t

TDK

TSE:6762

JP¥1.6t

Taiyo Yuden

TSE:6976

JP¥635.5b

Nichicon

TSE:6996

JP¥85.0b

Price History & Performance

Summary of all time highs, changes and price drops for Nippon Chemi-Con
Historical stock prices
Current Share Price	JP¥1,737.00
52 Week High	JP¥2,780.00
52 Week Low	JP¥1,513.00
Beta	1.59
1 Month Change	-1.14%
3 Month Change	-3.50%
1 Year Change	-25.16%
3 Year Change	8.43%
5 Year Change	-55.80%
Change since IPO	-77.24%

Shareholder Returns

	6997	JP Electronic	JP Market
7D	-2.5%	-0.7%	-0.1%
1Y	-25.2%	-2.9%	-4.4%

Return vs Industry: 6997 underperformed the JP Electronic industry which returned -3.2% over the past year.

Return vs Market: 6997 underperformed the JP Market which returned -3.7% over the past year.

Price Volatility

Is 6997's price volatile compared to industry and market?
6997 volatility
6997 Average Weekly Movement	5.8%
Electronic Industry Average Movement	4.9%
Market Average Movement	4.5%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 6997 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6997's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1931	6,228	Norio Kamiyama	https://www.chemi-con.co.jp

Nippon Chemi-Con Corporation manufactures and sells aluminum and other capacitors, precision mechanical components, and electronics equipment in Japan, China, the United States, Europe, and internationally. The company offers aluminum electrolytic capacitors, conductive polymer aluminum solid capacitors, and conductive polymer hybrid aluminum electrolytic capacitors. It also provides multilayer ceramic capacitors, film capacitors, metal oxide varistors TNR, nanocrystalline/amorphous/dust choke coils, cores/reactors, electric double layer capacitors, and camera modules, as well as manufactures and distributes silicon wafers and wafer related products.

Nippon Chemi-Con Fundamentals Summary

How do Nippon Chemi-Con's earnings and revenue compare to its market cap?
6997 fundamental statistics
Market Cap	JP¥34.49b
Earnings (TTM)	-JP¥12.12b
Revenue (TTM)	JP¥140.32b

0.3x

P/S Ratio

-2.9x

P/E Ratio

Is 6997 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6997 income statement (TTM)
Revenue	JP¥140.32b
Cost of Revenue	JP¥109.06b
Gross Profit	JP¥31.25b
Other Expenses	JP¥43.38b
Earnings	-JP¥12.12b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-597.85
Gross Margin	22.27%
Net Profit Margin	-8.64%
Debt/Equity Ratio	121.6%

How did 6997 perform over the long term?

See historical performance and comparison

Valuation

Is Nippon Chemi-Con undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

26.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 6997 (¥1701) is trading below our estimate of fair value (¥2367.12)

Significantly Below Fair Value: 6997 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 6997 is unprofitable, so we can't compare its Price-To-Earnings Ratio to the JP Electronic industry average.

PE vs Market: 6997 is unprofitable, so we can't compare its Price-To-Earnings Ratio to the JP market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6997's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 6997's Price-To-Book Ratio (0.8x) is in line with the JP Electronic industry average.

Future Growth

How is Nippon Chemi-Con forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

81.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6997 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.02%).

Earnings vs Market: 6997 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 6997's is expected to become profitable in the next 3 years.

Revenue vs Market: 6997's revenue (4.9% per year) is forecast to grow faster than the JP market (4.1% per year).

High Growth Revenue: 6997's revenue (4.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6997's Return on Equity is forecast to be low in 3 years time (17.4%).

Past Performance

How has Nippon Chemi-Con performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6997 is currently unprofitable.

Growing Profit Margin: 6997 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 6997 is unprofitable, but has reduced losses over the past 5 years at a rate of 0.9% per year.

Accelerating Growth: Unable to compare 6997's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6997 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (46.6%).

Return on Equity

High ROE: 6997 has a negative Return on Equity (-27.18%), as it is currently unprofitable.

Financial Health

How is Nippon Chemi-Con's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 6997's short term assets (¥96.4B) exceed its short term liabilities (¥69.2B).

Long Term Liabilities: 6997's short term assets (¥96.4B) exceed its long term liabilities (¥42.2B).

Debt to Equity History and Analysis

Debt Level: 6997's net debt to equity ratio (66.2%) is considered high.

Reducing Debt: 6997's debt to equity ratio has increased from 55.3% to 121.6% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 6997 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 6997 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

What is Nippon Chemi-Con current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.70%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6997's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6997's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6997's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6997's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 6997 is not paying a notable dividend for the JP market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 6997 has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure

CEO

Norio Kamiyama (62 yo)

2.92yrs

Tenure

Mr. Norio Kamiyama has been President and Representative Director at Nippon Chemi-Con Corporation since June 2019 and serves as its Chief Executive Officer since June 2021 and served as its Chief Operating...

Leadership Team

Experienced Management: 6997's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: 6997's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31