Kuraray Co (3405) AI Stock Analysis

• Market Cap: ¥585.55B
• Dividend Yield: 2.77%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.86
• Revenue Growth: 5.25%
• EPS Growth: -59.70%
• Country: JP
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals
• EPS (TTM): 37.07
• Shares Outstanding: 324,863,620
• 10 Day Avg. Volume: 1,166,100
• 30 Day Avg. Volume: 1,423,530
• PEG Ratio: -1.46
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,980.01
• Price Target Upside: 9.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥1,927.00 ▲(6.91%Upside)

Kuraray Co exhibits a stable financial position with strong operating margins and moderate leverage, although the low ROE suggests inefficiencies in equity use. Technical analysis indicates positive momentum, supporting potential stock appreciation. However, the high P/E ratio suggests potential overvaluation, balanced by a moderate dividend yield. Overall, the stock merits a cautious yet optimistic outlook within the Chemicals industry.

Kuraray Co Business Overview & Revenue Model

Company Description

Kuraray Co., Ltd. is a leading global specialty chemical and materials company headquartered in Tokyo, Japan. Established in 1926, the company operates in several sectors including chemicals, resins, fibers, textiles, and medical products. Kuraray is renowned for its innovative solutions and advanced technologies, focusing on the development and production of high-performance materials such as synthetic resins, films, man-made leather, and other industrial and consumer goods.

How the Company Makes Money

Kuraray Co. makes money primarily through the production and sale of its diverse range of chemical and material products. Its key revenue streams include the sales of specialty chemicals, such as polyvinyl alcohol (PVA) and ethylene vinyl alcohol (EVOH) resins, which are used in various applications ranging from food packaging to automotive and industrial products. The company's fiber and textile segment generates revenue through the sale of high-performance fibers and non-woven fabrics, which have applications in apparel, automotive interiors, and industrial materials. Additionally, Kuraray's medical products division contributes to its earnings by offering dental materials and other healthcare-related products. Strategic partnerships and collaborations with other global companies further enhance its market reach and contribute to its financial performance.

Kuraray Co Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
685.11B	780.94B	756.38B	629.37B	541.80B	575.81B
	Gross Profit
220.81B	239.98B	241.66B	204.14B	165.41B	180.68B
	EBIT
79.95B	75.47B	87.14B	72.26B	44.34B	54.17B
	EBITDA
139.96B	141.25B	152.59B	131.26B	106.80B	112.33B
	Net Income Common Stockholders
49.76B	42.45B	54.31B	37.26B	2.57B	-918.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
113.37B	134.62B	128.58B	155.80B	192.24B	105.36B
	Total Assets
1.22T	1.25T	1.22T	1.09T	1.05T	991.15B
	Total Debt
310.51B	282.02B	324.40B	307.44B	341.39B	236.87B
	Net Debt
201.84B	150.88B	200.68B	155.50B	157.07B	164.85B
	Total Liabilities
540.66B	518.33B	553.00B	511.41B	536.11B	452.61B
	Stockholders Equity
654.98B	714.63B	647.09B	560.40B	499.13B	525.81B
Cash Flow		Free Cash Flow
0.00	68.75B	-20.93B	8.04B	-4.97B	6.63B
	Operating Cash Flow
0.00	129.30B	51.73B	78.22B	79.95B	95.58B
	Investing Cash Flow
0.00	-63.15B	-68.62B	-65.59B	-64.03B	-89.37B
	Financing Cash Flow
0.00	-64.96B	-12.05B	-47.45B	91.51B	-1.52B

Kuraray Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1802.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3405, the sentiment is Neutral. The current price of 1802.5 is above the 20-day moving average (MA) of 1790.55, above the 50-day MA of 1729.96, and below the 200-day MA of 1963.04, indicating a neutral trend. The MACD of 22.51 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3405.

Kuraray Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	79 Outperform	¥565.45B	13.25	18.55%	4.27%	10.88%	14.80%
4042	74 Outperform	$666.33B	11.43	7.04%	4.57%	5.74%	1.14%
4188	73 Outperform	$1.08T	23.89	2.49%	4.04%	0.46%	-62.37%
4004	68 Neutral	$574.20B	15.44	6.01%	1.93%	5.93%	82.41%
3405	65 Neutral	¥585.55B	26.87	2.92%	2.77%	5.25%	-59.70%
4005	62 Neutral	¥550.44B	14.26	3.96%	2.16%	6.51%	―
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%

Kuraray Co Corporate Events

Kuraray Co., Ltd. Announces Share Buyback Program

Kuraray Co., Ltd. has announced a decision to initiate a share buyback program, as approved by its Board of Directors. This move aligns with the company’s shareholder return policy, aiming to maintain a total return ratio of at least 50% of net income attributable to shareholders, while enhancing capital efficiency and reducing capital costs. The buyback will involve up to 22 million shares, representing approximately 6.79% of total outstanding shares, with a maximum value of ¥30 billion, and will take place between May 15, 2025, and December 15, 2025. The company also plans to cancel the acquired treasury stock, with details to be announced later.

The most recent analyst rating on (JP:3405) stock is a Hold with a Yen2050.00 price target. To see the full list of analyst forecasts on Kuraray Co stock, see the JP:3405 Stock Forecast page.

Kuraray Co. Faces Profitability Challenges Amid Stable Sales in Q1 2025

Kuraray Co., Ltd. reported its consolidated financial results for the first quarter of 2025, showing a slight increase in net sales by 1.4% compared to the previous year. However, the company experienced significant declines in operating income, ordinary income, and net income attributable to owners of the parent, with decreases of 35.2%, 36.0%, and 44.4% respectively, indicating challenges in maintaining profitability despite stable sales.

The most recent analyst rating on (JP:3405) stock is a Hold with a Yen2050.00 price target. To see the full list of analyst forecasts on Kuraray Co stock, see the JP:3405 Stock Forecast page.

Kuraray Co. Strengthens Corporate Governance and Diversity Initiatives

Kuraray Co., Ltd. has announced its commitment to maintaining strong corporate governance practices, including a focus on cross-shareholdings and diversity in its workforce. The company plans to continue selling certain cross-held shares to enhance corporate value and has set a target to increase diversity among its management by 2030, aiming for 25% of managers to be women, foreign nationals, or mid-career hires.

Kuraray Co. Announces Treasury Share Disposal for Stock Compensation

Kuraray Co., Ltd. has announced the disposal of treasury shares as part of a restricted stock compensation plan aimed at incentivizing its directors and executive officers. This move is intended to enhance corporate value and align the interests of management with shareholders by limiting the transfer of shares until retirement, thereby promoting long-term commitment and value creation.