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

• Market Cap: ¥34.66B
• Dividend Yield: 0.13%
• Average Volume (3M): 21.41K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.73
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥4,293.00 ▲(12.24% Upside)

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

Strong balance sheet

Extremely low leverage and a high equity ratio reduce financial risk and preserve strategic optionality. This capital structure supports sustained R&D and capex spending, cushioning the company through sector downturns and enabling stable investment decisions over the medium term.

Improved cash generation

The move to positive free cash flow and strong operating cash conversion indicates better underlying cash generation. Durable FCF strengthens the firm's ability to fund innovation, working capital and potential shareholder returns, increasing financial resilience across cycles.

Diversified end-market exposure & R&D focus

Serving multiple sectors and emphasizing R&D and partnerships provides structural demand diversity and product differentiation. This lowers single-market concentration risk and supports premium, application-specific offerings that sustain revenue and competitive position over time.

Negative Factors

Modest net profit margin

A net margin below 6% offers limited buffer against feedstock cost spikes or pricing pressure in chemicals. Sustained modest margins can restrict reinvestment capacity, slow margin expansion initiatives and limit long-term returns, making the company more sensitive to cost volatility.

Free cash flow consistency risk

Although FCF turned positive this year, historical variability means cash-generation reliability is unproven. If cash conversion reverts during downturns, the firm could face constraints on capex, R&D funding or dividends, limiting strategic flexibility in the medium term.

Exposure to cyclical end markets

Significant exposure to automotive and electronics ties revenue to cyclical capex and product cycles. Structural demand swings in these industries can drive volatile order patterns for specialty chemicals, complicating capacity utilization, forecasting and margin stability over business cycles.

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: 3825.00
• 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 3825 is below the 20-day moving average (MA) of 3883.41, above the 50-day MA of 3682.39, and above the 200-day MA of 3323.68, indicating a bullish trend. The MACD of 89.10 indicates Negative momentum. The RSI at 59.42 is Neutral, neither overbought nor oversold. The STOCH value of 74.00 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	¥24.30B	9.69	―	3.53%	6.99%	-0.30%
5013	77 Outperform	¥39.30B	8.41	―	3.53%	-3.45%	30.52%
4531	74 Outperform	¥7.55B	10.88	―	2.97%	9.92%	-27.64%
4025	66 Neutral	¥34.66B	11.84	―	0.13%	9.78%	40.00%
4970	65 Neutral	¥60.32B	23.51	―	0.67%	10.18%	-14.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	48 Neutral	¥13.73B	-10.54	-7.76%	―	-19.70%	-159.15%

Taki Chemical Co., Ltd. Corporate Events

Taki Chemical Cuts Size of Treasury Share Disposal for Employee Stock Plan

Taki Chemical Co., Ltd. has completed the payment procedures for the disposal of treasury shares as restricted stock to its Employees’ Stockholding Association, under a previously approved plan to grant company stock to employees via the association. Due to partial forfeiture of rights by some association members, the number of shares disposed was reduced from the initial maximum plan to 40,964 shares, lowering the total disposal amount to ¥161.2 million, and the company stated that this adjustment will not affect its earnings forecast for the current fiscal year.

The most recent analyst rating on (JP:4025) stock is a Hold with a Yen3915.00 price target. To see the full list of analyst forecasts on Taki Chemical Co., Ltd. stock, see the JP:4025 Stock Forecast page.

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.

The most recent analyst rating on (JP:4025) stock is a Hold with a Yen3915.00 price target. To see the full list of analyst forecasts on Taki Chemical Co., Ltd. stock, see the JP:4025 Stock Forecast page.

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.

The most recent analyst rating on (JP:4025) stock is a Buy with a Yen3311.00 price target. To see the full list of analyst forecasts on Taki Chemical Co., Ltd. stock, see the JP:4025 Stock Forecast page.