OTCPK:NPSH.Y

Stock Analysis Report

Executive Summary

Nippon Shokubai Co., Ltd. provides ethylene oxide, acrylic, superabsorbents, performance chemicals, and catalyst and green energy materials.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Nippon Shokubai's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:NPSH.Y

-0.07%

US Chemicals

0.9%

US Market


1 Year Return

-12.9%

OTCPK:NPSH.Y

-15.3%

US Chemicals

0.3%

US Market

NPSH.Y outperformed the Chemicals industry which returned -15.5% over the past year.

NPSH.Y underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

NPSH.YIndustryMarket
7 Day0%-0.07%0.9%
30 Dayn/a-3.4%-1.9%
90 Dayn/a-1.4%1.6%
1 Year-12.9%-12.9%-1.9%-15.3%2.6%0.3%
3 Year7.1%7.1%35.3%10.4%41.0%31.8%
5 Year5.3%5.3%31.3%2.7%55.2%38.0%

Price Volatility Vs. Market

How volatile is Nippon Shokubai's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nippon Shokubai undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nippon Shokubai's share price is below the future cash flow value, and at a moderate discount (> 20%).

Nippon Shokubai's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Nippon Shokubai is good value based on earnings compared to the US Chemicals industry average.

Nippon Shokubai is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Nippon Shokubai is good value based on expected growth next year.


Price Based on Value of Assets

Nippon Shokubai is good value based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Nippon Shokubai expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nippon Shokubai's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Nippon Shokubai's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).

Nippon Shokubai's revenue growth is expected to exceed the United States of America market average.

Nippon Shokubai's earnings growth is positive but not above the United States of America market average.

Nippon Shokubai's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Nippon Shokubai is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Nippon Shokubai performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nippon Shokubai's year on year earnings growth rate has been positive over the past 5 years.

Nippon Shokubai's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Nippon Shokubai's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

Nippon Shokubai has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Nippon Shokubai used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Nippon Shokubai's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nippon Shokubai's financial position?


Financial Position Analysis

Nippon Shokubai is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nippon Shokubai's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nippon Shokubai's level of debt (16.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (27.4% vs 16.3% today).

Debt is well covered by operating cash flow (81.7%, greater than 20% of total debt).

Nippon Shokubai earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

What is Nippon Shokubai's current dividend yield, its reliability and sustainability?

3.41%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Nippon Shokubai's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Nippon Shokubai's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Nippon Shokubai's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Yujiro Goto 0

0.0yrs

Tenure

0

Yujiro Goto serves as President and Chairman of the Board at Nippon Shokubai Co., Ltd. Yujiro Goto serves as a Managing Executive Officer at Nippon Shokubai Co. Ltd., and served as its Plant Manager of Kaw ...


Management Age and Tenure

1.2yrs

Average Tenure

The average tenure for the Nippon Shokubai management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

The average tenure for the Nippon Shokubai board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Yojiro Takahashi

    Senior Managing Executive Officer & Director

    • Tenure: 0.0yrs
  • Masao Yamamoto

    Senior Managing Executive Officer & Director

    • Tenure: 3.2yrs
  • Koichiro Yamada

    Managing Executive Officer & Director

    • Tenure: 1.2yrs
  • Nobuyuki Harada

    Executive Officer

    • Tenure: 2.2yrs
  • Yujiro Goto

    Chairman & President

    • Tenure: 0.0yrs
  • Ren Hasebe

    Managing Executive Officer & Director of Performance Chemicals Business Division

    • Tenure: 0.2yrs
  • Katsunori Kajii

    Executive Officer & Director of Ethylene Oxide Business Division

    • Tenure: 1.2yrs
  • Takashi Kobayashi

    Executive Officer

    • Tenure: 1.2yrs
  • Jiro Iriguchi

    Managing Executive Officer & Director

    • Tenure: 1.2yrs
  • Kuniaki Takagi

    Executive Officer and Director of General Affairs & HR Div.

    • Tenure: 0.2yrs

Board Members

  • Yojiro Takahashi

    Senior Managing Executive Officer & Director

    • Tenure: 0.0yrs
  • Masao Yamamoto

    Senior Managing Executive Officer & Director

    • Tenure: 3.2yrs
  • Koichiro Yamada

    Managing Executive Officer & Director

    • Tenure: 1.2yrs
  • Kozo Arao

    Director

    • Tenure: 3.2yrs
  • Yujiro Goto

    Chairman & President

    • Tenure: 0.0yrs
  • Yoshihiro Arita

    Statutory Corporate Auditor

    • Tenure: 0.0yrs
  • Yukihiro Matsumoto

    Executive Officer

    • Tenure: 3.2yrs
  • Shinji Hasebe

    Director

    • Tenure: 1.2yrs
  • Tetsuo Setoguchi

    Director

    • Tenure: 1.2yrs
  • Jiro Iriguchi

    Managing Executive Officer & Director

    • Tenure: 1.2yrs

Company Information

Nippon Shokubai Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nippon Shokubai Co., Ltd.
  • Ticker: NPSH.Y
  • Exchange: OTCPK
  • Founded: 1941
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: JP¥240.860b
  • Listing Market Cap: JP¥2.261b
  • Shares outstanding: 39.88m
  • Website: https://www.shokubai.co.jp

Number of Employees


Location

  • Nippon Shokubai Co., Ltd.
  • Kogin Building
  • 4-1-1 Koraibashi
  • Osaka
  • 541-0043
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4114TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NPSH.YOTCPK (Pink Sheets LLC)ADRUSUSDJul 2010

Biography

Nippon Shokubai Co., Ltd. provides ethylene oxide, acrylic, superabsorbents, performance chemicals, and catalyst and green energy materials. It operates through three segments: Basic Chemicals, Functional  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:18
End of Day Share Price2019/07/31 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.