Tayca Corporation (4027) AI Stock Analysis

• Market Cap: ¥30.63B
• Dividend Yield: 3.24%
• Average Volume (3M): 43.33K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.96
• Revenue Growth: 1.83%
• EPS Growth: -8.54%
• Country: JP
• Employees: 815
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 13.06
• 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: ¥1,565.00 ▲(26.72% Upside)

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

Balance Sheet Strength

A high equity ratio and very low leverage provide durable financial flexibility, lowering refinancing and covenant risk. This balance-sheet strength supports sustained investment in R&D and capital projects, cushions cyclical revenue shocks, and underpins long-term creditworthiness.

Operating Cash Generation

Operating cash generation materially exceeds reported earnings, indicating strong cash conversion and core cash profitability. Over the medium term this supports reinvestment, working-capital needs and distributions, helping fund growth despite periodic profit volatility.

Secular End-Market Exposure

Exposure to electronics, automotive and renewable-energy supply chains ties sales to secular growth in EVs and renewables. Long-term contracts and technology partnerships position the company to capture structural demand for high-performance materials and sustain revenue growth.

Negative Factors

Negative Free Cash Flow

Sustained negative free cash flow driven by elevated capex can erode liquidity and limit optionality. Over several quarters this pressures the ability to fund dividends, M&A or further R&D without drawing on reserves or raising external capital, increasing financing risk.

Modest Operating Margins

Relatively modest EBIT margins constrain how much revenue converts to shareholder returns and reduce buffer against raw-material or pricing shocks. Improving operational efficiency is required to raise ROE and sustainably fund strategic initiatives without relying on balance-sheet leverage.

Declining EPS Trend

Negative EPS growth signals recent earnings pressure that may reflect margin, pricing or mix headwinds. If sustained, declining EPS undermines reinvestment capacity and dividend sustainability, and may indicate vulnerability to competitive or cyclical industry pressures over the medium term.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• STOCH: Neutral

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 1335.95, below the 50-day MA of 1275.16, and below the 200-day MA of 1286.10, indicating a bullish trend. The MACD of 56.36 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 75.10 is Neutral, 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
4462	78 Outperform	¥33.81B	12.59	―	1.90%	2.15%	16.14%
4022	75 Outperform	¥56.49B	13.24	―	2.22%	5.17%	79.36%
4027	74 Outperform	¥30.63B	16.36	―	3.24%	1.83%	-8.54%
4028	74 Outperform	¥114.19B	8.20	―	4.15%	1.16%	167.89%
4078	70 Outperform	¥52.64B	8.60	―	4.37%	-1.09%	―
4112	65 Neutral	¥37.53B	19.61	―	2.37%	-11.70%	-54.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tayca Corporation Corporate Events

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.

Tayca Corporation Reports Decline in Semi-Annual Financial Performance

Tayca Corporation reported a decline in its financial performance for the six months ending September 30, 2025, with net sales decreasing by 3.2% and operating profit dropping by 35.6% compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio of 67.3%, indicating a stable financial position. The forecast for the fiscal year ending March 31, 2026, shows a slight increase in net sales by 5.9%, though operating and ordinary profits are expected to decrease. The company plans to maintain its dividend payments, reflecting a commitment to shareholder returns.

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.