Consistent Revenue Growth With Stable Gross MarginConsistent top-line expansion combined with a stable gross profit margin indicates durable product demand and effective cost control. Over the medium term this supports predictable cash inflows, funds R&D and reinvestment, and helps sustain operating scale even through sector cycles.

Healthy EBIT / EBITDA MarginsRobust operating margins reflect operational efficiency and some pricing power across product lines. Sustainable EBIT/EBITDA margins provide a cushion against gross-profit volatility, enabling consistent reinvestment in operations and R&D and improving earnings quality over a multi-month horizon.

Diversified End Markets And R&D/partnershipsExposure to multiple end markets and established partnerships reduces single-industry cyclicality and broadens demand drivers. Ongoing R&D investment supports product innovation and stickier customer relationships, strengthening competitive position and revenue resilience over the medium term.

Bears Say

Declining Net Profit MarginA falling net margin signals that rising costs, SG&A or other non-operating items are eroding bottom-line returns. Persisting margin compression reduces retained earnings and ROE, limiting capacity to self-fund growth or maintain distributions without operational or pricing remediation.

Weakening Cash Generation / Negative Free Cash FlowMaterial declines in operating cash flow and a shift to negative free cash flow impair the firm’s ability to fund capex, R&D and dividends from operations. Over months this raises refinancing risk, may require external funding, and reduces flexibility for strategic investments.

Elevated Leverage Despite ImprovementAlthough leverage has been managed better, remaining high debt levels combined with falling ROE constrain financial flexibility. Elevated leverage increases vulnerability to cash-flow shocks and interest-cost rises, limiting capacity to pursue opportunistic growth or absorb operational setbacks.

4885 FAQ

What was MUROMACHI CHEMICALS INC.’s price range in the past 12 months?

MUROMACHI CHEMICALS INC. lowest stock price was ¥690.00 and its highest was ¥1176.00 in the past 12 months.

What is MUROMACHI CHEMICALS INC.’s market cap?

MUROMACHI CHEMICALS INC.’s market cap is ¥4.00B.

When is MUROMACHI CHEMICALS INC.’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were MUROMACHI CHEMICALS INC.’s earnings last quarter?

Currently, no data Available

Is MUROMACHI CHEMICALS INC. overvalued?

According to Wall Street analysts MUROMACHI CHEMICALS INC.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does MUROMACHI CHEMICALS INC. pay dividends?

MUROMACHI CHEMICALS INC. pays a Semiannually dividend of ¥10 which represents an annual dividend yield of 4.25%. See more information on MUROMACHI CHEMICALS INC. dividends here

What is MUROMACHI CHEMICALS INC.’s EPS estimate?

MUROMACHI CHEMICALS INC.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does MUROMACHI CHEMICALS INC. have?

MUROMACHI CHEMICALS INC. has 4,095,500 shares outstanding.

What happened to MUROMACHI CHEMICALS INC.’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of MUROMACHI CHEMICALS INC.?

Currently, no hedge funds are holding shares in JP:4885

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

MUROMACHI CHEMICALS INC.

Muromachi Chemicals Inc. plans, produces, and distributes pharmaceuticals and health foods in Japan. It offers active pharmaceutical ingredients and intermediate synthesis products; commissioned processing services for pharmaceuticals; and commissioned synthesis services for radioactive and stable isotope tagged compounds used in pharmaceutical and agricultural metabolic testing, as well as imports and sells active pharmaceutical ingredients. The company also provides jelly and non-alcoholic beverage products. In addition, it offers ion-exchange resins, separation membranes, and ion-exchange fibers; and solutions that meet customers' needs with water-treatment products, including filter media, equipment, and chemicals, as well as commissioned chemical processing services. Further, the company provides functional adhesives; and product contamination removal and dust removal mats, and antistatic products for use in the electronics industry, as well as engages in the commissioned manufacturing and processing of functional pastes. The company was founded in 1917 and is headquartered in Omuta, Japan.