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Tokuyama Corporation (JP:4043)
:4043
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Tokuyama (4043) AI Stock Analysis

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JP:4043

Tokuyama

(OTC:4043)

Rating:77Outperform
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 (4043) vs. iShares MSCI Japan ETF (EWJ)

Tokuyama Business Overview & Revenue Model

Company DescriptionTokuyama 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 MoneyTokuyama 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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue343.07B341.99B351.79B293.83B302.41B
Gross Profit108.14B99.52B90.78B95.41B95.15B
EBITDA51.92B44.96B37.07B49.32B50.24B
Net Income23.39B17.75B9.36B28.00B24.53B
Balance Sheet
Total Assets476.21B457.36B478.34B433.21B386.79B
Cash, Cash Equivalents and Short-Term Investments75.54B48.68B68.08B83.12B83.68B
Total Debt110.69B105.78B142.45B109.22B98.44B
Total Liabilities202.34B197.41B236.74B200.29B181.53B
Stockholders Equity261.56B249.26B229.45B224.50B198.56B
Cash Flow
Free Cash Flow29.77B24.24B-43.72B-5.90B19.51B
Operating Cash Flow52.37B55.83B-11.80B25.99B43.31B
Investing Cash Flow-23.48B-30.41B-33.76B-33.80B-19.28B
Financing Cash Flow-1.11B-46.51B30.15B5.12B-22.53B

Tokuyama Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3292.00
Price Trends
50DMA
2989.19
Positive
100DMA
2853.33
Positive
200DMA
2740.21
Positive
Market Momentum
MACD
87.96
Negative
RSI
68.28
Neutral
STOCH
88.35
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥236.87B10.139.01%3.04%0.32%31.76%
63
Neutral
€8.61B8.9534.42%33.52%-1.58%56.22%
$1.83B10.975.38%0.13%
$3.43B11.336.78%1.87%
$1.54B10.29-1.23%0.30%
$2.14B11.817.16%0.55%
74
Outperform
¥251.27B23.66
0.98%1.99%35.53%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4043
Tokuyama
3,292.00
406.44
14.09%
KANKF
Kaneka
28.84
2.21
8.30%
MBGCF
Mitsubishi Gas Chemical Company
17.01
-0.81
-4.55%
UBEOF
UBE Industries
15.40
-1.43
-8.50%
ZEOOF
Zeon
9.87
0.66
7.17%
JP:4046
OSAKA SODA CO.,LTD.
1,934.00
13.71
0.71%

Tokuyama Corporate Events

Tokuyama Corporation Updates Management Strategies for Sustainable Growth
Apr 28, 2025

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
Apr 28, 2025

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.

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.Date of analysis: Jul 10, 2025