Kuraray Co Ltd (JP:3405)
:3405
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Kuraray Co
(3405)
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Rating:60Neutral
Price Target:
¥1,714.00
▲(2.91% Upside)
Action:Reiterated
Date: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
Balance Sheet Stability
Kuraray's debt-to-equity and leverage improved to about 0.38 in 2025, with equity and assets grown over the period. This manageable leverage profile supports resilience to cyclical pressures, preserves borrowing capacity for capex or M&A, and reduces refinancing risk over months.
Negative Factors
Profitability collapse in 2025
Net margin compression to roughly 0.9% in 2025 indicates material earnings deterioration versus prior years. Persistently low net returns can erode ROE, limit reinvestment and dividend flexibility, and raise questions about pricing power or cost control across cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Stability
Kuraray's debt-to-equity and leverage improved to about 0.38 in 2025, with equity and assets grown over the period. This manageable leverage profile supports resilience to cyclical pressures, preserves borrowing capacity for capex or M&A, and reduces refinancing risk over months.
Read all positive factors
Kuraray Co (3405) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥516.00B
Dividend Yield3.37%
Average Volume (3M)2.05M
Price to Earnings (P/E)159.9
Beta (1Y)0.82
Revenue Growth-1.80%
EPS Growth-85.21%
CountryJP
Employees11,941
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)47.02
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)114.57
Revenue Forecast (FY)¥861.56B
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 primarily makes money by manufacturing specialty chemical and materials products and selling them to business customers (B2B) globally under long-term supply relationships and recurring purchase orders tied to customers’ production needs. ...
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 | 117.92B | 107.33B | 141.17B | 141.25B | 144.91B | 119.33B |
| 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
Positive
1665.50
Price Trends
1652.64
Positive
1683.44
Positive
1661.47
Positive
Market Momentum
9.58
Negative
62.01
Neutral
91.03
Negative
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 1665.5 is above the 20-day moving average (MA) of 1628.83, above the 50-day MA of 1652.64, and above the 200-day MA of 1661.47, indicating a bullish trend. The MACD of 9.58 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 91.03 is Negative, 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥14.19T | 28.12 | 11.19% | 2.17% | 0.50% | -6.23% | |
66 Neutral | ¥2.43T | 15.28 | 8.29% | 2.89% | 1.22% | 19.36% | |
64 Neutral | ¥910.56B | 21.45 | 4.79% | 4.21% | -4.09% | -27.31% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥516.00B | 159.86 | 1.02% | 3.37% | -1.80% | -85.21% | |
54 Neutral | ¥906.98B | 14.80 | 8.79% | 2.68% | -10.66% | 57.43% | |
53 Neutral | ¥1.43T | 125.60 | 1.09% | 3.50% | -15.96% | -74.31% |
* Basic Materials Sector Average
JP:3405
Kuraray Co
1,774.50
31.69
1.82%
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1,764.50
837.91
90.43%
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Mitsubishi Chemical Holdings
1,128.50
407.42
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JP:4063
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7,564.00
3,216.79
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Sumitomo Chemical Co
576.50
246.55
74.72%
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3,037.00
1,060.51
53.66%
Kuraray Co Corporate Events
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...
Kuraray Completes Disposal of Treasury Shares for Restricted Stock Compensation
Apr 24, 2026
Kuraray Co., Ltd. has completed payment procedures for the disposal of 87,710 ordinary treasury shares, which have been allotted as restricted stock compensation to its management team. The shares, disposed of at ¥1,619 each for a total of ab...
Kuraray to Grant ¥142 Million in Restricted Stock to Executives via Treasury Share Disposal
Mar 26, 2026
Kuraray Co., Ltd. has approved the disposal of 87,710 treasury shares as restricted stock compensation for six directors, 19 executive officers, and 11 associate executive officers, with a total value of about ¥142 million at ¥1,619 per ...
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...
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.