Taoka Chemical Co., Ltd. (4113) AI Stock Analysis

• Market Cap: ¥16.22B
• Dividend Yield: 3.23%
• Average Volume (3M): 39.40K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.15
• Revenue Growth: 13.09%
• EPS Growth: 89.45%
• Country: JP
• Employees: 458
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 18.77
• Shares Outstanding: 14,440,000
• 10 Day Avg. Volume: 29,300
• 30 Day Avg. Volume: 39,396
• PEG Ratio: 0.14
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 5.70
• 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: 69 Neutral
• Price Target: ¥1,210.00 ▼(-2.10% Downside)

The score is driven primarily by strong financial performance (profitability and cash flow) and supportive valuation (low P/E and solid dividend yield). These positives are partially offset by weak technicals, with the share price in a clear downtrend despite oversold momentum signals.

Positive Factors

Consistent strong cash generation

Consistently positive operating and free cash flow provides durable financial flexibility: funds capex, dividends, debt service and targeted M&A without reliance on external financing. This strengthens resilience through commodity cycles and supports long-term strategic investment.

Low leverage and solid equity base

A healthy debt-to-equity profile and strong equity position reduce refinancing and solvency risk, giving management scope to invest in growth, absorb shocks, or pursue opportunistic investments. Low leverage supports sustained operations across economic cycles.

Positive revenue and improved margins

Sustained revenue growth coupled with improved gross and net margins and strong EBIT/EBITDA suggests structural improvements in pricing, cost control or product mix. These trends indicate durable profitability that can fund reinvestment and shareholder returns over months to years.

Negative Factors

Slight decline in equity ratio

A falling equity ratio, even if modest, signals a gradual move toward more external financing or asset base changes. If persistent, it can erode the balance-sheet cushion, reduce financial flexibility and raise vulnerability to adverse industry or commodity shocks over the medium term.

Exposure to raw material and energy costs

High sensitivity to raw material and energy prices is a structural industry risk for specialty chemicals. Without strong hedging or pass-through pricing, volatile input costs can compress gross margins and earnings predictability, limiting margin sustainability through commodity cycles.

Limited public guidance and disclosure

Absence of earnings guidance, call highlights or corporate events reduces forward visibility for investors and partners. Limited disclosure can hinder assessment of strategy execution, capital allocation and risk management, complicating long-term stakeholder evaluation and planning.

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

Company Description

Taoka Chemical Company, Limited manufactures and sells various chemicals in Japan and internationally. It provides raw material for resists; one-component epoxy-based adhesives for bonding various materials; cyanoacrylate-based instant adhesives; and materials for electronic components, as well as amide and ester imide, nylon, polyester, and polyimide varnishes. The company also manufactures paper processing resin/water-soluble polymer products; raw materials for pharmaceuticals and diagnostics; and rubber additives, such as resin cross-linking agents, tackifiers, and kneading type vulcanizing adhesives. In addition, it offers plasticizer for food packaging films, flooring materials, footwear, hoses, ink rubber gloves, food cans, etc.; methyl ester used as a base material for industrial detergents, shell molds, and fine chemical intermediates, including fragrances and chemicals; dye-related products used for textiles, paper, leather, and plastics. Further, the company develops and produces bisphenol derivatives; TBIS, an epoxy derivative; TBIS, an acid dianhydride; episulfide derivatives; and indole derivatives for various compounds for medical and agrochemical applications. Taoka Chemical Company, Limited was formerly known as Taoka Dystuffs Manufacturing Co., Ltd. and changed its name to Taoka Chemical Company, Limited in 1972. The company was founded in 1919 and is headquartered in Osaka, Japan. Taoka Chemical Company, Limited is a subsidiary of Sumitomo Chemical Company, Limited.

How the Company Makes Money

Taoka Chemical Co., Ltd. generates revenue primarily through the sale of its chemical products and solutions. The company's key revenue streams include direct sales to industrial clients, partnerships with distributors, and collaborations with other manufacturers to develop specialized chemical formulations. Additionally, Taoka Chemical benefits from long-term contracts with major clients in sectors like automotive and construction, which provide a stable income base. The company also invests in research and development to create new products, which helps in maintaining a competitive edge and expanding its market reach, ultimately contributing to its earnings.

Taoka Chemical Co., Ltd. Financial Statement Overview

Summary

Solid fundamentals overall: positive revenue growth, improved net profit margin, and strong EBIT/EBITDA margins. Balance sheet leverage appears low with a healthy debt-to-equity profile, while operating and free cash flow are robust and consistently positive. A slight decline in the equity ratio is a modest risk to monitor.

Income Statement

The company's revenue growth has been positive, with a notable increase from the previous year. Gross profit margin is stable, indicating efficient production and cost management. Net profit margin has improved significantly, reflecting enhanced profitability. EBIT and EBITDA margins show strong operational performance, contributing to a solid income statement.

Balance Sheet

The balance sheet shows a strong equity position with a healthy debt-to-equity ratio, suggesting low leverage risks. The return on equity indicates efficient use of equity capital to generate profits. However, the equity ratio decreased slightly, indicating a minor shift in asset financing structure.

Cash Flow

The cash flow statement is robust, with strong operating cash flow and positive free cash flow growth. The operating cash flow to net income ratio suggests effective cash generation from operations. Free cash flow has been consistently positive, indicating good cash management and potential for reinvestment and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.89B	29.93B	28.54B	30.17B	32.37B	32.06B
Gross Profit	5.77B	5.49B	4.58B	4.00B	6.32B	7.22B
EBITDA	3.74B	3.46B	2.60B	1.95B	4.25B	5.16B
Net Income	1.63B	1.48B	820.48M	310.65M	2.06B	2.62B
Balance Sheet
Total Assets	30.71B	30.41B	29.72B	31.07B	32.42B	27.96B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.18B	972.01M	853.40M	718.63M	4.33B
Total Debt	1.33B	1.49B	2.21B	4.33B	808.15M	555.36M
Total Liabilities	12.04B	11.91B	12.51B	14.50B	15.67B	12.72B
Stockholders Equity	18.68B	18.50B	17.21B	16.57B	16.75B	15.24B
Cash Flow
Free Cash Flow	0.00	2.97B	2.49B	-2.85B	-3.41B	3.16B
Operating Cash Flow	0.00	4.37B	3.63B	1.48B	-1.33B	5.22B
Investing Cash Flow	0.00	-1.42B	-1.14B	-4.34B	-2.08B	-2.09B
Financing Cash Flow	0.00	-997.00M	-2.39B	3.00B	-273.53M	-680.45M

Taoka Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1236.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4113, the sentiment is Negative. The current price of 1236 is below the 20-day moving average (MA) of 1361.45, below the 50-day MA of 1269.14, and below the 200-day MA of 1258.25, indicating a bearish trend. The MACD of -33.46 indicates Positive momentum. The RSI at 32.12 is Neutral, neither overbought nor oversold. The STOCH value of 5.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4113.

Taoka Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4229	81 Outperform	¥32.41B	14.61	―	2.47%	3.53%	8.36%
4064	80 Outperform	¥25.53B	8.73	―	3.21%	9.61%	173.72%
4973	77 Outperform	¥27.49B	16.86	―	3.63%	18.02%	18.04%
4113	69 Neutral	¥16.22B	9.47	―	3.23%	13.09%	89.45%
4092	66 Neutral	¥28.74B	12.65	―	3.84%	-3.41%	-12.83%
4409	66 Neutral	¥16.10B	13.14	―	2.78%	1.30%	-5.03%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Taoka Chemical Co., Ltd. Corporate Events

Taoka Chemical Cuts Full-Year Earnings Forecast on Weak Fine Chemicals Demand

Taoka Chemical has revised downward its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, cutting projected net sales from ¥35.5 billion to ¥33.0 billion and reducing expected operating, ordinary, and attributable profits by roughly 23–27%. The company attributes the weaker outlook primarily to declining sales in its fine chemicals segment, particularly monomers for optical resins and electronic materials, signaling a soft demand environment in these key markets and implying a pressure on profitability and earnings per share relative to earlier expectations.

The most recent analyst rating on (JP:4113) stock is a Hold with a Yen1618.00 price target. To see the full list of analyst forecasts on Taoka Chemical Co., Ltd. stock, see the JP:4113 Stock Forecast page.

Taoka Chemical Posts Strong Nine-Month Earnings and Plans Higher Dividend for FY2025

Taoka Chemical reported consolidated net sales of ¥25.38 billion for the nine months ended December 31, 2025, up 13.4% year on year, with operating profit rising 26.4% to ¥1.77 billion and profit attributable to owners of parent increasing 21.6% to ¥1.32 billion, driven by improved profitability and resulting in higher earnings per share. The company maintained a strong balance sheet with an equity-to-asset ratio of 63.3% and confirmed its full-year forecast of ¥33.0 billion in net sales and ¥1.35 billion in profit attributable to owners of parent, while also planning to double its annual dividend to ¥36 per share for the fiscal year ending March 31, 2026, underscoring continued shareholder return amid steady performance, though profit growth is expected to moderate versus the prior year.

The most recent analyst rating on (JP:4113) stock is a Hold with a Yen1618.00 price target. To see the full list of analyst forecasts on Taoka Chemical Co., Ltd. stock, see the JP:4113 Stock Forecast page.