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

• Market Cap: ¥13.19B
• Dividend Yield: 2.81%
• Average Volume (3M): 152.24K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.07
• Revenue Growth: 0.23%
• EPS Growth: -8.64%
• Country: JP
• Employees: 448
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 38.90
• Shares Outstanding: 9,240,000
• 10 Day Avg. Volume: 182,080
• 30 Day Avg. Volume: 152,236
• PEG Ratio: -0.70
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 6.28
• 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: 74 Outperform
• Price Target: ¥1,742.00 ▲(12.53% Upside)

Konoshima Chemical Co., Ltd. receives a strong overall score driven by positive technical indicators and reasonable valuation metrics. The company's financial performance is solid, but the decline in cash flow generation is a concern that needs addressing. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The strong revenue growth indicates a positive trajectory in sales, suggesting effective market strategies and product demand, which supports long-term business expansion.

Balance Sheet Health

Improved leverage and a stronger equity position enhance financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.

Market Position

Strategic partnerships expand market reach and sales capabilities, reinforcing the company's competitive position and supporting sustained revenue growth.

Negative Factors

Cash Flow Generation

Declining cash flow generation poses a risk to financial flexibility and the ability to fund future growth initiatives, necessitating improved cash management strategies.

Margin Sustainability

A slight decrease in gross profit margin suggests potential cost pressures, which could impact profitability if not addressed through operational efficiencies.

Profitability Concerns

Declining EBIT and EBITDA margins indicate challenges in maintaining cost efficiency, which could affect long-term profitability if not managed effectively.

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 strong revenue growth and stable profitability with a solid balance sheet. However, the decline in cash flow generation is a concern that needs addressing to sustain long-term growth.

Income Statement

Konoshima Chemical Co., Ltd. has shown a strong revenue growth rate of 9.1% in the latest year, indicating a positive trajectory in sales. The gross profit margin is healthy at 25.28%, although it has slightly decreased from previous years. The net profit margin is stable at 5.23%, reflecting consistent profitability. However, the EBIT and EBITDA margins have declined, suggesting potential cost pressures or operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.69, indicating a reduction in leverage and a stronger equity position. The return on equity is solid at 11.06%, showcasing effective use of shareholder funds. The equity ratio stands at 42.19%, reflecting a stable financial structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

The free cash flow growth rate has significantly declined by 35.5%, raising concerns about cash generation. The operating cash flow to net income ratio is 0.23, indicating moderate cash flow efficiency. The free cash flow to net income ratio is 0.60, suggesting that a substantial portion of earnings is converted into free cash flow. The company needs to focus on improving its cash flow generation to support future growth.

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: 1548.00
• 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 1548 is above the 20-day moving average (MA) of 1480.40, above the 50-day MA of 1488.47, and above the 200-day MA of 1372.97, indicating a bullish trend. The MACD of 16.95 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 76.80 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
7871	80 Outperform	¥18.73B	11.37	―	3.03%	0.27%	7.57%
5237	78 Outperform	¥11.79B	11.64	―	3.84%	0.58%	-9.72%
4026	74 Outperform	¥13.19B	9.94	―	2.81%	0.23%	-8.64%
5351	73 Outperform	¥86.70B	9.74	―	4.35%	12.87%	-13.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5391	56 Neutral	¥9.87B	316.08	―	4.76%	7.32%	-93.45%
5932	52 Neutral	¥19.07B	-6.22	―	4.08%	1.03%	-92.80%