Electronic Components

Nichicon Corporation

Nikkan Denki Reports 2.087 Billion Yen Loss

6996

Nichicon Corporation's shares surged 35% recently, recovering from past weakness, and are up 65% over the year. Despite a high P/E ratio of 33.1x, indicating potential bearish signals, analysts forecast strong earnings growth of 36% annually over the next three years, surpassing market expectations. Investors are optimistic about future growth, maintaining the high P/E ratio. However, caution is advised due to potential risks identified for Nichicon.

Simplywall

Market Participants Recognise Nichicon Corporation's (TSE:6996) Earnings Pushing Shares 35% Higher

Nichicon Corporation reported a 4.5% decline in net sales and a 60.1% drop in profit for the six months ending September 30, 2025. Despite these results, the company has a stable equity-to-asset ratio and has slightly increased its annual dividend forecast. Analysts rate the stock as a Buy with a target price of Yen1507.00. Nichicon, listed on the Tokyo Stock Exchange, specializes in manufacturing capacitors and electronic components for various sectors.

Tip Ranks

Nichicon Corporation Reports Decline in Six-Month Financial Results

According to TipRanks, Kanemoto is an analyst with an average return of -11.4% and a 24.00% success rate. Kanemoto covers the Technology sector, focusing on stocks such as IBIDEN CO, Rohm Co, and HIROSE ELECTRIC CO. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Nichicon Corporation with a Yen1,579.00 average price target.

Nichicon Corporation (6996) Gets a Buy from J.P. Morgan

Nichicon Corporation (TSE:6996) has announced a dividend of ¥18.00 per share, payable on December 8, yielding 2.6%. The dividend is well-supported by earnings, with a forecasted 16.9% rise in earnings per share next year, potentially leading to a sustainable payout ratio of 41%. The company has a strong dividend history, increasing its annual payout from ¥18.00 to ¥36.00 since 2015, reflecting a 7.2% growth rate. Overall, Nichicon is viewed as a solid income stock with a consistent dividend policy and growing earnings.

Nichicon (TSE:6996) Has Announced A Dividend Of ¥18.00

Nichicon Corporation reported a decrease in net sales and profit for Q1 ending June 30, 2025, despite a rise in operating profit. The company's overall performance was affected by a decline in ordinary profit and profit attributable to owners. The forecast for the fiscal year ending March 31, 2026, indicates a modest increase in net sales and operating profit. The latest analyst rating for Nichicon Corporation (JP:6996) is a Hold with a price target of Yen920.00.

Nichicon Corporation Reports Q1 Financial Results and Outlook

Nichicon Corporation (TSE:6996) faces concerns beyond its sluggish earnings, as recent profits were boosted by JP¥954m in unusual items, raising questions about sustainability. Analysts suggest that statutory profits may not reflect underlying earnings power, especially with a decrease in earnings per share over the past year. Investors are encouraged to consider various factors, including margins and forecast growth, while also exploring analyst estimates for future profitability. The subdued market reaction indicates no surprises in earnings, but underlying risks warrant attention.

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

Nichicon Corporation reported a 3.2% decline in net sales to 175.751 billion yen and a 28.8% drop in profit, with EPS falling to 86.04 yen for the fiscal year ending March 31, 2025. Operating profit decreased by 41.6% to 5.203 billion yen, while ordinary profit fell by 34.2% to 7.511 billion yen. For the fiscal year ending March 31, 2026, the company forecasts a 2.4% increase in net sales to 180 billion yen and a 15.3% rise in operating profit to 6 billion yen, with EPS projected at 89.34 yen.

Reuters

Nichicon Corporation Reports 3.2% Decline in Net Sales and 28.8% Drop in Profit; EPS Falls to 86.04 Yen

Nichicon Corporation has reported extraordinary losses of 2,087 million yen due to business restructuring costs. These losses stem from impairment on non-current assets and employee optimization efforts. The write-downs affected subsidiaries including NICHICON (OHNO) CORPORATION, NICHICON (IWATE) CORPORATION, and NICHICON ELECTRONICS (SUQIAN) CO., LTD. The financial impact of these losses will be reflected in the company's results for the fiscal year ending March 31, 2025.