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Nitto Denko Corp 6988

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Stock XTKS Rating as of
¥3,506.00 −11.00 (0.31%)
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Nitto Denko's Sales Growth Underpinned by Demand for Electric Vehicles, Data Centers, and Phones

Esther Holloway

As an innovator of over 15,000 advanced material products, Nitto Denko’s strategy is to obtain patents early, to create a barrier for competing technologies, thereby becoming an essential supplier in the original equipment manufacturer supply chain, with its protected products used in unique applications. For example, Nitto was an early and major innovator of organic light-emitting diodes, suitable films many years before implementation by major technology companies.

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Price vs Fair Value

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6988 is trading at a LOCK|<V?k#Mq premium.
Price
¥3,506.00
Fair Value
LOCK|<G
Uncertainty
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1-Star Price
LOCK|#Z
5-Star Price
LOCK|&!
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Nitto Denko serves customers in electric vehicles, smartphones, and hard disk drives, where we expect high sales growth.

Bears

Earnings are exposed to cyclicality with fewer smartphones, computer electronics, and automotives purchased during low points in the economic cycle.

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Trading Information

Previous Close Price
¥3,517.00
Day Range
¥3,471.00–3,506.00
52-Week Range
¥2,882.50–4,068.00
Bid/Ask
¥3,501.00 / ¥3,510.00
Shares Outstanding
661.52M
Market Cap
¥2.32T
Volume/Avg
3M / 3M

Key Statistics

Price/Earnings (Normalized)
17.79
Price/Sales
2.31
Dividend Yield (Trailing)
1.77%
Dividend Yield (Forward)
1.83%
Dividend Payment Schedule
Jun, Nov
Total Yield
4.37%

Company Profile

Nitto Denko is a manufacturer of advanced materials for niche industry applications. Its three segments are industrial tape (35% of revenue), optical films (55%), and materials used in health science (10%). Its advanced materials are used in manufacturing with main customers being suppliers to original equipment manufacturers in the computer, smartphone, and automobile industries. The company has more than 15,000 products. Most revenue is from Asia/Oceania (60%), followed by Japan (20%). The remainder is roughly equally split between Americas and Europe, each representing about 10% of revenue.
Sector
Basic Materials
Industry
Specialty Chemicals
Stock Style Box
Large Core
Total Number of Employees
28,160
Website
https://www.nitto.com

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Valuation

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Metric
6988
DD
MMM
Price/Earnings (Normalized)
 17.7915.7919.04
Price/Book Value
 2.031.2728.48
Price/Sales
 2.312.723.45
Price/Cash Flow
 11.6936.3415.82
Price/Earnings
6988
DD
MMM

Financial Strength

Metric
6988
DD
MMM
Quick Ratio
 2.701.740.64
Current Ratio
 3.532.431.24
Interest Coverage
 89.860.745.27
Quick Ratio
6988
DD
MMM

Profitability

Metric
6988
DD
MMM
Return on Assets (Normalized)
 —4.09%12.41%
Return on Equity (Normalized)
 —6.47%114.92%
Return on Invested Capital (Normalized)
 —5.40%30.04%
Return on Assets
6988
DD
MMM

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