Titan Kogyo Kabushiki Kaisha (4098) AI Stock Analysis

• Market Cap: ¥3.35B
• Dividend Yield: 1.28%
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -1.01%
• EPS Growth: N/A
• Country: JP
• Employees: 304
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -12.96
• 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: ¥1,190.00 ▲(50.25% Upside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

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

Margin recovery

Margins have moved from negative to a positive net margin and improved gross margins, indicating better cost control and pricing. Sustained margin recovery increases internal funding capacity for maintenance capex and product quality investments, improving resilience through cycles.

Balanced leverage and equity base

A moderate leverage profile with a solid equity ratio and improving ROE supports ongoing operations while preserving financial flexibility. This capital structure allows the company to finance working capital and targeted investments without immediate refinancing stress if operating cash flow holds steady.

Improving operating cash generation

Operating cash considerably exceeds net income and free cash flow improved year-over-year, signaling higher cash quality. Reliable cash generation underpins capex funding, servicing debt, and potential reinvestment, enhancing the firm's capability to support durable manufacturing operations.

Negative Factors

Modest and inconsistent profitability

Reported profitability is modest despite recent recovery; the company experienced volatile earnings historically. Persistent low margins limit the ability to build reserves, invest in process upgrades, or absorb raw‑material cost shocks, weakening long‑term competitiveness in specialty chemicals.

Weak free cash flow conversion consistency

Although FCF grew in 2025, conversion ratios show inconsistency in turning accounting profits into spendable cash. Variable FCF constrains reliable debt reduction, dividend policy, or strategic investments, making long-term capital allocation and balance sheet repair harder to execute predictably.

Revenue deterioration trend

A prior multi-year revenue decline and negative recent growth indicate challenges in demand recovery or market share expansion. Structural revenue weakness reduces economies of scale, pressures margins long term, and limits the company's ability to invest in capacity or differentiation versus larger peers.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• RSI: Neutral
• STOCH: Positive

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 1173.25, below the 50-day MA of 1080.08, and below the 200-day MA of 865.44, indicating a neutral trend. The MACD of -2.58 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 17.50 is Positive, 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
4619	75 Outperform	¥52.52B	8.18	―	5.04%	-3.21%	27.18%
4611	74 Outperform	¥39.72B	15.61	―	3.70%	14.83%	51.42%
4623	72 Outperform	¥6.61B	7.93	―	3.50%	-8.27%	-3.23%
4119	66 Neutral	¥7.39B	2.66	―	2.84%	37.67%	-117.29%
4098	64 Neutral	¥3.35B	-15.11	―	1.28%	-1.01%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.22B	-15.17	―	―	8.66%	-239.07%