Tayca Corporation (4027) AI Stock Analysis

• Market Cap: ¥38.97B
• Dividend Yield: 3.24%
• Average Volume (3M): 43.33K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.04
• Revenue Growth: 1.83%
• EPS Growth: -8.54%
• Country: JP
• Employees: 815
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 8.62
• Shares Outstanding: 23,914,413
• 10 Day Avg. Volume: 38,220
• 30 Day Avg. Volume: 43,330
• PEG Ratio: 0.41
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -13.44
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,042.00 ▲(65.34% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is driven primarily by strong financial stability (high equity, low leverage) and solid profitability trends, partially offset by negative free cash flow from elevated capex. Technicals remain bullish with the price above major moving averages and a positive MACD, but overbought readings (RSI/Stoch) temper the technical score. Valuation is supportive with a moderate P/E and a ~2.86% dividend yield.

Positive Factors

Strong balance sheet

A very high equity ratio and low leverage materially reduce solvency and refinancing risk. This financial flexibility supports multi‑period capital allocation (R&D, specialty product development, selective capex or buffering cyclical downturns) and preserves strategic optionality over months.

Healthy operating cash generation

Operating cash generation well above reported earnings signals strong cash conversion from core operations. That durability funds working capital, supports dividend or reinvestment capacity and provides a cash cushion against cyclical demand shifts while longer-term investments complete.

Solid revenue and EBITDA margins

Consistent top‑line growth with healthy EBITDA and gross margins indicates resilient product economics and likely favorable product mix (specialty grades). Durable margins increase the firm's ability to absorb input cost swings and sustain reinvestment and margin stability over the medium term.

Negative Factors

Negative free cash flow from capex

Sustained negative free cash flow driven by elevated capex can strain liquidity and reduce optionality. If invested projects take longer to yield returns, the company may need to curtail distributions, seek external financing or delay other investments, increasing execution and funding risk.

Modest return on equity

A low ROE implies the sizable equity base is generating limited shareholder returns. With a high equity ratio, capital may be underutilized; absent operational efficiency gains or higher‑return deployment of capital, long‑term shareholder value growth could remain constrained.

Earnings volatility / EPS decline

A large year‑over‑year EPS decline signals volatility in underlying profitability, which undermines forecasting and the sustainability of payouts or reinvestment plans. Persistent EPS swings could reflect cyclical end‑market exposure or margin pressure, complicating medium‑term planning.

Tayca Corporation Business Overview & Revenue Model

Company Description

Tayca Corporation manufactures and sells various industrial chemical products in Japan. The company offers general purpose products, including titanium dioxide, surfactants, and sulfuric acid; and specialty products, such as micro titanium dioxide, micro zinc oxide, surface treatment products, photocatalytic titanium dioxide, aluminum triphosphate, and titanium dioxide for shielding from infrared rays. It also provides electronic industry materials and other products comprising electroconductive polymers and piezoelectric materials, as well as anti-corrosive pigments. The company was formerly known as Teikoku Kako Co., Ltd. and changed its name to Tayca Corporation in August 1989. Tayca Corporation was incorporated in 1919 and is headquartered in Osaka, Japan.

How the Company Makes Money

Tayca Corporation generates revenue through multiple streams, primarily through the sale of its advanced electronic components and specialty chemicals. The company's revenue model is built on a combination of direct sales to manufacturers in the electronics and automotive industries, as well as long-term contracts with key clients for consistent supply. Additionally, Tayca benefits from strategic partnerships with technology firms and research institutions, allowing them to co-develop products and access new markets. The demand for high-performance materials in emerging technologies, such as electric vehicles and renewable energy systems, also contributes significantly to Tayca's earnings, driving growth in their core business segments.

Tayca Corporation Financial Statement Overview

Summary

Income statement is solid (revenue +5.18%, improving net margin to 4.34% and EBITDA margin 12.28%), and the balance sheet is strong (equity ratio 66.60%, low debt-to-equity 0.21). The main offset is cash flow quality: free cash flow turned negative due to higher capex (FCF to net income -0.94), which raises liquidity/capital allocation risk despite strong operating cash generation (OCF to net income 2.09).

Income Statement

Tayca Corporation has demonstrated solid revenue growth with a 5.18% increase from 2024 to 2025. The gross profit margin stands at 17.66%, indicating efficient cost management. The net profit margin has improved to 4.34%, reflecting increased profitability. However, the EBIT margin of 6.32% suggests room for operational efficiency improvements. EBITDA margin is healthy at 12.28%, showing strong earnings potential before non-operational expenses.

Balance Sheet

The company maintains a robust equity ratio of 66.60%, indicating strong financial stability and low leverage with a debt-to-equity ratio of 0.21. Return on equity is moderate at 4.12%, suggesting potential for improved shareholder returns. Overall, the balance sheet reflects a solid financial position with high equity and manageable debt levels.

Cash Flow

Operating cash flow has remained stable, but free cash flow has turned negative due to higher capital expenditures, resulting in a free cash flow to net income ratio of -0.94. The operating cash flow to net income ratio of 2.09 indicates strong cash generation relative to earnings, yet the negative free cash flow poses a concern for liquidity management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.81B	55.74B	52.99B	54.77B	46.36B	38.40B
Gross Profit	9.87B	9.84B	8.69B	10.44B	9.65B	9.03B
EBITDA	6.64B	6.84B	5.97B	7.64B	7.58B	5.73B
Net Income	2.20B	2.42B	1.87B	2.99B	2.85B	1.93B
Balance Sheet
Total Assets	88.20B	88.34B	82.71B	75.72B	72.13B	69.18B
Cash, Cash Equivalents and Short-Term Investments	12.43B	14.09B	14.31B	11.66B	13.06B	13.33B
Total Debt	11.49B	12.53B	9.53B	6.86B	5.00B	6.51B
Total Liabilities	28.73B	28.94B	24.95B	22.06B	20.87B	18.95B
Stockholders Equity	58.93B	58.84B	57.29B	53.22B	50.89B	49.89B
Cash Flow
Free Cash Flow	0.00	-2.28B	1.36B	-2.11B	2.37B	96.00M
Operating Cash Flow	0.00	5.06B	4.98B	581.00M	4.84B	4.95B
Investing Cash Flow	0.00	-7.08B	-3.95B	-2.98B	-2.81B	-4.91B
Financing Cash Flow	0.00	1.68B	1.45B	825.00M	-2.36B	2.52B

Tayca Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1235.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4027, the sentiment is Positive. The current price of 1235 is below the 20-day moving average (MA) of 1634.00, below the 50-day MA of 1425.22, and below the 200-day MA of 1319.60, indicating a bullish trend. The MACD of 102.33 indicates Negative momentum. The RSI at 78.05 is Negative, neither overbought nor oversold. The STOCH value of 87.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4027.

Tayca Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5302	75 Outperform	¥55.77B	11.56	10.88%	4.46%	-1.14%	34.15%
4095	75 Outperform	¥187.96B	13.84	―	3.50%	3.85%	-1.53%
4027	74 Outperform	¥38.97B	26.79	―	3.24%	1.83%	-8.54%
4008	70 Outperform	¥98.75B	23.17	―	3.74%	-0.68%	-9.93%
5301	63 Neutral	¥237.63B	11.84	-14.04%	3.06%	-7.36%	-574.56%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4023	60 Neutral	¥187.44B	19.37	4.24%	3.76%	-7.81%	25.04%

Tayca Corporation Corporate Events

Tayca Posts Profit Slump on Flat Sales but Hikes Dividend and Confirms Lower Full‑Year Outlook

Tayca Corporation reported consolidated net sales of ¥41.9 billion for the nine months ended December 31, 2025, a modest 1.5% year-on-year increase, while operating profit, ordinary profit and profit attributable to owners of parent fell sharply by around 40–50%, reflecting margin pressure despite stable top-line growth; basic earnings per share declined to ¥54.50 from ¥91.88. The company’s financial position remained solid, with total assets rising to ¥91.3 billion and an equity ratio of 66.9%, and it revised its full‑year forecast to project higher sales but profit levels roughly half those of the prior year, while also lifting its expected annual dividend to ¥60 per share from ¥38, signaling a commitment to shareholder returns even as earnings weaken.

The most recent analyst rating on (JP:4027) stock is a Buy with a Yen1537.00 price target. To see the full list of analyst forecasts on Tayca Corporation stock, see the JP:4027 Stock Forecast page.

Tayca Raises Dividend and Signals More Aggressive Shareholder Returns Ahead of Mid-term Plan Revision

Tayca Corporation has begun revising its mid-term management plan “MOVING-10 STAGE 2” after acknowledging that persistent geopolitical risks and high raw material and fuel costs are weighing on profitability, leaving its ROE in the 2% range and its PBR below 1x for the fiscal year ending March 2026. In response, the board has decided to front-load part of a new shareholder return approach by sharply raising the dividend forecast for the fiscal year ending March 2026 to an annual 60 yen per share, doubling the year-end dividend forecast from 20 yen to 40 yen, and signaling a shift to a dividend policy based on a 3.0% DOE and more active share buybacks, including a planned 2.5 billion yen share repurchase by the end of the next fiscal year, details of which will be incorporated into the revised mid-term plan due in May 2026.

The most recent analyst rating on (JP:4027) stock is a Buy with a Yen1537.00 price target. To see the full list of analyst forecasts on Tayca Corporation stock, see the JP:4027 Stock Forecast page.

Tayca Slashes Full-Year Profit Forecast on Cost Surge and Weak Functional Materials Demand

Tayca Corporation has sharply downgraded its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, citing rising costs from persistently high raw material and fuel prices driven by geopolitical risks, along with sluggish sales in its functional materials business, particularly micro particle products for cosmetics. The company now projects net sales of ¥58.0 billion, down from the previous ¥59.0 billion forecast, and expects operating profit to fall by nearly half to ¥1.7 billion, ordinary profit to ¥2.1 billion, and profit attributable to owners of parent to ¥1.3 billion, implying earnings per share of ¥56.09; all major profit metrics are now forecast to undershoot both the prior guidance and, in some cases, the previous fiscal year’s results, signaling margin pressure and weaker profitability that could weigh on investor sentiment and highlight ongoing cost and demand challenges in its core materials businesses.

The most recent analyst rating on (JP:4027) stock is a Buy with a Yen1537.00 price target. To see the full list of analyst forecasts on Tayca Corporation stock, see the JP:4027 Stock Forecast page.

Tayca Corporation to Absorb Subsidiary TFT Corporation for Operational Efficiency

Tayca Corporation announced its decision to absorb its wholly owned subsidiary, TFT Corporation, effective April 1, 2026, to enhance operational efficiency by consolidating overlapping administrative divisions and leveraging management resources. This merger, which involves no issuance of new shares or cash payments, is expected to streamline operations and strengthen Tayca’s position in the electronic materials market.

The most recent analyst rating on (JP:4027) stock is a Buy with a Yen1481.00 price target. To see the full list of analyst forecasts on Tayca Corporation stock, see the JP:4027 Stock Forecast page.