NPKYY (Nippon Kayaku Co) Operating Income: $148 Mil (TTM As of Dec. 2025)

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NPKYY Nippon Kayaku Co Ltd NPKYY
72 GF Score
Price $13.16
GF Value $10.95
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Nippon Kayaku Co Operating Income?

Nippon Kayaku Co NPKYY 72 Operating Income is $148 Mil as of Dec. 2025. GuruFocus rates NPKYY with a GF Score™ of 72/100 and a GF Value™ of $10.95 (Modestly Overvalued). The stock has 7 warning signs investors should review.

Nippon Kayaku Co's Operating Income for the three months ended in Dec. 2025 was $37 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $148 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nippon Kayaku Co's Operating Income for the three months ended in Dec. 2025 was $37 Mil. Nippon Kayaku Co's Revenue for the three months ended in Dec. 2025 was $391 Mil. Therefore, Nippon Kayaku Co's Operating Margin % for the quarter that ended in Dec. 2025 was 9.35%.

Warning Sign:

Nippon Kayaku Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.1%.

Nippon Kayaku Co's 5-Year average Growth Rate for Operating Margin % was -4.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nippon Kayaku Co's annualized ROC % for the quarter that ended in Dec. 2025 was 5.64%. Nippon Kayaku Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 14.26%.


Nippon Kayaku Co  (OTCPK:NPKYY) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Nippon Kayaku Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=146.336 * ( 1 - 27.97% )/( (1845.994 + 1891.466)/ 2 )
=105.4058208/1868.73
=5.64 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2650.455 - 316.252 - ( 488.209 - max(0, 441.497 - 1513.787+488.209))
=1845.994

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2603.835 - 359.221 - ( 353.148 - max(0, 479.588 - 1459+353.148))
=1891.466

Note: The Operating Income data used here is four times the quarterly (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Nippon Kayaku Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=207.112/( ( (784.308 + max(654.511, 0)) + (769.695 + max(696.899, 0)) )/ 2 )
=207.112/( ( 1438.819 + 1466.594 )/ 2 )
=207.112/1452.7065
=14.26 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(388.515 + 527.225 + 109.838) - (316.252 + 0 + 54.815)
=654.511

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(429.587 + 577.186 + 99.079) - (359.221 + 0 + 49.732)
=696.899

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Nippon Kayaku Co's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=36.584/391.386
=9.35 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Nippon Kayaku Co Operating Income Related Terms


Nippon Kayaku Co Operating Income Historical Data

* Premium members only.

The historical data trend for Nippon Kayaku Co's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Nippon Kayaku Co Operating Income Chart

Nippon Kayaku Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 177.54 160.90 48.98 136.87 141.51

Nippon Kayaku Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.34 30.23 42.27 36.58 38.65
NPKYY
72GF Score
Nippon Kayaku Co Ltd NPKYY
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Nippon Kayaku Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $148 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $148 Mil mean?
Nippon Kayaku Co (NPKYY) has a Operating Income of $148 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nippon Kayaku Co and its competitors.
Is Nippon Kayaku Co's Operating Income too high?
Nippon Kayaku Co's current Operating Income is $148 Mil. Overall, Nippon Kayaku Co has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Kayaku Co's Operating Income compare to DOW?
Nippon Kayaku Co's Operating Income of $148 Mil can be compared against companies in the Chemicals industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Chemicals company?
A good Operating Income depends on the Chemicals industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nippon Kayaku Co and its competitors. Nippon Kayaku Co's current Operating Income is $148 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kayaku Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Kayaku Co (NPKYY) is currently considered Modestly Overvalued. The stock's GF Value™ is $10.95, compared to a current price of $13.16 — trading 20.2% above its estimated fair value. The current Operating Income is $148 Mil. Nippon Kayaku Co's overall GF Score™ is 72/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Nippon Kayaku Co (NPKYY), the current Operating Income is $148 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Nippon Kayaku Co (NPKYY) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Kayaku Co stock appears to be overvalued. The current stock price of $13.16 is trading 20.2% above its estimated GF Value™ of $10.95. GuruFocus considers Nippon Kayaku Co to be Modestly Overvalued.

Key valuation signals for NPKYY:

  • Operating Income: $148 Mil
  • GF Value™: $10.95 vs. price of $13.16 (20.2% above fair value)
  • GF Score™: 72/100 with 7 warning signs

No single metric tells the full story. See the NPKYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nippon Kayaku Co Business Description

Other Exchanges 4272:JapanNP7:Germany
Address 1-1, Marunouchi 2-chome, Chiyoda-ku, Meiji Yasuda Seimei Building 19th and 20th Floors, Tokyo, JPN, 100-0005
Nippon Kayaku Co Ltd manufactures and sells a variety of chemicals. The firm organizes itself into four segments based on product type. The functional chemicals segment, which generates more revenue than any other segment, sells epoxy resins used as flame retardants in electronics, colorants and dyes used in inkjet printers and the manufacture of textiles. The pharmaceuticals segment sells anti-cancer drugs, biological drugs, cardiovascular agents, vitamin compounds, and anti-inflammatory agents. The safety systems segment sells airbag inflators and micro gas generators for seatbelt pretensioners to the automotive industry, both of which are used to protect passengers during an accident. The agrochemicals segment sells insecticides and herbicides. The majority of revenue comes from Asia.
72GF Score

Get the complete analysis for NPKYY

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$13.16
Price
$10.95
GF Value