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

• Market Cap: ¥50.50B
• Dividend Yield: 1.82%
• Average Volume (3M): 110.30K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.99
• Revenue Growth: -3.73%
• EPS Growth: N/A
• Country: JP
• Employees: 1,145
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 24.00
• Shares Outstanding: 57,546,047
• 10 Day Avg. Volume: 82,070
• 30 Day Avg. Volume: 110,303
• PEG Ratio: 0.07
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥908.00
• Price Target Upside: 3.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥938.00 ▲(6.71%Upside)

The overall stock score of 70 reflects a balance of moderate financial performance, technical analysis, and valuation. The company's financial statements show potential for recovery with improving profitability, but revenue volatility and liquidity challenges remain. Technical indicators suggest neutral to slightly positive momentum, while the valuation appears fair, supporting a balanced investment outlook.

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, including caustic soda, hydrochloric acid, sodium hypochlorite, aluminum chloride, etc. that are used in the manufacture of pulp and paper, bar soap/detergent, various chemicals, aluminum electrolytic capacitors, and pharmaceutical and agricultural intermediates; for the treatment of water and metal surfaces; and as food additives, sterilizer, bleach and an oxidizing agent, and catalyst for the friedel–crafts reaction. This division also provides organic products comprising trichloroethylene, perchloroethylene, vinylidene chloride, and cyclohexanol for use in the cleaning of metal parts; production of hydrofluorocarbon, pharmaceutical and agricultural intermediates, fire-resistant fibers, resins for food wraps and packages, organic solvents, and various organic products; reproduction of catalysts for oil refining; and dry cleaning. The Fine Chemicals division offers ferrochemicals, such as reprographics carriers, magnetite, etc. that are used in printers, and reprographics and environmentally friendly carriers. This division also provides fluorochemcials, such as sulfur hexafluoride, carbon tetrafluoride, trifluoromethane, hexafluoroethane, nitrogen trifluoride, octafluoropropane, tungsten hexafluoride, silicon tetrafluoride, chlorine trifluoride, octafluorocyclobutane, hexafluoro-1, 3-butadiene, iodine pentafluoride, and lithium hexafluorophosphate for use in semiconductors, liquid crystals and liquid crystal displays, rechargeable batteries, optical fibers, and high capacity transformers. In addition, the company offers lithium tetrafluoroborate and hexafluorophosphate for use in lithium-ion rechargeable battery electrolytes and additives. Kanto Denka Kogyo Co., Ltd. was founded in 1938 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kanto Denka Kogyo Co., Ltd. generates revenue through the production and sale of high-purity gases and fluorochemicals, which are essential components for the electronics industry, especially in the manufacturing of semiconductors and flat panel displays. The company capitalizes on the growing demand for advanced electronic components by supplying these critical materials. Additionally, Kanto Denka Kogyo engages in partnerships and collaborations with other industrial and technological firms to enhance its product offerings and market reach. The company also invests in research and development to innovate and expand its product lines, thereby securing its position in the competitive chemical industry.

Kanto Denka Kogyo Co., Ltd. Financial Statement Overview

Summary

Kanto Denka Kogyo Co., Ltd. shows mixed financial performance. Improving profitability is noted with better EBIT and EBITDA margins. However, revenue volatility and cash flow issues, such as negative free cash flow in 2025, highlight challenges in revenue stability and liquidity.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	62.35B	64.77B	78.67B	62.29B	51.93B
Gross Profit	13.99B	7.17B	22.57B	19.86B	13.56B
EBITDA	13.71B	3.65B	21.44B	18.15B	12.15B
Net Income	3.25B	-4.61B	9.38B	7.76B	3.60B
Balance Sheet
Total Assets	123.62B	125.30B	130.76B	109.90B	92.32B
Cash, Cash Equivalents and Short-Term Investments	20.29B	25.41B	22.36B	26.73B	23.68B
Total Debt	37.88B	41.68B	37.79B	30.91B	26.96B
Total Liabilities	55.99B	59.72B	61.99B	50.00B	39.90B
Stockholders Equity	65.96B	64.01B	67.48B	58.25B	50.98B
Cash Flow
Free Cash Flow	-2.45B	242.00M	-8.51B	270.00M	2.38B
Operating Cash Flow	13.09B	11.21B	7.29B	11.18B	11.98B
Investing Cash Flow	-14.08B	-10.55B	-16.63B	-11.12B	-9.87B
Financing Cash Flow	-4.72B	1.78B	4.42B	2.42B	4.35B

Kanto Denka Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 879.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 879 is above the 20-day moving average (MA) of 853.20, above the 50-day MA of 845.04, and below the 200-day MA of 908.41, indicating a neutral trend. The MACD of 7.18 indicates Negative momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 78.77 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4047	70 Outperform	¥50.50B	15.39		1.82%	-3.73%	―
Sector *	63 Neutral	$10.49B	9.49	1.49%	2.70%	2.28%	-33.88%
7YE	―	€359.52M	12.45	9.65%	2.58%	―	―
4221	81 Outperform	¥51.47B	10.57		3.48%	6.35%	11.03%
4362	77 Outperform	¥63.64B	15.31		2.74%	6.36%	17.44%
4028	74 Outperform	¥87.66B	9.90		3.83%	4.87%	5.07%
4008	69 Neutral	¥62.63B	9.90		4.41%	3.21%	-2.40%

Kanto Denka Kogyo Co., Ltd. Corporate Events

Kanto Denka Kogyo Corrects Financial Results for FY 2025

Kanto Denka Kogyo Co., Ltd. announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025. The corrections were made after identifying errors in the segment information of the financial statements, impacting reported segment assets. These adjustments are crucial for maintaining accurate financial reporting and transparency with stakeholders.

Kanto Denka Kogyo Announces Increased Dividend Payout

Kanto Denka Kogyo Co., Ltd. announced a resolution to distribute dividends from surplus, with a dividend of ¥9 per share for the fiscal year ended March 31, 2025, resulting in an annual dividend of ¥17 per share. This decision aligns with the company’s revised medium-term management plan, which increased the target dividend payout ratio to 30%, reflecting a comprehensive evaluation of business performance and the economic environment.

Kanto Denka Kogyo Updates Management Strategy for Sustainable Growth

Kanto Denka Kogyo Co., Ltd. announced an update to its management strategy, emphasizing a focus on the cost of capital and stock price to drive sustainable growth and enhance corporate value. This strategic move, resolved by the Board of Directors, aims to strengthen the company’s market positioning and deliver long-term benefits to its stakeholders.

Kanto Denka Kogyo Revises Year-End Dividend Forecast

Kanto Denka Kogyo Co., Ltd. has revised its year-end dividend forecast for the fiscal year ended March 31, 2025, increasing the dividend per share from 8 yen to 9 yen. This decision aligns with the company’s policy of returning profits to shareholders while securing funds for capital investment and reflects an increased target dividend payout ratio from 20% to 30% in their medium-term management plan.

Kanto Denka Kogyo Reports Turnaround with Increased Profits and Dividends

Kanto Denka Kogyo Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decrease in net sales by 3.7% to ¥62,351 million. However, the company achieved a turnaround from a loss to a profit, with an operating profit of ¥4,272 million and a profit attributable to owners of the parent at ¥3,248 million. The company also announced an increase in its year-end dividend by ¥1 per share, reflecting a positive outlook for the upcoming fiscal year with projected growth in net sales and profits.