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Kureha (JP:4023)
:4023

Kureha (4023) AI Stock Analysis

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JP

Kureha

(Frankfurt:4023)

Rating:67Neutral
Price Target:
¥3,342.00
▲(7.12%Upside)
Kureha's stock score reflects significant financial performance challenges, with declining revenues and profitability. While technical indicators show mixed signals with some positive momentum, valuation concerns persist due to high P/E ratio relative to financial struggles. The absence of updated earnings guidance or notable corporate events adds uncertainty to the outlook.

Kureha (4023) vs. iShares MSCI Japan ETF (EWJ)

Kureha Business Overview & Revenue Model

Company DescriptionKureha Corporation manufactures and sells functional materials, specialty chemicals, and plastics in Japan and internationally. It operates through four segments: Advanced Materials, Specialty Chemicals, Specialty Plastics, Construction, and Other Operations. The Advanced Materials segment offers polyphenylene sulfide, polyvinylidene fluoride (PVDF), processed polyglycolic acid products, carbon fibers, and bead-shaped activated carbon products. The Specialty Chemicals segment provides therapeutic agents for chronic renal failure, agricultural and horticultural fungicides, chlorine, caustic soda, hydrochloric acid, sodium hypochlorite, monochlorobenzene, para-dichlorobenzene, trichlorobenzene, and ortho-dichlorobenzene. The Specialty Plastics segment offers household products, including household plastic wrap, storage containers, cooking sheets, food storage bags, strainable garbage bags, garbage deodorizing sheets; antibacterial dishcloths, range hood filters, and plastic bag clips; PVDF fishing lines; polyvinylidene chloride films; heat-shrink multilayer films; and machinery for auto-seal food packaging. The Construction segment provides construction, civil engineering, housing, factory-related services, and plant engineering and maintenance services. The Other Operations segment offers industrial waste management services and environmental related treatment facilities; real estate, building management, travel agency, insurance, and staffing services; medical care services; transport and storage services; and trades in chemical products. The company was incorporated in 1944 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyKureha Corporation generates revenue primarily through the sale of its chemical products across different sectors. The company's key revenue streams include advanced materials, which encompass high-performance polymers and carbon products, and specialty chemicals that serve the pharmaceutical, agrochemical, and industrial sectors. Kureha also earns income from its packaging materials division, offering products like food packaging solutions. Significant factors contributing to its earnings include its focus on research and development, enabling the creation of innovative and high-value products, and strategic partnerships that enhance its market reach and product distribution.

Kureha Financial Statement Overview

Summary
Kureha's financial performance is challenged, with declining revenues and profitability. The company faces cash flow sustainability issues, evidenced by negative free cash flow, despite strong operating cash flows. Increased leverage and lower returns on equity are additional concerns.
Income Statement
72
Positive
Kureha's income statement shows a declining trend in revenue and profitability. The gross profit margin for the latest year is approximately 26.2%, indicating a decrease from previous years. The net profit margin stands at about 4.8%, down from prior periods, reflecting challenges in maintaining profitability. The revenue growth rate shows a decline of 8.9% compared to the previous year, highlighting potential market challenges. The EBIT and EBITDA margins are 6.1% and 14.3%, respectively, showing a weakening operational performance.
Balance Sheet
65
Positive
The balance sheet of Kureha reveals a moderate financial position with some concerns. The debt-to-equity ratio is approximately 0.38, indicating manageable leverage, but increased from previous years. The return on equity (ROE) is around 3.7%, showing reduced shareholder returns. The equity ratio stands at 60.6%, reflecting a stable capital structure, though slightly weakened from past years.
Cash Flow
58
Neutral
Kureha's cash flow statement highlights significant challenges in free cash flow generation. The free cash flow growth rate is negative, indicating a deterioration in cash generation capabilities. The operating cash flow to net income ratio is 3.78, suggesting strong cash generation from operations. However, the negative free cash flow to net income ratio indicates that capital expenditures exceed operating cash flow, impacting liquidity.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
162.01B177.97B191.28B168.34B144.57B
Gross Profit
42.49B51.34B54.79B50.88B42.87B
EBIT
9.91B18.73B22.82B20.14B17.26B
EBITDA
23.12B26.40B34.67B34.73B29.07B
Net Income Common Stockholders
7.80B9.73B16.87B14.16B13.49B
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.50B23.13B32.22B30.64B17.84B
Total Assets
345.30B330.63B296.40B282.64B256.92B
Total Debt
80.53B51.02B21.99B26.18B26.86B
Net Debt
59.03B27.89B-10.21B-4.46B9.02B
Total Liabilities
134.16B107.48B79.63B81.92B71.40B
Stockholders Equity
209.37B221.38B215.20B199.22B183.83B
Cash FlowFree Cash Flow
-14.31B-21.10B8.51B15.99B13.83B
Operating Cash Flow
29.52B11.60B22.74B28.58B26.70B
Investing Cash Flow
-39.44B-34.29B-11.10B-11.00B-3.88B
Financing Cash Flow
8.44B12.13B-10.48B-6.11B-12.52B

Kureha Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3120.00
Price Trends
50DMA
2831.56
Positive
100DMA
2802.56
Positive
200DMA
2772.09
Positive
Market Momentum
MACD
80.89
Positive
RSI
53.08
Neutral
STOCH
9.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4023, the sentiment is Positive. The current price of 3120 is below the 20-day moving average (MA) of 3210.90, above the 50-day MA of 2831.56, and above the 200-day MA of 2772.09, indicating a neutral trend. The MACD of 80.89 indicates Positive momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 9.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4023.

Kureha Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
€167.31B20.653.58%2.92%-8.97%-12.58%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
$2.23B7.0113.58%4.80%
$1.70B10.205.38%0.02%
$1.46B9.489.01%0.02%
$1.51B10.29-1.23%4.76%
$1.96B11.897.16%4.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4023
Kureha
3,120.00
434.80
16.19%
DACHF
Daicel
8.43
-0.97
-10.32%
KANKF
Kaneka
27.27
1.23
4.72%
TKYMF
Tokuyama
20.61
2.24
12.19%
UBEOF
UBE Industries
15.94
-0.76
-4.55%
ZEOOF
Zeon
9.94
1.26
14.52%

Kureha Corporate Events

Kureha Completes Treasury Share Acquisition
Jun 4, 2025

Kureha Corporation has completed the acquisition of 10 million treasury shares at a cost of ¥34.1 billion through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System. This move aligns with the company’s mid- to long-term management plan, aiming to enhance shareholder returns, improve capital efficiency, and maintain a flexible capital policy.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Announces Share Buyback Plan
Jun 3, 2025

Kureha Corporation has announced that its Board of Directors has approved the acquisition of up to 10,000,000 of its common shares, representing up to 20.66% of total shares issued, excluding treasury shares. This strategic move, with a maximum cost of ¥35,000,000,000, will be executed through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System and market purchases, potentially impacting shareholder value and market positioning.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Revises Treasury Share Acquisition Strategy
Jun 3, 2025

Kureha Corporation has announced a strategic decision to suspend its previous plan for acquiring treasury shares and establish a new limit for such acquisitions. This move is part of the company’s broader strategy to enhance shareholder returns, improve capital efficiency, and maintain a flexible capital policy in line with its mid- to long-term management plan. The new acquisition plan allows for a maximum of 10 million shares, representing up to 20.66% of total shares issued, with a budget of ¥35 billion, to be executed by September 30, 2025.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Completes Share Repurchase
Jun 2, 2025

Kureha Corporation has announced the completion of a share repurchase program, acquiring 1,425,700 common shares at a cost of ¥4,544,099,500 through open market purchases on the Tokyo Stock Exchange. This repurchase is part of a broader plan authorized by the Board of Directors to buy back up to 5,600,000 shares, representing 11.26% of total issued shares, with a budget of ¥15,000,000,000, to be completed by March 31, 2026.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Completes Treasury Stock Disposal for Executive Remuneration
May 23, 2025

Kureha Corporation has completed the payment procedures for the disposal of its treasury stock as restricted stock remuneration, following a resolution by its Board of Directors. This disposal involved 2,694 shares of common stock at a price of 2,503 yen per share, allocated to three executive officers, marking a strategic move in the company’s financial management.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Reveals FY2025 Dividend Forecast Amid Policy Shift
May 19, 2025

Kureha Corporation has announced its dividend forecast for the fiscal year ending March 31, 2026, following a shift in its dividend policy to a Dividend on Equity (DOE) approach. The company plans to distribute an annual dividend of 216.00 yen per share, reflecting a significant increase from the previous year’s 86.70 yen. This change aims to provide more transparent and timely information to shareholders while aligning dividends with consolidated shareholders’ equity.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Announces Changes to Board Member Nominees
May 16, 2025

Kureha Corporation has announced a partial change in its board member nominees ahead of its upcoming General Meeting of Shareholders in June 2025. The decision, made during a recent Board of Directors meeting, reflects a change in board members and was influenced by the Nomination Advisory Committee, which includes a majority of independent outside directors. The revised list now includes six nominees, with the removal of Hiroyuki Tanaka from the initial list.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Announces Board Member Resignation Amid Misconduct Allegations
May 16, 2025

Kureha Corporation announced the resignation of Mr. Hiroyuki Tanaka, a Board Director and Senior Vice President, following allegations of inappropriate conduct towards a female employee. An investigation confirmed the allegations, leading to his resignation and forfeiture of bonuses and stock remuneration. The company’s leadership, including the CEO, will also return portions of their remuneration as a gesture of accountability. These changes highlight Kureha’s commitment to strengthening its compliance framework and maintaining ethical standards.

The most recent analyst rating on (JP:4023) stock is a Sell with a Yen2800.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Announces Strategic Treasury Stock Transactions
May 12, 2025

Kureha Corporation has announced its Board of Directors’ decision to acquire and dispose of treasury shares to enhance shareholder returns and improve capital efficiency. The company plans to acquire up to 5,600,000 common shares, representing a maximum of 11.26% of total shares issued, with a budget of ¥15 billion, and dispose of 5,491,000 shares by June 30, 2025, impacting the total number of shares issued.

Kureha Corporation Revamps Dividend Policy to Enhance Shareholder Value
May 12, 2025

Kureha Corporation has announced a change in its dividend policy to enhance shareholder value by adopting a Dividend on Equity (DOE) approach, linking dividends to consolidated shareholders’ equity. This strategic shift aims to address declining return on equity and price-to-book ratio, with plans to utilize asset sales proceeds to support stable dividend payments and improve profitability across existing businesses.

Kureha Corporation Reports Decline in Financial Performance for FY 2025
May 12, 2025

Kureha Corporation reported a decline in its financial performance for the fiscal year ended March 31, 2025, with a 9% drop in revenue and significant decreases in operating profit and profit before tax. The company also conducted a three-for-one stock split effective January 1, 2024, impacting its earnings per share and dividend calculations. Despite the current challenges, Kureha forecasts a modest revenue increase and a significant improvement in operating profit for the fiscal year ending March 31, 2026.

Kureha Corporation Announces Disposal of Treasury Stock for Executive Remuneration
Apr 25, 2025

Kureha Corporation has resolved to dispose of its treasury stock as restricted stock remuneration for its executive officers. This move is intended to incentivize executives to enhance corporate value and align their interests with shareholders, with transfer restrictions in place until certain conditions are met.

Kureha Corporation Announces Board and Audit Nominees for 2025
Apr 25, 2025

Kureha Corporation has announced the nominees for its Board of Directors and Audit & Supervisory Board, to be elected at the upcoming June 2025 General Shareholders Meeting. The nominations include both re-appointed and newly-appointed members, with a focus on maintaining a balance of independent outside directors. This strategic move is aimed at strengthening governance and ensuring compliance with Tokyo Stock Exchange standards, potentially impacting the company’s operational integrity and stakeholder confidence.

Kureha Corporation Declares FY2024 Year-End Dividend
Apr 25, 2025

Kureha Corporation announced a year-end dividend of ¥43.35 per share for FY2024, aligning with its policy to maintain stable dividends and a target payout ratio of 30% or more. This decision reflects the company’s commitment to its capital policy of ensuring a minimum annual dividend of ¥86.70 per share until FY2025, supporting its strategy for future growth and investment.

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.