Tokuyama (4043) AI Stock Analysis

• Market Cap: ¥236.87B
• Dividend Yield: 3.04%
• Average Volume (3M): 532.99K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.96
• Revenue Growth: 0.32%
• EPS Growth: 31.76%
• Country: JP
• Employees: 5,734
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 68.27
• Shares Outstanding: 72,088,326
• 10 Day Avg. Volume: 393,140
• 30 Day Avg. Volume: 532,986
• PEG Ratio: 3.55
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 181.85
• 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

• Rating: 77 Outperform
• Price Target: ¥3,562.00 ▲(8.20%Upside)

Tokuyama's strong valuation, characterized by an attractive P/E ratio and dividend yield, is the key driver of its overall favorable stock score. The positive technical indicators further reinforce this outlook, showing healthy market momentum. The company's solid financial performance adds to its stability, making it a strong player in the specialty chemicals industry.

Tokuyama Business Overview & Revenue Model

Company Description

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, chlorinated solvents, and hydrogen. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokuyama Corporation generates revenue through the production and sale of its chemical products, which are categorized into several segments. The chemicals segment includes soda ash, caustic soda, and vinyl chloride monomers, which are used in various industrial applications. The cement segment produces and sells cement and related products, contributing significantly to its revenue. In the electronics materials segment, Tokuyama provides semiconductor-grade silicon and other high-purity materials essential for the electronics industry. Additionally, the company's healthcare segment offers dental and medical diagnostic products. Key revenue streams include domestic and international sales of these products, with strategic partnerships and joint ventures enhancing market reach and production capabilities.

Tokuyama Financial Statement Overview

Summary

Tokuyama demonstrates steady revenue growth and improved profitability, supported by effective cost management and stable cash flow generation. The balance sheet remains strong with controlled leverage and a robust equity base, while cash flows indicate efficient cash conversion despite some fluctuations. These factors contribute to a solid financial standing in the specialty chemicals industry.

Income Statement

Tokuyama's revenue showed a modest increase from 2024 to 2025, with a revenue growth rate of 0.32%. The gross profit margin improved to 31.52% in 2025, reflecting efficient cost management. The net profit margin increased to 6.82%, indicating enhanced profitability. The EBIT margin was 8.74%, and the EBITDA margin was 15.13%, both showing positive trends. Overall, the company demonstrates strong profitability with stable revenue growth.

Balance Sheet

The debt-to-equity ratio improved from 0.42 in 2024 to 0.42 in 2025, showing consistent leverage management. The return on equity (ROE) increased to 8.94%, indicating effective use of equity to generate profit. The equity ratio was 54.94%, reflecting a strong equity base. Overall, Tokuyama maintains a solid balance sheet with stable leverage and equity management.

Cash Flow

Tokuyama's free cash flow grew by 22.83%, showcasing strong cash-generating abilities. However, the operating cash flow to net income ratio decreased to 2.24, while the free cash flow to net income ratio remained stable at 1.27, indicating effective conversion of net income to cash flow. Overall, the cash flow statements reflect robust cash management, albeit with some variability in operating cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	343.07B	341.99B	351.79B	293.83B	302.41B
Gross Profit	108.14B	99.52B	90.78B	95.41B	95.15B
EBITDA	51.92B	44.96B	37.07B	49.32B	50.24B
Net Income	23.39B	17.75B	9.36B	28.00B	24.53B
Balance Sheet
Total Assets	476.21B	457.36B	478.34B	433.21B	386.79B
Cash, Cash Equivalents and Short-Term Investments	75.54B	48.68B	68.08B	83.12B	83.68B
Total Debt	110.69B	105.78B	142.45B	109.22B	98.44B
Total Liabilities	202.34B	197.41B	236.74B	200.29B	181.53B
Stockholders Equity	261.56B	249.26B	229.45B	224.50B	198.56B
Cash Flow
Free Cash Flow	29.77B	24.24B	-43.72B	-5.90B	19.51B
Operating Cash Flow	52.37B	55.83B	-11.80B	25.99B	43.31B
Investing Cash Flow	-23.48B	-30.41B	-33.76B	-33.80B	-19.28B
Financing Cash Flow	-1.11B	-46.51B	30.15B	5.12B	-22.53B

Tokuyama Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3292.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4043, the sentiment is Positive. The current price of 3292 is above the 20-day moving average (MA) of 3144.97, above the 50-day MA of 2989.19, and above the 200-day MA of 2740.21, indicating a bullish trend. The MACD of 87.96 indicates Negative momentum. The RSI at 68.28 is Neutral, neither overbought nor oversold. The STOCH value of 88.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4043.

Tokuyama Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4043	77 Outperform	¥236.87B	10.13	9.01%	3.04%	0.32%	31.76%
Sector *	63 Neutral	€8.61B	8.95	34.42%	33.52%	-1.58%	56.22%
KANKF	―	$1.83B	10.97	5.38%	0.13%	―	―
MBGCF	―	$3.43B	11.33	6.78%	1.87%	―	―
UBEOF	―	$1.54B	10.29	-1.23%	0.30%	―	―
ZEOOF	―	$2.14B	11.81	7.16%	0.55%	―	―
4046	74 Outperform	¥251.27B	23.66		0.98%	1.99%	35.53%

Tokuyama Corporate Events

Tokuyama Corporation Updates Management Strategies for Sustainable Growth

Tokuyama Corporation has announced updates on its management strategies to improve capital cost awareness and stock price performance. Despite growth in business performance and stock price, the company’s price book-value ratio remains below 1x, prompting efforts to transform its business portfolio. Key initiatives include enhancing shareholder returns, prioritizing investments in growth businesses, and discontinuing underperforming operations. The company aims to exceed a PBR of 1x and achieve sustainable growth, aligning with its Medium-Term Management Plan 2025.

Tokuyama Reports Strong Fiscal 2024 Performance and Plans Increased Dividends

Tokuyama Corporation reported an increase in both net sales and operating profit for fiscal 2024, driven by strong sales of semiconductor-related products and cost reductions. Despite not meeting all targets of their Medium-Term Management Plan 2025, the company forecasts record highs in net sales, operating profit, and ordinary profit for FY2025. Additionally, Tokuyama plans to enhance shareholder returns by increasing dividends, with a year-end dividend of ¥50 per share for FY2024 and a planned ¥60 per share for FY2025, marking a ¥20 increase for two consecutive periods.