Denka Co Ltd (JP:4061)
:4061
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Denka Co
(4061)
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Rating:60Neutral
Price Target:
¥3,350.00
▲(21.93% Upside)
Action:ReiteratedDate:02/28/26
The score is primarily held back by weak financial performance—net losses and negative, deteriorating free cash flow—despite a reasonably stable balance sheet. Technicals are supportive with a strong uptrend and positive MACD, but overbought RSI/Stoch readings temper the outlook. Valuation is also limited by negative earnings, with only moderate support from the 2.72% dividend yield.
Positive Factors
Manageable leverage and stable capital structure
A debt-to-equity of 0.74 and a 45.2% equity ratio imply a moderate leverage profile and a broadly stable capital structure. This durability gives the company financial flexibility to fund operations, maintain capacity, and navigate cyclical swings without immediate refinancing stress.
Negative Factors
Negative free cash flow and weak cash conversion
Deteriorating negative free cash flow and poor cash conversion constrain reinvestment, dividend sustainability, and debt servicing. Persistently weak FCF forces reliance on external funding or asset moves, limiting strategic flexibility and raising medium-term liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage and stable capital structure
A debt-to-equity of 0.74 and a 45.2% equity ratio imply a moderate leverage profile and a broadly stable capital structure. This durability gives the company financial flexibility to fund operations, maintain capacity, and navigate cyclical swings without immediate refinancing stress.
Read all positive factors
Denka Co (4061) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥328.42B
Dividend Yield3.71%
Average Volume (3M)424.75K
Price to Earnings (P/E)36.2
Beta (1Y)0.92
Revenue Growth0.24%
EPS Growth-234.36%
CountryJP
Employees6,514
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)N/A
Shares Outstanding88,555,840
10 Day Avg. Volume419,400
30 Day Avg. Volume424,753
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.62
Price to Sales (P/S)0.46
P/FCF Ratio-4.59
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)N/A
Revenue Forecast (FY)N/A
Denka Co Business Overview & Revenue Model
Company Description
Denka Company Limited manufactures and sells organic and inorganic materials to electronic materials and pharmaceuticals in Japan and internationally. The company's Electronics & Innovative Products division provides conductive agents for lithium ...
How the Company Makes Money
Denka makes money primarily by manufacturing and selling chemical and materials products to business customers (B2B). Revenue is generated from (1) sales of industrial and specialty materials (functional chemicals/materials used by downstream manu...
Denka Co Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
70
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 399.09B | 400.25B | 389.26B | 407.56B | 384.85B | 354.39B |
| Gross Profit | 82.56B | 87.04B | 84.98B | 104.59B | 109.46B | 102.43B |
| EBITDA | 40.24B | 42.27B | 40.30B | 59.37B | 64.01B | 57.64B |
| Net Income | -9.55B | -12.30B | 11.95B | 12.77B | 26.01B | 22.78B |
Balance Sheet | ||||||
| Total Assets | 650.89B | 655.52B | 616.24B | 592.16B | 557.65B | 526.03B |
| Cash, Cash Equivalents and Short-Term Investments | 42.55B | 37.00B | 35.39B | 20.20B | 20.21B | 25.91B |
| Total Debt | 222.64B | 221.88B | 178.03B | 172.68B | 139.43B | 140.44B |
| Total Liabilities | 339.72B | 347.23B | 299.33B | 291.81B | 265.55B | 256.00B |
| Stockholders Equity | 293.44B | 296.18B | 307.54B | 296.48B | 288.47B | 267.45B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -40.13B | -7.59B | -29.86B | 5.28B | 3.78B |
| Operating Cash Flow | 0.00 | 18.62B | 36.26B | 8.95B | 42.63B | 40.61B |
| Investing Cash Flow | 0.00 | -52.63B | -17.33B | -28.27B | -36.84B | -36.98B |
| Financing Cash Flow | 0.00 | 33.16B | -4.53B | 18.36B | -12.34B | -6.71B |
Denka Co Technical Analysis
Positive
2747.50
Price Trends
3323.00
Positive
3011.96
Positive
2570.37
Positive
Market Momentum
152.13
Negative
61.95
Neutral
82.47
Negative
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 2747.5 is below the 20-day moving average (MA) of 3521.76, below the 50-day MA of 3323.00, and above the 200-day MA of 2570.37, indicating a bullish trend. The MACD of 152.13 indicates Negative momentum. The RSI at 61.95 is Neutral, neither overbought nor oversold. The STOCH value of 82.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4061.
Denka Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥12.94T | 18.04 | 11.19% | 2.17% | 3.77% | 0.35% | |
69 Neutral | ¥335.87B | 10.96 | ― | 5.28% | -0.47% | 25.41% | |
66 Neutral | ¥753.84B | 10.74 | 4.79% | 4.21% | -1.21% | -27.21% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥868.83B | 3.83 | 8.79% | 2.68% | -1.64% | ― | |
60 Neutral | ¥328.42B | 36.21 | -4.00% | 3.71% | 0.24% | -234.36% | |
55 Neutral | ¥1.30T | -66.09 | 1.09% | 3.50% | -11.50% | 25.86% |
* Basic Materials Sector Average
JP:4061
Denka Co
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Denka Co Corporate Events
Denka to Take Full Control of Toyo Styrene as Consolidated Subsidiary
Mar 9, 2026
Denka will acquire Daicel Corporation’s 15% stake in Toyo Styrene, turning the joint venture polystyrene producer into a consolidated, specified subsidiary as it exits the co-investment and shutters Toyo Styrene’s Hirohata Plant. For a...
Denka Amends KAINOS Tender Offer Filing After Antitrust Clearance
Mar 5, 2026
Denka and its wholly owned subsidiary Flowers have launched a tender offer for the common shares of KAINOS Laboratories, Inc., a company listed on the Standard Market of the Tokyo Stock Exchange. Following notifications from the Fair Trade Commiss...
Denka Weighs 2027 Spin-off of Styrene Business to Sharpen Portfolio
Feb 27, 2026
Denka has begun formally reviewing a potential spin-off of its styrene-related businesses within the Polymer Solutions Division, targeting completion around April 2027, as part of its Mission 2030 portfolio transformation. The move reflects mounti...
Denka Revamps Mission 2030 Plan to Rebuild Earnings and Enter New Growth Phase
Feb 27, 2026
Denka has updated its Mission 2030 management plan with a Phase 2 program covering fiscal years 2026 to 2028, following an expected recovery to ¥25 billion in operating income and at least 5% ROE in fiscal 2025. The revised plan targets rebui...
Denka pivots “Mission 2030” to earnings rebuild with Phase 2 plan
Feb 27, 2026
Denka has launched Phase 2 of its “Mission 2030” management plan for fiscal years 2026 to 2028, after Phase 1 was hit by slumping demand for electronic materials, weak U.S. chloroprene rubber performance and slower-than-expected paybac...
Denka Sets Up Flowers Subsidiary for Joint Tender Offer for KAINOS Laboratories
Feb 8, 2026
Denka has set up a wholly owned subsidiary, Flowers Co., Ltd., to launch a tender offer for all common shares of KAINOS Laboratories, Inc., which is listed on the Tokyo Stock Exchange’s Standard Market. The vehicle was established in January...
Denka Books ¥14.2 Billion Extraordinary Loss on U.S. Elastomer Business Liquidation
Feb 6, 2026
Denka Company Limited will book an extraordinary loss of ¥14.2 billion for the first nine months of the fiscal year ending March 2026, stemming from the liquidation of business at its U.S. subsidiary Denka Performance Elastomer LLC, which has...
Denka Reshapes Executive Lineup and Roles to Strengthen Operations and Innovation
Feb 6, 2026
Denka Company Limited has announced a reshuffle of its executive officer lineup effective April 1, 2026, following a resolution by its Board of Directors. While President and CEO Ikuo Ishida, CFO and CSCO Rimiru Hayashida, and several other senior...
Denka Advances Shutdown and Cost Controls at U.S. Chloroprene Rubber Unit
Feb 6, 2026
Denka reported on the ongoing suspension of production at Denka Performance Elastomer LLC, its U.S. chloroprene rubber manufacturing subsidiary, detailing the systematic shutdown of facilities and related cost-control measures. The company has com...
Denka Lifts Profit Outlook as Nine-Month Earnings Surge Despite Lower Sales
Feb 6, 2026
Denka reported consolidated net sales of ¥290.8 billion for the first nine months of the fiscal year ending March 31, 2026, a 3.6% year-on-year decline, but significantly improved profitability, with operating income up 54.0% to ¥18.2 bi...
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.