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Kuraray Co
(3405)
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Rating:60Neutral
Price Target:
¥1,925.00
▲(5.80% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weakening profitability and cash-flow efficiency in 2025 (sharp margin erosion and free cash flow falling to near breakeven), despite a stable balance sheet. Technicals are supportive with an uptrend versus major moving averages and positive MACD, but the very high P/E meaningfully detracts from the overall profile even with a moderate dividend yield.
Positive Factors
Proprietary polymer technologies
Kuraray's proprietary PVA and EVOH technologies create durable product differentiation and technical entry barriers. These materials require qualification and integration by customers, generating recurring B2B demand, higher switching costs and long qualification cycles that support stable revenue streams over time.
Negative Factors
Compressed net margins and earnings
Sharp net-margin compression signals weakening translation of gross profit into bottom-line results, reducing retained earnings and ROE. Persistent margin erosion can limit capacity to fund dividends, R&D or capex and indicates either cost pressure, pricing weakness, or mix deterioration that harms long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary polymer technologies
Kuraray's proprietary PVA and EVOH technologies create durable product differentiation and technical entry barriers. These materials require qualification and integration by customers, generating recurring B2B demand, higher switching costs and long qualification cycles that support stable revenue streams over time.
Read all positive factors
Kuraray Co (3405) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥554.09B
Dividend Yield2.88%
Average Volume (3M)2.05M
Price to Earnings (P/E)152.1
Beta (1Y)0.81
Revenue Growth-1.80%
EPS Growth-85.21%
CountryJP
Employees12,117
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)12.10
Shares Outstanding302,133,600
10 Day Avg. Volume1,613,420
30 Day Avg. Volume2,049,506
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)0.68
Price to Sales (P/S)0.62
P/FCF Ratio536.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,750.00Price Target Upside-3.82% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)108.2
Revenue Forecast (FY)¥860.27B
Kuraray Co Business Overview & Revenue Model
Company Description
Kuraray Co., Ltd. operates internationally, manufacturing and distributing a broad array of products, including various resins, chemicals, fibers, activated carbon, and sophisticated membrane systems. Its Vinyl Acetate division focuses on developi...
How the Company Makes Money
Kuraray makes money primarily by manufacturing specialty chemicals and high-performance materials and selling them to business customers (B2B) under supply contracts and ongoing customer relationships where material qualification and reliability a...
Kuraray Co Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 814.56B | 808.45B | 826.89B | 780.94B | 756.38B | 629.37B |
| Gross Profit | 246.35B | 246.51B | 267.75B | 241.35B | 243.27B | 205.44B |
| EBITDA | 100.72B | 107.33B | 141.17B | 141.25B | 144.91B | 119.33B |
| Net Income | 3.26B | 7.47B | 31.72B | 42.45B | 54.31B | 37.26B |
Balance Sheet | ||||||
| Total Assets | 1.32T | 1.30T | 1.29T | 1.25T | 1.22T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 107.05B | 108.32B | 121.69B | 134.62B | 128.58B | 155.80B |
| Total Debt | 299.43B | 284.92B | 287.34B | 320.22B | 357.52B | 327.53B |
| Total Liabilities | 563.15B | 548.33B | 509.45B | 518.33B | 553.00B | 511.41B |
| Stockholders Equity | 740.43B | 742.85B | 764.28B | 714.63B | 647.09B | 560.40B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 936.00M | 62.52B | 68.75B | -20.93B | 8.04B |
| Operating Cash Flow | 0.00 | 98.59B | 138.29B | 129.30B | 51.73B | 78.22B |
| Investing Cash Flow | 0.00 | -98.13B | -76.01B | -63.15B | -68.12B | -63.77B |
| Financing Cash Flow | 0.00 | -16.30B | -82.50B | -64.96B | -12.55B | -49.27B |
Kuraray Co Technical Analysis
Positive
1819.50
Price Trends
1719.11
Positive
1670.49
Positive
1641.16
Positive
Market Momentum
41.37
Positive
64.38
Neutral
56.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3405, the sentiment is Positive. The current price of 1819.5 is above the 20-day moving average (MA) of 1803.83, above the 50-day MA of 1719.11, and above the 200-day MA of 1641.16, indicating a bullish trend. The MACD of 41.37 indicates Positive momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 56.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3405.
Kuraray Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥11.45T | 22.60 | 10.90% | 1.58% | 0.62% | -2.72% | |
64 Neutral | ¥2.34T | 12.12 | 8.13% | 2.28% | 4.03% | 61.70% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥554.09B | 152.07 | 0.44% | 2.91% | -1.80% | -85.21% | |
59 Neutral | ¥853.84B | 14.04 | 6.28% | 2.51% | -10.66% | 58.38% | |
57 Neutral | ¥1.61T | -39.48 | 0.66% | 2.69% | -7.96% | 106.67% | |
57 Neutral | ¥862.51B | 20.48 | 5.11% | 3.52% | -4.09% | -26.93% |
* Basic Materials Sector Average
JP:3405
Kuraray Co
1,885.50
76.09
4.20%
JP:3407
Asahi Kasei
1,666.00
600.85
56.41%
JP:4188
Mitsubishi Chemical Holdings
1,184.50
439.10
58.91%
JP:4063
Shin-Etsu Chemical Co
6,167.00
1,831.56
42.25%
JP:4005
Sumitomo Chemical Co
499.10
120.11
31.69%
JP:4042
Tosoh
2,710.50
488.86
22.00%
Kuraray Co Corporate Events
Kuraray Maintains Governance Compliance After Audit Board Resignation
Jun 30, 2026
Kuraray Co., Ltd. has announced the resignation of Mr. Hiroaya Hayase from his role as a full-time member of the Audit Supervisory Board, effective June 30, 2026. The company stated that Hayase’s departure is due to personal reasons and emp...
Kuraray Posts Higher Sales but Weaker Profits in FY2026 First Quarter
May 13, 2026
Kuraray Co. reported first-quarter fiscal 2026 net sales of ¥200.9 billion, up from ¥194.8 billion a year earlier, but profits declined across key metrics. Operating income fell to ¥14.9 billion from ¥18.7 billion, ordinary inc...
Kuraray to Cancel 1.89% of Shares After Buyback Completion
May 13, 2026
Kuraray Co., Ltd. has resolved to cancel 5.83 million shares of its common stock, representing 1.89% of its issued and outstanding shares, following the completion of a previously announced share buyback. The cancellation, effective May 29, 2026, ...
Kuraray’s Q1 Profit Slumps Despite Modest Sales Growth
May 13, 2026
Kuraray reported consolidated net sales of ¥200.9 billion for the three months ended March 31, 2026, a 3.1% year-on-year increase, while operating income fell 20.3% to ¥14.9 billion and ordinary income declined 22.9% to ¥13.7 billio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.