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

• Market Cap: ¥12.32B
• Dividend Yield: 3.32%
• Average Volume (3M): 50.73K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.96
• Revenue Growth: 7.70%
• EPS Growth: 13.39%
• Country: JP
• Employees: 448
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction
• EPS (TTM): 27.92
• Shares Outstanding: 9,240,000
• 10 Day Avg. Volume: 42,150
• 30 Day Avg. Volume: 50,726
• PEG Ratio: 0.73
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.93
• 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

• Rating: 74 Outperform
• Price Target: ¥1,470.00 ▲(7.69%Upside)

Konoshima Chemical Co., Ltd. scores well on valuation due to its low P/E ratio and attractive dividend yield, which are significant strengths. Financial performance is solid, but challenges in cash flow management present some risks. Technical indicators suggest a neutral to slightly bearish short-term outlook.

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

Company Description

Konoshima Chemical Co., Ltd. (4026) is a Japanese company engaged in the manufacturing and sale of chemical products. The company specializes in producing chemical solutions and materials, with a focus on industrial applications. Its core products include magnesium compounds, chemical fertilizers, and other specialized chemical products catering to various industries such as agriculture, pharmaceuticals, and electronics.

How the Company Makes Money

Konoshima Chemical Co., Ltd. generates revenue through the sale of its chemical products, primarily magnesium compounds and chemical fertilizers. These products are essential for various industrial applications, making them key revenue drivers. The company leverages its expertise in chemical manufacturing to supply high-quality materials to sectors like agriculture, where fertilizers play a crucial role, and electronics, where specialized compounds are needed. Additionally, strategic partnerships and contracts with industrial clients contribute to its earnings, enhancing its market position and opening up new revenue opportunities.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
25.12B	25.97B	23.98B	21.79B	19.78B	21.20B
	Gross Profit
6.65B	6.83B	6.74B	6.62B	5.84B	5.62B
	EBIT
2.00B	2.12B	2.17B	2.08B	1.51B	927.00M
	EBITDA
3.60B	3.96B	3.51B	3.10B	2.64B	2.05B
	Net Income Common Stockholders
1.57B	1.62B	1.53B	1.36B	1.09B	600.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.30B	1.17B	2.15B	1.87B	967.00M	1.44B
	Total Assets
30.68B	29.75B	29.39B	24.70B	18.60B	19.08B
	Total Debt
9.31B	10.44B	8.00B	4.91B	3.09B	5.27B
	Net Debt
8.00B	9.27B	5.85B	3.04B	2.13B	3.83B
	Total Liabilities
19.60B	17.84B	18.83B	15.33B	10.06B	11.53B
	Stockholders Equity
11.08B	11.91B	10.56B	9.36B	8.54B	7.55B
Cash Flow		Free Cash Flow
2.89B	-2.25B	-2.36B	-345.00M	1.83B	183.00M
	Operating Cash Flow
2.89B	3.34B	1.82B	2.06B	3.01B	1.09B
	Investing Cash Flow
0.00	-5.64B	-4.17B	-2.37B	-1.14B	-731.00M
	Financing Cash Flow
0.00	1.32B	2.63B	1.22B	-2.35B	-195.00M

Konoshima Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1365.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1365 is above the 20-day moving average (MA) of 1329.65, above the 50-day MA of 1300.62, and below the 200-day MA of 1593.49, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 33.86 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥9.82B	8.60		4.63%	-4.86%	31.21%
5351	74 Outperform	¥77.95B	7.72		5.43%	-0.07%	-34.61%
4026	74 Outperform	¥12.32B	8.63		3.32%	7.70%	13.39%
7871	71 Outperform	¥16.34B	10.84		3.88%	0.60%	-13.76%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
5391	55 Neutral	¥8.55B	6.10		5.37%	5.18%	-104.44%
5932	52 Neutral	¥19.10B	―		4.09%	-0.87%	-288.95%