Kuraray Co (3405) AI Stock Analysis

• Market Cap: ¥593.65B
• Dividend Yield: 2.94%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.85
• Revenue Growth: 5.25%
• EPS Growth: -59.70%
• Country: JP
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): 37.07
• Shares Outstanding: 324,863,620
• 10 Day Avg. Volume: 1,081,590
• 30 Day Avg. Volume: 1,187,776
• PEG Ratio: 0.13
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.04
• 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: ¥1,949.67
• Price Target Upside: 6.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ¥1,948.00 ▲(6.27%Upside)

Kuraray Co's overall stock score of 65 reflects a stable financial foundation with consistent revenue growth and strong operating margins, though profitability conversion and valuation metrics suggest room for improvement. Technical analysis indicates mixed momentum, contributing to a moderate stock outlook.

Kuraray Co Business Overview & Revenue Model

Company Description

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. The company was founded in 1926 and is headquartered in Tokyo, Japan.

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

Kuraray Co presents a stable financial position with consistent revenue growth and strong operating margins. The balance sheet reflects moderate leverage and a solid equity foundation, with a low ROE indicating potential inefficiency in using equity capital. Cash flow remains strong, though slight declines in free cash flow growth may require attention.

Income Statement

Kuraray Co has demonstrated a consistent revenue growth trajectory with a 5.88% increase from 2023 to 2024. The gross profit margin for 2024 is 32.35%, indicating strong profitability in its core operations. However, the net profit margin declined to 3.84% in 2024 from the previous year, reflecting increased expenses or potential inefficiencies. The EBIT margin is stable at 10.29%, and the EBITDA margin is 20.60%, showcasing healthy operating performance.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 59.22%, indicating a strong balance sheet. The debt-to-equity ratio is 0.32, suggesting moderate leverage and financial stability. However, the return on equity (ROE) is relatively low at 4.15%, which may indicate underutilization of equity to generate profits.

Cash Flow

Kuraray Co's free cash flow declined slightly by 2.67% from 2023 to 2024, showing some pressure on liquidity. The operating cash flow to net income ratio is 4.36, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 2.11, suggesting less efficient translation of profits into free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	826.89B	780.94B	756.38B	629.37B	541.80B
Gross Profit	267.52B	239.98B	241.66B	204.14B	165.41B
EBITDA	170.34B	141.25B	144.91B	131.26B	106.80B
Net Income	31.72B	42.45B	54.31B	37.26B	2.57B
Balance Sheet
Total Assets	1.29T	1.25T	1.22T	1.09T	1.05T
Cash, Cash Equivalents and Short-Term Investments	121.69B	134.62B	128.58B	155.80B	192.24B
Total Debt	244.28B	282.02B	324.40B	307.44B	341.39B
Total Liabilities	509.45B	518.33B	553.00B	511.41B	536.11B
Stockholders Equity	764.28B	714.63B	647.09B	560.40B	499.13B
Cash Flow
Free Cash Flow	66.91B	68.75B	-20.93B	8.04B	-4.97B
Operating Cash Flow	138.29B	129.30B	51.73B	78.22B	79.95B
Investing Cash Flow	-76.01B	-63.15B	-68.62B	-65.59B	-64.03B
Financing Cash Flow	-82.50B	-64.96B	-12.05B	-47.45B	91.51B

Kuraray Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1833.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1833 is above the 20-day moving average (MA) of 1788.12, above the 50-day MA of 1730.49, and below the 200-day MA of 1934.37, indicating a neutral trend. The MACD of 15.98 indicates Negative momentum. The RSI at 63.29 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3405	65 Neutral	¥593.65B	27.24	2.92%	2.94%	5.25%	-59.70%
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.17%	-4.78%	-43.21%
MTLHF		$7.32B	24.48	2.49%	4.20%	―	―
NSC		€3.50B	13.38	18.55%	4.78%	―	―
SHWDF		$4.17B	17.19	6.01%	1.78%	―	―
SOMMF		$3.90B	17.78	3.96%	0.02%	―	―
TOSCF		$4.62B	12.14	7.04%	0.03%	―	―

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.