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Nippon Chemi Con (TSE:6997) Stock Richly Valued After Profit Rebound

Simply Wall St · 2d ago

Nippon Chemi-Con stock closed at ¥3,160 going into the Q1 2027 release, after a choppy month that left short term holders on edge. The headline is not the share price. It is that earnings power over the past year now points to basic earnings per share of ¥146.07 on a trailing basis, supported by ¥143,923m in revenue.

That trailing P/E of 25.4x, well above both peer and industry averages, is what really matters for long term investors. The key question now is whether this earnings run rate can support that richer multiple once the one off gain fades from view.

Is Nippon Chemi-Con at ¥3,160 a growth story being priced too cautiously, or is a 25.4x trailing P/E already baking in the best case? See how the current price lines up against cash flow expectations in our valuation analysis for Nippon Chemi-Con

Q1 2027 Earnings Summary

  • Revenue, Q1 2027 vs. Q1 2026: ¥37,987m vs. ¥30,885m (up about 23%)
  • Net Income, Q1 2027 vs. Q1 2026: profit of ¥867m vs. loss of ¥175m (returned to profit)
  • Basic EPS, Q1 2027 vs. Q1 2026: ¥33.89 per share vs. a loss of ¥8.21 per share (moved from loss to profit)
  • Trailing 12 Month Basic EPS, Q1 2027 vs. Q1 2026: ¥146.07 per share vs. a loss of ¥27.60 per share (shifted from loss to profit on a rolling 12 month basis)

Prefer clean charts instead of another dense block of financial figures? See Nippon Chemi-Con's full visual breakdown, with its valuation picture laid out clearly in our company report for Nippon Chemi-Con.

TSE:6997 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
TSE:6997 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

Nippon Chemi-Con bullish signals from earnings turn

Nippon Chemi-Con gives supporters some real numbers to point to. Revenue of ¥37,987m in Q1 2027 versus ¥30,885m a year earlier suggests demand across its capacitor and power electronics lines is heading in the right direction. The move from a Q1 2026 net loss of ¥175m to a Q1 2027 profit of ¥867m shows the model can convert that demand into earnings. Trailing basic EPS of ¥146.07 on ¥143,923m of revenue underlines that the past year has been profitable rather than just one good quarter.

Risks that still concern cautious Nippon Chemi-Con holders

The same results also leave room for a cautious view. Profitability has only just turned after a Q1 2026 loss, and the quarterly profit of ¥867m is still modest against ¥37,987m of sales. The step up from a trailing loss of ¥27.60 per share to EPS of ¥146.07 also reflects one off support that may not repeat. With the share price flat over 90 days and down about 19% over 30 days, recent trading shows investors are still questioning the durability of this earnings run rate.

Compare Nippon Chemi-Con's shift back to profit and the rich 25.4x trailing P/E with how the street is positioning its forecasts. See the consensus price target analysis for Nippon Chemi-Con to check whether analysts think the recent earnings turn justifies the current price or not.

Take Control Of Your Next Move

If Nippon Chemi-Con's recent return to profit and 25.4x trailing P/E has caught your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for a better entry point. Once you decide to take a position, the Portfolio Command Center helps you cut through market noise and stay on top of the most important updates on your holdings. For a broader view, tap into crowd insights and see how other investors are thinking through our Community. Spot potential catalysts and risks earlier so you can react faster and stay a step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.