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Tosoh
(4042)
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Rating:57Neutral
Price Target:
¥2,747.00
▲(0.07% Upside)
Action:Reiterated
Date:08/05/26
Overall score reflects solid balance-sheet resilience but weaker cash-flow quality and a soft technical backdrop. Margin compression versus 2022 and volatile/free-cash-flow weakness weigh on financial performance, while bearish momentum signals (below key moving averages and negative MACD) further limit the score. A relatively attractive dividend yield helps offset the valuation impact.
Positive Factors
Diversified product mix with specialty and life-science businesses
Tosoh’s mix of commodity chemicals, higher-value specialty polymers and catalysts, plus a life-science diagnostics/consumables business creates durable revenue diversity. Specialty and consumables tend to have longer qualification cycles and recurring demand, reducing cyclicality and supporting stable mid-term margins and customer stickiness.
Negative Factors
Weak and volatile cash generation
Low cash conversion and a steep FCF decline constrain the company’s ability to fund capex, reduce debt, or sustain payouts without external financing. Persistent cash volatility reduces strategic optionality, increases refinancing risk, and limits capital available for upgrading plants or scaling higher-margin specialty lines.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified product mix with specialty and life-science businesses
Tosoh’s mix of commodity chemicals, higher-value specialty polymers and catalysts, plus a life-science diagnostics/consumables business creates durable revenue diversity. Specialty and consumables tend to have longer qualification cycles and recurring demand, reducing cyclicality and supporting stable mid-term margins and customer stickiness.
Read all positive factors
Tosoh (4042) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥862.51B
Dividend Yield3.69%
Average Volume (3M)1.42M
Price to Earnings (P/E)20.5
Beta (1Y)0.84
Revenue Growth-4.09%
EPS Growth-26.93%
CountryJP
Employees14,850
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)175.07
Shares Outstanding325,080,960
10 Day Avg. Volume1,159,440
30 Day Avg. Volume1,423,120
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)0.87
Price to Sales (P/S)0.71
P/FCF Ratio16.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)203.87
Revenue Forecast (FY)¥1.12T
Tosoh Business Overview & Revenue Model
Company Description
Tosoh Corporation (4042) is a Japanese chemical company that manufactures and sells basic and specialty chemicals, petrochemicals, and advanced materials. The company operates across multiple segments that include chlor-alkali and related commodit...
How the Company Makes Money
Tosoh makes money primarily by manufacturing and selling chemical and materials products to industrial customers, earning revenue from product shipments across its chemical and specialty businesses. A major revenue stream comes from commodity and ...
Tosoh Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05T | 1.02T | 1.06T | 1.01T | 1.06T | 918.58B |
| Gross Profit | 278.98B | 261.03B | 253.95B | 222.19B | 215.51B | 269.04B |
| EBITDA | 156.38B | 140.89B | 151.69B | 140.48B | 126.11B | 201.40B |
| Net Income | 54.54B | 41.62B | 58.00B | 57.33B | 50.34B | 107.94B |
Balance Sheet | ||||||
| Total Assets | 1.47T | 1.41T | 1.33T | 1.29T | 1.19T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 191.37B | 179.62B | 141.55B | 149.81B | 120.15B | 161.52B |
| Total Debt | 282.14B | 228.91B | 185.46B | 183.13B | 182.96B | 95.22B |
| Total Liabilities | 540.25B | 489.81B | 424.88B | 431.18B | 400.05B | 327.94B |
| Stockholders Equity | 841.22B | 831.79B | 827.11B | 794.56B | 738.89B | 709.10B |
Cash Flow | ||||||
| Free Cash Flow | 18.48B | 44.73B | 26.35B | 58.26B | -95.86B | 64.13B |
| Operating Cash Flow | 78.41B | 114.56B | 106.24B | 116.97B | -16.24B | 108.61B |
| Investing Cash Flow | -66.34B | -72.13B | -81.57B | -59.94B | -78.73B | -43.52B |
| Financing Cash Flow | 25.32B | -9.71B | -37.92B | -31.22B | 50.17B | -57.85B |
Tosoh Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥11.45T | 22.60 | 10.90% | 1.58% | 0.62% | -2.72% | |
64 Neutral | ¥2.34T | 12.12 | 8.13% | 2.28% | 4.03% | 61.70% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | ¥853.84B | 14.04 | 6.28% | 2.51% | -10.66% | 58.38% | |
57 Neutral | ¥862.51B | 20.48 | 5.11% | 3.52% | -4.09% | -26.93% | |
57 Neutral | ¥1.61T | -39.48 | 0.66% | 2.69% | -7.96% | 106.67% | |
56 Neutral | ¥295.58B | 18.84 | 5.26% | 3.71% | -4.00% | ― |
* Basic Materials Sector Average
JP:4042
Tosoh
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Tosoh Corporate Events
Tosoh Restores Earnings Guidance With Higher Sales and Profit Outlook for FY2027
Aug 4, 2026
Tosoh Corporation has issued consolidated earnings forecasts for the fiscal year ending March 31, 2027, after previously withholding guidance due to Middle East-related uncertainties affecting production plans, raw material costs, and demand. For ...
Tosoh Posts Strong Q1 Rebound and Lifts Full-Year Earnings Outlook
Aug 4, 2026
Tosoh reported a sharp rebound in earnings for the quarter ended June 30, 2026, as net sales rose 11.8% to ¥274.2 billion and operating income nearly doubled, while income attributable to owners of the parent surged 198%. Basic earnings per s...
Tosoh to Grant ¥252.8 Million in Restricted Stock to Management
Jul 10, 2026
Tosoh Corporation’s board has approved the disposal of 93,319 treasury shares as restricted stock compensation, valued at about ¥252.8 million, to five internal directors and 31 executive officers. The shares will be issued on August 4,...
Tosoh Outlines Fiscal 2026 Reporting Scope and Cautions on Forward-Looking Data
May 13, 2026
Tosoh Corporation has released headline information indicating the coverage period for its fiscal 2026 results, spanning April 1, 2025, to March 31, 2026, and clarified that the disclosed document is an English translation of selected portions of ...
Tosoh Taps Veteran Executive Kiuchi as New Representative Director
May 13, 2026
Tosoh Corporation has announced a change in its top management, appointing executive vice president Takafumi Kiuchi as representative director and executive vice president, effective June 25, 2026. Kiuchi, a company veteran since 1988, has led key...
Tosoh Posts Lower Profit but Keeps Dividend, Holds Back Guidance Amid Uncertainty
May 13, 2026
Tosoh reported consolidated net sales of ¥1.02 trillion for the year ended March 31, 2026, down 4.1% year on year, with operating income slipping 3.4% to ¥95.5 billion and ordinary income rising 3.6% to ¥106.8 billion. Profit attrib...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.