Kuraray Co Ltd (JP:3405)
:3405
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Kuraray Co
(3405)
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Rating:60Neutral
Price Target:
¥1,688.00
▲(1.35% Upside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weakened profitability and sharply reduced free cash flow in 2025, alongside a very high P/E multiple. These negatives are partly balanced by a stable balance sheet and supportive technical momentum with the stock above major moving averages, plus a moderate dividend yield.
Positive Factors
Specialty product portfolio
Kuraray's portfolio of proprietary PVA, EVOH and specialty resins supports durable B2B demand across multiple end markets. Application-specific materials and technical service create customer stickiness and pricing power, underpinning long-term revenue resilience beyond short cycles.
Negative Factors
Net margin collapse
A severe drop in net margin materially reduces internal funding for R&D, capacity expansion and shareholder returns. If margins remain depressed, the company’s ability to finance strategic projects from operating profits weakens, increasing reliance on capital markets or cost cuts that can impair long-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty product portfolio
Kuraray's portfolio of proprietary PVA, EVOH and specialty resins supports durable B2B demand across multiple end markets. Application-specific materials and technical service create customer stickiness and pricing power, underpinning long-term revenue resilience beyond short cycles.
Read all positive factors
Kuraray Co (3405) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥496.98B
Dividend Yield3.37%
Average Volume (3M)2.05M
Price to Earnings (P/E)67.2
Beta (1Y)0.84
Revenue Growth-1.94%
EPS Growth-84.08%
CountryJP
Employees11,941
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-47.73
Shares Outstanding307,963,600
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)125.51
Revenue Forecast (FY)¥843.10B
Kuraray Co Business Overview & Revenue Model
Company Description
Kuraray Co., Ltd. is a Japanese chemical company that specializes in the production of advanced materials and specialty chemicals. Established in 1926, Kuraray operates in various sectors including healthcare, fibers and textiles, and industrial m...
How the Company Makes Money
Kuraray makes money primarily by manufacturing and selling specialty chemical and materials products to industrial customers (B2B). Revenue is generated through (1) sales of proprietary resins and polymers (e.g., PVA and EVOH-based materials) used...
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 | 815.64B | 808.45B | 826.89B | 780.94B | 756.38B | 629.37B |
| Gross Profit | 251.87B | 246.51B | 267.75B | 241.35B | 243.27B | 205.44B |
| EBITDA | 148.26B | 143.59B | 170.34B | 152.64B | 152.59B | 131.26B |
| Net Income | 15.31B | 7.47B | 31.72B | 42.45B | 54.31B | 37.26B |
Balance Sheet | ||||||
| Total Assets | 1.26T | 1.30T | 1.29T | 1.25T | 1.22T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 115.00B | 108.32B | 121.69B | 134.62B | 128.58B | 155.80B |
| Total Debt | 265.64B | 284.92B | 287.34B | 320.22B | 357.52B | 327.53B |
| Total Liabilities | 510.32B | 548.33B | 509.45B | 518.33B | 553.00B | 511.41B |
| Stockholders Equity | 730.13B | 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
Negative
1665.50
Price Trends
1721.55
Negative
1645.08
Negative
1694.98
Negative
Market Momentum
-32.79
Positive
38.04
Neutral
16.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3405, the sentiment is Negative. The current price of 1665.5 is below the 20-day moving average (MA) of 1714.98, below the 50-day MA of 1721.55, and below the 200-day MA of 1694.98, indicating a bearish trend. The MACD of -32.79 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥12.42T | 18.04 | 11.19% | 2.17% | 3.77% | 0.35% | |
68 Neutral | ¥2.12T | 8.67 | 8.29% | 2.89% | 3.55% | 95.65% | |
66 Neutral | ¥751.61B | 10.74 | 4.79% | 4.21% | -1.21% | -27.21% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥811.03B | 3.83 | 8.79% | 2.68% | -1.64% | ― | |
60 Neutral | ¥496.98B | 67.20 | 1.02% | 3.37% | -1.94% | -84.08% | |
54 Neutral | ¥1.24T | -66.09 | 1.09% | 3.50% | -11.50% | 25.86% |
* Basic Materials Sector Average
JP:3405
Kuraray Co
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Kuraray Co Corporate Events
Kuraray Completes ¥10 Billion Share Buyback, Plans Cancellation of Treasury Stock
Mar 25, 2026
Kuraray Co., Ltd. has completed a share buyback approved in February, repurchasing 4,081,600 common shares between March 1 and March 23 via market purchases for approximately ¥6.87 billion, with all acquired treasury shares slated for cancell...
Kuraray Advances ¥10 Billion Share Buyback, Acquires 1.75 Million Shares
Mar 3, 2026
Kuraray Co., Ltd. has been executing a share buyback program authorized by its board on February 10, 2026, under Japan’s Companies Act provisions governing acquisition of treasury stock. The initiative targets repurchasing up to 8.0 million ...
Kuraray Keeps Annual Dividend Steady at ¥54 Per Share for Fiscal 2025
Feb 17, 2026
Kuraray Co., Ltd. has proposed a year-end dividend of ¥27 per share for the fiscal year ended December 31, 2025, to be approved at its March 26, 2026 shareholders meeting. The payment, sourced from retained earnings and totaling ¥8,290 m...
Kuraray Profit Slumps on Inventory Effects and Isoprene Impairment in FY2025
Feb 10, 2026
Kuraray reported fiscal 2025 net sales of ¥808.4 billion, down from ¥826.9 billion a year earlier, as operating income fell to ¥58.9 billion and ordinary income to ¥51.5 billion. Net income attributable to owners of the parent ...
Kuraray Marks 100th Anniversary With Higher Commemorative Dividend
Feb 10, 2026
Kuraray Co., Ltd., a Japanese specialty chemicals and advanced materials producer, is marking its 100th anniversary in 2026 with a one-off boost to shareholder returns. The company, which supplies high-value chemicals and materials to global indus...
Kuraray Launches ¥10 Billion Share Buyback to Boost Capital Efficiency
Feb 10, 2026
Kuraray Co., Ltd. is a Japanese chemical manufacturer specializing in advanced materials, synthetic resins, fibers, and performance materials that serve a wide range of industrial and consumer sectors. The company has articulated a capital policy ...
Kuraray Takes ¥25.6 Billion Impairment as Profit Undershoots Forecast but Keeps Dividend
Feb 10, 2026
Kuraray said it booked a ¥25.6 billion impairment loss on assets tied to its isoprene chemicals and styrenic thermoplastic elastomer operations for the year ended December 31, 2025, following a deterioration in the business environment and lo...
Kuraray Profit Plunges on Weaker Margins Despite Modest Sales Decline in 2025
Feb 10, 2026
Kuraray reported consolidated net sales of ¥808.4 billion for the fiscal year ended December 31, 2025, a 2.2% decline from the previous year, as profitability weakened across its operations. Operating income fell 30.8% to ¥58.9 billion a...
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.