Taki Chemical Co., Ltd. (4025) AI Stock Analysis

• Market Cap: ¥32.75B
• Dividend Yield: 0.13%
• Average Volume (3M): 21.41K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.66
• Revenue Growth: 9.61%
• EPS Growth: 53.78%
• Country: JP
• Employees: 604
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 99.49
• Shares Outstanding: 9,458,768
• 10 Day Avg. Volume: 16,570
• 30 Day Avg. Volume: 21,413
• PEG Ratio: 0.17
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 11.54
• 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: ¥3,311.00
• Price Target Upside: -12.52% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥3,311.00 ▼(-12.52% Downside)

The stock of Taki Chemical Co., Ltd. scores well due to its strong financial performance, characterized by healthy revenue and profit growth, and a solid balance sheet. Technical indicators show positive momentum, while valuation metrics suggest the stock is reasonably priced despite a low dividend yield. The lack of earnings call data or notable corporate events does not affect the score significantly.

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

Company Description

Taki 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 Money

Taki Chemical Co., Ltd. generates revenue primarily through the sale of its chemical products, which are tailored for specific applications across various industries. The company's revenue model is based on a combination of direct sales to end-users and partnerships with distributors and other manufacturers. Key revenue streams include specialty chemicals for automotive coatings, electronic materials for the semiconductor industry, and agricultural chemicals for crop protection. Additionally, Taki Chemical engages in long-term contracts with major clients, ensuring a steady income flow. The company's focus on innovation and quality has led to significant partnerships and collaborations with leading firms, further bolstering its market presence and financial performance.

Taki Chemical Co., Ltd. Financial Statement Overview

Summary

Taki Chemical Co., Ltd. exhibits strong financial health with solid revenue growth, improved profit margins, and a robust balance sheet with minimal leverage. The company has also shown significant improvement in cash generation despite previous negative free cash flows.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.36B	38.92B	34.85B	35.85B	32.81B	30.18B
Gross Profit	9.80B	9.01B	6.93B	8.81B	8.56B	7.49B
EBITDA	4.81B	4.52B	3.12B	4.33B	3.88B	3.24B
Net Income	2.68B	2.30B	1.36B	2.06B	1.92B	1.56B
Balance Sheet
Total Assets	60.66B	58.40B	51.30B	50.32B	46.04B	42.94B
Cash, Cash Equivalents and Short-Term Investments	5.72B	7.46B	5.08B	6.26B	6.53B	6.43B
Total Debt	1.35B	1.22B	1.15B	1.24B	1.34B	1.44B
Total Liabilities	21.18B	20.44B	17.40B	18.27B	16.66B	15.86B
Stockholders Equity	39.05B	37.88B	33.82B	31.95B	29.23B	26.93B
Cash Flow
Free Cash Flow	0.00	2.53B	-529.00M	-34.00M	218.00M	1.88B
Operating Cash Flow	0.00	4.34B	1.62B	1.44B	2.82B	3.02B
Investing Cash Flow	0.00	-1.61B	-1.64B	-1.08B	-2.32B	-1.01B
Financing Cash Flow	0.00	-352.00M	-1.17B	-543.00M	-498.00M	-561.00M

Taki Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3785.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3785 is below the 20-day moving average (MA) of 3860.00, above the 50-day MA of 3735.40, and above the 200-day MA of 3286.82, indicating a neutral trend. The MACD of 20.56 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4463	78 Outperform	¥23.36B	9.25	―	3.85%	6.41%	-3.59%
4025	77 Outperform	¥32.75B	11.94	―	0.13%	9.61%	53.78%
4531	74 Outperform	¥6.09B	8.43	―	3.23%	19.66%	-13.42%
5013	72 Outperform	¥29.17B	5.86	―	4.53%	3.47%	33.32%
4970	68 Neutral	¥51.83B	20.63	―	0.66%	14.95%	-10.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	46 Neutral	€12.59B	7.54	-10.10%	―	-18.84%	-162.99%

Taki Chemical Co., Ltd. Corporate Events

Taki Chemical Co., Ltd. Reports Strong First Half 2025 Financial Results

Taki Chemical Co., Ltd. reported significant growth in its consolidated financial results for the first half of 2025, with a notable increase in net sales and profits compared to the previous year. The company has revised its earnings forecast for the full year, anticipating continued growth, and announced a special dividend to commemorate its 140th anniversary, reflecting its strong financial position and commitment to shareholder returns.

Taki Chemical Co. Revises Earnings Forecasts and Announces Share Buyback

Taki Chemical Co., Ltd. announced an upward revision of its earnings and dividend forecasts for the fiscal year ending December 31, 2025, driven by improved sales and strategic financial decisions. The company plans to enhance shareholder value through a special and commemorative dividend and a share repurchase program, reflecting its commitment to capital efficiency and long-term growth.