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

• Market Cap: ¥23.89B
• Dividend Yield: 3.08%
• Average Volume (3M): 37.60K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.19
• Revenue Growth: 9.75%
• EPS Growth: 28.00%
• Country: JP
• Employees: 922
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Chemicals - Specialty
• EPS (TTM): 18.57
• Shares Outstanding: 16,827,452
• 10 Day Avg. Volume: 42,700
• 30 Day Avg. Volume: 37,603
• PEG Ratio: -0.34
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.59
• 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

• Rating: 73 Outperform
• Price Target: ¥1,631.00 ▲(11.48%Upside)

The stock score is driven by strong financial performance and undervaluation, balanced by technical indicators suggesting bearish trends. Cash flow issues need addressing to enhance financial stability. The absence of earnings call data and notable corporate events did not influence the score.

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

Company Description

Hodogaya Chemical Co., Ltd. is a Japan-based company engaged in the manufacture and sale of various chemical products. It operates through several segments including basic chemicals, functional chemicals, agro-science, and logistics. The company's core products encompass a wide range of chemicals, including dyes, pigments, and industrial chemicals, as well as pharmaceutical and agricultural chemicals, catering to both domestic and international markets.

How the Company Makes Money

Hodogaya Chemical Co., Ltd. generates revenue through the production and sale of its diverse chemical product offerings. The company’s key revenue streams are derived from its various business segments: basic chemicals, which includes the supply of essential industrial chemicals; functional chemicals, which involve specialized products like dyes and pigments for industrial use; and agro-science, which consists of agricultural chemicals such as herbicides and pesticides. The company also benefits from its logistics segment that supports its supply chain operations. Additionally, strategic partnerships and collaborations with other firms in the chemical industry enhance its market reach and contribute to its earnings.

Hodogaya Chemical Co., Ltd. Financial Statement Overview

Summary

Hodogaya Chemical Co., Ltd. shows strong revenue growth and profitability with a robust balance sheet, evidenced by low debt leverage and a strong equity ratio. However, the significant decline in free cash flow indicates potential cash management issues.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	48.58B	44.26B	43.32B	41.88B	41.20B
Gross Profit	18.91B	17.10B	16.67B	17.66B	16.07B
EBITDA	7.93B	7.17B	6.26B	7.94B	7.25B
Net Income	3.18B	2.48B	2.22B	3.25B	3.12B
Balance Sheet
Total Assets	79.86B	81.16B	72.05B	66.45B	62.61B
Cash, Cash Equivalents and Short-Term Investments	10.77B	12.96B	10.49B	11.45B	9.45B
Total Debt	8.79B	9.81B	11.08B	7.02B	8.19B
Total Liabilities	21.32B	23.71B	22.16B	18.54B	18.96B
Stockholders Equity	48.60B	47.73B	42.83B	41.41B	38.67B
Cash Flow
Free Cash Flow	248.00M	2.99B	-2.06B	4.38B	3.07B
Operating Cash Flow	5.67B	8.34B	1.06B	6.14B	5.38B
Investing Cash Flow	-6.55B	-3.95B	-7.04B	-3.57B	-2.69B
Financing Cash Flow	-1.88B	-2.07B	2.29B	-1.85B	-424.00M

Hodogaya Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1463.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 1463 is above the 20-day moving average (MA) of 1447.80, below the 50-day MA of 1466.32, and below the 200-day MA of 1753.79, indicating a neutral trend. The MACD of -2.86 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 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
4275	74 Outperform	¥28.49B	11.00		3.00%	0.92%	-0.79%
4112	73 Outperform	¥23.89B	7.32		3.08%	9.75%	28.00%
4027	72 Outperform	¥27.60B	12.24		3.10%	5.18%	30.87%
4462	72 Outperform	¥28.50B	11.32		2.04%	15.27%	48.08%
4968	71 Outperform	¥20.26B	7.66		4.81%	11.10%	―
4022	64 Neutral	¥31.97B	10.11		3.57%	9.33%	45.97%
Sector *	44 Neutral	C$979.74M	-6.70	-13.35%	2.68%	17.20%	-32.62%

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.