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

• Market Cap: ¥33.19B
• Dividend Yield: 0.13%
• Average Volume (3M): 21.41K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.66
• Revenue Growth: 9.78%
• EPS Growth: 40.00%
• Country: JP
• Employees: 604
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 160.57
• Shares Outstanding: 9,458,768
• 10 Day Avg. Volume: 16,570
• 30 Day Avg. Volume: 21,413
• PEG Ratio: 0.23
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 43.08
• 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: 73 Outperform
• Price Target: ¥4,371.00 ▲(14.27% Upside)
• Action: Upgraded Date: 02/11/26
• Date: Action: Upgraded 02/11/26

The score is driven primarily by improving profitability and an exceptionally low-leverage balance sheet, offset by uneven and weaker cash-flow conversion in 2025. Technicals are mixed-to-neutral (below the 20-day average but above longer-term averages), while valuation is supportive with a low P/E and a modest dividend yield.

Positive Factors

Improving Profitability

Sustained margin expansion indicates the company has improved pricing power or cost structure, translating into higher operating cash potential and sturdier earnings. Over 2-6 months this supports reinvestment, dividend coverage and resilience to modest revenue volatility.

Very Low Leverage

An exceptionally low debt load provides durable financial flexibility: capacity for capex, M&A, or dividend stability without refinancing pressure. This conservative structure reduces solvency risk and supports strategy through economic cycles.

Revenue Recovery Trend

A multi-year rebound shows recovering demand and market traction, enabling better utilization of fixed costs and the recent margin gains to stick. Continued modest top-line growth underpins medium-term cash generation and business stability.

Negative Factors

Volatile Cash Generation

Inconsistent FCF undermines the sustainability of earnings: swings limit reliable funding for capex, buybacks or higher dividends and increase dependence on working capital timing. Over months this raises execution risk for strategic initiatives.

Uneven Growth Profile

A prior sharp dip and only modest recent growth suggest exposure to cyclical demand or product mix constraints. This pattern limits operational leverage and the pace at which scale-driven margin gains can expand over the medium term.

Moderate Return on Equity

Mid-single-digit ROE indicates only moderate capital efficiency; even with improving profitability, the company may struggle to deliver high returns on reinvested capital. Over months this can constrain shareholder value creation versus higher-return competitors.

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

Profitability improved meaningfully with gross margin rising to ~24.4% (2025) from ~19.9% (2023) and net margin to ~7.8% from ~3.9%. The balance sheet is very strong with very low leverage (debt-to-equity ~0.03) and growing equity, but cash flow is inconsistent with volatile free cash flow and weaker cash conversion in 2025 (FCF ~32% of net income).

Income Statement

Revenue has grown over the last two years (2024–2025), rebounding from a softer 2023, and profitability has improved meaningfully: gross margin expanded to ~24.4% (2025) from ~19.9% (2023), while net margin rose to ~7.8% from ~3.9%. Operating profitability also strengthened (EBIT margin ~10.5% in 2025). The main weakness is the uneven growth profile (notable dip in 2023) and only moderate top-line growth in 2025 (~4%).

Balance Sheet

The balance sheet looks conservatively financed with very low leverage (debt-to-equity ~0.03 across recent years) and steadily growing equity (from ~¥26.9B in 2020 to ~¥42.9B in 2025). Returns on equity have improved to ~7.6% in 2025 versus ~4.0% in 2023, indicating better profitability on a larger capital base. The key limitation is that returns, while improving, are still mid-single-digit to high-single-digit rather than standout for the sector.

Cash Flow

Cash generation is the weakest area: free cash flow has been volatile, including negative free cash flow in 2022 and 2023, followed by a strong 2024 and a sharp step-down in 2025 (free cash flow ~¥0.75B). Operating cash flow also swings materially year to year (down to ~¥2.31B in 2025 from ~¥4.34B in 2024), and free cash flow is relatively low versus net income in 2025 (~32%), pointing to less consistent cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.36B	41.98B	38.92B	34.85B	35.85B	32.81B
Gross Profit	9.80B	10.24B	9.01B	6.93B	8.81B	8.56B
EBITDA	4.81B	5.76B	4.52B	3.12B	4.33B	3.88B
Net Income	2.68B	3.28B	2.30B	1.36B	2.06B	1.92B
Balance Sheet
Total Assets	60.66B	65.65B	58.40B	51.30B	50.32B	46.04B
Cash, Cash Equivalents and Short-Term Investments	5.72B	7.37B	7.46B	5.08B	6.26B	6.53B
Total Debt	1.35B	1.26B	1.22B	1.15B	1.24B	1.34B
Total Liabilities	21.18B	22.32B	20.44B	17.40B	18.27B	16.66B
Stockholders Equity	39.05B	42.89B	37.88B	33.82B	31.95B	29.23B
Cash Flow
Free Cash Flow	0.00	748.00M	2.53B	-529.00M	-34.00M	218.00M
Operating Cash Flow	0.00	2.31B	4.34B	1.62B	1.44B	2.82B
Investing Cash Flow	0.00	-1.06B	-1.61B	-1.64B	-1.08B	-2.32B
Financing Cash Flow	0.00	-1.46B	-352.00M	-1.17B	-543.00M	-498.00M

Taki Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3825.00
• 50DMA: Negative
• 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 Negative. The current price of 3825 is below the 20-day moving average (MA) of 3873.75, below the 50-day MA of 3925.80, and above the 200-day MA of 3471.60, indicating a neutral trend. The MACD of -17.55 indicates Negative momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 34.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5013	78 Outperform	¥44.91B	8.53	―	3.53%	-3.45%	30.52%
4025	73 Outperform	¥33.19B	10.03	―	0.13%	9.78%	40.00%
7925	71 Outperform	¥36.03B	18.64	―	3.45%	4.17%	23.25%
4366	71 Outperform	¥14.51B	17.60	―	1.81%	9.07%	―
4463	66 Neutral	¥28.12B	11.91	―	3.53%	6.99%	-0.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4960	60 Neutral	¥11.54B	93.74	―	1.06%	-9.63%	-1.71%

Taki Chemical Co., Ltd. Corporate Events

Taki Chemical Raises 2028 Medium-Term Plan Targets on Strong Performance

Taki Chemical has revised the final-year targets of its Medium-Term Management Plan 2028, lifting net sales guidance from ¥42 billion to ¥44 billion and operating profit from ¥3 billion to ¥3.5 billion, while raising its return on equity goal from at least 6% to at least 7%. The upgrade follows stronger-than-expected results in the first two years, supported by higher fertilizer and water treatment chemical volumes, successful price hikes reflecting raw material cost increases, and broad-based segment growth, and the company aims to balance aggressive growth investments with disciplined capital efficiency and agile shareholder returns to enhance long-term corporate value.

The most recent analyst rating on (JP:4025) stock is a Hold with a Yen4266.00 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 Raises 2028 Targets and Steps Up Investor Outreach to Close Valuation Gap

Taki Chemical Co. has updated its capital- and stock-price-conscious management policies after achieving record-high profits in fiscal 2025, driven by higher sales volumes in fertilizers and water treatment chemicals and robust demand for high-purity tantalum oxide, yet its price-to-book ratio has remained below 1.0 since September 2024. The company attributes this valuation gap to insufficiently articulated growth strategies and is responding by raising its 2028 medium-term targets for sales and operating profit, committing to aggressive investment in growth businesses, sustainability transformation, stronger governance and risk management, and enhanced communication with investors and shareholder returns.

To support its Long-Term Vision 2050, Taki Chemical is reinforcing its three business pillars of agriculture, chemicals, and real estate, while seeking synergies from its newly consolidated subsidiary Rakuto Chemical Industry in biostimulants and eco-friendly water treatment products. Management plans include bolstering disclosure through enriched sustainability reporting, more frequent investor briefings, and systematic feedback of investor views into corporate decision-making, with the aim of improving market recognition, lifting ROE, and closing the discount between its share price and underlying net asset value.

The most recent analyst rating on (JP:4025) stock is a Hold with a Yen4266.00 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 Details 2025 Results and Progress on Medium-Term Plan 2028

Taki Chemical Co., Ltd. released supplementary materials on its consolidated financial results for the fiscal year ended December 31, 2025, detailing earnings performance, segment results, balance sheet data and cash flow trends. The disclosure also covers dividend information, progress under the company’s “Medium-term Management Plan 2028,” and a consolidated earnings forecast for the fiscal year ending December 31, 2026, signaling how management intends to drive growth and allocate capital across its multi-segment operations.

The materials break down performance across key business units, including agriculture, chemicals, real estate, construction materials, petroleum and transportation, highlighting how each segment contributed to overall results and key performance indicators. By tying current-year results to the milestones and basic policies of the Medium-term Management Plan 2028, the company provides stakeholders with a view of its strategic trajectory and expectations for future operating and financial performance, including projected earnings for 2026.

The most recent analyst rating on (JP:4025) stock is a Hold with a Yen4266.00 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 Delivers Strong 2025 Earnings but Guides Lower Profit for 2026

Taki Chemical reported solid results for the fiscal year ended December 31, 2025, with revenue rising 7.9% year on year to ¥41.98 billion and operating profit up 18.6% to ¥3.16 billion. Profit attributable to owners of the parent jumped 42.5% to ¥3.28 billion, lifting basic earnings per share to ¥389.05 and pushing the equity ratio to 65.3% as total assets expanded to ¥65.65 billion.

Operating cash flow declined but remained positive at ¥2.31 billion, while the company continued to invest and returned more cash to shareholders, raising its year-end dividend to ¥75 per share from ¥55 a year earlier and planning a further increase to ¥80 for 2026. Management forecasts modest top-line growth to ¥43.0 billion in 2026 but expects a double-digit decline in profits as operating income is projected to fall 22.6% and net profit 19.1%, indicating a more challenging earnings environment despite ongoing commitment to dividend growth.

The most recent analyst rating on (JP:4025) stock is a Hold with a Yen4266.00 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 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.