Denka Co Ltd (JP:4061)
:4061
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Denka Co
(4061)
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Rating:66Neutral
Price Target:
¥4,411.00
▲(60.55% Upside)
Action:ReiteratedDate:04/25/26
Score is held back primarily by weak financial performance (net loss and negative free cash flow), despite a relatively stable balance sheet. Technicals are a notable positive with a clear uptrend and supportive momentum. Valuation remains a headwind due to a high P/E, only modestly offset by the dividend yield.
Positive Factors
Diversified end-market exposure
Denka's exposure across electronics, mobility, construction, packaging and healthcare reduces reliance on any single cyclical end market. This multi-industry footprint supports steadier demand for its specialty materials and lowers revenue volatility over a 2–6 month horizon, aiding resilience.
Negative Factors
Negative net income and weak margins
Sustained negative net income and a low EBIT margin signal fundamental profitability issues. Over several months this erodes retained earnings, undermines return on equity and limits funding for R&D or capacity upgrades, risking competitive position if margins cannot be restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified end-market exposure
Denka's exposure across electronics, mobility, construction, packaging and healthcare reduces reliance on any single cyclical end market. This multi-industry footprint supports steadier demand for its specialty materials and lowers revenue volatility over a 2–6 month horizon, aiding resilience.
Read all positive factors
Denka Co (4061) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥359.61B
Dividend Yield3.71%
Average Volume (3M)424.75K
Price to Earnings (P/E)36.2
Beta (1Y)0.87
Revenue Growth-2.16%
EPS Growth-185.38%
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
3404.46
Positive
3079.78
Positive
2618.11
Positive
Market Momentum
114.24
Positive
54.12
Neutral
27.53
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 2747.5 is below the 20-day moving average (MA) of 3644.59, below the 50-day MA of 3404.46, and above the 200-day MA of 2618.11, indicating a bullish trend. The MACD of 114.24 indicates Positive momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 27.53 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥14.02T | 24.77 | 11.19% | 2.17% | 0.50% | -6.23% | |
69 Neutral | ¥320.14B | 10.96 | ― | 5.28% | -2.01% | 19.12% | |
66 Neutral | ¥359.61B | 36.21 | -4.00% | 3.71% | -2.16% | -185.38% | |
66 Neutral | ¥777.54B | 10.74 | 4.79% | 4.21% | -2.82% | -46.83% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥839.85B | 3.83 | 8.79% | 2.68% | -5.39% | ― | |
55 Neutral | ¥1.19T | -66.09 | 1.09% | 3.50% | -14.76% | 25.27% |
* Basic Materials Sector Average
JP:4061
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Denka Co Corporate Events
Denka Secures Majority Stake in KAINOS Laboratories Through Tender Offer
Mar 26, 2026
Denka Company Limited and its wholly owned subsidiary Flowers Co., Ltd. have completed a tender offer to acquire common shares of KAINOS Laboratories, Inc., a diagnostics-related company listed on the Standard Market of the Tokyo Stock Exchange. T...
Denka Books ¥12.6 Billion Extraordinary Gain From Unwinding Cross-Shareholdings
Mar 26, 2026
Denka Company Limited has realized extraordinary gains from the sale of 13 issues of listed and unlisted investment securities held by the company and its subsidiaries. The disposals, conducted between April 1, 2025 and March 25, 2026, generated g...
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.