Stella Chemifa (4109) AI Stock Analysis

• Market Cap: ¥61.23B
• Dividend Yield: 4.01%
• Average Volume (3M): 23.73K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.72
• Revenue Growth: 6.38%
• EPS Growth: 22.81%
• Country: JP
• Employees: 695
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 12,973,248
• 10 Day Avg. Volume: 21,250
• 30 Day Avg. Volume: 23,733
• PEG Ratio: 0.28
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 15.71
• 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: 73 Outperform
• Price Target: ¥5,436.00 ▲(30.99% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily supported by strong financial performance (steady growth, stable margins, and low leverage). Technicals remain bullish but are tempered by overbought signals that raise near-term pullback risk. Valuation is reasonable but not cheap, with the dividend providing some support.

Positive Factors

Balance Sheet Strength

Low leverage and a high equity ratio provide durable financial flexibility. This allows the company to absorb cyclical downturns, fund necessary capex for specialty manufacturing, support working capital needs, and pursue selective investments without relying heavily on external financing over the medium term.

Operating Cash Generation

Consistently higher operating cash flow than net income indicates strong cash conversion from operations. Reliable cash generation supports reinvestment in purification processes, funds dividends or buybacks when appropriate, and reduces refinancing risk, underpinning long-term operational stability.

Revenue Growth & Margin Stability

Sustained revenue growth alongside stable gross and operating margins suggests durable demand for high-purity specialty chemicals and effective cost control. This combination supports predictable profitability and reinvestment capacity in product quality and manufacturing scale over multiple quarters.

Negative Factors

Negative EPS Trend

Declining EPS despite revenue growth points to margin pressure or non-operational hits that reduce per-share earnings. Persisting negative EPS growth can limit retained earnings, constrain strategic investments, and weaken longer-term shareholder returns if not reversed through efficiency or pricing actions.

Volatile Free Cash Flow

Irregular free cash flow complicates capital allocation and makes dividend or capex planning less predictable. Volatility may stem from fluctuating capex, working capital swings, or one-time items; if persistent, it raises execution risk and could force conservative financial policy in future quarters.

Concentration in Electronics Markets

Heavy exposure to electronics manufacturing makes revenue sensitive to cyclical capex and end-market demand swings. Structural cyclicality in semiconductor and electronics cycles can reduce volumes and pricing for extended periods, increasing revenue and utilization risk across 2-6 months horizons.

Stella Chemifa Business Overview & Revenue Model

Company Description

Stella Chemifa Co., Ltd. (4109) is a Japanese company specializing in the manufacturing and sale of specialty chemicals, particularly in the fields of organic and inorganic chemicals. The company operates primarily in the chemical industry, focusing on high-quality products such as pharmaceutical intermediates, electronic materials, and various functional chemicals. With a commitment to innovation and sustainability, Stella Chemifa serves a diverse range of sectors including pharmaceuticals, electronics, and agriculture.

How the Company Makes Money

Stella Chemifa makes money primarily by manufacturing and selling specialty inorganic chemical products, with revenue recognized from product shipments to customers. The key revenue stream is sales of high-purity materials designed for demanding applications (notably in electronics-related manufacturing), where customers pay for product quality specifications (e.g., purity, consistency) and stable supply. Earnings are influenced by (1) sales volume and product mix (higher-margin high-purity grades versus standard grades), (2) pricing tied to specification/grade and customer contracts, and (3) production efficiency and yields in purification/manufacturing processes that affect cost of goods sold. Information on specific named products, customer concentrations, or significant partnerships is null.

Stella Chemifa Financial Statement Overview

Summary

Strong overall fundamentals driven by consistent revenue growth, stable gross and operating margins, and a robust balance sheet with low leverage and high equity. Operating cash flow is solid and exceeds net income, though free cash flow has been somewhat volatile.

Income Statement

Stella Chemifa has demonstrated strong financial performance with a consistent increase in revenue over the years. The gross profit margin and net profit margin have remained stable, indicating efficient cost management. The EBIT and EBITDA margins show robust operational efficiency, although there was a slight dip in net profit margin in 2025. Revenue growth has been positive, reflecting a healthy demand for products.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is healthy, showcasing effective utilization of shareholder funds. The equity ratio is high, suggesting financial stability and a strong asset base. The company's ability to cover its liabilities with equity is a positive aspect.

Cash Flow

Stella Chemifa shows a strong operating cash flow, which consistently exceeds net income, indicating good cash generation from operations. Free cash flow has been volatile but showed significant growth in 2025. The free cash flow to net income ratio points to efficient cash management, though capital expenditures have fluctuated.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.33B	36.29B	30.45B	35.38B	37.30B	32.89B
Gross Profit	8.62B	8.26B	6.45B	7.41B	8.90B	8.20B
EBITDA	7.53B	7.15B	5.49B	6.11B	7.29B	7.11B
Net Income	2.89B	2.89B	1.84B	2.28B	5.36B	2.96B
Balance Sheet
Total Assets	58.99B	60.73B	58.62B	55.47B	56.60B	52.93B
Cash, Cash Equivalents and Short-Term Investments	14.66B	16.64B	16.23B	15.10B	15.89B	15.57B
Total Debt	5.58B	5.56B	5.12B	4.14B	5.59B	8.86B
Total Liabilities	14.58B	15.73B	14.11B	12.31B	13.87B	16.17B
Stockholders Equity	44.18B	44.75B	44.26B	42.92B	42.22B	36.27B
Cash Flow
Free Cash Flow	0.00	2.95B	686.00M	1.05B	2.70B	4.96B
Operating Cash Flow	0.00	7.12B	6.54B	5.63B	5.40B	7.35B
Investing Cash Flow	0.00	-4.32B	-5.83B	-3.28B	-2.06B	-2.27B
Financing Cash Flow	0.00	-2.83B	-141.00M	-3.72B	-3.52B	-3.20B

Stella Chemifa Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4150.00
• 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:4109, the sentiment is Neutral. The current price of 4150 is below the 20-day moving average (MA) of 5261.50, below the 50-day MA of 5168.00, and below the 200-day MA of 4334.36, indicating a neutral trend. The MACD of -76.21 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 22.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4109.

Stella Chemifa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4187	80 Outperform	¥86.95B	5.80	15.07%	1.74%	15.12%	40.72%
4116	76 Outperform	¥81.72B	6.04	―	3.04%	1.57%	-33.97%
4362	75 Outperform	¥56.65B	16.36	―	2.92%	3.03%	28.27%
4109	73 Outperform	¥61.23B	18.37	6.31%	4.01%	6.38%	22.81%
4008	70 Outperform	¥90.60B	10.34	―	3.74%	-0.68%	-9.93%
4078	70 Outperform	¥58.43B	-468.17	―	4.37%	-1.09%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Stella Chemifa Corporate Events

Stella Chemifa Strikes Capital and Business Alliance With Korea’s Soulbrain

Stella Chemifa has agreed a capital and business alliance with South Korea’s Soulbrain Holdings, a major supplier of precision chemical materials for semiconductors, displays, and secondary batteries, and will dispose of treasury shares to Soulbrain through a third‑party allotment. The partners aim to formalize and deepen their longstanding cooperative relationship, strengthen marketing-focused collaboration, and jointly expand in the growing semiconductor and new materials markets, leveraging complementary technologies to enhance competitiveness and corporate value for both sides.

The alliance builds on past cooperation, including a former joint venture in Korea, and comes as global semiconductor demand is expected to rise with AI growth and data-center investment, increasing the need for ultra-high purity chemicals. For Stella Chemifa, the tie-up is part of its transformational medium-term plan, supporting sales diversification, potential new production bases, and accelerated development of high-value-added fluorine-based products, which could mitigate industry cyclicality and reinforce its position in advanced materials supply chains.

The most recent analyst rating on (JP:4109) stock is a Buy with a Yen5943.00 price target. To see the full list of analyst forecasts on Stella Chemifa stock, see the JP:4109 Stock Forecast page.

Stella Chemifa Outlines Nine-Month Results and Fiscal 2026 Outlook

Stella Chemifa Corporation has released its business results for the third quarter, covering the first nine months of the fiscal year ending March 2026. The disclosure outlines performance highlights, a detailed financial summary, earnings forecasts, shareholder return information, and an overview of its corporate structure and business segments, providing investors with a structured view of operating trends and capital policies.

While the document index does not disclose specific figures, it signals comprehensive transparency on earnings and projections for the remainder of the fiscal year. The inclusion of shareholder return and business introduction materials suggests continued efforts to communicate strategy, capital allocation, and the roles of subsidiaries and associates to stakeholders.

The most recent analyst rating on (JP:4109) stock is a Buy with a Yen5943.00 price target. To see the full list of analyst forecasts on Stella Chemifa stock, see the JP:4109 Stock Forecast page.

Stella Chemifa Posts Profit Decline Despite Higher Sales, Keeps Forecast and Dividend Steady

Stella Chemifa reported nine-month sales to December 31, 2025 of ¥26.96 billion, up 1.2% year on year, with operating profit rising 7.4% to ¥3.58 billion but profit attributable to owners of parent falling 11.9% to ¥2.41 billion as comprehensive income also declined. Despite essentially flat total assets, net assets edged higher and the equity ratio improved to 74.0%, while the company kept its full-year forecast unchanged, guiding for slight declines in revenue and profit and maintaining a stable annual dividend outlook of ¥170 per share.

Earnings per share for the nine months slipped to ¥204.10 from ¥227.26 a year earlier, reflecting lower bottom-line profit despite higher operating income and a modest reduction in shares outstanding. The steady capital structure and reaffirmed guidance suggest management is prioritizing balance-sheet strength and shareholder returns amid a softer profit trajectory, a stance that may reassure income-focused investors even as growth moderates.

The most recent analyst rating on (JP:4109) stock is a Buy with a Yen5943.00 price target. To see the full list of analyst forecasts on Stella Chemifa stock, see the JP:4109 Stock Forecast page.