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Denka Co Ltd (JP:4061)
:4061
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Denka Co (4061) Price & Analysis

4 Followers

4061 Stock Chart & Stats

¥2747.50
-¥46.00(-2.04%)
At close: 4:00 PM EST
¥2747.50
-¥46.00(-2.04%)

Bulls Say, Bears Say

Bulls Say
Diversified Product PortfolioDenka's broad product set across functional chemicals, polymers, inorganic and electronic materials reduces dependence on any single end market. This multi-industry exposure (electronics, infrastructure, manufacturing) supports more stable revenue streams and allows reallocation of resources if one sector weakens over the next several quarters.
Differentiated, Higher-margin ProductsThe company's focus on application-specific and qualified electronic/performance materials creates customer switching costs and pricing power. These differentiated products tend to sustain higher margins and recurring orders from industrial customers, supporting longer-term margin durability and contractual revenue over a 2–6 month horizon and beyond.
Manageable Leverage And Asset BaseReported debt-to-equity in the ~0.5–0.75 range indicates leverage is moderate for the chemical sector. A steadily expanded asset base and modest equity growth improve scale and provide collateral and capacity to fund operations or refinance near-term needs, helping preserve strategic optionality despite cyclical earnings.
Bears Say
Persistent Negative Free Cash FlowSustained negative free cash flow and large outflows reduce internal funding for capex, R&D, and working capital, forcing reliance on external financing or asset sales. Over the medium term this constrains strategic investments, dividend reliability and increases vulnerability to interest-rate or liquidity stress if cash conversion doesn't improve.
Cyclical Revenue And Margin VolatilityThe company's historical swings in revenue and margins make forecasting and capacity planning difficult and raise the chance of earnings reversals. Even with a 2026 rebound, cyclical end markets and input-cost sensitivity mean durability of recovery is uncertain, complicating capital allocation and long-term margin expansion plans.
Inconsistent Profitability And Past Net LossVolatile profitability and a demonstrated net loss in 2025 indicate earnings power is not yet stable. Low mid-single-digit ROE and margin compression limit retained earnings growth, weakening the firm's ability to self-fund expansion or weather downturns, and raising the bar for sustained operational improvements.

Denka Co News

4061 FAQ

What was Denka Co Ltd’s price range in the past 12 months?
Denka Co Ltd lowest stock price was ¥2042.00 and its highest was ¥4692.00 in the past 12 months.
    What is Denka Co Ltd’s market cap?
    Denka Co Ltd’s market cap is ¥337.21B.
      When is Denka Co Ltd’s upcoming earnings report date?
      Denka Co Ltd’s upcoming earnings report date is Aug 07, 2026 which is in 26 days.
        How were Denka Co Ltd’s earnings last quarter?
        Denka Co Ltd released its earnings results on May 13, 2026. The company reported ¥117.87 earnings per share for the quarter, beating the consensus estimate of ¥113.31 by ¥4.56.
          Is Denka Co Ltd overvalued?
          According to Wall Street analysts Denka Co Ltd’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Denka Co Ltd pay dividends?
            Denka Co Ltd pays a Semiannually dividend of ¥50 which represents an annual dividend yield of 3.71%. See more information on Denka Co Ltd dividends here
              What is Denka Co Ltd’s EPS estimate?
              Denka Co Ltd’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Denka Co Ltd have?
              Denka Co Ltd has 88,555,840 shares outstanding.
                What happened to Denka Co Ltd’s price movement after its last earnings report?
                Denka Co Ltd reported an EPS of ¥117.87 in its last earnings report, beating expectations of ¥113.31. Following the earnings report the stock price went down -3.303%.
                  Which hedge fund is a major shareholder of Denka Co Ltd?
                  Currently, no hedge funds are holding shares in JP:4061
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Denka Co Ltd

                    Denka Company Limited, a Tokyo, Japan-based entity founded in 1915, operates internationally as a manufacturer and supplier of a wide array of organic and inorganic materials, electronic components, and pharmaceutical products. Its Electronics & Innovative Products division delivers specialized solutions like conductive agents essential for lithium-ion batteries, advanced thermal management materials, various substrates, high-performance ceramics, and adhesive films and tapes. The Life Innovation segment is dedicated to the production of influenza vaccines, the development of rapid diagnostic test kits for infectious diseases such as the novel coronavirus, and the provision of macromolecular sodium hyaluronate preparations. Within its Elastomers & Infrastructure Solutions division, the company offers functional elastomers, cement and specialized cement additives, agricultural fertilizers, and corrugated piping designed for farming applications. Lastly, the Polymer Solutions division focuses on polymer-based offerings, including styrene resins, sheets used for food packaging, synthetic fibers utilized in wigs and hairpieces, and other chemical compounds like poval. The company, initially incorporated as Denki Kagaku Kogyo Kabushiki Kaisha, officially adopted its current name, Denka Company Limited, in October 2015.

                    Denka Co (4061) Earnings & Revenues

                    4061 Stock 12 Month Forecast

                    Average Price Target

                    ¥4,390.00
                    ▲(59.78% Upside)
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