Denka Co (4061) AI Stock Analysis

• Market Cap: €204.07B
• Dividend Yield: 4.23%
• Average Volume (3M): 445.73K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.72
• Revenue Growth: 0.61%
• EPS Growth: -180.24%
• Country: JP
• Employees: 6,514
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): 58.04
• Shares Outstanding: 88,555,840
• 10 Day Avg. Volume: 365,330
• 30 Day Avg. Volume: 445,733
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €3,049.94
• Price Target Upside: 28.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥2,006.00 ▼(-15.23% Downside)

The overall stock score is primarily impacted by financial performance challenges, including negative net income and deteriorating cash flow. Technical indicators show neutral momentum without clear direction, and the company's negative P/E ratio and high dividend yield reflect valuation concerns. The lack of earnings call data and corporate events means these factors do not influence the score.

Denka Co Business Overview & Revenue Model

Company Description

Denka Co., Ltd. is a Japanese chemical company involved in the manufacturing and distribution of a diverse range of chemical products. The company's operations are divided into several sectors, including elastomers and performance plastics, infrastructure and social solutions, electronics and innovative products, life innovation, and others. Denka's core products include synthetic rubbers, cement additives, electronic materials, and pharmaceuticals, serving industries such as automotive, construction, electronics, and healthcare.

How the Company Makes Money

Denka Co., Ltd. generates revenue through the sale of its chemical products across various sectors. The company's key revenue streams include the production and sale of synthetic rubbers and performance plastics, which are essential in automotive and industrial applications. Additionally, Denka earns income from its infrastructure solutions, which involve providing construction materials such as special cement additives. The electronics and innovative products segment contributes to revenue through the sale of electronic materials, including conductive materials used in semiconductors. In the life innovation sector, Denka is involved in the healthcare industry, offering diagnostic reagents and vaccines. Strategic partnerships and collaborations with other companies also play a role in expanding Denka's market reach and product offerings, thereby contributing to its earnings.

Denka Co Financial Statement Overview

Summary

Denka Co faces challenges in profitability and cash flow management, with negative net income and deteriorating free cash flow. The balance sheet is relatively stable with a manageable debt-to-equity ratio, but the negative return on equity and cash flow issues need addressing.

Income Statement

Denka Co's revenue showed a slight decline in the past year with a -1.8% growth rate. The gross profit margin for 2025 is 21.1%, indicating moderate profitability. However, a significant concern is the negative net income in 2025, resulting in a negative net profit margin. The EBIT margin is 3.6%, reflecting a decline in operational efficiency compared to previous years. Overall, the income statement reflects challenges in maintaining profitability amidst revenue fluctuations.

Balance Sheet

The company's balance sheet reveals a debt-to-equity ratio of 0.74, which is manageable but indicates a certain level of leverage. The return on equity has turned negative due to net losses, posing concerns about shareholder returns. The equity ratio is 45.2%, suggesting a stable capital structure with a fair balance of equity and liabilities. Despite some stability in the equity ratio, the recent financial performance has impacted overall equity returns.

Cash Flow

Denka Co's cash flow statement shows negative free cash flow, which has deteriorated significantly from the previous year. The operating cash flow to net income ratio is negative due to the net loss, indicating challenges in converting profits into cash. The free cash flow to net income ratio further highlights cash flow issues. Overall, the cash flow statement raises concerns about liquidity and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	400.25B	400.25B	389.26B	407.56B	384.85B	354.39B
Gross Profit	84.60B	84.59B	82.50B	102.34B	107.17B	100.19B
EBITDA	41.67B	12.87B	43.09B	59.37B	59.44B	52.78B
Net Income	-12.30B	-12.30B	11.95B	12.77B	26.01B	22.79B
Balance Sheet
Total Assets	655.52B	655.52B	616.24B	592.15B	557.64B	526.03B
Cash, Cash Equivalents and Short-Term Investments	37.00B	37.00B	35.39B	20.20B	20.21B	25.91B
Total Debt	217.68B	217.68B	174.37B	169.73B	137.03B	138.19B
Total Liabilities	347.22B	347.22B	299.33B	291.80B	265.55B	255.99B
Stockholders Equity	296.18B	296.18B	307.54B	296.48B	288.47B	267.45B
Cash Flow
Free Cash Flow	0.00	-41.21B	-8.42B	-30.89B	4.68B	3.12B
Operating Cash Flow	0.00	18.62B	36.26B	8.95B	42.63B	40.61B
Investing Cash Flow	0.00	-59.59B	-22.57B	-28.27B	-36.84B	-36.98B
Financing Cash Flow	0.00	40.12B	712.00M	18.36B	-12.34B	-6.71B

Denka Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2366.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4061, the sentiment is Positive. The current price of 2366.5 is above the 20-day moving average (MA) of 2232.05, above the 50-day MA of 2131.72, and above the 200-day MA of 2066.05, indicating a bullish trend. The MACD of 48.73 indicates Negative momentum. The RSI at 82.02 is Negative, neither overbought nor oversold. The STOCH value of 71.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4061.

Denka Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$10.36B	6.35	0.76%	2.84%	3.10%	-36.03%
4061	54 Neutral	€204.07B	15.29	-3.41%	4.23%	0.61%	-180.24%
KURRF	―	$3.90B	38.24	2.06%	4.79%	―	―
NP7	―	€1.33B	11.75	7.16%	―	―	―
SOMMF	―	$5.24B	78.13	0.92%	2.25%	―	―
TOSCF	―	$5.08B	15.73	6.04%	2.17%	―	―
4114	69 Neutral	¥295.57B	16.85		5.82%	1.44%	58.90%

Denka Co Corporate Events

Denka Co. Halts U.S. Rubber Production Amid Regulatory Changes

Denka Co., Ltd has announced the suspension of production at its U.S. subsidiary, Denka Performance Elastomer LLC, due to new environmental regulations on chemical emissions. Despite a two-year extension on the regulatory grace period, the company is maintaining its production halt, focusing on safely decommissioning equipment and managing existing inventory to minimize costs.

Denka Co. Reports Mixed Financial Results for Early Fiscal Year 2026

Denka Co., Ltd. reported a decrease in net sales and operating income for the first three months of the fiscal year ending March 31, 2026, compared to the same period last year. Despite the decline in sales and income, the company experienced a significant increase in net income attributable to owners of the parent, driven by strategic financial management, which could impact its market positioning positively.