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

• Market Cap: ¥66.81B
• Dividend Yield: 1.6%
• Average Volume (3M): 173.86K
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.86
• Revenue Growth: 1.20%
• EPS Growth: N/A
• Country: JP
• Employees: 1,145
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -7.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥974.00 ▼(-11.86% Downside)

The overall stock score of 57 reflects a mixed financial performance with improving profitability but challenges in revenue stability and cash flow management. Technical indicators suggest a bearish trend with potential for reversal, while valuation metrics indicate the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Improving Profitability

Improving profitability indicates enhanced operational efficiency, which can lead to better financial health and increased shareholder value over time.

Strong Equity Base

A strong equity base provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic downturns.

Operational Efficiency

Improved EBIT and EBITDA margins reflect better operational efficiency, which can enhance profitability and competitive positioning in the long term.

Negative Factors

Revenue Volatility

Revenue volatility can lead to unpredictable financial performance, making it challenging to plan for future growth and investment.

Liquidity Challenges

Negative free cash flow indicates potential liquidity issues, which can limit the company's ability to invest in growth and meet financial obligations.

Asset Fluctuations

Asset fluctuations can indicate instability in resource allocation, potentially affecting operational efficiency and financial planning.

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 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: Positive
• Last Price: 1105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 1105 is above the 20-day moving average (MA) of 1086.15, above the 50-day MA of 1042.20, and above the 200-day MA of 912.65, indicating a bullish trend. The MACD of 38.37 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 69.28 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
4187	80 Outperform	¥86.73B	11.63	10.57%	1.74%	15.12%	40.72%
4362	77 Outperform	¥63.55B	13.90	―	2.92%	3.03%	28.27%
4028	74 Outperform	¥111.27B	7.99	―	4.15%	1.16%	167.89%
4008	68 Neutral	¥73.89B	11.94	―	3.74%	-0.68%	-9.93%
4221	67 Neutral	¥56.60B	12.57	―	2.81%	8.28%	0.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4047	57 Neutral	¥66.81B	34.78	―	1.60%	1.20%	―

Kanto Denka Kogyo Co., Ltd. Corporate Events

Kanto Denka Restores Full Nitrogen Trifluoride Output at Shibukawa Plant After Fatal Fire

Kanto Denka Kogyo Co., Ltd., a TSE Prime-listed chemical manufacturer known for specialty gases such as nitrogen trifluoride used in advanced industrial and electronics applications, operates key production facilities including its Shibukawa Plant in Gunma Prefecture. The company announced that, following a fatal fire at its Shibukawa Plant in August 2025 that left one employee dead and another injured, full nitrogen trifluoride production has now effectively been restored: the undamaged Facility 1 restarted in September 2025, and the previously damaged facility resumed operations on January 6, 2026, with shipments to follow shortly. Management emphasized that it has completed equipment restoration, implemented safety measures, secured approval from relevant authorities, and will reinforce accident-prevention and safety practices, moves that should stabilize supply for customers and help rebuild confidence among local communities and stakeholders.

The most recent analyst rating on (JP:4047) stock is a Hold with a Yen974.00 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 Reports Fire Incident at Shibukawa Plant

Kanto Denka Kogyo Co., Ltd. reported a fire incident at its Shibukawa Plant, resulting in one fatality and one injury. The fire, caused by a procedural error during nitrogen trifluoride production, led to damage in one of the production lines. The company has implemented countermeasures to prevent recurrence and resumed operations for other products. The undamaged nitrogen trifluoride line resumed operations in September 2025, while the damaged line is expected to restart in January 2026.

The most recent analyst rating on (JP:4047) stock is a Hold with a Yen1131.00 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 Decline in First-Half Financial Results

Kanto Denka Kogyo Co., Ltd. reported a decline in its consolidated financial results for the first half of the fiscal year ending March 31, 2026, with net sales slightly decreasing by 1.4% and a significant drop in operating profit by 52.6%. The company has revised its performance forecast for the full fiscal year, anticipating a modest increase in net sales but a decrease in profits, reflecting ongoing challenges in its operational environment.

The most recent analyst rating on (JP:4047) stock is a Hold with a Yen1131.00 price target. To see the full list of analyst forecasts on Kanto Denka Kogyo Co., Ltd. stock, see the JP:4047 Stock Forecast page.