Kanto Denka Kogyo Co., Ltd. (JP:4047)
:4047
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Kanto Denka Kogyo Co., Ltd.
(4047)
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Rating:59Neutral
Price Target:
¥2,895.00
▲(161.99% Upside)
Action:Reiterated
Date:05/20/26
The score is primarily held back by inconsistent cash generation (negative free cash flow in FY2025–FY2026) and profit cyclicality despite an earnings rebound and a solid balance sheet. Technicals are supportive due to strong uptrend signals, but momentum is stretched, and valuation support is moderate given a mid-range P/E and low dividend yield.
Positive Factors
Earnings recovery and revenue growth
Sustained revenue growth with a restored profit base in FY2026 shows the company can recover from downturns and re-expand operations. A consistent revenue advance and positive net income support longer-term capacity to fund operations, strategic initiatives, and normalize margins.
Negative Factors
Negative and volatile free cash flow
Repeated negative free cash flow constrains financial flexibility: it limits capacity for sustained dividends, share buybacks, or debt reduction without external funding. Persisting FCF shortfalls raise the risk that investment or payout plans must be curtailed or financed, pressuring long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings recovery and revenue growth
Sustained revenue growth with a restored profit base in FY2026 shows the company can recover from downturns and re-expand operations. A consistent revenue advance and positive net income support longer-term capacity to fund operations, strategic initiatives, and normalize margins.
Read all positive factors
Kanto Denka Kogyo Co., Ltd. (4047) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥146.49B
Dividend Yield1.6%
Average Volume (3M)173.86K
Price to Earnings (P/E)20.4
Beta (1Y)1.02
Revenue Growth4.89%
EPS Growth16.68%
CountryJP
Employees1,145
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)45.50
Shares Outstanding57,546,047
10 Day Avg. Volume198,850
30 Day Avg. Volume173,856
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)1.07
Price to Sales (P/S)1.18
P/FCF Ratio-60.97
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)90.7
Revenue Forecast (FY)¥75.90B
Kanto Denka Kogyo Co., Ltd. Business Overview & Revenue Model
Company Description
Kanto Denka Kogyo Co., Ltd. manufactures and sells various chemical products in Japan and internationally. It operates through Fundamental Chemicals and Fine Chemicals divisions. The Fundamental Chemicals division offers inorganic products, includ...
How the Company Makes Money
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Kanto Denka Kogyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.05B | 65.40B | 62.35B | 64.77B | 78.67B | 62.29B |
| Gross Profit | 13.60B | 15.83B | 13.99B | 7.17B | 22.57B | 19.86B |
| EBITDA | 11.93B | 14.79B | 12.52B | 6.53B | 20.65B | 17.84B |
| Net Income | 2.61B | 3.79B | 3.25B | -4.61B | 9.38B | 7.76B |
Balance Sheet | ||||||
| Total Assets | 123.35B | 131.31B | 123.62B | 125.30B | 130.76B | 109.90B |
| Cash, Cash Equivalents and Short-Term Investments | 17.79B | 20.22B | 20.29B | 25.41B | 22.36B | 26.73B |
| Total Debt | 36.16B | 39.84B | 37.88B | 41.68B | 37.79B | 30.91B |
| Total Liabilities | 56.60B | 57.06B | 55.99B | 59.72B | 61.98B | 49.99B |
| Stockholders Equity | 65.11B | 72.40B | 65.96B | 64.01B | 67.48B | 58.25B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.27B | -2.45B | 242.00M | -8.51B | 270.00M |
| Operating Cash Flow | 0.00 | 7.28B | 13.09B | 11.21B | 7.29B | 11.18B |
| Investing Cash Flow | 0.00 | -9.22B | -14.08B | -10.55B | -16.63B | -11.12B |
| Financing Cash Flow | 0.00 | 676.00M | -4.72B | 1.78B | 4.42B | 2.42B |
Kanto Denka Kogyo Co., Ltd. Technical Analysis
Positive
1105.00
Price Trends
1656.40
Positive
1487.05
Positive
1212.10
Positive
Market Momentum
224.58
Negative
84.47
Negative
86.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4047, the sentiment is Positive. The current price of 1105 is below the 20-day moving average (MA) of 1873.65, below the 50-day MA of 1656.40, and below the 200-day MA of 1212.10, indicating a bullish trend. The MACD of 224.58 indicates Negative momentum. The RSI at 84.47 is Negative, neither overbought nor oversold. The STOCH value of 86.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4047.
Kanto Denka Kogyo Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥115.62B | 8.38 | ― | 3.72% | 4.49% | 27.96% | |
76 Outperform | ¥110.98B | 17.95 | ― | 1.30% | 26.33% | 11.15% | |
74 Outperform | ¥112.76B | 18.70 | 15.07% | 1.74% | 7.82% | 64.90% | |
74 Outperform | ¥93.51B | 11.05 | ― | 3.02% | 0.51% | 3.23% | |
73 Outperform | ¥76.80B | 9.11 | ― | 3.04% | -0.37% | -20.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | ¥146.49B | 20.42 | ― | 1.60% | 4.89% | 16.68% |
* Basic Materials Sector Average
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Kanto Denka Kogyo Co., Ltd. Corporate Events
Kanto Denka Kogyo Books Extraordinary Loss on Subsidiary Investment
May 15, 2026
Kanto Denka Kogyo Co., Ltd. has recognized an extraordinary loss in its non-consolidated financial results for the fiscal year ended March 31, 2026. The loss stems from a 2,395 million yen write-down on the valuation of investments in capital of i...
Kanto Denka Kogyo Profits Beat Forecast Despite Slight Sales Shortfall in FY2026
May 15, 2026
Kanto Denka Kogyo reported that its full-year FY2026 consolidated results diverged from its earlier forecast, with net sales slightly below expectations but all profit metrics, including operating, ordinary, and net profit, significantly exceeding...
Kanto Denka Kogyo Raises Year-End Dividend Forecast and Lifts Payout Commitment
May 15, 2026
Kanto Denka Kogyo has revised its dividend forecast for the fiscal year ended March 31, 2026, raising the planned year-end dividend from 9 yen to 11 yen per share, bringing the total annual dividend to 20 yen. The move reflects recent business per...
Kanto Denka Kogyo Lifts Profit and Dividend, Projects Strong FY2027 Growth
May 15, 2026
Kanto Denka Kogyo reported consolidated net sales of ¥65.4 billion for the year ended March 31, 2026, up 4.9% year on year, with operating profit jumping 28.2% to ¥5.48 billion and ordinary profit surging 47.1% to ¥6.63 billion. Pro...
Kanto Denka Kogyo Strengthens Leadership With New Representative Director
Apr 24, 2026
Kanto Denka Kogyo has moved to reinforce its management structure by changing the lineup of its representative directors while keeping President Jun’ichi Hasegawa in his current role. The board has approved the internal promotion of Taisuke ...
Kanto Denka Kogyo Sees Major Cut in Stakes by Top Institutional Shareholders
Apr 8, 2026
Kanto Denka Kogyo has announced changes in its major shareholder structure as of March 31, 2026, following an updated shareholder list from Sumitomo Mitsui Trust Bank. The Master Trust Bank of Japan remains the largest shareholder but reduced its ...
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.