Kanto Denka Kogyo Co., Ltd. (4047) AI Stock Analysis

• Market Cap: ¥59.57B
• Dividend Yield: 1.67%
• Average Volume (3M): 173.86K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.85
• Revenue Growth: -2.91%
• EPS Growth: N/A
• Country: JP
• Employees: 1,145
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 9.24
• Shares Outstanding: 57,546,047
• 10 Day Avg. Volume: 198,850
• 30 Day Avg. Volume: 173,856
• PEG Ratio: -0.09
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.80
• P/FCF Ratio: -20.40
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,131.00 ▲(11.43% Upside)

The overall stock score of 68.5 reflects a strong technical performance, with the stock showing bullish momentum. However, financial performance is mixed, with profitability improvements offset by revenue volatility and cash flow challenges. The valuation suggests the stock may be overvalued, which could limit upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Kanto Denka Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kanto Denka Kogyo Co., Ltd. (4047) is a Japanese company primarily engaged in the manufacturing and sale of specialty chemicals and materials. The company operates in various sectors, including electronics, automotive, and construction, providing a range of products such as resins, coatings, and chemical intermediates. Kanto Denka Kogyo is known for its innovative solutions that cater to the diverse needs of its clients, focusing on high-quality and sustainable offerings.

How the Company Makes Money

Kanto Denka Kogyo generates revenue through the production and sale of specialty chemicals and materials to various industries. The company's key revenue streams include the sale of its core products, which are often used in electronics manufacturing, automotive parts, and construction materials. Additionally, the company may engage in long-term contracts or partnerships with major industrial players, allowing for consistent revenue through bulk sales and customized solutions. Factors contributing to its earnings include the demand for high-performance materials, advancements in technology that require innovative chemical solutions, and the company's commitment to research and development, which enables it to stay competitive in the specialty chemicals market.

Kanto Denka Kogyo Co., Ltd. Financial Statement Overview

Summary

Kanto Denka Kogyo Co., Ltd. exhibits a mixed financial performance. The income statement shows improving profitability, but there are issues with revenue stability. The balance sheet reflects moderate leverage and has a solid equity base, though asset fluctuations pose a risk. Cash flow statements reveal liquidity challenges, underscoring the need for better cash management strategies. Overall, the company shows potential for recovery and growth but must address its revenue volatility and cash flow issues.

Income Statement

The income statement shows a volatile revenue trend, with a decrease from 2023 to 2025 after a peak in 2023. The gross profit margin in 2025 was 22.44%, which is relatively strong, although net profit margin improved significantly to 5.21% in 2025 from a negative position in 2024. The EBIT and EBITDA margins improved in 2025, indicating better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio in 2025 was 0.57, showing moderate leverage. Return on equity improved to 4.92%, recovering from negative in 2024. The equity ratio was 53.34%, indicating a strong equity base. However, fluctuations in total assets suggest some instability.

Cash Flow

The company experienced a negative free cash flow in 2025, indicating challenges in covering capital expenditures. The operating cash flow to net income ratio was 4.03, showing strong cash generation relative to net income. The high volatility in free cash flow growth rates suggests potential liquidity management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.05B	62.35B	64.77B	78.67B	62.29B	51.93B
Gross Profit	13.60B	13.99B	7.17B	22.57B	19.86B	13.56B
EBITDA	12.34B	13.71B	3.65B	21.44B	18.15B	12.15B
Net Income	2.61B	3.25B	-4.61B	9.38B	7.76B	3.60B
Balance Sheet
Total Assets	123.35B	123.62B	125.30B	130.76B	109.90B	92.32B
Cash, Cash Equivalents and Short-Term Investments	17.79B	20.29B	25.41B	22.36B	26.73B	23.68B
Total Debt	36.16B	37.88B	41.68B	37.79B	30.91B	26.96B
Total Liabilities	56.60B	55.99B	59.72B	61.99B	50.00B	39.90B
Stockholders Equity	65.11B	65.96B	64.01B	67.48B	58.25B	50.98B
Cash Flow
Free Cash Flow	0.00	-2.45B	242.00M	-8.51B	270.00M	2.38B
Operating Cash Flow	0.00	13.09B	11.21B	7.29B	11.18B	11.98B
Investing Cash Flow	0.00	-14.08B	-10.55B	-16.63B	-11.12B	-9.87B
Financing Cash Flow	0.00	-4.72B	1.78B	4.42B	2.42B	4.35B

Kanto Denka Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1015.00
• 50DMA: Positive
• 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:4047, the sentiment is Neutral. The current price of 1015 is below the 20-day moving average (MA) of 1032.45, above the 50-day MA of 956.10, and above the 200-day MA of 882.04, indicating a neutral trend. The MACD of 18.94 indicates Positive momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 31.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4047.

Kanto Denka Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4362	77 Outperform	¥64.28B	13.15	―	3.33%	3.03%	28.27%
4187	77 Outperform	¥84.40B	16.84	10.57%	1.82%	15.12%	40.72%
4008	75 Outperform	¥65.88B	14.08	―	4.18%	0.32%	-43.10%
4028	74 Outperform	¥105.60B	7.58	―	4.71%	1.16%	167.89%
4047	69 Neutral	¥59.57B	22.79	―	1.67%	-2.91%	―
4221	67 Neutral	¥59.35B	13.18	―	2.77%	8.28%	0.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Kanto Denka Kogyo Co., Ltd. Corporate Events

Kanto Denka Kogyo Announces Change in Major Shareholder

Kanto Denka Kogyo Co., Ltd. has announced a change in its largest shareholder, with The Master Trust Bank of Japan, Ltd. becoming the new major shareholder, replacing Goldman Sachs International. This shift in shareholder composition may influence the company’s strategic direction and investor relations, although the company has stated that there is no immediate impact on its future outlook.

The most recent analyst rating on (JP:4047) stock is a Hold with a Yen923.00 price target. To see the full list of analyst forecasts on Kanto Denka Kogyo Co., Ltd. stock, see the JP:4047 Stock Forecast page.

Kanto Denka Kogyo Reports Fire Incident at Shibukawa Plant

Kanto Denka Kogyo Co., Ltd. reported a fire incident at its Shibukawa Plant, resulting in one employee fatality and another injury. The fire damaged one of the nitrogen trifluoride production lines, and the company has established an Accident Investigation Committee to determine the cause and prevent recurrence. Operations for undamaged production lines have resumed, and the company is working to restart the damaged line pending necessary approvals.

The most recent analyst rating on (JP:4047) stock is a Hold with a Yen923.00 price target. To see the full list of analyst forecasts on Kanto Denka Kogyo Co., Ltd. stock, see the JP:4047 Stock Forecast page.

Kanto Denka Kogyo Reports Fatal Fire at Shibukawa Plant

Kanto Denka Kogyo Co., Ltd. reported a fire at its Shibukawa Plant, resulting in one fatality and one injury. The incident damaged one of the nitrogen trifluoride production lines. An investigation revealed that improper valve operation led to the fire, and the company is revising its equipment operating methods to prevent recurrence. While operations for other products have resumed, the unaffected nitrogen trifluoride line will restart after implementing safety measures, and the damaged line is under assessment.

The most recent analyst rating on (JP:4047) stock is a Hold with a Yen923.00 price target. To see the full list of analyst forecasts on Kanto Denka Kogyo Co., Ltd. stock, see the JP:4047 Stock Forecast page.

Fire Incident at Kanto Denka Kogyo’s Shibukawa Plant

Kanto Denka Kogyo Co., Ltd. reported a fire incident at its Shibukawa Plant, resulting in one fatality and one injury. The fire affected one of the nitrogen trifluoride production lines, which remains suspended, while other operations are gradually resuming. The company is investigating the cause and will disclose any significant business impacts.

Kanto Denka Kogyo Expands Stock-based Remuneration Plan

Kanto Denka Kogyo Co., Ltd. has announced a decision to provide additional funds to a trust established for a stock-based remuneration plan for its directors and executive officers. This move, resolved at a recent Board of Directors meeting, aims to acquire additional shares of the company’s stock, potentially impacting the company’s stock market activities and aligning the interests of its executives with those of shareholders.

Kanto Denka Kogyo Reports Decline in Q1 Financial Results Amidst Operational Challenges

Kanto Denka Kogyo Co., Ltd. reported a decrease in its consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, with net sales slightly down by 2% compared to the previous year. The company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 38.5%, 61.3%, and 54.5% respectively. The company has revised its performance forecast for the fiscal year, expecting a 6.7% increase in net sales but a decline in profits. The impact of a recent fire at the Shibukawa Plant is still under investigation and not reflected in the current earnings forecast.

Kanto Denka Kogyo Revises Financial Forecasts Amid Sales Decline

Kanto Denka Kogyo Co., Ltd. has revised its financial forecasts for the fiscal year ending March 2026, citing lower-than-expected sales in the fine chemicals segment. The company anticipates both sales and profits to fall below previous projections, with a significant decline in operating and ordinary profits. The impact of a recent fire at the Shibukawa factory is still under investigation and has not been factored into the current financial outlook.

Kanto Denka Kogyo Reports Decline in Q1 FY2025 Profits

Kanto Denka Kogyo Co., Ltd. reported a decrease in net sales by ¥0.3 billion in the first quarter of fiscal year 2025, primarily due to the absence of technical support fees for battery materials, despite increased sales of specialty gases. The company’s operating profit fell by ¥0.4 billion, attributed to a decline in sales and an increase in inventory valuation losses, while ordinary profit decreased by ¥1.1 billion due to reduced foreign exchange gains.

Fire Incident at Kanto Denka Kogyo’s Shibukawa Plant

A fire occurred at Kanto Denka Kogyo Co., Ltd.’s Shibukawa Plant, specifically at the nitrogen trifluoride production facility, causing injury to two employees and prompting an investigation into the cause and potential impact on business operations. The company has committed to providing updates should the incident significantly affect their business performance, highlighting the importance of transparency and stakeholder communication in managing industrial accidents.