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

• Market Cap: ¥23.97B
• Dividend Yield: 4.6%
• Average Volume (3M): 40.77K
• 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: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 18.57
• Shares Outstanding: 16,827,452
• 10 Day Avg. Volume: 47,020
• 30 Day Avg. Volume: 40,773
• PEG Ratio: -0.29
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 98.77
• 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: ¥1,613.00
• Price Target Upside: 6.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,644.00 ▲(8.30%Upside)

The stock's strong valuation and financial health are offset by technical indicators showing mixed momentum. While profitability and balance sheet strength are commendable, cash flow issues need addressing.

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

Company Description

Hodogaya Chemical Co., Ltd. (4112) is a Japanese chemical company that specializes in the development, manufacturing, and sale of various chemical products. The company operates in several sectors including basic chemicals, functional chemicals, agro-science, and logistics. Hodogaya Chemical is known for its innovative solutions and high-quality products, serving industries such as agriculture, automotive, electronics, and textiles.

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. demonstrates strong revenue growth and profitability with a solid balance sheet. However, the significant decline in free cash flow is a concern, indicating potential cash flow management issues that need addressing.

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: 1518.00
• 50DMA: Positive
• 100DMA: Positive
• 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 1518 is above the 20-day moving average (MA) of 1456.90, above the 50-day MA of 1459.70, and below the 200-day MA of 1704.44, indicating a neutral trend. The MACD of 6.67 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 63.73 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	¥28.21B	10.89		3.03%	0.92%	-0.79%
4112	74 Outperform	¥23.97B	7.34		4.60%	9.75%	28.00%
4027	72 Outperform	¥27.47B	12.18		2.96%	5.18%	30.87%
4462	72 Outperform	¥29.53B	11.73		1.97%	15.27%	48.08%
4022	64 Neutral	¥33.96B	10.73		2.80%	9.33%	45.97%
4968	62 Neutral	¥21.92B	8.29		4.43%	11.10%	―
Sector *	44 Neutral	C$992.55M	-6.64	-13.73%	1.83%	17.55%	-32.57%

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.