Construction Materials

Nichias Corporation

5393

Nichias Corporation reported a decline in H1 earnings for the fiscal year ending March 31, 2026. Key financial metrics showed a 3.1% decrease in net sales to ¥122,744 million, a 10.5% drop in operating income to ¥17,778 million, and an 11.9% fall in profit attributable to owners of the parent to ¥12,737 million. Despite these declines, the company maintains a strong equity ratio of 76.3% and forecasts an annual dividend of ¥152.00 per share, reflecting confidence in its long-term financial health.

Tip Ranks

Nichias Corporation Reports Decline in H1 Earnings

The Board of Directors of Nichias Corporation has authorized a buyback plan on November 12, 2025.

marketscreener

Nichias Corporation authorizes a Buyback Plan.

Nichias Corporation announces a share repurchase program. Under the program, the company will repurchase up to 1,400,000 shares, representing 2.19% of its issued share capital, for ¥3,000 million. The purpose of the program is to improve shareholder returns and capital efficiency.The program is valid till March 31, 2026. As of September 30, 2025, there are 63,765,444 outstanding shares (excluding treasury stock) and 4,046,473 treasury shares.

Nichias Corporation announces an Equity Buyback for 1,400,000 shares, representing 2.2% for ¥5,000 million.

Nichias Corporation reported a decline in its financial performance for the first half of FY2025, with net sales and profits decreasing compared to the previous year. Despite this downturn, the company maintains a strong equity ratio and plans to continue dividend payments. The latest analyst rating for Nichias stock (JP:5393) is a Hold, with a price target of Yen5951.00. The company is listed on the Tokyo Stock Exchange and operates in the manufacturing industry, with a current market cap of Yen388B.

Nichias Reports Decline in First Half Financial Performance for FY2025

Nichias Corporation (TSE:5393) has a low P/E ratio of 11.9x, indicating potential investor concerns about its sluggish earnings growth compared to the market. Despite a 5.2% EPS growth last year and a 41% increase over three years, future earnings are projected to grow only 3.5% annually, below the market's 9.6%. This outlook contributes to its low P/E, as investors doubt significant improvement. The company's balance sheet also poses risks, suggesting a cautious approach for potential investors.

Simplywall

Lacklustre Performance Is Driving Nichias Corporation's (TSE:5393) Low P/E

Nichias Corporation (TSE:5393) is estimated to be 22% undervalued, with a projected fair value of JP¥7,712 compared to its current share price of JP¥6,000. Analysts have a price target of JP¥5,800, which is 25% below the fair value estimate. The valuation is based on a two-stage Discounted Cash Flow (DCF) model, considering future cash flows and discounting them to present value. The total equity value is calculated at JP¥492 billion, indicating potential for growth, though valuations are inherently imprecise.

An Intrinsic Calculation For Nichias Corporation (TSE:5393) Suggests It's 22% Undervalued

Nichias Corporation (JP:5393) has reported its treasury stock purchase status for May 2025, acquiring 117,600 common shares for 580,512,400 yen on the Tokyo Stock Exchange. This buyback is part of a broader plan to repurchase up to 1,000,000 shares by September 2025, which may influence shareholder value and market perception. Nichias specializes in manufacturing insulation materials and sealing products, serving high-performance material markets. Current market cap stands at Yen333B with a strong buy technical sentiment.

Nichias Corporation Reports May 2025 Treasury Stock Purchase Status

Nichias Corporation (TSE:5393) has announced an increase in its dividend to ¥56.00, effective June 30, reflecting a 2.5% yield. The company has a strong track record of stable dividends, with a compound annual growth rate of 13% since 2015. Earnings are projected to cover the dividend sustainably, with a forecasted EPS growth of 3.5% next year. Nichias' low payout ratio and consistent earnings growth make it an attractive option for dividend investors.

Nichias (TSE:5393) Is Increasing Its Dividend To ¥56.00

Nichias Corporation (TSE:5393) has announced an increase in its dividend to ¥56.00, resulting in a yield of 2.5%. The dividend is well-supported by cash flow and earnings, with projected EPS growth of 3.4% next year. The company has a strong dividend history, growing distributions at 13% annually since 2015. With a low payout ratio and stable earnings growth, Nichias is positioned as a solid dividend stock, enhancing investor confidence in its future potential.