Titan Kogyo Kabushiki Kaisha (4098) AI Stock Analysis

• Market Cap: ¥3.48B
• Dividend Yield: 1.28%
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.43
• Revenue Growth: -1.01%
• EPS Growth: N/A
• Country: JP
• Employees: 304
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 7.65
• Shares Outstanding: 3,027,626
• 10 Day Avg. Volume: 4,080
• 30 Day Avg. Volume: 5,176
• PEG Ratio: -0.10
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 3.58
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,286.00 ▲(62.37% Upside)

The score is driven mainly by improving but still modest financial performance and strong technical uptrend signals (price above key moving averages with positive MACD). These positives are meaningfully offset by stretched momentum (RSI ~80) and an unattractive valuation profile (P/E ~40.8 with ~0.70% yield).

Positive Factors

Focused TiO2 manufacturing

Titan Kogyo’s core focus on pigment-grade TiO2 for paints, plastics and paper anchors revenues to broad, durable industrial end markets. A concentrated B2B manufacturing model supports recurring demand from downstream industries, providing steadier revenue drivers over multi-quarter horizons.

Margin recovery in 2025

Reported margin improvements and a rebound to a positive net profit margin indicate operational recovery and better cost/price dynamics. Sustained margin restoration increases resilience to cyclical downturns and improves ability to fund operations, investment, and gradual deleveraging if maintained.

Strong operating cash generation

A high operating cash flow to net income ratio and improving free cash flow show earnings quality and stronger cash conversion in 2025. Persistent cash generation enhances capacity to service debt, fund capex, and support strategic initiatives without relying solely on external financing.

Negative Factors

Modest, volatile profitability

Historical revenue decline and only modest margins leave limited buffer against input cost swings or demand shocks. Low net profitability constrains internal investment, reduces flexibility for competitive pricing, and makes sustained reinvestment or dividend policies harder to maintain long term.

Moderate leverage and rising debt

A debt-to-equity ratio near 1.3 denotes meaningful leverage for a specialty chemical manufacturer. If higher indebtedness persists or rises, interest and repayment obligations could restrict capex, limit strategic flexibility, and raise vulnerability to rate increases or weaker cash flows over upcoming quarters.

Inconsistent free cash flow conversion

Although FCF improved in 2025, inconsistent conversion of accounting profits to free cash limits durable reinvestment capacity and debt reduction. Variable FCF conversion can pressure liquidity planning and constrain the company’s ability to pursue longer-term projects or weather prolonged demand weakness.

Titan Kogyo Kabushiki Kaisha Business Overview & Revenue Model

Company Description

Titan Kogyo, Ltd. engages in the production and sale of industrial chemicals in Japan. The company offers anatase and rutile ultrafine titanium oxide for use as an ingredients in ultraviolet-blocking cosmetics and UV-shielding films, and heat stabilizing agent for rubber and plastics; titanium dioxide and iron oxide cosmetic pigments; electro-conductive inorganic oxide for use as a materials for electrostatic paints, antistatic paints and resins, and electrophotographic external toner additives; and titanates for use in white pigments, abrasives, and others. It also provides TAROX iron oxide for use in paints, printing ink, magnetic toner, plastics, paper, rubber, art materials, crayons, catalysts, ferrite, cosmetics, etc.; micaceous iron oxide used in paint, plastics, printing ink, cosmetics, and others; and ferrous sulfate used in wastewater treatment flocculant, corrosion inhibitors for heat exchangers, and soil conditioners. Titan Kogyo, Ltd. was incorporated in 1936 and is headquartered in Ube, Japan.

How the Company Makes Money

Titan Kogyo generates revenue through the sale of its specialty chemicals and materials, which are utilized in high-demand industries such as electronics and automotive manufacturing. The company focuses on innovation and quality, enabling it to establish long-term contracts and partnerships with major manufacturers in these sectors. Key revenue streams include direct product sales, ongoing supply agreements, and custom solutions tailored to specific industrial needs. Additionally, the company's investment in research and development allows it to introduce new products that meet evolving market demands, further driving sales and profitability.

Titan Kogyo Kabushiki Kaisha Financial Statement Overview

Summary

Financials show a recovery in 2025 with margins improving and net profit margin rebounding to 2.6%, but profitability remains modest and prior years showed instability. Balance sheet leverage is moderate (debt-to-equity ~1.28) with improved ROE (3.9%), while cash flow is improving yet still inconsistent in free-cash-flow conversion.

Income Statement

Titan Kogyo Kabushiki Kaisha has shown fluctuations in its revenue and profitability over recent years. The company experienced a decline in revenue from 2020 to 2022, followed by a slight recovery in 2025. The gross profit margin for 2025 is approximately 14.8%, indicating moderate efficiency in production costs. The net profit margin rebounded to 2.6% in 2025 from negative values in the prior year. EBIT and EBITDA margins have also improved, though they remain modest. Overall, while there are signs of improvement, the income statement reflects past challenges in maintaining stable profitability.

Balance Sheet

The balance sheet of Titan Kogyo Kabushiki Kaisha shows a stable equity base with a debt-to-equity ratio of approximately 1.28 in 2025, which indicates a moderate level of leverage. Return on equity improved to 3.9% in 2025, reflecting better profitability. The equity ratio stands at approximately 36.5%, indicating a solid proportion of equity financing. While the company maintains a balanced approach to leverage, the increase in total debt over the years could pose potential risks if not managed effectively.

Cash Flow

The company's cash flow performance has been mixed. Free cash flow in 2025 showed growth compared to 2024, indicating better cash management. The operating cash flow to net income ratio is 4.09, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio is 3.16, reflecting some challenges in converting net income into free cash flow. Overall, while there are positive signs of improvement, consistency in cash flow generation remains a key area for enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.81B	7.79B	7.95B	8.07B	8.15B	6.28B
Gross Profit	1.33B	1.16B	360.00M	1.45B	1.47B	988.00M
EBITDA	1.05B	1.16B	-621.00M	1.24B	1.23B	631.00M
Net Income	133.00M	200.00M	-1.68B	322.00M	265.00M	-178.00M
Balance Sheet
Total Assets	13.77B	13.99B	14.88B	16.76B	16.37B	15.70B
Cash, Cash Equivalents and Short-Term Investments	716.00M	825.00M	785.00M	402.00M	561.00M	586.00M
Total Debt	5.97B	6.53B	6.96B	7.41B	7.12B	4.27B
Total Liabilities	8.10B	8.34B	9.39B	9.66B	9.64B	9.26B
Stockholders Equity	5.13B	5.11B	4.99B	6.68B	6.33B	6.06B
Cash Flow
Free Cash Flow	0.00	632.00M	622.00M	-389.00M	-2.77B	-880.00M
Operating Cash Flow	0.00	817.00M	728.00M	-204.00M	687.00M	-149.00M
Investing Cash Flow	0.00	132.00M	187.00M	-180.00M	-3.45B	-770.00M
Financing Cash Flow	0.00	-909.00M	-512.00M	216.00M	2.74B	597.00M

Titan Kogyo Kabushiki Kaisha Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 792.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4098, the sentiment is Positive. The current price of 792 is below the 20-day moving average (MA) of 1051.00, below the 50-day MA of 891.44, and below the 200-day MA of 816.39, indicating a bullish trend. The MACD of 123.42 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 35.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4098.

Titan Kogyo Kabushiki Kaisha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4116	76 Outperform	¥78.21B	12.37	―	3.04%	1.57%	-33.97%
4028	74 Outperform	¥117.11B	8.41	―	4.15%	1.16%	167.89%
4092	66 Neutral	¥28.74B	12.65	―	3.84%	-3.41%	-12.83%
4112	65 Neutral	¥37.20B	19.44	―	2.37%	-11.70%	-54.82%
4098	64 Neutral	¥3.48B	37.26	―	1.28%	-1.01%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4100	56 Neutral	¥8.28B	-2.97	―	―	12.11%	46.97%