ISHIHARA SANGYO KAISHA, LTD. (4028) AI Stock Analysis

• Market Cap: ¥156.62B
• Dividend Yield: 4.15%
• Average Volume (3M): 208.83K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.07
• Revenue Growth: 1.16%
• EPS Growth: 167.89%
• Country: JP
• Employees: 1,813
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 103.41
• Shares Outstanding: 40,383,945
• 10 Day Avg. Volume: 200,680
• 30 Day Avg. Volume: 208,830
• PEG Ratio: 1.59
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 8.00
• 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): 337.2
• Revenue Forecast (FY): ¥150.60B

• Rating: 70 Outperform
• Price Target: ¥3,867.00 ▲(41.03% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance (growth, healthy margins, improving cash generation) and supportive valuation (low P/E and good dividend yield). These positives are tempered by technical overbought conditions and financial risks from declining EBIT margin and rising debt.

Positive Factors

Diversified End Markets

The company sells both titanium dioxide pigments to coatings/plastics/paper industries and agrochemicals to farming markets. This product diversification reduces exposure to a single end-market cycle, supports steady demand across sectors, and underpins resilient revenue streams over multiple quarters.

Revenue Growth & Gross Margin

Reported strong revenue growth combined with healthy gross margins indicates effective pricing, product mix, and manufacturing efficiency. These traits support sustainable operating profitability and provide structural capacity to absorb cost shocks and invest in higher-value product segments over the medium term.

Improving Cash Generation

A sustained improvement to operating cash flow and positive free cash flow enhance financial flexibility for capex, R&D, dividends, and debt servicing. Reliable cash generation is a durable strength that supports reinvestment and reduces reliance on external financing across business cycles.

Negative Factors

Rising Total Debt

An increase in total debt raises leverage and fixed interest obligations, reducing financial flexibility. If debt growth outpaces cash generation or equity growth, it constrains capital allocation, raises refinancing risk, and could force tighter spending during downturns, harming long-term investment plans.

Declining EBIT Margin

A falling EBIT margin signals margin compression from higher operating costs or pricing pressure. Persisting margin declines would erode operating profitability, limit free cash flow expansion, and weaken the company's ability to fund innovation or defend market share without structural cost or pricing responses.

Historical Cash-Flow Volatility

Volatile cash flows reduce predictability for debt servicing, dividends, and capex. Even with recent improvement, recurring volatility can force precautionary liquidity buffers, increase financing costs, and complicate long-term planning, making sustained strategic investments and payout commitments riskier.

ISHIHARA SANGYO KAISHA, LTD. Business Overview & Revenue Model

Company Description

Ishihara Sangyo Kaisha, Ltd. engages in the manufacture and sale of organic and inorganic chemicals in Japan, Asia, the United States, Europe, and internationally. The company offers titanium dioxide (TiO2) products under the TIPAQUE trade name, which includes white pigments for applications in paints, inks, plastics, paper, and other products; yellow pigments; and functional materials, such as ultrafine TiO2, ultrafine ZnO, electro-conductive materials, photocatalytic TiO2, high purity TiO2, titanium tetrachride, TiO2 for catalytic use, acicular type TiO2, glass coating, and battery materials. In addition, it offers matting agents; heat shield materials; agrochemicals, including herbicides, fungicides, insecticides, and nematicides; animal healthcare products; pharmaceutical reagents; and CF3-Pyridine organic intermediates for use in the pharmaceutical research. Ishihara Sangyo Kaisha, Ltd. was founded in 1920 and is headquartered in Osaka, Japan.

How the Company Makes Money

ISHIHARA SANGYO KAISHA generates revenue primarily through the sale of its chemical products across different sectors. The company's key revenue streams include agrochemicals, which are sold to farmers and agricultural businesses, and specialty chemicals that serve various industries such as healthcare and manufacturing. The company also benefits from collaborations and partnerships with other firms for research and development, which helps to enhance its product offerings and expand its market reach. Additionally, ISHIHARA SANGYO KAISHA's focus on innovation and sustainability enables it to capture emerging market trends, further contributing to its earnings.

ISHIHARA SANGYO KAISHA, LTD. Financial Statement Overview

Summary

Financial statements are solid overall: strong revenue growth and healthy gross margin, improving operating cash flow and positive free cash flow. Offsetting factors include a declining EBIT margin (higher operating costs/pressure), rising total debt, and historical cash-flow volatility.

Income Statement

The company exhibits strong revenue growth, with a notable increase from the previous year. The gross profit margin is healthy, indicating efficient production processes. However, the declining EBIT margin suggests rising operating costs or competitive pressures. Net profit margin remains stable, reflecting consistent profitability.

Balance Sheet

The company maintains a balanced debt-to-equity ratio, indicating prudent financial management. Stockholders’ equity has increased, reinforcing a strong equity position. However, total debt levels have risen, which could pose potential risks if not managed carefully.

Cash Flow

Cash flow from operations has improved significantly, reversing negative trends from previous years. The free cash flow is positive, enhancing financial flexibility. However, historical volatility in cash flows suggests potential risks in cash management and consistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	150.16B	145.20B	138.46B	131.24B	110.95B	101.77B
Gross Profit	42.95B	39.53B	37.10B	33.27B	32.66B	28.62B
EBITDA	20.04B	17.91B	16.08B	13.97B	16.21B	10.68B
Net Income	10.28B	8.41B	7.99B	6.95B	11.69B	3.37B
Balance Sheet
Total Assets	237.33B	225.10B	224.32B	201.91B	185.76B	180.02B
Cash, Cash Equivalents and Short-Term Investments	30.69B	24.95B	19.98B	17.66B	27.07B	25.94B
Total Debt	65.59B	68.94B	66.91B	52.92B	46.83B	56.58B
Total Liabilities	121.73B	110.65B	118.21B	104.48B	93.89B	100.51B
Stockholders Equity	115.41B	114.27B	106.07B	97.43B	91.87B	79.52B
Cash Flow
Free Cash Flow	0.00	8.53B	-10.35B	-10.64B	12.02B	-1.40B
Operating Cash Flow	0.00	18.33B	-2.81B	-6.02B	16.50B	4.75B
Investing Cash Flow	0.00	-11.41B	-7.04B	-5.02B	-4.32B	-6.16B
Financing Cash Flow	0.00	-2.34B	11.52B	1.05B	-11.60B	6.36B

ISHIHARA SANGYO KAISHA, LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2742.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4028, the sentiment is Positive. The current price of 2742 is below the 20-day moving average (MA) of 3453.50, below the 50-day MA of 3070.40, and above the 200-day MA of 2470.82, indicating a bullish trend. The MACD of 269.89 indicates Negative momentum. The RSI at 76.95 is Negative, neither overbought nor oversold. The STOCH value of 74.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4028.

ISHIHARA SANGYO KAISHA, LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4633	77 Outperform	¥134.02B	11.39	―	3.72%	5.40%	14.80%
4116	76 Outperform	¥90.80B	12.64	―	3.04%	1.57%	-33.97%
4028	70 Outperform	¥156.62B	9.25	―	4.15%	1.16%	167.89%
4612	69 Neutral	¥2.72T	15.09	10.44%	1.52%	9.81%	32.64%
4613	68 Neutral	¥466.36B	13.77	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥419.23B	12.96	8.14%	2.61%	-1.45%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

ISHIHARA SANGYO KAISHA, LTD. Corporate Events

Ishihara Sangyo Kaisha Hikes Earnings and Dividend Forecasts for Fiscal 2026

Ishihara Sangyo Kaisha has raised its full-year consolidated earnings forecast for the fiscal year ending March 2026, citing strong performance in its organic chemicals segment and favorable foreign exchange movements. While titanium dioxide in the inorganic chemicals business continues to face a tough market environment, robust overseas sales of agrochemicals are expected to drive higher net sales, operating profit, ordinary profit and net income attributable to owners than previously projected.

In line with the improved earnings outlook and its “Vision 2030 Stage II” capital policy, the company also revised its dividend forecast upward, lifting the planned year-end dividend from ¥70 to ¥90 per share. This will bring the total annual dividend to ¥120 per share, including a ¥30 interim payout, reflecting a stronger focus on shareholder returns through a higher payout ratio and a commitment to maintaining stable dividends tied to performance and capital efficiency metrics.

The most recent analyst rating on (JP:4028) stock is a Buy with a Yen3483.00 price target. To see the full list of analyst forecasts on ISHIHARA SANGYO KAISHA, LTD. stock, see the JP:4028 Stock Forecast page.

Ishihara Sangyo Kaisha Lifts Profit Outlook and Dividends on Strong Nine-Month Results

Ishihara Sangyo Kaisha reported consolidated net sales of ¥108.1 billion for the nine months ended 31 December 2025, up 2.5% year on year, while operating profit nearly tripled to ¥11.1 billion and profit attributable to owners of parent surged more than fourfold to ¥9.6 billion. The company’s equity ratio remained stable at just above 50%, and comprehensive income rose sharply, underscoring a significant improvement in profitability and financial strength over the previous year.

On the back of these stronger results, the company raised its full-year forecast, now projecting ¥154.5 billion in net sales and a 62.2% jump in operating profit to ¥17 billion, with earnings per share expected to climb to ¥339.74. It also revised its dividend plan higher, targeting a total annual dividend of ¥120 per share for the year to March 2026, and expanded its consolidation scope by adding ISK Biosciences India, signaling continued international expansion and enhanced shareholder returns.

The most recent analyst rating on (JP:4028) stock is a Buy with a Yen3483.00 price target. To see the full list of analyst forecasts on ISHIHARA SANGYO KAISHA, LTD. stock, see the JP:4028 Stock Forecast page.