SHIKOKU KASEI HOLDINGS CORPORATION (4099) AI Stock Analysis

• Market Cap: ¥191.83B
• Dividend Yield: 1.81%
• Average Volume (3M): 117.54K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.01
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥4,767.00 ▲(73.22% Upside)

The score is driven primarily by strong financial performance (solid growth, margins, and balance sheet). Technicals support an uptrend, but extremely overbought RSI/Stoch readings temper the rating due to elevated pullback risk. Valuation is reasonable but not notably cheap, and the dividend yield is modest.

Positive Factors

Revenue growth & margins

Consistent double-digit revenue growth with high gross and healthy net margins indicates durable demand and efficient cost control. This supports sustainable operating cashflow, funds R&D and product development, and underpins competitive positioning in specialty chemical niches over the medium term.

Strong balance sheet

Moderate leverage and a high equity ratio provide financial flexibility to fund capex, acquisitions, or weather cyclical downturns without over-relying on debt. A mid-teens ROE level shows effective capital use, supporting long-term stability and strategic investment capacity.

Operating cash conversion

Operating cashflow roughly equals reported net income, indicating high earnings quality and reliable cash generation. This underpins working-capital needs, recurring R&D and product development funding, and provides a foundation for sustainable operations and strategic reinvestment.

Negative Factors

Weak free cash flow conversion

FCF at ~57% of reported net income suggests significant cash is consumed by capex or working capital. Over time weaker FCF conversion can constrain dividends, buybacks, debt reduction or inorganic growth, limiting financial optionality and resilience versus peers.

Declining EPS

Negative EPS growth (~-9%) signals pressure on per-share profitability that may stem from margin compression, one-offs, or capital structure changes. If sustained, falling EPS undermines reinvestment capacity and shareholder returns, weakening long-term confidence in earnings trajectory.

Exposure to regulatory & cyclicality risks

Significant exposure to agricultural and specialty chemicals entails regulatory scrutiny, shifting pesticide approvals, and crop-cycle-driven demand. Structural regulatory and commodity risks can produce volatile revenues and require ongoing R&D and compliance spend, pressuring margins long-term.

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

Strong overall fundamentals: revenue grew 10.1% YoY with healthy profitability (gross margin 39.8%, net margin 12.7%) and solid operating efficiency. Balance sheet leverage is moderate (debt-to-equity 0.37) with a stable equity ratio (61.4%). Cash generation is good (operating cash flow to net income 1.02) but free cash flow conversion is weaker (FCF to net income 0.57).

Income Statement

The company exhibits strong revenue growth with a 10.1% increase from the previous year, indicating robust demand for its products. Gross profit margin stands at 39.8%, reflecting efficient cost management. Net profit margin is healthy at 12.7%, showcasing profitability. EBIT and EBITDA margins are also solid, highlighting operational efficiency.

Balance Sheet

The balance sheet is strong with a debt-to-equity ratio of 0.37, indicating moderate leverage. Return on equity is 10.6%, showing effective use of equity to generate profits. The equity ratio is 61.4%, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow to net income ratio is 1.02, indicating good cash conversion. Free cash flow growth is positive, although the free cash flow to net income ratio is 0.57, suggesting room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.67B	69.49B	63.12B	62.09B	54.14B	49.59B
Gross Profit	21.25B	27.67B	23.64B	25.12B	22.77B	20.08B
EBITDA	10.55B	15.69B	11.36B	11.43B	11.40B	9.85B
Net Income	5.78B	8.81B	7.85B	6.66B	6.88B	5.76B
Balance Sheet
Total Assets	128.60B	135.83B	131.05B	117.18B	113.81B	107.34B
Cash, Cash Equivalents and Short-Term Investments	39.26B	48.41B	47.45B	39.68B	38.76B	39.91B
Total Debt	21.43B	30.59B	22.22B	20.17B	15.66B	13.58B
Total Liabilities	41.91B	51.66B	44.17B	35.37B	32.90B	30.78B
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: Positive
• Last Price: 2752.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4099, the sentiment is Positive. The current price of 2752 is below the 20-day moving average (MA) of 3013.10, below the 50-day MA of 2843.75, and above the 200-day MA of 2301.25, indicating a bullish trend. The MACD of 233.50 indicates Negative momentum. The RSI at 86.42 is Negative, neither overbought nor oversold. The STOCH value of 85.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4975	76 Outperform	¥140.23B	16.66	―	1.58%	11.77%	27.55%
4633	75 Outperform	¥118.37B	11.21	―	3.72%	5.40%	14.80%
4099	72 Outperform	¥191.83B	22.24	―	1.81%	-0.52%	5.18%
4369	72 Outperform	¥107.24B	18.63	―	1.30%	47.56%	49.58%
5122	71 Outperform	¥94.10B	16.86	―	2.25%	-1.95%	-1.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

SHIKOKU KASEI HOLDINGS CORPORATION Corporate Events

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.

SHIKOKU KASEI Reports Mixed Financial Results for Nine Months Ending September 2025

SHIKOKU KASEI HOLDINGS CORPORATION reported its consolidated financial results for the nine months ending September 30, 2025. The company experienced a slight decline in net sales by 1% compared to the previous year, but saw improvements in operating and ordinary profits, which increased by 9.5% and 7.9% respectively. However, profit attributable to owners of the parent decreased by 11%. The company also reported a significant increase in comprehensive income by 67.1%. The financial position showed a slight decrease in total assets but an increase in net assets and equity-to-asset ratio, indicating a stronger financial standing. The forecast for the full fiscal year ending December 31, 2025, anticipates modest growth in net sales and operating profit, despite a projected decrease in profit attributable to owners of the parent.

SHIKOKU KASEI Expands Global Reach with Indonesian Acquisition

SHIKOKU KASEI HOLDINGS CORPORATION has announced the acquisition of PT Timuraya Tunggal, an Indonesian chemical manufacturer, to become a wholly-owned subsidiary. This strategic move is part of the company’s long-term vision to enhance its global footprint and secure a stable supply of essential raw materials, leveraging Timuraya’s established sales network in Southeast Asia to accelerate its chemical operations’ global expansion.

SHIKOKU KASEI HOLDINGS Announces Officer Changes

SHIKOKU KASEI HOLDINGS CORPORATION announced tentative changes in the officers of the company and its subsidiaries, which are set to be formally decided at the Annual General Meeting of Shareholders in March 2026. These changes are part of the company’s ongoing efforts to enhance operational management and planning across its subsidiaries, including SHIKOKU CHEMICALS CORPORATION and SHIKOKU KASEI KENZAI CORPORATION, potentially impacting the company’s strategic direction and governance.