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Makes specialty tapes, LCD polarizing films, and drug-delivery/life-science materials from adhesive technology.
Makes specialty tapes, LCD polarizing films, and drug-delivery/life-science materials from adhesive technology.
Coats and bonds materials for customers' own products, so most sales are components inside displays, phones, cars and medical devices, sold to makers rather than consumers. It often develops the material with the customer, which ties it into design cycles. A contract business making RNA-based drug ingredients sits in its life-science arm.
In one line: A Japanese 3M, focused on films and tapes.
Moat: narrow (process know-how, IP / patents). Deep coating/adhesive materials science, but display panel pricing is volatile and competitive.
Headquarters: Osaka, Japan · Founded: 1918 · Employees: 26,477
Size Nitto Denko (6988.T) is a Japan Materials company (Electronic Equipment/Instruments) with a market value of $13.2B, the 108th largest of 1,379 Japan companies the cockpit tracks. Shares closed at ¥3,298 on 6 Nov 2026.
Performance Over six months the shares gained 10.0%, against -1.4% for the median peer and +1.8% for the Japan market (cap-weighted) — 6th highest of 21 in its peer set.
Growth Revenue grew 6.7% over the last twelve months (peer median +4.5%); the operating margin is 18.0% (peer median 8.0%).
Valuation It trades at 15.1× forward earnings against a peer median of 12.0× (8th most expensive of 21).
Price implies For today's price to make sense, revenue must grow about 2% a year for seven years (Req g). Recent delivered growth is +6%, so the hurdle is -4 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 6.9 points above its cost of capital (9.4% WACC).
Next results Next results expected around 28 Jan 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | ¥1.07T | ¥1.03T | ¥1.01T | ¥915B | ¥929B |
| Revenue growth | — | +1% | +11% | -1% | — |
| Gross profit | ¥406B | ¥391B | ¥396B | ¥331B | ¥337B |
| EBITDA | ¥269B | ¥257B | ¥263B | ¥202B | ¥209B |
| Net income | ¥141B | ¥133B | ¥137B | ¥103B | ¥109B |
| Free cash flow | ¥124B | ¥95.6B | ¥112B | ¥87.7B | ¥116B |
| Capital expenditure | ¥102B | ¥96.6B | ¥106B | ¥67.8B | ¥65.9B |
| Total debt | ¥3.56B | ¥31.7B | ¥31.4B | ¥30.5B | ¥25.0B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Nitto Denko 6988.T | $13.2B | +10% | +7% | 18% | 15.1× | 2.3% |
| 3M MMM | $95.7B | +30% | +2% | 21% | 19.2× | 11.3% |
| Lgchem 051910.KS | $12.6B | -42% | 0% | 0% | n/a | n/a |
| Sumitomo Chemical 4005.T | $4.93B | -7% | -2% | 5% | 6.9× | 1.1% |
| Toray Industries 3402.T | $11.1B | +6% | +6% | 6% | 16.6× | 5.5% |
Peer set: Sector in the same market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 6988.T | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -8.7% | -13.6% | 10th highest of 21 |
| 6-month return | +10.0% | -1.4% | 6th highest of 21 |
| Distance from 52-week high | -18.9% | -24.6% | 9th highest of 21 |
| Revenue growth (TTM) | +6.7% | +4.5% | 9th highest of 21 |
| Operating margin | 18.0% | 8.0% | 3rd highest of 21 |
| Forward P/E | 15.1× | 12.0× | 8th most expensive of 21 |
| Growth the price implies (Req g, 7 yrs) | 2.3% | 7.8% | 8th least demanding of 18 |
| Growth delivered (Del g) | +6.2% | +6.7% | 7th lowest of 18 |
| Hurdle (Req g minus delivered) | -3.9 pp | +0.2 pp | 7th least demanding of 18 |
| ROIC minus cost of capital | +6.9 pp | -1.6 pp | 2nd highest of 21 |
| EV / EBITDA | 6.5× | 8.7× | 7th cheapest of 21 |
| Net debt / EBITDA | -1.2× | 2.1× | 2nd least indebted of 21 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Nitto Denko 6988.T | Japan | $13.2B | +10% | +7% | 18% | 15.1× | 2.3% | +6.2% |
| Sumitomo Metal Mining 5713.T | Japan | $13.2B | -19% | +22% | 14% | 8.1× | 8.5% | +13.5% |
| Resonac 4004.T | Japan | $12.6B | -26% | +1% | 8% | 18.0× | 26.7% | +6.7% |
| JX Advanced Metals 5016.T | Japan | $14.6B | -49% | +30% | 11% | 12.7× | 22.2% | -18.6% |
| Nippon Sanso 4091.T | Japan | $15.3B | +1% | +10% | 15% | 16.9× | 7.8% | +10.7% |
| Mitsubishi Chemical 4188.T | Japan | $8.65B | +10% | -8% | 8% | 8.9× | -0.5% | +2.6% |
| Nippon Paint 4612.T | Japan | $20.4B | +40% | +16% | 15% | 16.6× | 1.9% | +18.1% |
| Nippon Steel 5401.T | Japan | $22.3B | +15% | +28% | 4% | 11.2× | n/a | n/a |
| Jfe 5411.T | Japan | $6.66B | +2% | -4% | 2% | 8.4× | 13.2% | +7.1% |
| Sekisui Chemical 4204.T | Japan | $6.61B | +9% | +6% | 9% | 13.4× | n/a | n/a |
| Nissan Chemical 4021.T | Japan | $5.72B | 0% | +10% | 23% | 15.9× | 9.3% | +6.0% |
| Tokyo Ohka Kogyo 4186.T | Japan | $5.03B | -30% | +22% | 21% | 17.8× | 19.9% | +15.1% |
| Sumitomo Chemical 4005.T | Japan | $4.93B | -7% | -2% | 5% | 6.9× | 1.1% | +0.4% |
| Kobe Steel 5406.T | Japan | $4.83B | 0% | -3% | 5% | 7.7× | -1.1% | +7.4% |
| Tosoh 4042.T | Japan | $4.69B | -4% | -1% | 11% | 11.4× | -1.5% | +6.8% |
| Oji 3861.T | Japan | $4.31B | -3% | 0% | 2% | 20.6× | 20.4% | +6.5% |
| Mitsui Chemicals 4183.T | Japan | $4.08B | -9% | -3% | 6% | 10.7× | 1.9% | +6.6% |
| Air Water 4088.T | Japan | $3.93B | +23% | +7% | 4% | 14.3× | 7.1% | +6.8% |
| Yamato Kogyo 5444.T | Japan | $3.88B | -13% | +1% | 2% | 10.3× | 24.2% | +3.4% |
| Mitsubishi Gas Chemical 4182.T | Japan | $3.78B | -31% | +3% | 8% | 10.6× | n/a | n/a |
| Toyo Seikan 5901.T | Japan | $3.69B | +34% | +6% | 6% | 20.4× | -2.7% | +5.2% |