SHIKOKU KASEI HOLDINGS CORPORATION (4099) AI Stock Analysis

• Market Cap: ¥219.08B
• Dividend Yield: 1.81%
• Average Volume (3M): 117.54K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.99
• Revenue Growth: -0.52%
• EPS Growth: 5.18%
• Country: JP
• Employees: 1,276
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 44,869,564
• 10 Day Avg. Volume: 89,680
• 30 Day Avg. Volume: 117,536
• PEG Ratio: 0.42
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 19.09
• 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): 226.6
• Revenue Forecast (FY): ¥74.00B

• Rating: 72 Outperform
• Price Target: ¥5,783.00 ▲(110.14% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by improving operating profitability and a generally healthy balance sheet, tempered by weaker operating cash flow/cash conversion and rising debt. Technicals add support via a clear uptrend and constructive momentum, while valuation is reasonable (P/E ~12.18) with a modest dividend yield (~1.06%).

Positive Factors

Improving profitability and margins

Material margin expansion and higher net income reflect stronger operating performance and better cost or mix dynamics. Sustained higher EBIT margins increase free cash flow potential, improve resilience to demand swings, and support reinvestment or returns to shareholders over the medium term.

Healthy balance sheet and rising ROE

Moderate leverage and an improving ROE indicate quality earnings and financial flexibility. A solid equity base and controlled debt levels provide capacity for capex, R&D, or selective M&A while supporting creditworthiness and long-term strategic initiatives.

Diversified specialty-chemicals franchise and R&D focus

A diversified product portfolio across agriculture, pharma and industrial markets plus an R&D emphasis and partnerships create durable competitive advantages. Innovation-driven specialty products tend to command higher margins and reduce cyclicality versus commodity chemicals over multiple years.

Negative Factors

Weakened operating cash flow and conversion

Significant decline in operating cash flow and poorer cash conversion versus earnings reduces internally available funds for capex, dividends, and debt repayment. If sustained, this trend forces greater reliance on external financing and constrains strategic flexibility over the medium term.

Rising debt over recent years

Incremental debt accumulation narrows headroom and raises leverage sensitivity to earnings or cash-flow shocks. With higher nominal debt, interest costs and refinancing needs could pressure margins or limit investment capacity if operating performance softens.

Uneven revenue growth and gross margin drift

Inconsistent top-line growth and a gradual decline in gross margin point to competitive or input-cost pressures. Continued uneven revenues and margin erosion would undermine operating leverage gains and could reverse recent profitability improvements if not addressed strategically.

SHIKOKU KASEI HOLDINGS CORPORATION Business Overview & Revenue Model

Company Description

SHIKOKU KASEI HOLDINGS CORPORATION (4099) is a prominent Japanese company specializing in the manufacture and distribution of chemical products. The company operates primarily in the chemical sector, focusing on the production of specialty chemicals, agricultural chemicals, and other related materials. SHIKOKU KASEI serves various industries, including agriculture, pharmaceuticals, and manufacturing, providing innovative solutions that enhance product performance and sustainability.

How the Company Makes Money

SHIKOKU KASEI HOLDINGS generates revenue through the sale of its diverse range of chemical products, which includes pesticides, herbicides, and specialty chemicals used in various industrial applications. The company has established key revenue streams from both domestic and international markets, leveraging its expertise in chemical formulation and application. Additionally, SHIKOKU KASEI engages in strategic partnerships with other firms in the agricultural and chemical sectors, enhancing its market reach and product development capabilities. The company's focus on research and development allows it to innovate and introduce new products, which contributes to its earnings and competitive advantage in the industry.

SHIKOKU KASEI HOLDINGS CORPORATION Financial Statement Overview

Summary

Profitability strengthened meaningfully (FY2025 EBIT margin ~18.2% vs ~12.7% prior year; net income rose to ~¥8.8B), and leverage remains moderate (debt-to-equity ~0.37). Offsetting this, cash generation weakened with lower operating cash flow (~¥9.0B vs ~¥13.0B) and weaker cash conversion, plus rising debt over the last two years.

Income Statement

Profitability is solid and improving: in FY2025 revenue rose to ~¥69.5B (from ~¥63.1B in FY2024) while operating and EBITDA margins expanded meaningfully (EBIT margin ~18.2% vs ~12.7% prior year; EBITDA margin ~22.6% vs ~18.0%). Net margin remained healthy (~12.7%) and earnings grew (net income ~¥8.8B vs ~¥7.9B). Offsetting this, gross margin has drifted down versus earlier years (from ~42.1% in FY2022 to ~39.8% in FY2025), and reported revenue growth is uneven (including low/flat growth in FY2024–FY2025 after a stronger FY2023).

Balance Sheet

The balance sheet is generally healthy with moderate leverage: FY2025 debt-to-equity is ~0.37 with equity of ~¥83.4B against assets of ~¥135.8B. Returns on equity have improved over time (to ~10.6% in FY2025 from ~9.1% in FY2024 and ~8.2% in FY2023), supporting the quality of earnings. The main watch item is rising debt over the last two years (total debt ~¥30.6B in FY2025 vs ~¥22.2B in FY2024), which reduces flexibility if profitability or cash generation softens.

Cash Flow

Cash generation is mixed. FY2025 free cash flow stayed positive (~¥5.0B), but operating cash flow fell to ~¥9.0B (from ~¥13.0B in FY2024), and cash conversion weakened versus earnings (operating cash flow to net income ~0.30 in FY2025 vs ~0.49 in FY2024). Free cash flow covered only ~56% of net income in FY2025 (down from ~61% in FY2024), and the company has shown volatility historically (including negative free cash flow in FY2023).

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	68.44B	69.49B	63.12B	61.47B	54.14B	49.59B
Gross Profit	28.31B	27.67B	23.64B	25.09B	22.77B	20.08B
EBITDA	11.38B	15.69B	14.75B	12.67B	11.40B	10.11B
Net Income	8.51B	8.81B	7.85B	7.08B	6.88B	5.76B
Balance Sheet
Total Assets	128.60B	135.83B	131.05B	119.04B	113.81B	109.24B
Cash, Cash Equivalents and Short-Term Investments	39.26B	48.41B	47.45B	39.68B	38.76B	39.91B
Total Debt	21.43B	30.56B	22.23B	20.16B	15.66B	13.65B
Total Liabilities	41.90B	51.66B	44.17B	37.23B	32.90B	32.67B
Stockholders Equity	85.87B	83.38B	86.16B	81.32B	80.05B	75.72B
Cash Flow
Free Cash Flow	0.00	5.02B	7.93B	-126.00M	917.00M	3.76B
Operating Cash Flow	0.00	9.02B	12.95B	2.92B	5.09B	7.41B
Investing Cash Flow	0.00	-15.55B	-3.56B	-3.67B	-5.09B	-3.00B
Financing Cash Flow	0.00	-3.72B	-2.81B	1.42B	-1.81B	89.00M

SHIKOKU KASEI HOLDINGS CORPORATION Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2752.00
• 50DMA: Positive
• 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:4099, the sentiment is Neutral. The current price of 2752 is below the 20-day moving average (MA) of 5104.75, below the 50-day MA of 4309.30, and below the 200-day MA of 2826.83, indicating a neutral trend. The MACD of 168.86 indicates Positive momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4099.

SHIKOKU KASEI HOLDINGS CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4095	75 Outperform	¥171.96B	10.40	―	3.50%	3.85%	-1.53%
7970	74 Outperform	¥163.59B	14.73	―	2.84%	6.06%	19.76%
4118	74 Outperform	¥301.27B	9.05	5.47%	3.41%	2.60%	9.50%
4628	74 Outperform	¥167.89B	8.76	6.23%	1.11%	2.88%	16.60%
4099	72 Outperform	¥219.08B	12.18	―	1.81%	-0.52%	5.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4023	60 Neutral	¥166.04B	9.97	4.24%	3.76%	-7.81%	25.04%

SHIKOKU KASEI HOLDINGS CORPORATION Corporate Events

Shikoku Kasei Lifts Profit Margins, Ups Dividend and Forecasts Strong Growth for 2026

Shikoku Kasei Holdings reported fiscal 2025 consolidated net sales of ¥70.7 billion, up 1.7% year on year, with operating profit rising 11.6% to ¥10.9 billion and ordinary profit up 10.6%, while profit attributable to owners of parent slipped 4.0% to ¥8.46 billion due mainly to share-related effects on per-share metrics. The company strengthened its financial position with total assets of ¥144.4 billion, equity ratio of 65.0%, robust operating cash flow, a higher annual dividend of ¥55 per share, and it forecasts strong growth in 2026 with net sales of ¥80.0 billion and profit attributable to owners of parent of ¥10.0 billion, signaling confidence in continued earnings expansion and shareholder returns.

Net assets increased to ¥94.6 billion and cash and cash equivalents reached ¥35.5 billion, supported by positive operating cash flows and reduced investment outflows compared with the prior year. The company further enhanced capital efficiency with a sizable increase in treasury shares and plans to raise the annual dividend to ¥60 per share in 2026, positioning itself for improved profitability and reinforcing its commitment to shareholder value amid a solid balance sheet and higher projected margins.

The most recent analyst rating on (JP:4099) stock is a Buy with a Yen4767.00 price target. To see the full list of analyst forecasts on SHIKOKU KASEI HOLDINGS CORPORATION stock, see the JP:4099 Stock Forecast page.

Shikoku Kasei Completes Acquisition of Indonesian Subsidiary PT Timuraya Tunggal

Shikoku Kasei Holdings Corporation has completed the acquisition of all shares of PT Timuraya Tunggal in Indonesia, converting the local company into its wholly owned subsidiary as of February 26, 2026. The move deepens the group’s footprint in Southeast Asia and is expected to strengthen its operational base and supply capabilities in the region.

The company is still assessing how the acquisition will affect its consolidated earnings forecast for the fiscal year ending December 31, 2026. It plans to provide further disclosure if the impact on financial results or other matters requiring announcement becomes clear, signaling potential implications for investors and other stakeholders.

The most recent analyst rating on (JP:4099) stock is a Buy with a Yen4767.00 price target. To see the full list of analyst forecasts on SHIKOKU KASEI HOLDINGS CORPORATION stock, see the JP:4099 Stock Forecast page.

Shikoku Kasei to Abolish Takeover Defense and Amend Articles of Incorporation

SHIKOKU KASEI HOLDINGS CORPORATION announced that it will abolish its takeover defense measures against large-scale acquisitions of its shares when the measures’ effective period expires at the close of its 106th Annual General Meeting of Shareholders on March 26, 2026. The board has determined, after reviewing changes in its business environment, evolving market practice around takeover defenses, and feedback from shareholders, that it will discontinue these countermeasures and simultaneously seek shareholder approval to delete the related provisions (Chapter 8, Articles 42 and 43) from its Articles of Incorporation. Even without a formal poison-pill framework, the company states it will still respond to any potentially harmful large-scale share purchases by seeking sufficient time and information for shareholders to assess such offers and by taking appropriate actions permitted under Japanese law, while giving weight to the views of its independent outside directors, signaling a shift toward more conventional market-based governance while retaining mechanisms to protect corporate value and shareholder interests.

The most recent analyst rating on (JP:4099) stock is a Buy with a Yen3409.00 price target. To see the full list of analyst forecasts on SHIKOKU KASEI HOLDINGS CORPORATION stock, see the JP:4099 Stock Forecast page.

Shikoku Kasei Lifts Dividend as Profit Margin Improves and Sets Strong 2026 Growth Outlook

Shikoku Kasei Holdings reported modest top-line growth for the fiscal year ended December 31, 2025, with net sales up 1.7% to ¥70.7 billion and operating profit rising 11.6% to ¥10.9 billion, while profit attributable to owners of parent slipped 4.0% to ¥8.46 billion, partly reflecting share-related factors as the average number of shares outstanding declined. Profitability indicators remained solid, with operating margin improving to 15.4%, equity-to-asset ratio strengthening to 65.0%, and cash and cash equivalents increasing to ¥35.5 billion, even as financing cash outflows expanded, likely linked to higher shareholder returns including a dividend increase to ¥55 per share and a larger treasury share balance. For 2026, the company is guiding for a strong rebound, forecasting 13.1% growth in net sales to ¥80.0 billion and a 32.5% jump in operating profit to ¥14.4 billion, with profit attributable to owners of parent projected to rise 18.2% to ¥10.0 billion and annual dividends targeted at ¥60 per share, underscoring management’s confidence in earnings momentum and balance sheet resilience despite changes in accounting policies.

The most recent analyst rating on (JP:4099) stock is a Buy with a Yen3409.00 price target. To see the full list of analyst forecasts on SHIKOKU KASEI HOLDINGS CORPORATION stock, see the JP:4099 Stock Forecast page.

Shikoku Kasei Lifts FY2025 Profit Outlook and Hikes Dividend Forecast

Shikoku Kasei Holdings has raised its full-year 2025 consolidated forecasts, citing strong performance in fine chemicals within its core Chemicals operations and improved margins on export transactions aided by a weaker yen. The company now expects modestly higher net sales and a more substantial uplift in operating and ordinary profit as well as profit attributable to owners of the parent, though profit is projected to be slightly below the prior year’s level. Reflecting these stronger earnings expectations and in line with its shareholder return policy under the long‑term vision “Challenge 1000,” the group has also raised its year-end dividend forecast by ¥5 per share, lifting the planned annual dividend to ¥55, underscoring management’s commitment to maintaining targeted payout and return ratios for shareholders.

The most recent analyst rating on (JP:4099) stock is a Hold with a Yen2970.00 price target. To see the full list of analyst forecasts on SHIKOKU KASEI HOLDINGS CORPORATION stock, see the JP:4099 Stock Forecast page.