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On November 6, 2025, NOF Corporation announced a share repurchase program to buy back up to 2,000,000 shares (0.87% of shares outstanding) for ¥5,000 million and revised its earnings and dividend forecasts upward for the fiscal year ending March 31, 2026.
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This move signals management’s confidence in its business outlook, further supported by the company’s commitment to boosting shareholder returns under its Mid-Term Management Plan.
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We’ll examine how NOF’s focus on capital returns through its share buyback shapes its investment case going forward.
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Anyone considering NOF stock today needs to weigh management’s renewed focus on shareholder returns against persistent sector headwinds and valuation challenges. The recent upsized share buyback, paired with higher earnings and dividend forecasts, may help bolster confidence in NOF’s capital allocation discipline, giving short-term momentum to the investment case. However, with the stock’s price-to-earnings ratio already above its peer average, and forward profit growth forecasts only modest, this new buyback program isn’t likely to fundamentally shift the main catalysts or risks right away. Investors are still watching for visible improvements in profitability and margin recovery, especially as recent results showed a drop in operating profit. While the buyback signals confidence, it doesn’t by itself change the need for sustained earnings growth and a manageable payout commitment by management. On the other hand, rapid changes in the global chemicals market can still impact NOF’s outlook.
NOF’s shares are on the way up, but they could be overextended by 37%. Uncover the fair value now.
The Simply Wall St Community has just one fair value estimate for NOF, at ¥2,139.88, pointing to a consensus on potential overvaluation. With earnings growth remaining modest, see how this collective view lines up with the company’s latest buyback and upward guidance.
Explore another fair value estimate on NOF – why the stock might be worth 27% less than the current price!
Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.
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A great starting point for your NOF research is our analysis highlighting 1 key reward that could impact your investment decision.
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Our free NOF research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate NOF’s overall financial health at a glance.