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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)

Rating:61Neutral
Price Target:
¥851.00
▲(5.32% Upside)
The overall stock score of 61 reflects a mixed financial performance with improving profitability but challenges in revenue stability and cash flow management. Technical analysis indicates weak momentum, with the stock trading below key moving averages and nearing oversold conditions. Valuation metrics suggest the stock is fairly valued, with a moderate dividend yield. The absence of earnings call and corporate events data limits additional insights.

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

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

Company DescriptionKanto Denka Kogyo Co., Ltd. is a Japanese company primarily engaged in the manufacture and sale of chemical products. The company operates in various sectors, including electronics, industrial chemicals, and environmental solutions. Its core products include high-purity gases, fluorochemicals, and industrial chemicals used in various applications such as semiconductors, flat panel displays, and other electronic components.
How the Company Makes MoneyKanto 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
70
Positive
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
65
Positive
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
60
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue62.35B64.77B78.67B62.29B51.93B
Gross Profit13.99B7.17B22.57B19.86B13.56B
EBITDA13.71B3.65B21.44B18.15B12.15B
Net Income3.25B-4.61B9.38B7.76B3.60B
Balance Sheet
Total Assets123.62B125.30B130.76B109.90B92.32B
Cash, Cash Equivalents and Short-Term Investments20.29B25.41B22.36B26.73B23.68B
Total Debt37.88B41.68B37.79B30.91B26.96B
Total Liabilities55.99B59.72B61.99B50.00B39.90B
Stockholders Equity65.96B64.01B67.48B58.25B50.98B
Cash Flow
Free Cash Flow-2.45B242.00M-8.51B270.00M2.38B
Operating Cash Flow13.09B11.21B7.29B11.18B11.98B
Investing Cash Flow-14.08B-10.55B-16.63B-11.12B-9.87B
Financing Cash Flow-4.72B1.78B4.42B2.42B4.35B

Kanto Denka Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price808.00
Price Trends
50DMA
847.28
Negative
100DMA
845.96
Negative
200DMA
902.12
Negative
Market Momentum
MACD
-6.28
Positive
RSI
34.14
Neutral
STOCH
14.81
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 808 is below the 20-day moving average (MA) of 854.90, below the 50-day MA of 847.28, and below the 200-day MA of 902.12, indicating a bearish trend. The MACD of -6.28 indicates Positive momentum. The RSI at 34.14 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥54.34B11.79
3.28%8.13%5.35%
77
Outperform
¥67.06B15.53
2.62%5.45%25.48%
74
Outperform
¥96.17B8.96
3.49%8.46%74.58%
73
Outperform
¥65.04B14.709.65%2.34%15.94%14.91%
69
Neutral
¥63.25B13.52
4.37%0.32%-43.10%
61
Neutral
€7.39B17.7620.43%28.24%2.62%48.47%
61
Neutral
¥46.36B17.74
1.83%-2.91%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4047
Kanto Denka Kogyo Co., Ltd.
809.00
-142.64
-14.99%
JP:4008
Sumitomo Seika Chemicals Co., Ltd.
4,580.00
-337.70
-6.87%
JP:4028
ISHIHARA SANGYO KAISHA, LTD.
2,413.00
1,012.86
72.34%
JP:4221
Okura Industrial Co., Ltd.
4,650.00
2,267.43
95.17%
JP:4362
Nippon Fine Chemical Co., Ltd.
2,824.00
552.70
24.33%
JP:4187
Osaka Organic Chemical Industry Ltd.
2,932.00
-116.43
-3.82%

Kanto Denka Kogyo Co., Ltd. Corporate Events

Fire Incident at Kanto Denka Kogyo’s Shibukawa Plant
Aug 12, 2025

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
Aug 8, 2025

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
Aug 8, 2025

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
Aug 8, 2025

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
Aug 8, 2025

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
Aug 7, 2025

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
Jun 23, 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
May 28, 2025

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
May 15, 2025

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
May 15, 2025

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
May 15, 2025

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.

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: Aug 13, 2025