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

• Market Cap: ¥48.72B
• Dividend Yield: 1.89%
• Average Volume (3M): 182.13K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.89
• Revenue Growth: -2.91%
• EPS Growth: N/A
• Country: JP
• Employees: 1,145
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 9.24
• Shares Outstanding: 57,546,047
• 10 Day Avg. Volume: 133,500
• 30 Day Avg. Volume: 182,133
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥921.00
• Price Target Upside: 8.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥921.00 ▲(8.61% Upside)

The overall stock score of 65 reflects a balanced view of Kanto Denka Kogyo Co., Ltd. The company's financial performance shows potential for recovery, but revenue volatility and cash flow issues need addressing. Technical analysis indicates neutral momentum, while valuation metrics suggest the stock may be overvalued. The absence of earnings call and corporate events data limits further insights.

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. 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	62.35B	62.35B	64.77B	78.67B	62.29B	51.93B
Gross Profit	13.99B	13.99B	7.17B	22.57B	19.86B	13.56B
EBITDA	13.59B	13.71B	3.65B	21.44B	18.15B	12.15B
Net Income	3.25B	3.25B	-4.61B	9.38B	7.76B	3.60B
Balance Sheet
Total Assets	123.62B	123.62B	125.30B	130.76B	109.90B	92.32B
Cash, Cash Equivalents and Short-Term Investments	20.29B	20.29B	25.41B	22.36B	26.73B	23.68B
Total Debt	37.88B	37.88B	41.68B	37.79B	30.91B	26.96B
Total Liabilities	55.99B	55.99B	59.72B	61.99B	50.00B	39.90B
Stockholders Equity	65.96B	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: Negative
• Last Price: 848.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4047, the sentiment is Negative. The current price of 848 is below the 20-day moving average (MA) of 853.60, below the 50-day MA of 853.82, and below the 200-day MA of 894.75, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	65 Neutral	¥48.72B	18.55		1.89%	-2.91%	―
Sector *	62 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
7YE	―	€378.13M	12.94	9.65%	―	―	―
4221	81 Outperform	¥61.55B	13.13		2.80%	8.13%	5.35%
4362	77 Outperform	¥62.24B	14.23		2.82%	5.45%	25.48%
4028	74 Outperform	¥98.73B	9.24		3.44%	8.46%	74.58%
4008	69 Neutral	¥63.88B	13.64		4.32%	0.32%	-43.10%

Kanto Denka Kogyo Co., Ltd. Corporate Events

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.

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.