Titan Kogyo Kabushiki Kaisha (4098) AI Stock Analysis

• Market Cap: ¥3.06B
• Dividend Yield: 1.28%
• Average Volume (3M): 5.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• 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: ¥1,086.00 ▲(37.12% 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

Balance Sheet Resilience

Balanced leverage (D/E ~1.28), an improved ROE (3.9%) and a ~36.5% equity ratio provide financial resilience. Over a 2–6 month horizon this supports measured capital allocation, buffers cyclicality in chemicals, and reduces near-term refinancing pressure.

Margin Recovery

Improving gross and net margins and better EBIT/EBITDA margins point to operational improvements and cost control. These margin gains strengthen durable earnings power and help absorb input-cost swings, supporting sustainable profitability over months.

Stronger Cash Generation

A high operating-cash-to-net-income ratio and year-over-year FCF growth signal improving cash generation. Reliable operating cash relative to earnings enhances ability to service debt, fund maintenance capex, and cover working capital needs in a capital-intensive sector.

Negative Factors

Modest Profitability

Net profit margins near the low single digits and historical instability mean limited earnings buffer. Low profitability restricts internal reinvestment, leaves little room for margin compression from energy or input-cost shocks, and constrains durable cash build-up.

Weak Revenue Trend

A multi-year revenue decline with only a muted recovery suggests persistent demand sensitivity or competitive pressure in end markets. Weak top-line momentum undermines sustainable margin expansion and limits the company's ability to scale fixed-cost absorption over the next several months.

Rising Leverage Risk

Although leverage is moderate, rising total debt amid modest margins and inconsistent FCF conversion raises financial-flexibility risk. Higher indebtedness can strain interest coverage and constrain investment choices if cash generation falters or funding costs rise.

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 makes money primarily by manufacturing and selling titanium dioxide (TiO2) products to business customers. Revenue is generated from: (1) sales of pigment-grade titanium dioxide used to impart whiteness, opacity, and brightness in products such as paints/coatings, plastics, and paper; (2) sales of other related inorganic chemical products where available in its portfolio (exact product line items beyond titanium dioxide are not specified here). The company’s earnings are driven by shipment volumes and realized selling prices for TiO2, which are influenced by end-market demand (construction, automotive, consumer goods), competitive supply conditions, and input/energy costs typical for chemical manufacturing. Specific disclosures on segment-level revenue split, named long-term partnerships, or customer concentration are null.

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	16.90B	16.48B	15.80B
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	9.38B	9.80B	9.74B	9.35B
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: Negative
• Last Price: 792.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 792 is below the 20-day moving average (MA) of 1092.85, below the 50-day MA of 1129.08, and below the 200-day MA of 879.31, indicating a neutral trend. The MACD of -27.83 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 31.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥49.76B	8.18	―	5.04%	-3.21%	27.18%
4611	74 Outperform	¥36.35B	15.61	―	3.70%	14.83%	51.42%
4623	72 Outperform	¥6.59B	7.93	―	3.50%	-8.27%	-3.23%
4119	66 Neutral	¥8.27B	2.66	―	2.84%	37.67%	-117.29%
4098	64 Neutral	¥3.06B	-15.11	―	1.28%	-1.01%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.25B	-15.17	―	―	8.66%	-239.07%