Tanaka Chemical Corp. (4080) AI Stock Analysis

• Market Cap: ¥13.53B
• Dividend Yield: N/A
• Average Volume (3M): 38.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -19.70%
• EPS Growth: -159.15%
• Country: JP
• Employees: 151
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 7.47
• Shares Outstanding: 32,533,000
• 10 Day Avg. Volume: 47,430
• 30 Day Avg. Volume: 38,706
• PEG Ratio: 0.54
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -10.58
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥396.00 ▼(-5.04% Downside)

The overall stock score is primarily influenced by the challenging financial performance, with declining revenues and profitability being significant concerns. Technical analysis provides some support, but valuation metrics indicate potential overvaluation. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Strategic Partnerships

Strategic partnerships with leading firms enhance innovation and secure long-term contracts, supporting stable revenue streams.

Diverse Revenue Streams

Diverse revenue streams across growing industries like electronics and automotive provide resilience against sector-specific downturns.

R&D Pipeline

A strong R&D pipeline ensures continuous innovation, meeting client needs and sustaining competitive advantage in the market.

Negative Factors

Declining Revenues

Declining revenues indicate potential market share loss or demand issues, impacting long-term financial health and growth prospects.

Rising Leverage

Rising leverage can constrain financial flexibility and increase risk, potentially affecting the company's ability to invest in growth.

Negative Cash Flow

Negative cash flow indicates operational challenges, limiting the company's ability to fund new projects or manage debt effectively.

Tanaka Chemical Corp. Business Overview & Revenue Model

Company Description

Tanaka Chemical Corp. (4080) is a leading manufacturer and supplier of chemical products, specializing in the production of advanced materials for various sectors, including electronics, pharmaceuticals, and automotive industries. The company’s core offerings encompass high-purity chemical substances, electronic materials, and specialty chemicals, which are essential for manufacturing processes and product development in these high-tech and industrial sectors.

How the Company Makes Money

Tanaka Chemical Corp. generates revenue primarily through the sale of its chemical products to a diverse range of industries. The company has established long-term contracts with major players in the electronics and automotive sectors, ensuring a steady stream of income from bulk sales. Additionally, Tanaka engages in research and development partnerships, which not only enhance its product offerings but also provide additional funding and revenue opportunities through collaborative projects. The company also benefits from economies of scale in production, allowing it to maintain competitive pricing while maximizing profit margins. Furthermore, Tanaka's focus on innovation and high-quality manufacturing processes positions it favorably in the market, driving demand for its products and contributing to its overall earnings.

Tanaka Chemical Corp. Financial Statement Overview

Summary

Tanaka Chemical Corp. faces a challenging financial landscape with declining revenues and profitability. Increasing leverage and negative net income impact the balance sheet's health, while cash flow management remains a concern. Strategic changes may be necessary to restore financial stability and growth.

Income Statement

Tanaka Chemical Corp. has experienced fluctuating revenues, peaking in 2023 with subsequent declines. The gross profit margin has been volatile, with the latest year showing a significant decrease. The net profit margin turned negative in the most recent year, indicating challenges in profitability. The negative EBIT and reduced EBITDA margin further highlight operational inefficiencies.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, though it has increased over recent years, indicating rising leverage. The equity ratio remains stable, suggesting a balanced approach to financing. However, the return on equity has turned negative, reflecting recent net losses and potential concerns about shareholder returns.

Cash Flow

Free cash flow has deteriorated significantly, transitioning from positive to negative in the latest period. The operating cash flow to net income ratio indicates operational challenges, as cash generation from operations is weak relative to net income. The free cash flow to net income ratio underscores the strain on cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.96B	36.50B	47.99B	57.67B	40.53B	22.75B
Gross Profit	3.88B	1.80B	4.88B	4.22B	3.00B	1.86B
EBITDA	2.88B	2.32B	4.87B	3.60B	2.48B	1.35B
Net Income	857.00M	-257.00M	2.56B	1.29B	731.00M	-414.36M
Balance Sheet
Total Assets	36.23B	33.04B	38.13B	40.09B	39.02B	33.89B
Cash, Cash Equivalents and Short-Term Investments	4.97B	1.59B	1.32B	1.61B	1.30B	2.53B
Total Debt	11.25B	9.23B	10.80B	12.30B	14.60B	13.80B
Total Liabilities	19.83B	16.20B	20.90B	25.43B	25.66B	21.27B
Stockholders Equity	16.40B	16.84B	17.23B	14.66B	13.36B	12.62B
Cash Flow
Free Cash Flow	4.26B	-1.43B	2.79B	6.69B	-2.26B	-7.94B
Operating Cash Flow	4.26B	264.00M	3.43B	8.24B	145.00M	-90.14M
Investing Cash Flow	0.00	-416.00M	-536.00M	-1.42B	-2.20B	-7.77B
Financing Cash Flow	0.00	-2.27B	-1.50B	-2.34B	794.00M	8.69B

Tanaka Chemical Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 417.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4080, the sentiment is Positive. The current price of 417 is above the 20-day moving average (MA) of 415.45, above the 50-day MA of 411.66, and below the 200-day MA of 418.79, indicating a neutral trend. The MACD of 1.03 indicates Positive momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4080.

Tanaka Chemical Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4040	77 Outperform	¥7.13B	6.15	―	1.96%	8.43%	2.99%
4093	77 Outperform	¥12.58B	11.32	―	3.89%	-3.00%	-29.83%
4366	74 Outperform	¥9.54B	11.66	―	1.81%	9.07%	―
4531	74 Outperform	¥6.55B	9.39	―	2.97%	9.92%	-27.64%
4960	67 Neutral	¥5.46B	56.17	―	1.07%	-9.63%	-1.71%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4080	48 Neutral	¥13.53B	-10.42	-7.76%	―	-19.70%	-159.15%