Free Cash Flow RecoveryA return to positive free cash flow (589.59M JPY) and a very strong operating cash flow to net income ratio provide durable cash generation. This strengthens liquidity, funds capex or debt reduction, and gives management flexibility to invest or shore up margins over the next several quarters.

Improved Leverage ProfileLeverage improvements (debt/equity down to 0.97) reduce financial risk and interest burden, improving balance sheet stability. A steadier capital structure increases resilience to cyclical swings in auto parts demand and supports strategic investments or refinancing over the medium term.

Revenue Growth And Gross Margin UptickTop-line growth with a rising gross margin suggests improving demand mix or better cost pass-through. If sustained, the combination supports scale economics and provides a foundation for operating margin recovery, helping convert higher sales into more durable profitability over coming quarters.

Bears Say

Negative Net ProfitabilityDespite revenue gains and cash flow, the company still reports a negative net margin, indicating expenses, financing or non-operating items erode bottom-line. Persistent negative profits limit retained earnings, constrain dividend capacity, and require operational fixes to achieve lasting shareholder returns.

Very Low Operating (EBIT) MarginA single-digit EBITDA and near-zero EBIT margin show operating leverage is weak and cost structure remains pressured. This leaves limited buffer against rising resin/input costs or weaker demand, slowing durable margin expansion and making earnings volatile absent structural cost or pricing improvements.

Negative Return On EquityNegative ROE signals shareholder capital is not earning returns, reflecting ongoing profitability shortfalls. That undermines long-term value creation, complicates capital allocation choices and may raise funding costs if external capital is needed before sustained profit recovery.

4222 FAQ

What was KODAMA CHEMICAL INDUSTRY CO., LTD.’s price range in the past 12 months?

KODAMA CHEMICAL INDUSTRY CO., LTD. lowest stock price was ¥303.00 and its highest was ¥1342.00 in the past 12 months.

What is KODAMA CHEMICAL INDUSTRY CO., LTD.’s market cap?

KODAMA CHEMICAL INDUSTRY CO., LTD.’s market cap is ¥18.98B.

When is KODAMA CHEMICAL INDUSTRY CO., LTD.’s upcoming earnings report date?

KODAMA CHEMICAL INDUSTRY CO., LTD.’s upcoming earnings report date is Aug 06, 2026 which is in 167 days.

How were KODAMA CHEMICAL INDUSTRY CO., LTD.’s earnings last quarter?

KODAMA CHEMICAL INDUSTRY CO., LTD. released its earnings results on Feb 13, 2026. The company reported ¥64.18 earnings per share for the quarter, beating the consensus estimate of N/A by ¥64.18.

Is KODAMA CHEMICAL INDUSTRY CO., LTD. overvalued?

According to Wall Street analysts KODAMA CHEMICAL INDUSTRY CO., LTD.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does KODAMA CHEMICAL INDUSTRY CO., LTD. pay dividends?

KODAMA CHEMICAL INDUSTRY CO., LTD. does not currently pay dividends.

What is KODAMA CHEMICAL INDUSTRY CO., LTD.’s EPS estimate?

KODAMA CHEMICAL INDUSTRY CO., LTD.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does KODAMA CHEMICAL INDUSTRY CO., LTD. have?

KODAMA CHEMICAL INDUSTRY CO., LTD. has 15,637,144 shares outstanding.

What happened to KODAMA CHEMICAL INDUSTRY CO., LTD.’s price movement after its last earnings report?

KODAMA CHEMICAL INDUSTRY CO., LTD. reported an EPS of ¥64.18 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -6.303%.

Which hedge fund is a major shareholder of KODAMA CHEMICAL INDUSTRY CO., LTD.?

Currently, no hedge funds are holding shares in JP:4222

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

KODAMA CHEMICAL INDUSTRY CO., LTD.

Kodama Chemical Industry Co.,Ltd. manufactures and sells plastic products in Japan and internationally. The company offers rear seat structural material, center console molding, door trim accent panel, door upper, back panel, west spoiler, construction equipment and cab interior ceiling, and exterior ceiling for tractors. It also provides bathroom vanity and interior, towel rack, mirror cabinet, paper roll, and handrail. In addition, it develops and manufactures hydroponic resin transport trays for unmanned cultivation systems. The company was formerly known as Kodama Metal Industry Co., Ltd. and changed its name to Kodama Chemical Industry Co.,Ltd. in 1955. Kodama Chemical Industry Co.,Ltd. was incorporated in 1946 and is headquartered in Tokyo, Japan.