Kureha (4023) AI Stock Analysis

• Market Cap: ¥152.28B
• Dividend Yield: 3.84%
• Average Volume (3M): 409.12K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.51
• Revenue Growth: -7.81%
• EPS Growth: 25.04%
• Country: JP
• Employees: 4,217
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 105.68
• Shares Outstanding: 49,942,223
• 10 Day Avg. Volume: 239,800
• 30 Day Avg. Volume: 409,116
• PEG Ratio: -1.38
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.89
• P/FCF Ratio: -10.04
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥4,298.00 ▲(7.32% Upside)

Kureha's overall stock score is driven by solid technical analysis and a balanced valuation, despite challenges in financial performance. The stock shows positive price trends, and the dividend yield adds to its attractiveness. However, liquidity concerns and declining profitability metrics are notable risks.

Positive Factors

Innovative Product Portfolio

Kureha's focus on innovative products such as biodegradable plastics positions it well in growing markets, supporting long-term revenue growth.

Sustainability Focus

Kureha's emphasis on sustainability aligns with global trends, enhancing its market appeal and potential for partnerships in eco-friendly sectors.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility, supporting long-term strategic investments and growth.

Negative Factors

Declining Profit Margins

Declining profit margins indicate cost management challenges, potentially impacting long-term profitability and competitive positioning.

Negative Free Cash Flow

Negative free cash flow suggests cash management issues, which can constrain operational flexibility and investment capacity over time.

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder strategic planning and long-term financial stability, affecting investor confidence and market valuation.

Kureha Business Overview & Revenue Model

Company Description

Kureha 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 Money

Kureha generates revenue through multiple key streams. The company sells its products across several sectors, including specialty chemicals, plastics, and pharmaceuticals. Its advanced materials, particularly polylactic acid (PLA), are in high demand due to the growing market for biodegradable products, which has become a significant revenue driver. Additionally, Kureha benefits from partnerships with other companies and research institutions that enable collaborative development of new technologies and products. The company's focus on innovation and sustainability also positions it favorably to capitalize on emerging market trends, increasing its earnings potential.

Kureha Financial Statement Overview

Summary

Kureha faces challenges with declining revenue growth and profitability pressures, as reflected in the income statement. The balance sheet remains stable with a reasonable debt position, but the cash flow statement indicates liquidity issues due to negative free cash flow. While the company maintains operational efficiency, it needs to address revenue growth and cash flow generation to enhance financial health.

Income Statement

Kureha's income statement shows a decline in revenue growth with a negative rate of -3.33% in the TTM period, indicating potential challenges in maintaining sales momentum. The gross profit margin stands at 26.23%, which is relatively stable, but the net profit margin has decreased to 4.81%, reflecting pressure on profitability. The EBIT and EBITDA margins are moderate at 5.96% and 13.78%, respectively, suggesting operational efficiency but also highlighting room for improvement.

Balance Sheet

The balance sheet reveals a manageable debt-to-equity ratio of 0.38, indicating a balanced approach to leveraging. The return on equity is modest at 3.62%, suggesting limited returns on shareholders' investments. The equity ratio is healthy, reflecting a strong capital structure, but the declining stockholders' equity over recent periods could be a concern for long-term stability.

Cash Flow

Kureha's cash flow statement highlights a significant challenge with negative free cash flow and a free cash flow to net income ratio of -0.48, indicating cash outflows exceeding net income. The operating cash flow to net income ratio is 0.53, showing some ability to generate cash from operations, but the negative free cash flow growth rate is a concern for liquidity and future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.76B	162.01B	177.97B	191.28B	168.34B	144.57B
Gross Profit	41.86B	42.49B	51.34B	54.79B	50.88B	42.87B
EBITDA	23.57B	23.12B	26.40B	34.67B	30.09B	28.17B
Net Income	8.47B	7.80B	9.73B	16.87B	14.16B	13.49B
Balance Sheet
Total Assets	345.95B	345.30B	330.63B	296.40B	282.64B	256.92B
Cash, Cash Equivalents and Short-Term Investments	25.18B	21.50B	23.13B	32.22B	30.64B	17.84B
Total Debt	117.97B	80.53B	51.02B	21.99B	26.18B	26.86B
Total Liabilities	166.15B	134.16B	107.48B	79.63B	81.92B	71.40B
Stockholders Equity	178.09B	209.37B	221.38B	215.20B	199.22B	183.83B
Cash Flow
Free Cash Flow	-15.64B	-14.31B	-21.10B	8.51B	15.99B	13.83B
Operating Cash Flow	18.70B	29.52B	11.60B	22.74B	28.58B	26.70B
Investing Cash Flow	-23.63B	-39.44B	-34.29B	-11.10B	-11.00B	-3.88B
Financing Cash Flow	-706.00M	8.44B	12.13B	-10.48B	-6.11B	-12.52B

Kureha Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4005.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4005 is above the 20-day moving average (MA) of 3911.00, above the 50-day MA of 3813.10, and above the 200-day MA of 3291.90, indicating a bullish trend. The MACD of 45.40 indicates Negative momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 57.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4023.

Kureha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	80 Outperform	¥368.54B	10.23	9.34%	4.33%	-0.48%	-35.29%
4205	79 Outperform	¥352.66B	9.79	9.65%	3.97%	0.87%	16.71%
4043	75 Outperform	¥294.79B	12.34	8.86%	2.68%	-0.04%	3.15%
4118	74 Outperform	¥275.72B	10.45	5.47%	3.44%	2.60%	9.50%
4023	69 Neutral	¥152.28B	20.06	4.24%	3.84%	-7.81%	25.04%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4208	57 Neutral	¥246.13B	42.61	1.47%	4.36%	-7.45%	-71.68%

Kureha Corporate Events

Kureha Corporation Announces Change in Major Shareholders

Kureha Corporation has announced a change in its major shareholders due to a share repurchase program conducted between May 13 and June 4, 2025. This repurchase led to an increase in the voting rights held by Meiji Yasuda Life Insurance Company from 8.30% to 10.82%, making it a significant shareholder. The company states that this change will not impact its consolidated financial results.

The most recent analyst rating on (JP:4023) stock is a Hold with a Yen4224.00 price target. To see the full list of analyst forecasts on Kureha stock, see the JP:4023 Stock Forecast page.

Kureha Corporation Reports Decline in Q1 Financial Performance

Kureha Corporation reported a decline in its financial performance for the first quarter of the fiscal year ending March 31, 2026, with revenue and profits showing significant year-on-year decreases. Despite the downturn, the company has forecasted a slight increase in revenue for the full fiscal year, indicating potential recovery. The company also announced changes in its dividend forecast, planning to implement dividends based on a consolidated dividend on equity target of 5%.

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