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Taki Chemical Co., Ltd. (JP:4025)
:4025
Japanese Market
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Taki Chemical Co., Ltd. (4025) AI Stock Analysis

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JP:4025

Taki Chemical Co., Ltd.

(4025)

Rating:72Outperform
Price Target:
¥3,413.00
▲(17.41%Upside)
Taki Chemical Co., Ltd. shows strong financial performance, with notable revenue and profit growth, a robust balance sheet, and improved cash generation. However, technical analysis indicates a bearish trend with weak momentum, and the valuation suggests potential undervaluation. The absence of earnings call data and corporate events limits additional insights. Overall, the company is financially strong but faces challenges in market sentiment and technical performance.

Taki Chemical Co., Ltd. (4025) vs. iShares MSCI Japan ETF (EWJ)

Taki Chemical Co., Ltd. Business Overview & Revenue Model

Company DescriptionTaki Chemical Co., Ltd. engages in the agri, chemicals, and real estate businesses in Japan. The company offers fertilizers and soil conditioners. It also provides water treatment chemicals, including polyaluminum chloride for drinking and industrial water treatment, urban sewage treatment, civil and factory wastewater treatment, and coagulation sedimentation and organic sludge filtration dehydrating agents. In addition, the company offers functional chemical materials, such as water-soluble aluminum salts, such as taxeram, aluminum phosphate binders, and takibine; chixosil; high-purity metal oxide consisting of high-purity tantalum and niobium pentaoxide; and functional nanomaterials. Further, it engages in the real estate business. The company serves customers in various fields, including agriculture, chemicals, functional materials, and biotechnology. The company was formerly known as Taki Fertilizer Manufacturing Co., Ltd. and changed its name to Taki Chemical Co., Ltd. in 1974. Taki Chemical Co., Ltd. was founded in 1885 and is headquartered in Kakogawa, Japan.
How the Company Makes MoneyTaki Chemical Co., Ltd. generates revenue primarily through the sale of its chemical products. The company's key revenue streams include industrial chemicals, which are used in manufacturing processes across different sectors, and agricultural chemicals, which help improve crop yield and protect plants. Specialty chemicals, which are tailored for specific applications, also contribute significantly to the company's income. Taki Chemical Co., Ltd. may engage in strategic partnerships and collaborations, enhancing its market reach and product offerings, thereby boosting its sales and profitability. Additionally, the company's focus on research and development helps in creating innovative products that meet the evolving needs of its clients, further driving revenue growth.

Taki Chemical Co., Ltd. Financial Statement Overview

Summary
Taki Chemical Co., Ltd. exhibits strong financial health with significant revenue and profit growth. The income statement shows enhanced profitability and robust margins, though EBIT margins could improve. The balance sheet is very strong with low leverage and high equity, reducing financial risk. The cash flow statement indicates a significant improvement in cash generation, though consistency in positive free cash flow is needed.
Income Statement
85
Very Positive
Taki Chemical Co., Ltd. has demonstrated solid revenue growth with a 11.65% increase in 2024. Its gross profit margin improved to 23.13%, indicating efficient cost management. The net profit margin increased to 5.91%, showcasing enhanced profitability. Both EBIT and EBITDA margins reflected healthy operational performance at 6.86% and 10.05% respectively. Overall, the company shows strong revenue and profit growth with robust margins, though there is room for improvement in EBIT margins.
Balance Sheet
88
Very Positive
The balance sheet of Taki Chemical Co., Ltd. is robust with a low debt-to-equity ratio of 0.03, indicating minimal reliance on debt financing. The equity ratio of 64.85% reflects a strong equity position relative to total assets. Moreover, the return on equity (ROE) is impressive at 6.07%, signifying efficient use of equity to generate profits. The company's financial position is stable with low leverage and high equity, reducing financial risk.
Cash Flow
80
Positive
The company has experienced a significant improvement in free cash flow, transitioning from negative in previous years to a positive 2.53 billion in 2024, indicating better cash management. The operating cash flow to net income ratio at 1.89 suggests strong cash generation capability relative to net income. However, while the free cash flow is positive this year, consistent positive free cash flow generation remains an area to watch.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.92B34.85B35.85B32.81B30.18B
Gross Profit9.01B6.93B8.81B8.56B7.49B
EBITDA4.52B3.12B4.03B3.85B2.88B
Net Income2.30B1.36B2.06B1.92B1.56B
Balance Sheet
Total Assets58.40B51.30B50.32B46.04B42.94B
Cash, Cash Equivalents and Short-Term Investments7.46B5.08B6.26B6.53B6.43B
Total Debt1.22B1.15B1.24B1.34B1.44B
Total Liabilities20.44B17.40B18.27B16.66B15.86B
Stockholders Equity37.88B33.82B31.95B29.23B26.93B
Cash Flow
Free Cash Flow2.53B-529.00M-34.00M218.00M1.88B
Operating Cash Flow4.34B1.62B1.44B2.82B3.02B
Investing Cash Flow-1.61B-1.64B-1.08B-2.32B-1.01B
Financing Cash Flow-352.00M-1.17B-543.00M-498.00M-561.00M

Taki Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2907.00
Price Trends
50DMA
2876.00
Positive
100DMA
3045.60
Negative
200DMA
3260.00
Negative
Market Momentum
MACD
1.44
Negative
RSI
56.69
Neutral
STOCH
60.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4025, the sentiment is Neutral. The current price of 2907 is above the 20-day moving average (MA) of 2857.30, above the 50-day MA of 2876.00, and below the 200-day MA of 3260.00, indicating a neutral trend. The MACD of 1.44 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 60.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4025.

Taki Chemical Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥20.46B7.53
4.39%8.23%37.45%
76
Outperform
¥30.25B6.99
4.41%4.77%43.65%
73
Outperform
¥5.76B6.38
3.41%16.98%16.45%
72
Outperform
¥25.16B10.11
0.17%11.95%68.61%
70
Outperform
¥39.65B12.09
0.80%20.99%36.85%
44
Neutral
€13.21B7.54-1.83%0.86%-23.94%-110.06%
44
Neutral
AU$1.50B-6.23-41.37%3.85%-3.52%-43.04%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4025
Taki Chemical Co., Ltd.
2,907.00
-1,434.77
-33.05%
JP:4463
Nicca Chemical Co., Ltd.
1,298.00
324.53
33.34%
JP:4531
Yuki Gosei Kogyo Co., Ltd.
264.00
-33.02
-11.12%
JP:4970
Toyo Gosei Co., Ltd.
4,995.00
-4,281.65
-46.16%
JP:5013
Yushiro Chemical Industry Co., Ltd.
2,223.00
521.10
30.62%
JP:4080
Tanaka Chemical Corp.
406.00
-571.00
-58.44%

Taki Chemical Co., Ltd. Corporate Events

Taki Chemical Co. Announces Treasury Share Disposal for Stock Compensation
May 12, 2025

Taki Chemical Co., Ltd. has announced the disposal of 7,382 treasury shares as part of a restricted stock compensation plan aimed at incentivizing its Directors and Executive Officers. This move is designed to align the interests of the company’s leadership with those of its shareholders, fostering a long-term commitment to enhancing corporate value. The plan involves a structured allotment of shares with transfer restrictions, ensuring that the shares are retained by the eligible officers during their tenure, thereby strengthening the company’s governance and operational focus.

Taki Chemical Co., Ltd. Reports Strong Q1 2025 Financial Results
May 12, 2025

Taki Chemical Co., Ltd. reported a 6.3% increase in net sales for the first quarter of 2025, with significant growth in operating and ordinary profits. Despite a decrease in comprehensive income, the company forecasts continued growth in net sales and dividends for the fiscal year, indicating a positive outlook for stakeholders.

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.Date of analysis: May 14, 2025