tiprankstipranks
Trending News
More News >
Konoshima Chemical Co., Ltd. (JP:4026)
:4026
Japanese Market

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

Compare
0 Followers

Top Page

JP

Konoshima Chemical Co., Ltd.

(4026)

Rating:74Outperform
Price Target:
¥1,470.00
▲(17.88%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. (4026) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionKonoshima 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 MoneyKonoshima 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
82
Very Positive
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
78
Positive
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
65
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue25.12B25.97B23.98B21.79B19.78B21.20B
Gross Profit6.65B6.83B6.74B6.62B5.84B5.62B
EBITDA3.60B3.96B3.51B3.10B2.64B2.05B
Net Income1.57B1.62B1.53B1.36B1.09B600.00M
Balance Sheet
Total Assets30.68B29.75B29.39B24.70B18.60B19.08B
Cash, Cash Equivalents and Short-Term Investments1.30B1.17B2.15B1.87B967.00M1.44B
Total Debt9.31B10.44B8.00B4.91B3.09B5.27B
Total Liabilities19.60B17.84B18.83B15.33B10.06B11.53B
Stockholders Equity11.08B11.91B10.56B9.36B8.54B7.55B
Cash Flow
Free Cash Flow2.89B-2.25B-2.36B-345.00M1.83B183.00M
Operating Cash Flow2.89B3.34B1.82B2.06B3.01B1.09B
Investing Cash Flow0.00-5.64B-4.17B-2.37B-1.14B-731.00M
Financing Cash Flow0.001.32B2.63B1.22B-2.35B-195.00M

Konoshima Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1247.00
Price Trends
50DMA
1282.88
Negative
100DMA
1381.44
Negative
200DMA
1549.73
Negative
Market Momentum
MACD
-17.77
Negative
RSI
48.23
Neutral
STOCH
69.49
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 1247 is above the 20-day moving average (MA) of 1230.65, below the 50-day MA of 1282.88, and below the 200-day MA of 1549.73, indicating a neutral trend. The MACD of -17.77 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 69.49 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥10.25B8.98
4.45%-4.86%31.22%
74
Outperform
¥11.09B7.77
522.89%7.70%13.39%
73
Outperform
¥76.53B7.58
5.54%-0.07%-34.61%
73
Outperform
¥15.98B10.59
3.96%0.60%-13.74%
65
Neutral
$10.75B15.655.18%1.92%3.09%-27.41%
62
Neutral
¥9.04B6.10
5.08%5.18%-104.41%
54
Neutral
¥20.23B
3.88%-0.87%-288.95%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4026
Konoshima Chemical Co., Ltd.
1,248.00
-488.40
-28.13%
JP:5237
Nozawa Corp.
914.00
28.38
3.20%
JP:5351
Shinagawa Refractories Co., Ltd.
1,655.00
-197.81
-10.68%
JP:5391
A&A Material Corporation
1,193.00
-101.62
-7.85%
JP:5932
Sankyo Tateyama, Inc.
645.00
-137.62
-17.58%
JP:7871
Fukuvi Chemical Industry Co., Ltd.
788.00
-72.23
-8.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 24, 2025