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

• Market Cap: ¥34.31B
• Dividend Yield: 0.12%
• Average Volume (3M): 21.41K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.70
• Revenue Growth: 9.78%
• EPS Growth: 40.00%
• Country: JP
• Employees: 604
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 63.38
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,915.00 ▼(-2.37% Downside)

Taki Chemical Co., Ltd. has a strong financial foundation with solid revenue and profit growth, and a robust balance sheet. However, the technical indicators suggest bearish momentum, which is a significant risk factor. The valuation is reasonable, but the low dividend yield may not attract income investors. Overall, the stock is fundamentally strong but currently faces technical challenges.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Taki Chemical's products, supporting long-term business expansion and market position.

Balance Sheet Health

A strong balance sheet with minimal debt enhances financial stability and provides flexibility for strategic investments and growth.

Profit Margin Improvement

Improved profit margins reflect effective cost management and operational efficiency, boosting long-term profitability.

Negative Factors

Free Cash Flow Consistency

Inconsistent free cash flow generation could impact the company's ability to reinvest in growth and manage financial obligations.

Dividend Yield

A low dividend yield might deter income investors, potentially limiting the stock's appeal and affecting shareholder returns.

EBIT Margin

Lower EBIT margins suggest potential inefficiencies that could limit profitability and competitive positioning in the long run.

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. shows strong financial health with solid revenue growth, improved profit margins, and a robust balance sheet with minimal leverage. Cash flow has improved significantly, though consistent positive free cash flow generation remains an area to watch.

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: Positive
• Last Price: 4010.00
• 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:4025, the sentiment is Positive. The current price of 4010 is above the 20-day moving average (MA) of 3692.00, above the 50-day MA of 3682.20, and above the 200-day MA of 3349.34, indicating a bullish trend. The MACD of 67.12 indicates Negative momentum. The RSI at 68.09 is Neutral, neither overbought nor oversold. The STOCH value of 79.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	81 Outperform	¥25.49B	10.17	―	3.53%	6.99%	-0.30%
5013	77 Outperform	¥37.44B	7.84	―	3.53%	-3.45%	30.52%
4531	74 Outperform	¥6.55B	9.39	―	2.97%	9.92%	-27.64%
4025	66 Neutral	¥34.31B	11.94	―	0.12%	9.78%	40.00%
4970	65 Neutral	¥53.89B	21.73	―	0.67%	10.18%	-14.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	48 Neutral	¥13.53B	-10.42	-7.76%	―	-19.70%	-159.15%

Taki Chemical Co., Ltd. Corporate Events

Taki Chemical Reports Extraordinary Income from Investment Securities Sale

Taki Chemical Co., Ltd. has announced an extraordinary income gain from the sale of certain investment securities, totaling ¥584 million, as part of a strategic move to enhance capital efficiency and governance by reducing cross-shareholdings. This financial maneuver is expected to positively impact the company’s financial results for the fiscal year ending December 2025, with a total of ¥690 million recorded as extraordinary income in consolidated financial statements, aligning with previously revised earnings forecasts.

Taki Chemical Completes Share Repurchase Program

Taki Chemical Co., Ltd. has completed its share repurchase program, acquiring 38,200 shares for ¥147,090,496 between October 1 and October 17, 2025. This repurchase is part of a larger plan authorized by the Board of Directors to acquire up to 280,000 shares, with a total purchase price limit of ¥700,000,000, aimed at enhancing shareholder value.

Taki Chemical Co., Ltd. Reports Treasury Share Acquisition

Taki Chemical Co., Ltd. announced the acquisition of 72,500 treasury shares at a total cost of ¥277,147,994 between September 1 and September 30, 2025. This acquisition is part of a larger plan approved by the Board of Directors to acquire up to 280,000 shares by May 31, 2026, with a maximum budget of ¥700,000,000. The acquisition aims to enhance shareholder value and optimize the company’s capital structure.

Taki Chemical Co. Announces Treasury Shares Disposal for Employee Incentive Plan

Taki Chemical Co., Ltd. has announced a disposal of treasury shares as part of a new incentive plan to commemorate its 140th anniversary. The plan involves granting restricted stock to employees through the Taki Chemical Employees’ Stockholding Association, aiming to boost employee motivation and corporate value. This initiative reflects the company’s strategic focus on aligning employee interests with corporate growth, potentially enhancing its market position and stakeholder engagement.