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Kanto Denka Kogyo Co., Ltd. (JP:4047)
:4047
Japanese Market
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Kanto Denka Kogyo Co., Ltd. (4047) AI Stock Analysis

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JP:4047

Kanto Denka Kogyo Co., Ltd.

(4047)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥4,130.00
▲(273.76% Upside)
Action:Reiterated
Date:06/11/26
The score is driven by strong technical momentum (price well above key moving averages with positive MACD), partially offset by mixed financial quality due to weak and volatile free-cash-flow generation. A very high P/E and low dividend yield further reduce the overall score.
Positive Factors
Earnings rebound
A return to positive net income and a ~5.8% margin in FY2026 indicates the business can restore profitability after prior losses. This rebound suggests improving demand or cost control that supports sustainable earnings recovery over the medium term.
Negative Factors
Consecutive negative free cash flow
Two consecutive years of negative free cash flow indicate cash outflows exceed operational cash after investments. This persistent negative FCF can force external financing, limit discretionary spending, and constrain shareholder returns unless conversion improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings rebound
A return to positive net income and a ~5.8% margin in FY2026 indicates the business can restore profitability after prior losses. This rebound suggests improving demand or cost control that supports sustainable earnings recovery over the medium term.
Read all positive factors

Kanto Denka Kogyo Co., Ltd. (4047) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Kanto Denka Kogyo Co., Ltd., founded in Tokyo, Japan, in 1938, is an international manufacturer and supplier of a diverse range of chemical products, segmented into two main divisions: Fundamental Chemicals and Fine Chemicals. The Fundamental Chem...
How the Company Makes Money
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Kanto Denka Kogyo Co., Ltd. Financial Statement Overview

Summary
Earnings rebounded in FY2025–FY2026 (FY2026 net income 3.8B; ~5.8% net margin) and leverage is manageable (debt-to-equity ~0.55), but free cash flow has been negative for two consecutive years (FY2026 -1.3B; FY2025 -2.4B) and profitability remains cyclical versus FY2022–FY2023.
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
41
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue62.05B65.40B62.35B64.77B78.67B62.29B
Gross Profit13.60B15.83B13.99B7.17B22.57B19.86B
EBITDA11.93B14.79B12.52B6.53B20.65B17.84B
Net Income2.61B3.79B3.25B-4.61B9.38B7.76B
Balance Sheet
Total Assets123.35B131.31B123.62B125.30B130.76B109.90B
Cash, Cash Equivalents and Short-Term Investments17.79B20.22B20.29B25.41B22.36B26.73B
Total Debt36.16B39.84B37.88B41.68B37.79B30.91B
Total Liabilities56.60B57.06B55.99B59.72B61.98B49.99B
Stockholders Equity65.11B72.40B65.96B64.01B67.48B58.25B
Cash Flow
Free Cash Flow0.00-1.27B-2.45B242.00M-8.51B270.00M
Operating Cash Flow0.007.28B13.09B11.21B7.29B11.18B
Investing Cash Flow0.00-9.22B-14.08B-10.55B-16.63B-11.12B
Financing Cash Flow0.00676.00M-4.72B1.78B4.42B2.42B

Kanto Denka Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1105.00
Price Trends
50DMA
2407.60
Positive
100DMA
1937.03
Positive
200DMA
1460.21
Positive
Market Momentum
MACD
479.28
Positive
RSI
59.92
Neutral
STOCH
50.85
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 below the 20-day moving average (MA) of 3504.05, below the 50-day MA of 2407.60, and below the 200-day MA of 1460.21, indicating a bullish trend. The MACD of 479.28 indicates Positive momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 50.85 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥119.85B15.4115.07%1.74%7.82%64.90%
77
Outperform
¥107.35B9.693.72%4.49%27.96%
74
Outperform
¥94.10B11.313.02%0.51%3.23%
73
Outperform
¥74.42B8.663.04%-0.37%-20.95%
70
Outperform
¥114.23B18.531.30%11.71%15.04%
64
Neutral
¥215.43B56.841.60%4.89%16.68%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4047
Kanto Denka Kogyo Co., Ltd.
3,750.00
2,930.69
357.70%
JP:4187
Osaka Organic Chemical Industry Ltd.
5,410.00
2,980.23
122.65%
JP:4116
Dainichiseika Color & Chemicals Mfg.Co., Ltd.
1,029.00
299.46
41.05%
JP:4369
Tri Chemical Laboratories Inc.
3,515.00
583.81
19.92%
JP:4633
Sakata Inx Corp.
2,342.00
500.52
27.18%
JP:4956
Konishi Co., Ltd.
1,440.00
345.40
31.56%

Kanto Denka Kogyo Co., Ltd. Corporate Events

Kanto Denka Kogyo Raises Annual Dividend as Payout Policy Tightens
May 27, 2026
Kanto Denka Kogyo’s board has approved a year-end dividend of ¥11 per share for the fiscal year ended March 31, 2026, in line with its latest forecast and up from ¥9 a year earlier. This brings the total annual dividend to ¥20...
Kanto Denka Kogyo Releases FY2026 Financial Results Briefing
May 25, 2026
Kanto Denka Kogyo Co., Ltd. has released a financial results briefing for the fiscal year ended March 31, 2026, outlining its performance and key management updates. The materials also indicate the company’s views on its business outlook, fu...
Kanto Denka Kogyo Books Extraordinary Loss on Subsidiary Investment
May 15, 2026
Kanto Denka Kogyo Co., Ltd. has recognized an extraordinary loss in its non-consolidated financial results for the fiscal year ended March 31, 2026. The loss stems from a 2,395 million yen write-down on the valuation of investments in capital of i...
Kanto Denka Kogyo Profits Beat Forecast Despite Slight Sales Shortfall in FY2026
May 15, 2026
Kanto Denka Kogyo reported that its full-year FY2026 consolidated results diverged from its earlier forecast, with net sales slightly below expectations but all profit metrics, including operating, ordinary, and net profit, significantly exceeding...
Kanto Denka Kogyo Raises Year-End Dividend Forecast and Lifts Payout Commitment
May 15, 2026
Kanto Denka Kogyo has revised its dividend forecast for the fiscal year ended March 31, 2026, raising the planned year-end dividend from 9 yen to 11 yen per share, bringing the total annual dividend to 20 yen. The move reflects recent business per...
Kanto Denka Kogyo Lifts Profit and Dividend, Projects Strong FY2027 Growth
May 15, 2026
Kanto Denka Kogyo reported consolidated net sales of ¥65.4 billion for the year ended March 31, 2026, up 4.9% year on year, with operating profit jumping 28.2% to ¥5.48 billion and ordinary profit surging 47.1% to ¥6.63 billion. Pro...
Kanto Denka Kogyo Strengthens Leadership With New Representative Director
Apr 24, 2026
Kanto Denka Kogyo has moved to reinforce its management structure by changing the lineup of its representative directors while keeping President Jun’ichi Hasegawa in his current role. The board has approved the internal promotion of Taisuke ...
Kanto Denka Kogyo Sees Major Cut in Stakes by Top Institutional Shareholders
Apr 8, 2026
Kanto Denka Kogyo has announced changes in its major shareholder structure as of March 31, 2026, following an updated shareholder list from Sumitomo Mitsui Trust Bank. The Master Trust Bank of Japan remains the largest shareholder but reduced its ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 11, 2026