Tokuyama (4043) AI Stock Analysis

• Market Cap: ¥290.54B
• Dividend Yield: 2.65%
• Average Volume (3M): 407.64K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.92
• Revenue Growth: -0.04%
• EPS Growth: 3.15%
• Country: JP
• Employees: 5,734
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 93.47
• Shares Outstanding: 72,088,326
• 10 Day Avg. Volume: 395,260
• 30 Day Avg. Volume: 407,639
• PEG Ratio: 0.27
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 6.74
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥4,300.00 ▲(2.67% Upside)

The score is supported primarily by solid financial performance (improving margins, strong equity base, and higher free cash flow) and reasonable valuation (low-teens P/E and a 2.5% dividend). These positives are offset by weak technicals, with the stock trading below key short-term moving averages and low RSI signaling soft near-term momentum.

Positive Factors

Margin Improvement

Sustained improvement in gross and net margins indicates stronger cost control and pricing power across segments. Higher margins improve resilience to input cost shocks, support reinvestment in specialty products, and underpin longer-term margin sustainability even if volumes fluctuate.

Strong Balance Sheet

Low leverage and a high equity ratio provide financial flexibility for capital-intensive chemical and cement operations. A solid balance sheet reduces refinancing risk, enables steady capex and strategic investments, and cushions cyclical downturns, supporting durable operations.

Free Cash Flow Generation

Material FCF growth and healthy conversion of net income to cash enhance the company's ability to fund dividends, maintenance capex and selective investments without adding leverage. Reliable cash generation improves long-term financial resilience and strategic optionality.

Negative Factors

Limited Revenue Growth

Near-flat top-line expansion signals constrained demand or limited market share gains in core segments. Without stronger revenue growth, earnings upside must come from margins or cost cuts, limiting scalability and making long-term EPS growth more dependent on efficiency than market expansion.

Operating Cash Flow Variability

A decline in operating cash conversion points to variability in working capital or cyclical cash swings. Persistent OCF volatility can strain funding for capex and dividends during downturns, undermining the predictability of free cash flow for strategic investments.

Exposure to Energy & Feedstock Costs

Tokuyama's energy-intensive chemical and cement businesses are structurally exposed to volatile feedstock and electricity costs. Sustained input-price inflation or price pass-through delays can compress margins and increase earnings cyclicality over the medium term.

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 generates revenue through multiple streams, primarily from the sale of its chemical products and materials. Key revenue streams include the semiconductor materials division, which supplies silicon wafers and other related products; the pharmaceutical sector, which focuses on active pharmaceutical ingredients; and construction materials, which includes cement and other construction-related chemicals. The company also benefits from strategic partnerships with various technology firms and suppliers, enabling it to expand its market reach and enhance product development. Additionally, Tokuyama's commitment to research and development allows it to innovate and introduce new products, contributing to increased sales and market share.

Tokuyama Financial Statement Overview

Summary

Solid fundamentals: improving profitability (gross margin 31.52%, net margin 6.82%) and stable leverage (debt-to-equity 0.42, equity ratio 54.94%). Revenue growth is modest (0.32%) and cash-flow quality is generally strong (FCF +22.83%) with some operating cash flow variability.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	342.38B	343.07B	341.99B	351.79B	293.83B	302.41B
Gross Profit	109.27B	108.14B	99.52B	90.78B	95.41B	95.15B
EBITDA	49.39B	51.91B	44.88B	36.79B	48.75B	49.49B
Net Income	20.90B	23.39B	17.75B	9.36B	28.00B	24.53B
Balance Sheet
Total Assets	474.44B	476.21B	457.36B	478.34B	433.21B	386.79B
Cash, Cash Equivalents and Short-Term Investments	79.84B	75.54B	48.68B	68.08B	83.12B	83.68B
Total Debt	113.15B	110.69B	105.78B	142.45B	109.22B	98.44B
Total Liabilities	197.73B	202.35B	197.41B	236.74B	200.29B	181.53B
Stockholders Equity	262.17B	261.56B	249.25B	229.45B	224.50B	198.56B
Cash Flow
Free Cash Flow	0.00	29.77B	24.24B	-43.72B	-5.90B	19.51B
Operating Cash Flow	0.00	52.37B	55.83B	-11.80B	25.99B	43.31B
Investing Cash Flow	0.00	-23.48B	-30.41B	-33.76B	-33.80B	-19.28B
Financing Cash Flow	0.00	-1.11B	-46.51B	30.15B	5.12B	-22.53B

Tokuyama Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4188.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4043, the sentiment is Negative. The current price of 4188 is below the 20-day moving average (MA) of 4325.25, above the 50-day MA of 4176.62, and above the 200-day MA of 3459.21, indicating a neutral trend. The MACD of 55.18 indicates Positive momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 43.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4043.

Tokuyama Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4205	79 Outperform	¥360.35B	10.71	9.65%	3.91%	0.87%	16.71%
4046	75 Outperform	¥292.30B	23.15	―	1.00%	-3.06%	45.21%
4118	74 Outperform	¥296.02B	11.22	5.47%	3.41%	2.60%	9.50%
4043	63 Neutral	¥290.54B	11.46	8.86%	2.65%	-0.04%	3.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4208	57 Neutral	¥260.72B	45.14	1.47%	4.29%	-7.45%	-71.68%
4182	55 Neutral	¥594.20B	-80.57	-1.15%	3.49%	-6.83%	-123.67%

Tokuyama Corporate Events

Tokuyama Cuts FY2025 Earnings Forecast on Weak Chemical Pricing

Tokuyama Corporation has lowered its full-year forecast for fiscal 2025, cutting projected net sales from ¥364.5 billion to ¥351.5 billion and reducing expected operating and ordinary profit from ¥41.5 billion to ¥39.0 billion, with profit attributable to owners of the parent revised down from ¥29.0 billion to ¥27.5 billion. The company attributed the downgrade primarily to weaker-than-expected performance through the third quarter, citing declines in domestic and overseas selling prices of chemical products, a development that signals continued pricing pressure in its core markets and a more challenging earnings environment despite profits still expected to exceed fiscal 2024 levels.

The most recent analyst rating on (JP:4043) stock is a Buy with a Yen4989.00 price target. To see the full list of analyst forecasts on Tokuyama stock, see the JP:4043 Stock Forecast page.

Tokuyama Lifts Operating Profit but Cuts Forecast on Weak Vinyl Chloride Markets

Tokuyama reported that while the consolidation of the Tokuyama Life Science Group and solid demand for semiconductor-related products supported revenue, overall net sales declined year on year due to worsening overseas market conditions for vinyl chloride-related products. Operating profit increased compared with the previous year, driven by firm semiconductor-related sales and manufacturing cost improvements, but based on results through the third quarter of fiscal 2025, the company revised its full-year performance forecast downward, signaling a more cautious earnings outlook for stakeholders.

The most recent analyst rating on (JP:4043) stock is a Buy with a Yen4989.00 price target. To see the full list of analyst forecasts on Tokuyama stock, see the JP:4043 Stock Forecast page.

Tokuyama Lifts Profit Outlook and Dividends on Strong Q3, Expands Life-Science Footprint

Tokuyama reported third-quarter fiscal 2025 consolidated results showing essentially flat net sales at ¥251.5 billion but a strong improvement in profitability, with operating profit up 26.9% to ¥26.7 billion and profit attributable to owners of parent rising 11.5% to ¥18.9 billion, alongside a jump in comprehensive income and an increase in total assets and shareholders’ equity. The company maintained an aggressive shareholder return stance by raising annual dividend guidance to ¥120 per share from ¥100 in the previous year and announced an upward revision to its full-year fiscal 2025 forecast, now expecting modest sales growth but around 30% gains in operating and ordinary profit and a 17.6% increase in full-year net profit, while expanding its consolidation scope to include seven new life-science-related subsidiaries, a move that signals strategic reinforcement of its medical and biotech portfolio and potentially strengthens its long-term earnings base and industry positioning.

The most recent analyst rating on (JP:4043) stock is a Buy with a Yen4989.00 price target. To see the full list of analyst forecasts on Tokuyama stock, see the JP:4043 Stock Forecast page.

Tokuyama Reshapes Top Management, Elevates Eco-Business Leader as New President

Tokuyama Corporation has announced a leadership reshuffle effective April 1, 2026, as part of the introduction of a new management structure. Current President and Executive Officer Hiroshi Yokota will become Representative Director, Chairman and Executive Officer, while Director and Managing Executive Officer Tomohiro Inoue will be promoted to Representative Director, President and Executive Officer, and Fumiaki Iwasaki will step down from his role as Representative Director while remaining a Director and Senior Managing Executive Officer. Inoue’s appointment reflects a steady internal promotion path through key roles in eco business, cement operations, sustainability, carbon-neutral strategy, and new business development, signaling the company’s intent to further strengthen its strategic focus on environmental solutions, corporate planning, and advanced technology commercialization under the new regime.

The most recent analyst rating on (JP:4043) stock is a Buy with a Yen4910.00 price target. To see the full list of analyst forecasts on Tokuyama stock, see the JP:4043 Stock Forecast page.