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

• Market Cap: ¥12.12B
• Dividend Yield: 3.31%
• Average Volume (3M): 66.10K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.89
• Revenue Growth: 5.51%
• EPS Growth: -11.66%
• Country: JP
• Employees: 448
• Sector: Industrials
• Sector Strength: 79
• Industry: Construction
• EPS (TTM): 27.92
• Shares Outstanding: 9,240,000
• 10 Day Avg. Volume: 56,020
• 30 Day Avg. Volume: 66,100
• 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: ¥1,470.00
• Price Target Upside: 10.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,470.00 ▲(10.44% 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	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: Neutral
• Last Price: 1331.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 1331 is above the 20-day moving average (MA) of 1318.30, above the 50-day MA of 1271.52, and below the 200-day MA of 1457.65, indicating a neutral trend. The MACD of 17.37 indicates Negative momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 68.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥11.41B	12.24		4.02%	-2.90%	-24.21%
5351	75 Outperform	¥90.14B	10.20		4.69%	5.02%	-22.36%
4026	74 Outperform	¥12.12B	8.56		3.31%	5.51%	-11.66%
7871	73 Outperform	¥17.69B	11.84		2.94%	1.51%	-13.05%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
5391	62 Neutral	¥9.60B	307.26		4.80%	4.42%	-98.20%
5932	54 Neutral	¥19.69B	―		3.95%	1.81%	-129.27%