Tayca Corporation (4027) AI Stock Analysis

• Market Cap: ¥26.18B
• Dividend Yield: 3.24%
• Average Volume (3M): 43.33K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.98
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,481.00 ▲(20.02% Upside)

Tayca Corporation's strong financial foundation and fair valuation are the primary drivers of its score. While technical indicators show stable momentum, the negative free cash flow highlights potential challenges in capital management. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Tayca's products, supporting long-term business expansion and market presence.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and supporting growth.

Market Position

As a leader in advanced materials, Tayca benefits from a strong market position, enabling it to capitalize on industry trends and demand.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can strain liquidity, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Operational Efficiency

Suboptimal operational efficiency may hinder profitability, necessitating cost management improvements to enhance margins and competitiveness.

Liquidity Concerns

Liquidity concerns due to negative free cash flow may affect the company's ability to meet short-term obligations and fund strategic initiatives.

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

Tayca Corporation shows strong financial performance with solid revenue growth and profitability margins. The balance sheet is robust with high equity and low debt, but negative free cash flow due to capital expenditures poses a liquidity concern.

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: Negative
• Last Price: 1234.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4027, the sentiment is Negative. The current price of 1234 is above the 20-day moving average (MA) of 1233.45, below the 50-day MA of 1279.18, and below the 200-day MA of 1289.64, indicating a bearish trend. The MACD of -16.54 indicates Negative momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥32.29B	12.49	―	1.90%	2.15%	16.14%
4022	77 Outperform	¥48.63B	11.38	―	2.22%	5.17%	79.36%
4027	75 Outperform	¥26.18B	14.09	―	3.24%	1.83%	-8.54%
4028	74 Outperform	¥110.59B	7.95	―	4.15%	1.16%	167.89%
4078	70 Outperform	¥52.84B	8.15	―	4.37%	-1.09%	―
4112	67 Neutral	¥31.91B	17.11	―	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.

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.