Nitto Denko down -3.37% to JPY 3610.00: 6988.T stock eyes Jan 26 earnings
We saw Nitto Denko Corporation (6988.T) close at JPY 3610.00 on the JPX as markets closed on 21 Jan 2026, down -3.37% on volume 4,239,100. The move comes five days before the company reports results on 26 Jan 2026, a date markets will watch for margin and semiconductor-related demand signals. Key metrics include EPS 183.19, PE 19.89, and a market cap near JPY 2.45T. As an AI-powered market analysis platform, Meyka AI highlights valuation, cash flow strength, and event risks ahead of the earnings release.
Earnings preview: 6988.T stock
Nitto Denko (6988.T) reports on 26 Jan 2026 and the market is primed for guidance on automotive adhesives and electronic materials demand. We expect commentary on margins and order trends for semiconductor process products.
Investors should watch revenue mix, overseas shipment trends, and any revision to fiscal guidance. Recent price action suggests traders are trimming positions ahead of the report.
Valuation snapshot: 6988.T stock
Valuation shows PE 19.89 with EPS 183.19 and PB 2.35, near Basic Materials peers. Price averages are 50‑day 3770.02 and 200‑day 3224.18, indicating mid‑term support.
Profitability metrics include ROE 12.09% and net margin 12.55%, which support a premium versus some sector names. The company yields 1.59% (dividend per share JPY 58.00).
Cash flow and balance sheet: 6988.T stock
Nitto Denko has cash per share JPY 448.38 and a current ratio of 3.31, giving liquidity buffer for capex and buybacks. Free cash flow per share is JPY 127.36, and free cash flow yield is 3.51%.
Low net debt and an interest coverage ratio of 74.47 materially reduce balance‑sheet risk, supporting investment in R&D for medical and EV adhesives.
Technicals and market reaction: 6988.T stock
The stock opened JPY 3540.00, traded between JPY 3536.00 and JPY 3621.00, and closed JPY 3610.00 on volume 4,239,100. That volume tops the average 2,545,961 and signals higher pre‑earnings activity.
Momentum indicators show RSI 43.68 and MACD slightly negative, while 50‑day average sits above current price at JPY 3770.02. Support near JPY 3536.00 and resistance near JPY 3754.35 (BB middle) are key intraday levels.
Analyst grade and forecasts: 6988.T stock
Meyka AI rates 6988.T with a score out of 100: 68.49 (Grade B, HOLD). This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus.
Meyka AI’s forecast model projects Monthly JPY 4058.78 (+12.43% vs JPY 3610.00), Quarterly JPY 3654.67 (+1.24%), and Yearly JPY 3466.59 (-3.97%). Forecasts are model‑based projections and not guarantees. For market context see recent Asian market commentary source and Nikkei component data source.
Earnings risks and opportunities: 6988.T stock
Key risks include semiconductor cyclical demand, currency swings, and inventory timing given DSO 85.75 days. A softer electronics cycle could pressure near‑term margins.
Opportunities are durable: medical adhesives, EV adhesive growth, and flexible printed circuit boards. Strong cash and low debt position Nitto Denko to invest and return capital if conditions improve.
Final Thoughts
Key takeaways: Nitto Denko (6988.T) closed JPY 3610.00 on JPX as the market priced in pre‑earnings caution ahead of 26 Jan 2026. Valuation sits at PE 19.89 with healthy profitability and liquidity metrics, but short‑term risk centers on semiconductor demand and margin commentary. Meyka AI’s forecast model projects Yearly JPY 3466.59, implying -3.97% downside from the close, while the monthly view at JPY 4058.78 suggests +12.43% upside. Realistic near‑term price targets: Bear JPY 3300.00, Base JPY 3750.00, Bull JPY 4200.00, tied to earnings detail and order visibility. We recommend monitoring the Jan 26 results, guidance language, and order backlog before changing position size. Forecasts are model‑based projections and not guarantees.
FAQs
When does Nitto Denko report earnings and why does 6988.T stock matter now
Nitto Denko reports on 26 Jan 2026. 6988.T stock is sensitive to guidance on automotive adhesives and semiconductor process products. Markets will react to margins, order trends, and any guidance changes.
What are realistic price targets for 6988.T stock after earnings
Near‑term targets: Bear JPY 3300.00, Base JPY 3750.00, Bull JPY 4200.00. These levels reflect earnings detail, margin outlook, and demand for electronics and medical products.
How does valuation and cash flow support 6988.T stock
Valuation shows PE 19.89 and PB 2.35. Strong cash per share (JPY 448.38) and free cash flow per share (JPY 127.36) support investment and shareholder returns, lowering balance‑sheet risk.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
