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

• Market Cap: ¥121.06B
• Dividend Yield: 4.15%
• Average Volume (3M): 208.83K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.16
• 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: 1.58
• 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: ¥3,333.00 ▲(21.55% 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 business model

Ishihara’s dual focus on TiO2 pigments for coatings/plastics and agrochemicals provides structural revenue diversification across industrial and agricultural end markets. That product mix reduces single-market cyclicality and supports steadier demand and cash generation across 2–6 month horizons.

Improving cash generation

A reversal to stronger operating cash flow and positive free cash flow increases the company’s ability to fund capex, R&D, dividends and deleveraging without relying on external financing. Sustained FCF supports strategic investments and resilience to raw-material or demand swings over the medium term.

Solid equity base and prudent leverage

An increasing equity base and a balanced debt-to-equity profile indicate prudent financial management and stronger loss-absorbing capacity. This structural balance sheet strength preserves borrowing capacity and lowers refinancing risk over several months even if near-term earnings are pressured.

Negative Factors

Declining EBIT margin

A falling EBIT margin points to deteriorating operating leverage from cost inflation or pricing pressure; if persistent, margin erosion reduces internal funding for growth initiatives and limits ability to absorb raw-material swings, weakening profitability sustainability over 2–6 months.

Rising total debt levels

Incremental debt accumulation increases interest and refinancing exposure. Even with a balanced D/E today, continued leverage growth can constrain capital allocation, reduce financial flexibility for investments or dividends, and elevate medium-term solvency risk if cash flow weakens.

Cash-flow volatility and seasonality risk

Agrochemical revenues are inherently seasonal and weather/regulation dependent, and the company’s history shows cash-flow volatility. This makes working-capital needs and timing of receipts uneven, complicating budgeting and increasing the chance of shortfalls or higher short-term borrowing during off-seasons.

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

The company makes money mainly by manufacturing and selling (1) titanium dioxide (TiO2) pigments and related inorganic/chemical products and (2) agrochemicals (crop-protection chemicals). In the pigments/chemical materials business, revenue is generated from product sales to industrial customers that use TiO2 and related materials as inputs—commonly for applications such as paints/coatings, plastics, paper, and other manufacturing uses where whiteness, opacity, and durability are required. Earnings in this segment are typically driven by sales volume, product mix (including higher value-added grades), and pricing spread versus raw material and energy costs. In the agrochemicals business, revenue is generated from sales of crop-protection products to agricultural distributors and end users; performance is influenced by planting conditions, pest/disease incidence, regulatory requirements, and the timing of demand by season and geography. Specific details on major customer contracts, licensing/royalty income, named strategic partnerships, or the company’s segment-level revenue breakdown are null.

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	41.10B	39.16B	35.09B	34.08B	30.52B
EBITDA	19.62B	16.23B	17.48B	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	225.83B	225.05B	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	68.06B	52.92B	46.83B	58.04B
Total Liabilities	121.73B	111.38B	118.93B	104.48B	93.89B	100.50B
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: Neutral
• Last Price: 2742.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4028, the sentiment is Neutral. The current price of 2742 is below the 20-day moving average (MA) of 3512.00, below the 50-day MA of 3237.06, and above the 200-day MA of 2582.31, indicating a neutral trend. The MACD of -72.83 indicates Positive momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 7.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥111.02B	10.07	―	3.72%	5.40%	14.80%
4116	76 Outperform	¥79.56B	6.04	―	3.04%	1.57%	-33.97%
4028	70 Outperform	¥121.06B	6.63	―	4.15%	1.16%	167.89%
4612	69 Neutral	¥2.32T	13.66	11.64%	1.52%	9.81%	32.64%
4613	68 Neutral	¥408.31B	7.90	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥363.86B	10.69	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.