Konoshima Chemical Co., Ltd. (4026) AI Stock Analysis

• Market Cap: ¥13.15B
• Dividend Yield: 3.04%
• Average Volume (3M): 95.97K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.92
• Revenue Growth: 2.25%
• EPS Growth: -26.12%
• Country: JP
• Employees: 448
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 38.90
• Shares Outstanding: 9,240,000
• 10 Day Avg. Volume: 173,950
• 30 Day Avg. Volume: 95,966
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,653.00
• Price Target Upside: 13.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,653.00 ▲(13.45% Upside)

Konoshima Chemical Co., Ltd. receives a strong overall score driven by its undervalued stock price and attractive dividend yield. The technical analysis supports a bullish outlook, although caution is advised due to overbought signals. Financial performance is solid, but the company must address cash flow challenges to ensure sustainable growth.

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

Company Description

Konoshima Chemical Co.,Ltd. manufactures and sells building materials, chemicals, and ceramics. The company offers residential and non-residential ceramic siding, eaves, gable boards, and refractory panels; and non-combustible building materials for residential and non-residential buildings. It also provides chemicals, such as magnesium oxide, flame retardant magnesium hydroxide, and magnesium carbonate; and functional ceramics. The company was founded in 1917 and is headquartered in Osaka, Japan.

How the Company Makes Money

Konoshima Chemical Co., Ltd. generates revenue primarily through the sale of its chemical products across multiple industries. Key revenue streams include the agricultural sector, where it supplies fertilizers and agrochemicals to farmers, contributing significantly to its earnings. The company also earns income from the sale of specialty chemicals used in electronics manufacturing, which cater to the growing demand for advanced technological solutions. Strategic partnerships with agricultural distributors and technology firms enhance its market reach and sales capabilities. Additionally, Konoshima's focus on research and development allows it to innovate and introduce new products, thereby maintaining a competitive edge and driving revenue growth.

Konoshima Chemical Co., Ltd. Financial Statement Overview

Summary

Konoshima Chemical Co., Ltd. shows solid financial health with consistent revenue growth and stable profitability. The balance sheet indicates manageable leverage and a good equity position, but cash flow management needs improvement due to negative free cash flow, which presents potential liquidity concerns.

Income Statement

Konoshima Chemical Co., Ltd. has shown consistent revenue growth with a 8.30% increase from 2023 to 2024. The gross profit margin has remained stable around 26%, indicating effective cost management. The net profit margin improved slightly, reaching 6.24% in 2024, reflecting improved profitability. The EBIT and EBITDA margins are relatively healthy at 8.15% and 15.25% respectively, showcasing operational efficiency.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio of 0.88, which is manageable for the industry. Return on Equity (ROE) has improved to 13.60% in 2024, indicating efficient use of shareholders' equity. The equity ratio stands at 40.04%, suggesting a balanced capital structure with a good level of equity financing.

Cash Flow

The cash flow statement indicates challenges with free cash flow, which is negative, primarily due to high capital expenditures. Operating cash flow to net income ratio is favorable at 2.06, suggesting good cash conversion from earnings. However, the negative free cash flow to net income ratio highlights potential liquidity concerns that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.12B	27.41B	25.97B	23.98B	21.79B	19.78B
Gross Profit	6.65B	6.93B	6.83B	6.74B	6.62B	5.84B
EBITDA	3.60B	3.76B	3.96B	3.51B	3.10B	2.64B
Net Income	1.57B	1.43B	1.62B	1.53B	1.36B	1.09B
Balance Sheet
Total Assets	30.68B	30.73B	29.75B	29.39B	24.70B	18.60B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.44B	1.17B	2.15B	1.87B	967.00M
Total Debt	9.31B	8.93B	10.44B	8.00B	4.91B	3.09B
Total Liabilities	19.60B	17.77B	17.84B	18.83B	15.33B	10.06B
Stockholders Equity	11.08B	12.96B	11.91B	10.56B	9.36B	8.54B
Cash Flow
Free Cash Flow	2.89B	1.86B	-2.25B	-2.36B	-345.00M	1.83B
Operating Cash Flow	2.89B	3.09B	3.34B	1.82B	2.06B	3.01B
Investing Cash Flow	0.00	-1.24B	-5.64B	-4.17B	-2.37B	-1.14B
Financing Cash Flow	0.00	-1.59B	1.32B	2.63B	1.22B	-2.35B

Konoshima Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1457.00
• 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:4026, the sentiment is Positive. The current price of 1457 is above the 20-day moving average (MA) of 1381.30, above the 50-day MA of 1321.52, and above the 200-day MA of 1433.82, indicating a bullish trend. The MACD of 40.60 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 77.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4026.

Konoshima Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	79 Outperform	11.47B	12.45	5.60%	3.98%	-2.90%	-24.21%
4026	77 Outperform	¥13.15B	10.24		3.04%	2.25%	-26.12%
5351	75 Outperform	89.43B	10.22	10.99%	4.74%	5.02%	-22.36%
7871	73 Outperform	17.77B	11.85	4.01%	2.99%	1.51%	-13.05%
5391	62 Neutral	9.67B	309.95	-0.64%	4.75%	4.42%	-98.20%
5932	52 Neutral	20.13B	-8.61	-2.56%	3.89%	1.81%	-129.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%