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

• Market Cap: ¥48.14B
• Dividend Yield: 2.02%
• Average Volume (3M): 112.27K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.99
• Revenue Growth: -3.73%
• EPS Growth: N/A
• Country: JP
• Employees: 1,145
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 24.00
• Shares Outstanding: 57,546,047
• 10 Day Avg. Volume: 94,920
• 30 Day Avg. Volume: 112,270
• PEG Ratio: 0.91
• Price to Book (P/B): 0.76
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥929.00 ▲(10.86%Upside)

Kanto Denka Kogyo Co., Ltd.'s stock is moderately rated due to its balanced financial performance and fair valuation. Challenges include cash flow issues and technical resistance, but the company's improving profitability and moderate leverage offer potential for recovery and growth.

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

Company Description

Kanto Denka Kogyo Co., Ltd. (4047) is a Japanese chemical company specializing in the production of high-purity gases, chemicals, and materials primarily for the electronics and semiconductor industries. The company is known for its advanced manufacturing techniques that ensure the high quality and purity of its products, which are essential in sensitive applications like semiconductor manufacturing and electronics production.

How the Company Makes Money

Kanto Denka Kogyo Co., Ltd. generates revenue primarily through the sale of high-purity gases and chemicals used in electronics and semiconductor manufacturing. These products are critical in processes such as etching and deposition, which require materials of the highest purity to avoid defects in semiconductor wafers. The company benefits from long-term contracts and relationships with major electronics and semiconductor manufacturers, which ensure stable demand and continuous revenue. Additionally, Kanto Denka Kogyo invests in research and development to innovate and improve its product offerings, maintaining a competitive edge in the market. The company also leverages strategic partnerships and collaborations to expand its market reach and enhance its technological capabilities.

Kanto Denka Kogyo Co., Ltd. Financial Statement Overview

Summary

Kanto Denka Kogyo Co., Ltd. demonstrates moderate financial stability with satisfactory profit margins and leverage. However, fluctuating revenue growth and weak cash flow generation present potential risks. Continued focus on operational efficiency and cash flow improvement is essential for maintaining financial health.

Income Statement

The income statement shows moderate performance with a gross profit margin of 22.66% TTM, and a net profit margin of 4.98% TTM. Revenue growth was volatile, with a recent decline followed by a rebound. EBIT and EBITDA margins have fluctuated significantly, indicating some instability in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.64 TTM and an equity ratio of 51.54% TTM, suggesting prudent leverage management. Return on equity is moderate at 5.23% TTM, indicating reasonable profitability for equity holders.

Cash Flow

The cash flow position is weak due to zero reported operating, investing, and free cash flows in the TTM. Historical free cash flow has been erratic, with recent declines, indicating potential liquidity challenges. The absence of cash flow data in the TTM period is concerning.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
62.34B	64.77B	78.67B	62.29B	51.93B	53.68B
	Gross Profit
10.79B	7.17B	22.57B	19.86B	13.56B	15.76B
	EBIT
1.25B	-1.97B	12.95B	11.16B	5.67B	7.73B
	EBITDA
3.86B	3.65B	21.44B	18.15B	12.15B	13.09B
	Net Income Common Stockholders
-2.97B	-4.61B	9.38B	7.76B	3.60B	5.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.41B	25.41B	22.36B	26.73B	23.68B	16.65B
	Total Assets
125.30B	125.30B	130.76B	109.90B	92.32B	84.06B
	Total Debt
41.68B	41.68B	37.79B	30.91B	26.96B	21.63B
	Net Debt
16.45B	16.45B	15.44B	4.18B	3.28B	4.98B
	Total Liabilities
59.72B	59.72B	61.99B	50.00B	39.90B	36.85B
	Stockholders Equity
64.01B	64.01B	67.48B	58.25B	50.98B	46.03B
Cash Flow		Free Cash Flow
0.00	242.00M	-8.51B	270.00M	2.38B	-264.00M
	Operating Cash Flow
0.00	11.21B	7.29B	11.18B	11.98B	9.10B
	Investing Cash Flow
0.00	-10.55B	-16.63B	-11.12B	-9.87B	-10.61B
	Financing Cash Flow
0.00	1.78B	4.42B	2.42B	4.35B	-90.00M

Kanto Denka Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 838.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 838 is below the 20-day moving average (MA) of 845.30, above the 50-day MA of 837.46, and below the 200-day MA of 922.47, indicating a neutral trend. The MACD of -2.38 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 is Neutral, 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
4221	81 Outperform	¥51.30B	10.72		3.76%	6.35%	11.03%
4362	79 Outperform	¥54.50B	13.34		3.22%	6.36%	17.44%
4187	75 Outperform	€56.05B	11.89	10.09%	2.91%	17.34%	44.04%
4028	75 Outperform	¥74.08B	8.43		4.58%	4.87%	5.12%
4008	66 Neutral	¥60.54B	9.73		4.56%	3.21%	-1.94%
4047	66 Neutral	¥48.14B	14.82		2.02%	-3.73%	―
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%

Kanto Denka Kogyo Co., Ltd. Corporate Events

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.

Kanto Denka Kogyo Announces Major Shareholder Change

Kanto Denka Kogyo Co., Ltd. announced a significant change in its major shareholders as of March 31, 2025. Goldman Sachs International has become the largest shareholder, surpassing The Master Trust Bank of Japan, Ltd. This shift in shareholder structure could influence the company’s strategic direction and market positioning, potentially impacting its stakeholders.

Kanto Denka Kogyo Releases 2024 Integrated Report Emphasizing Sustainability and Governance

Kanto Denka Kogyo Co., Ltd. has published its Integrated Report for 2024, highlighting its commitment to sustainable growth and value creation. The report outlines the company’s strategies, including the adoption of ROIC as a new management indicator and governance reforms, aimed at enhancing transparency and efficiency. The report also emphasizes Kanto Denka’s focus on environmental, social, and governance (ESG) initiatives, underscoring its dedication to building a sustainable society and improving stakeholder engagement.