Hodogaya Chemical Co., Ltd. (4112) AI Stock Analysis

• Market Cap: ¥26.64B
• Dividend Yield: 4.14%
• Average Volume (3M): 64.64K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.19
• Revenue Growth: -6.65%
• EPS Growth: -45.46%
• Country: JP
• Employees: 922
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): 38.71
• Shares Outstanding: 16,827,452
• 10 Day Avg. Volume: 57,880
• 30 Day Avg. Volume: 64,636
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,741.00
• Price Target Upside: 6.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥1,741.00 ▲(6.74% Upside)

Hodogaya Chemical Co., Ltd. scores well due to its strong balance sheet and favorable valuation. However, declining revenue and cash flow issues weigh on the overall score. The technical analysis supports a positive trend, contributing to a stable outlook.

Hodogaya Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Hodogaya Chemical Co., Ltd. manufactures and sells functional colorants, specialty polymers, basic chemicals, and agro-science products in Japan. Its Functional Colorants segment offers OLED materials that are used in smartphone display panels, tablets, smartwatches, and other devices; imaging materials for copiers and printers; dyes and colors for use in aluminum colorings, stationery inks, and hair dyes; and food additives that add appeal to processed foods. The company's Specialty Polymers segment manufactures and supplies polymer materials, release agents, and raw materials for antiseptic detergents, surfactants, dyestuffs, perfumes, etc.; construction materials, such as waterproofing, flooring and paving, and building materials; and specialty chemicals, such as intermediates and additives comprises phosgene derivatives, such as chloroformates, acid chlorides, and carbonyldiimidazole for use in pharmaceutical and cosmetic sectors. Its Basic Chemicals segment engages in the development, manufacture, and sale of hydrogen peroxide and its derivatives. The company's Agro-Science segment offers herbicides, agrochemical intermediates, pesticide formulations, Microbial Materials, and oxygen supply materials This segment products have application in various fields, such as controlling weeds, insect pest management, and environmental conservation for cropland, living environments, railways, forests, and golf courses. Its Logistic segment provides logistics solutions, such as outdoor and hazardous materials warehousing, forwarding and customs clearance, and overland cargo, maritime cargo, air cargo, and intermodal international transportation services. The company was formerly known as Hodogaya Soda Co., Ltd. and changed its name to Hodogaya Chemical Co., Ltd. in 1939. Hodogaya Chemical Co., Ltd. was incorporated in 1916 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hodogaya Chemical Co., Ltd. generates revenue through the sale of its diverse range of chemical products. The company operates in multiple segments, with each contributing to its overall earnings. In the basic chemicals sector, it produces and sells raw materials and intermediates used in various industrial applications. The functional chemicals segment focuses on specialty chemicals that offer enhanced properties and performance, catering to industries like electronics and automotive. The agro-science segment provides agrochemicals, including fertilizers and pesticides, supporting agricultural productivity. Additionally, the logistics segment offers transportation and storage services, adding another income stream. Strategic partnerships and a strong focus on research and development also play a crucial role in the company's ability to innovate and maintain a competitive edge in the market.

Hodogaya Chemical Co., Ltd. Financial Statement Overview

Summary

Hodogaya Chemical Co., Ltd. shows strong revenue growth and profitability improvements, supported by a robust balance sheet with low leverage. However, the significant decline in free cash flow indicates a need for better cash management, which slightly detracts from the overall financial health.

Income Statement

Hodogaya Chemical Co., Ltd. has demonstrated consistent revenue growth, with a 9.75% increase from 2024 to 2025. The gross profit margin stands at 38.92%, reflecting strong cost management. The net profit margin improved to 6.54%, indicating enhanced profitability. However, the EBIT and EBITDA margins are moderate at 10.04% and 16.32%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.18, indicating prudent financial leverage. The equity ratio is strong at 60.85%, underscoring a solid equity foundation. ROE is moderate at 6.54%, showing a decent return on shareholders' equity but with potential for improvement.

Cash Flow

The cash flow statement reveals a challenge, given a 91.71% decline in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is healthy at 1.78, indicating good cash generation relative to profits. However, the drastic drop in free cash flow highlights potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.47B	48.58B	44.26B	43.32B	41.88B	41.20B
Gross Profit	16.81B	18.91B	17.10B	16.67B	17.66B	16.07B
EBITDA	6.25B	7.93B	7.17B	6.26B	7.94B	7.25B
Net Income	2.08B	3.18B	2.48B	2.22B	3.25B	3.12B
Balance Sheet
Total Assets	80.71B	79.86B	81.16B	72.05B	66.45B	62.61B
Cash, Cash Equivalents and Short-Term Investments	9.71B	10.77B	12.96B	10.49B	11.45B	9.45B
Total Debt	8.16B	8.79B	9.81B	11.08B	7.02B	8.19B
Total Liabilities	20.81B	21.32B	23.71B	22.16B	18.54B	18.96B
Stockholders Equity	49.51B	48.60B	47.73B	42.83B	41.41B	38.67B
Cash Flow
Free Cash Flow	-1.04B	248.00M	2.99B	-2.06B	4.38B	3.07B
Operating Cash Flow	4.24B	5.67B	8.34B	1.06B	6.14B	5.38B
Investing Cash Flow	-3.05B	-6.55B	-3.95B	-7.04B	-3.57B	-2.69B
Financing Cash Flow	-2.24B	-1.88B	-2.07B	2.29B	-1.85B	-424.00M

Hodogaya Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1631.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4112, the sentiment is Positive. The current price of 1631 is above the 20-day moving average (MA) of 1569.35, above the 50-day MA of 1514.52, and above the 200-day MA of 1613.99, indicating a bullish trend. The MACD of 23.56 indicates Negative momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 75.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4112.

Hodogaya Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4022	77 Outperform	¥35.82B	10.33		2.65%	5.16%	32.19%
4275	74 Outperform	¥32.13B	12.71		2.68%	0.81%	2.21%
4027	74 Outperform	¥27.47B	13.36		2.90%	5.29%	1.50%
4112	69 Neutral	¥26.64B	12.38		4.14%	-6.65%	-45.46%
4462	65 Neutral	¥27.88B	11.69		2.09%	5.92%	11.71%
4968	62 Neutral	¥22.50B	16.17		4.32%	9.02%	28.66%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%

Hodogaya Chemical Co., Ltd. Corporate Events

Hodogaya Chemical Corrects Financial Results for FY 2025

Hodogaya Chemical Co., Ltd. announced corrections to its previously released consolidated financial results for the fiscal year ending March 31, 2025. The corrections were made due to discovered errors in the financial data, impacting the reported values of non-current assets, particularly in property, plant, and equipment. These adjustments are crucial for maintaining accurate financial reporting and transparency, which are vital for stakeholders’ trust and the company’s market positioning.

Hodogaya Chemical Co., Ltd. Announces Change in Auditors

Hodogaya Chemical Co., Ltd. announced a change in its certified public accountants, transitioning from Grant Thornton Taiyo LLC to Ernst & Young ShinNihon LLC. This change, effective after the upcoming shareholders meeting, is aimed at enhancing the company’s accounting governance with fresh auditing perspectives and improved audit quality, reflecting a strategic move to bolster its financial oversight.

Hodogaya Chemical Reports Strong Financial Growth and Announces Stock Split

Hodogaya Chemical Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 9.8% and profit attributable to owners of the parent increasing by 28.1%. Despite a decrease in comprehensive income, the company improved its equity-to-asset ratio and announced a stock split effective April 1, 2025, which is expected to impact future earnings per share calculations.