Koatsu Gas Kogyo Co., Ltd. (4097) AI Stock Analysis

• Market Cap: ¥61.94B
• Dividend Yield: 2.88%
• Average Volume (3M): 37.00K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.84
• Revenue Growth: 3.42%
• EPS Growth: 13.37%
• Country: JP
• Employees: 1,896
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 23.68
• Shares Outstanding: 55,577,530
• 10 Day Avg. Volume: 34,490
• 30 Day Avg. Volume: 37,000
• PEG Ratio: 1.64
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 21.72
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,311.00 ▲(25.21% Upside)
• Action: Reiterated Date: 01/07/26
• Date: Action: Reiterated 01/07/26

The score is driven primarily by strong financial performance (solid growth, stable/improving margins, conservative leverage, and good cash conversion). Technicals are supportive due to a clear uptrend, but overbought signals (high RSI) reduce the technical score. Valuation is favorable with a low P/E and a solid dividend yield.

Positive Factors

Consistent Revenue Growth

A five-year revenue CAGR of 4.9% indicates steady, durable top-line expansion driven by underlying demand in the chemicals/gas niche. Sustained revenue growth supports capacity utilization, long-term planning, and provides a base for reinvestment, cushioning cyclicality over next 2–6 months.

Stable and Improving Margins

Relatively stable gross margin near 26.6% and improving net and EBITDA margins show effective cost control and pricing power in core operations. Margin resilience enhances earnings durability, supports free cash flow generation and counters input-cost volatility over a multi-month horizon.

Conservative Capital Structure & Strong Cash Conversion

Very low leverage and a strong equity ratio provide financial flexibility to fund capex, dividends, or weather downturns. OCF to net income of 1.34 and positive free cash flow growth demonstrate reliable cash conversion, underpinning sustainable operations and strategic investments over time.

Negative Factors

Moderate Return on Equity

A 6.1% ROE suggests limited efficiency in converting equity into profits relative to many industrial peers. Persistently moderate ROE can constrain shareholder returns, reduce attractiveness for capital allocation, and indicate scope for operational improvement over the medium term.

Variable Free Cash Flow

Although free cash flow is positive and grew year-over-year, variability introduces planning uncertainty for dividends, buybacks, or expansion. Fluctuating FCF can tighten margins for discretionary spending and raises execution risk if adverse operating conditions persist.

Declining EPS Growth

Negative EPS growth signals episodic profit pressure or one-off items affecting per-share earnings. If EPS contraction persists, it can undermine capital return plans and investor confidence, and reflects potential margin or volume challenges that may take quarters to rectify.

Koatsu Gas Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Koatsu Gas Kogyo Co., Ltd., together with its subsidiaries, produces and sells industrial gases and chemical products in Japan and internationally. It offers dissolved acetylene gas for welding, cutting, heating, removing glass and copper wire from molds, pharmaceutical synthesis, and carbon raw materials applications; laser gas/mixed gas for various applications, such as laser processing, welding, sterilization, biotechnology, and food products; separated gas used analytical instruments for measuring the concentration of various air pollutants, automobile exhaust gas and flue gas, and calibration of gas detectors; LP gas/LNG for cutting/heating and fuel applications; agricultural carbon dioxide; gas cylinders; and safety systems. The company also offers chemical products, such as adhesives for household and industrial applications; and PEGAR, a synthetic resin emulsion for various applications, such as adhesives, pressure sensitive adhesives, paint binders, and additives for construction materials. In addition, it offers RF tag related devices and their application systems, which used for railway equipment management, management of high-pressure gas cylinders, and recognition of production lines; LSI cards and reader writers; and GNSS receiver modules. Koatsu Gas Kogyo Co., Ltd. was founded in 1958 and is headquartered in Osaka, Japan.

How the Company Makes Money

Koatsu Gas Kogyo Co., Ltd. generates revenue through the sale of its gas equipment and safety products, which are essential for ensuring safe and efficient gas utilization. The company has established key revenue streams from direct sales to end-users, as well as through partnerships with distributors and contractors in the energy sector. Additionally, Koatsu may engage in service contracts for maintenance and installation, further contributing to its income. The company's reputation for reliability and safety in its products helps sustain customer loyalty and repeat business, which are critical factors in its earnings.

Koatsu Gas Kogyo Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals overall: solid revenue growth (5-year CAGR 4.9%), stable gross margin (~26.6%), improving net margin (4.8%) and EBITDA margin (10.2%). Balance sheet leverage is conservative (debt-to-equity 0.15) with a strong equity ratio (64.2%), though ROE is only moderate (6.1%). Cash generation is healthy with strong cash conversion (operating cash flow to net income 1.34) and positive free cash flow growth despite some variability.

Income Statement

Koatsu Gas Kogyo Co., Ltd. has demonstrated strong revenue growth with a CAGR of 4.9% over the past five years, indicating a positive trend in sales. The gross profit margin has remained relatively stable around 26.6% in 2025. The net profit margin improved to 4.8% in 2025, reflecting effective cost management. EBITDA margin also showed strength at 10.2%. Overall, the company shows strong profitability and growth, though it may face challenges in further margin expansion.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.15 in 2025, indicating conservative leverage. The equity ratio stands at 64.2%, showing a healthy capital structure with a strong equity base. Return on equity, however, is moderate at 6.1%, suggesting potential for improvement in profitability relative to shareholder equity. Overall, the company exhibits stability but could enhance returns on equity.

Cash Flow

Koatsu Gas Kogyo has shown positive free cash flow growth, with an increase from 2024 to 2025. The operating cash flow to net income ratio of 1.34 in 2025 suggests strong cash conversion. There is a slight concern with fluctuating free cash flow, but overall, cash flow management appears effective with sufficient liquidity to cover capital expenditures and support growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	99.61B	98.98B	93.28B	91.47B	82.48B	76.91B
Gross Profit	26.51B	25.02B	23.95B	22.57B	21.72B	20.58B
EBITDA	8.97B	8.75B	8.47B	7.73B	7.03B	6.44B
Net Income	4.58B	4.78B	4.50B	3.94B	4.15B	3.52B
Balance Sheet
Total Assets	122.80B	122.99B	120.18B	107.51B	98.40B	92.41B
Cash, Cash Equivalents and Short-Term Investments	29.48B	29.98B	29.22B	26.26B	23.97B	21.31B
Total Debt	11.65B	11.59B	11.52B	10.07B	5.95B	4.48B
Total Liabilities	41.68B	43.30B	43.73B	38.44B	32.50B	29.00B
Stockholders Equity	80.34B	78.92B	75.72B	68.41B	65.29B	62.81B
Cash Flow
Free Cash Flow	0.00	2.26B	2.69B	-1.25B	1.52B	979.49M
Operating Cash Flow	0.00	6.42B	8.10B	5.65B	5.80B	4.96B
Investing Cash Flow	0.00	-5.09B	-5.79B	-6.67B	-3.82B	-3.58B
Financing Cash Flow	0.00	-1.09B	391.00M	3.23B	583.28M	-988.09M

Koatsu Gas Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1047.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4097, the sentiment is Positive. The current price of 1047 is below the 20-day moving average (MA) of 1118.30, below the 50-day MA of 1129.76, and below the 200-day MA of 1063.80, indicating a bullish trend. The MACD of 3.92 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 81.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4097.

Koatsu Gas Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4093	79 Outperform	¥15.97B	8.02	―	3.89%	-3.00%	-29.83%
4097	79 Outperform	¥61.94B	11.06	―	2.88%	3.42%	13.37%
4041	74 Outperform	¥204.37B	8.69	―	4.09%	1.69%	0.94%
4091	74 Outperform	¥2.59T	14.14	―	1.11%	2.35%	0.43%
4045	73 Outperform	¥181.15B	14.03	4.41%	3.80%	-1.50%	-32.46%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4061	60 Neutral	¥282.66B	36.21	-4.00%	3.71%	0.24%	-234.36%

Koatsu Gas Kogyo Co., Ltd. Corporate Events

Koatsu Gas Kogyo Reshapes Management Structure in Gas and Planning Divisions

Koatsu Gas Kogyo has announced a series of officer changes approved by its board, reflecting a reorganization of leadership roles across its gas business and corporate planning functions. Director Takashi Morimoto will continue as senior managing executive officer while concentrating on his position as general manager of the Gas Business Division, suggesting a clearer focus on core operational oversight.

The company is also strengthening its management structure by appointing Yasuo Nakai as an executive officer overseeing the Corporate Planning Division and its department, and confirming Shinya Fukuchi as executive officer in charge of the Tsuchiura Laboratory within the Gas Business Division. These changes, effective April 1, 2026, indicate a tightening of governance and operational control in key strategic and technical areas, with potential implications for the company’s regional gas operations and long-term planning capabilities.

The most recent analyst rating on (JP:4097) stock is a Hold with a Yen1236.00 price target. To see the full list of analyst forecasts on Koatsu Gas Kogyo Co., Ltd. stock, see the JP:4097 Stock Forecast page.

Koatsu Gas Kogyo Discloses Reduction in Denka’s Major Shareholding

Koatsu Gas Kogyo has announced a change in one of its major shareholders after Denka Co., Ltd. reported selling part of its stake in the company. Following the transaction confirmed as of March 10, 2026, Denka’s ownership fell from 11.48% to 9.90% of voting rights, though it remains the second-largest shareholder.

The company stated that this partial divestment does not alter its major shareholder ranking and signaled no expected impact on its operations or future outlook. The move suggests a portfolio adjustment by Denka rather than a strategic shift in Koatsu Gas Kogyo’s capital or control structure, limiting immediate implications for existing stakeholders.

The most recent analyst rating on (JP:4097) stock is a Hold with a Yen1236.00 price target. To see the full list of analyst forecasts on Koatsu Gas Kogyo Co., Ltd. stock, see the JP:4097 Stock Forecast page.

Koatsu Gas Kogyo Posts Softer Nine-Month Profit but Doubles Dividend Forecast

Koatsu Gas Kogyo reported consolidated net sales of ¥73.2 billion for the nine months to Dec. 31, 2025, down 0.9% year on year, with operating profit falling 7.9% to ¥4.3 billion and profit attributable to owners of parent dropping 13.6% to ¥3.4 billion. Despite weaker earnings, total assets rose to ¥125.2 billion and the equity ratio improved to 65.3%, while the company maintained its full-year forecast and signaled shareholder returns with a planned annual dividend of ¥40 per share for the year ending March 31, 2026.

For the current fiscal year, Koatsu Gas Kogyo continues to project net sales of ¥102 billion, up 3%, and operating profit of ¥6.3 billion, with ordinary profit seen rising 6.8% even as full-year profit attributable to owners is expected to decline 5.9%. The uplift in the dividend forecast from ¥20 to ¥40 per share compared with the prior year underscores management’s confidence in its financial base and is likely to be welcomed by shareholders despite the softer interim profit trend.

The most recent analyst rating on (JP:4097) stock is a Hold with a Yen1252.00 price target. To see the full list of analyst forecasts on Koatsu Gas Kogyo Co., Ltd. stock, see the JP:4097 Stock Forecast page.