Improved Cash Generation (2025)A return to positive OCF and FCF in 2025 improves the firm's ability to service debt, fund working capital and necessary capex without relying on external financing. Sustained cash conversion would materially reduce rollover and liquidity risk over the next several quarters.

Strengthening Capital BaseA growing equity base and historically improving debt-to-equity provide a firmer capital foundation. This enhances resilience to cyclical revenue swings, supports working capital needs and gives management more flexibility to invest or withstand short-term margin pressure in coming months.

Niche Specialty-chemical FranchiseConcentration on rubber additives and processing agents targets durable industrial end-markets (automotive, industrial goods), implying technical know-how, recurring formulations demand and customer stickiness. Such niche specialization tends to sustain steady volume streams over cycles.

Bears Say

Declining Revenue (2025)A significant top-line drop in 2025 signals demand softness or lost volumes in key end-markets. Persistent revenue contraction pressures fixed-cost absorption, restricts margin expansion and can erode bargaining power with suppliers and customers over the medium term.

Elevated Leverage And Rising DebtMaterial leverage with rising absolute debt increases sensitivity to earnings and cash-flow volatility. Higher interest and principal commitments reduce strategic flexibility, constrain capital allocation and elevate refinancing risk if operating performance weakens in the next several quarters.

Volatile Cash Generation And Past Negative FCFWide swings in operating cash flow and a recent year of negative free cash flow indicate inconsistent cash conversion. This irregularity complicates reinvestment planning, dividend sustainability and debt servicing, leaving the company exposed if margins or volumes soften again.

4361 FAQ

What was Kawaguchi Chemical Industry Co., Ltd.’s price range in the past 12 months?

Kawaguchi Chemical Industry Co., Ltd. lowest stock price was ¥1001.00 and its highest was ¥1910.00 in the past 12 months.

What is Kawaguchi Chemical Industry Co., Ltd.’s market cap?

Kawaguchi Chemical Industry Co., Ltd.’s market cap is ¥1.95B.

When is Kawaguchi Chemical Industry Co., Ltd.’s upcoming earnings report date?

Kawaguchi Chemical Industry Co., Ltd.’s upcoming earnings report date is Apr 06, 2026 which is in 46 days.

How were Kawaguchi Chemical Industry Co., Ltd.’s earnings last quarter?

Kawaguchi Chemical Industry Co., Ltd. released its earnings results on Jan 14, 2026. The company reported ¥124.8 earnings per share for the quarter, beating the consensus estimate of N/A by ¥124.8.

Is Kawaguchi Chemical Industry Co., Ltd. overvalued?

According to Wall Street analysts Kawaguchi Chemical Industry Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Kawaguchi Chemical Industry Co., Ltd. pay dividends?

Kawaguchi Chemical Industry Co., Ltd. pays a Annually dividend of ¥60 which represents an annual dividend yield of 4.2%. See more information on Kawaguchi Chemical Industry Co., Ltd. dividends here

What is Kawaguchi Chemical Industry Co., Ltd.’s EPS estimate?

Kawaguchi Chemical Industry Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Kawaguchi Chemical Industry Co., Ltd. have?

Kawaguchi Chemical Industry Co., Ltd. has 1,220,000 shares outstanding.

What happened to Kawaguchi Chemical Industry Co., Ltd.’s price movement after its last earnings report?

Kawaguchi Chemical Industry Co., Ltd. reported an EPS of ¥124.8 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.231%.

Which hedge fund is a major shareholder of Kawaguchi Chemical Industry Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4361

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

Kawaguchi Chemical Industry Co., Ltd.

Kawaguchi Chemical Industry Co., Ltd manufactures and sells fine chemicals in Japan. The company offers organic rubber chemicals, such as vulcanization accelerators, antioxidants, curing agents, and other rubber chemicals; and plastic chemicals, including antioxidants and polymerization inhibitors. It also provides dye pigment, pharmaceutical, and agrochemical intermediates; photo chemicals; and lubricant additives and corrosion inhibitors. Kawaguchi Chemical Industry Co., Ltd was founded in 1935 and is headquartered in Chiyoda, Japan.