We Think That There Are More Issues For Nichicon (TSE:6996) Than Just Sluggish Earnings

The subdued market reaction suggests that Nichicon Corporation's (TSE:6996) recent earnings didn't contain any surprises. However, we believe that investors should be aware of some underlying factors which may be of concern. We check all companies for important risks. See what we found for Nichicon in our free report. TSE:6996 Earnings and Revenue History May 17th 2025 The Impact Of Unusual Items On Profit For anyone who wants to understand Nichicon's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from JP¥954m worth of unusual items. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. If Nichicon doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Nichicon's Profit Performance Arguably, Nichicon's statutory earnings have been distorted by unusual items boosting profit. Because of this, we think that it may be that Nichicon's statutory profits are better than its underlying earnings power. In further bad news, its earnings per share decreased in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider what other analysts are forecasting. At Simply Wall St, we have analyst estimates which you can view by clicking here. This note has only looked at a single factor that sheds light on the nature of Nichicon's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. If you're looking to trade Nichicon, open an account with the lowest-cost platform trusted by professionals, Interactive Brokers.With clients in over 200 countries and territories, and access to 160 markets, IBKR lets you trade stocks, options, futures, forex, bonds and funds from a single integrated account.Enjoy no hidden fees, no account minimums, and FX conversion rates as low as 0.03%, far better than what most brokers offer.Sponsored Content