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Tokuyama Corporation (JP:4043)
:4043

Tokuyama (4043) AI Stock Analysis

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Tokuyama

(OTC:4043)

Rating:75Outperform
Price Target:
Tokuyama's strong financial performance, characterized by improved profitability and stable revenue growth, forms the foundation for its solid stock score. Technical indicators support a bullish outlook, although caution is advised due to potential overbought conditions. The stock's attractive valuation further enhances its appeal, making it a compelling option in the specialty chemicals industry.

Tokuyama (4043) vs. iShares MSCI Japan ETF (EWJ)

Tokuyama Business Overview & Revenue Model

Company DescriptionTokuyama Corporation, identified by the ticker 4043, is a diversified Japanese chemical company that operates across several sectors including chemicals, specialty products, cement, and life & healthcare. The company's core products range from basic chemicals such as soda ash and caustic soda to more advanced materials like polycrystalline silicon and semiconductor-related products. Tokuyama also provides cement and building materials, contributing to infrastructure development, and is involved in the production of medical products, emphasizing its role in the life sciences sector.
How the Company Makes MoneyTokuyama Corporation generates revenue through a diversified portfolio of products and services, primarily within the chemicals and materials sectors. The company's key revenue streams include the sale of basic chemicals, which are essential for various industrial applications, and specialty products used in electronics and healthcare. The cement segment also contributes significantly to Tokuyama's income, driven by demands in construction and infrastructure projects. Additionally, Tokuyama leverages its expertise in polycrystalline silicon production for the semiconductor and solar industries, further diversifying its income sources. The company's earnings are bolstered by strategic partnerships and investments in research and development, enabling innovation and competitive advantage in high-tech and sustainable solutions.

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.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
345.12B343.07B341.99B351.79B293.83B302.41B
Gross Profit
106.45B108.14B99.52B90.78B95.41B95.15B
EBIT
29.77B29.97B25.64B14.34B24.54B30.92B
EBITDA
46.78B51.92B44.96B37.07B49.32B50.24B
Net Income Common Stockholders
22.76B23.39B17.75B9.36B28.00B24.53B
Balance SheetCash, Cash Equivalents and Short-Term Investments
69.64B75.54B48.68B68.08B83.12B83.68B
Total Assets
477.41B476.21B457.36B478.34B433.21B386.79B
Total Debt
110.96B110.69B105.78B142.45B109.22B98.44B
Net Debt
41.95B35.15B57.10B74.37B26.10B14.76B
Total Liabilities
207.32B202.34B197.41B236.74B200.29B181.53B
Stockholders Equity
257.21B261.56B249.26B229.45B224.50B198.56B
Cash FlowFree Cash Flow
1.26B29.77B24.24B-43.72B-5.90B19.51B
Operating Cash Flow
8.58B52.37B55.83B-11.80B25.99B43.31B
Investing Cash Flow
-8.07B-23.48B-30.41B-33.76B-33.80B-19.28B
Financing Cash Flow
-7.29B-1.11B-46.51B30.15B5.12B-22.53B

Tokuyama Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2917.00
Price Trends
50DMA
2728.75
Positive
100DMA
2695.08
Positive
200DMA
2676.26
Positive
Market Momentum
MACD
50.87
Negative
RSI
59.79
Neutral
STOCH
60.60
Neutral
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 2917 is above the 20-day moving average (MA) of 2833.87, above the 50-day MA of 2728.75, and above the 200-day MA of 2676.26, indicating a bullish trend. The MACD of 50.87 indicates Negative momentum. The RSI at 59.79 is Neutral, neither overbought nor oversold. The STOCH value of 60.60 is Neutral, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥216.88B20.42
1.13%4.85%35.53%
75
Outperform
$209.89B8.979.01%3.27%0.32%31.76%
73
Outperform
$247.52B9.765.38%3.17%5.89%11.92%
73
Outperform
¥282.72B11.267.16%4.66%10.04%-13.43%
71
Outperform
$423.00B9.526.78%4.32%-4.90%20.59%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
51
Neutral
$217.43B11.14-1.23%4.76%3.96%-116.60%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4043
Tokuyama
2,917.00
39.17
1.36%
JP:4046
OSAKA SODA CO.,LTD.
1,665.00
-267.16
-13.83%
JP:4208
UBE Industries
2,240.00
-380.51
-14.52%
JP:4205
Zeon
1,435.00
71.23
5.22%
JP:4182
Mitsubishi Gas Chemical Company
2,159.50
-679.47
-23.93%
JP:4118
Kaneka
3,867.00
-217.26
-5.32%

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.

Tokuyama Acquires JSR’s In Vitro Diagnostics Business to Boost Healthcare Domain
Apr 22, 2025

Tokuyama Corporation announced its acquisition of JSR Corporation’s in vitro diagnostics and pharmaceutical materials businesses, aiming to enhance its healthcare domain. This strategic move is expected to accelerate product development, generate synergies, and expand market reach in Japan, Korea, and China, positioning Tokuyama as a significant player in the healthcare industry.

Tokuyama Corporation Announces Leadership Changes
Apr 22, 2025

Tokuyama Corporation announced changes in its leadership, with Fumiaki Iwasaki being nominated as the new Representative Director, effective June 24, 2025. This change is part of a new management system aimed at enhancing the company’s strategic direction and operational efficiency. The transition is expected to impact the company’s focus on life sciences, new business development, and environmental safety, potentially strengthening its market position and stakeholder relations.

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.