Kanto Denka Kogyo Co., Ltd. (JP:4047)
:4047
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Kanto Denka Kogyo Co., Ltd.
(4047)
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Rating:69Neutral
Price Target:
¥1,521.00
▲(37.65% Upside)
Action:DowngradedDate:03/06/26
The score is primarily driven by improving profitability and a solid balance sheet, but tempered by negative free cash flow and revenue volatility. Technicals add support through a clear uptrend, while valuation contributes positively due to a low P/E and modest dividend yield.
Positive Factors
Improved profitability
Turning net margin positive to 5.21% with better EBIT/EBITDA margins in 2025 signals a durable recovery in core profitability. Sustained margin improvement strengthens long-term earnings power, supporting reinvestment capacity and resilience versus cyclical downturns.
Negative Factors
Negative free cash flow
Negative free cash flow in 2025 shows cash generation after capex was insufficient, limiting internal funding for dividends, debt paydown, or growth. If persistent, this necessitates external financing or asset sales, raising long-term funding and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Turning net margin positive to 5.21% with better EBIT/EBITDA margins in 2025 signals a durable recovery in core profitability. Sustained margin improvement strengthens long-term earnings power, supporting reinvestment capacity and resilience versus cyclical downturns.
Read all positive factors
Kanto Denka Kogyo Co., Ltd. (4047) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥90.65B
Dividend Yield1.6%
Average Volume (3M)173.86K
Price to Earnings (P/E)9.8
Beta (1Y)0.93
Revenue Growth1.20%
EPS GrowthN/A
CountryJP
Employees1,145
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)28.18
Shares Outstanding57,546,047
10 Day Avg. Volume198,850
30 Day Avg. Volume173,856
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)94.2
Revenue Forecast (FY)¥78.80B
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, includ...
How the Company Makes Money
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Kanto Denka Kogyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
65
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
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 | 11.93B | 12.52B | 6.53B | 20.65B | 17.84B | 12.44B |
| Net Income | 2.61B | 3.25B | -4.61B | 9.38B | 7.76B | 3.61B |
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 | 61.98B | 49.99B | 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
Positive
1105.00
Price Trends
1490.27
Positive
1281.06
Positive
1087.48
Positive
Market Momentum
-16.14
Negative
58.63
Neutral
58.24
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 1460.93, below the 50-day MA of 1490.27, and above the 200-day MA of 1087.48, indicating a bullish trend. The MACD of -16.14 indicates Negative momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 58.24 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥84.63B | 11.63 | 15.07% | 1.74% | 15.12% | 40.72% | |
77 Outperform | ¥119.27B | 10.07 | ― | 3.72% | 5.40% | 14.80% | |
76 Outperform | ¥79.99B | 6.04 | ― | 3.04% | 1.57% | -33.97% | |
76 Outperform | ¥90.44B | 7.61 | ― | 3.02% | 1.66% | 11.28% | |
69 Neutral | ¥90.65B | 9.79 | ― | 1.60% | 1.20% | ― | |
62 Neutral | ¥94.24B | 19.44 | ― | 1.30% | 47.56% | 49.58% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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Kanto Denka Kogyo Co., Ltd. Corporate Events
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 ...
Kanto Denka Kogyo Holds Profits Steady Amid Factory Fire and Mixed Demand
Feb 13, 2026
Kanto Denka Kogyo reported net sales of ¥46.7 billion and operating profit of ¥2.6 billion for the first three quarters of the fiscal year ending March 31, 2026, both essentially flat year on year. Profit attributable to owners of the pa...
Kanto Denka Kogyo Lifts Full-Year Earnings Forecast on Strong Fine Chemicals Sales
Feb 13, 2026
Kanto Denka Kogyo revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, projecting higher net sales and profits than previously announced. The company now expects net sales of ¥66.5 billion, operating profit of...
Kanto Denka Kogyo Lifts Outlook as Sales Stabilize, Profit Mix Shifts
Feb 13, 2026
Kanto Denka Kogyo reported consolidated net sales of ¥46.7 billion for the nine months ended December 31, 2025, essentially flat year on year, with operating profit steady at ¥2.6 billion and ordinary profit up 13.9%. Profit attributable...
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.