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

• Market Cap: ¥18.10B
• Dividend Yield: 3.17%
• Average Volume (3M): 39.40K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.98
• Revenue Growth: 7.57%
• EPS Growth: 35.66%
• Country: JP
• Employees: 458
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 38.67
• 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: ¥1,380.00
• Price Target Upside: 9.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥1,380.00 ▲(9.26% Upside)

Taoka Chemical Co., Ltd. has a strong financial foundation with solid revenue and profit growth, effective cost management, and robust cash flow. The stock appears undervalued with a low P/E ratio and an attractive dividend yield. However, technical indicators suggest bearish momentum, which could pose short-term risks.

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 diverse array of chemical products. The company's key revenue streams include functional chemicals, which are used in various industrial applications, and electronic materials that serve the high-tech sector. Taoka's specialty chemicals are often customized to meet the specific needs of their clients, providing a competitive edge in the marketplace. Additionally, the company may engage in strategic partnerships and collaborations that enhance its product offerings and expand its market reach, contributing to its overall earnings.

Taoka Chemical Co., Ltd. Financial Statement Overview

Summary

Taoka Chemical Co., Ltd. shows a strong financial position with solid revenue and profit growth, effective cost management, and efficient use of equity. The company maintains a healthy balance sheet with low leverage and robust cash flow, supporting its ability to invest in future growth opportunities. However, attention should be paid to the slight decrease in the equity ratio.

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: 1263.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4113, the sentiment is Negative. The current price of 1263 is below the 20-day moving average (MA) of 1327.34, below the 50-day MA of 1369.67, and above the 200-day MA of 1177.35, indicating a neutral trend. The MACD of -23.39 indicates Positive momentum. The RSI at 39.81 is Neutral, neither overbought nor oversold. The STOCH value of 40.88 is Neutral, 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	80 Outperform	¥22.47B	12.14	―	2.95%	2.14%	-5.12%
4064	74 Outperform	¥19.72B	9.36	―	3.87%	11.19%	122.83%
4973	72 Outperform	¥16.98B	12.12	―	4.13%	11.01%	105.63%
4113	69 Neutral	¥18.10B	11.13	―	3.17%	7.57%	35.66%
4092	68 Neutral	¥25.14B	9.99	―	3.71%	-1.44%	-1.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4409	60 Neutral	¥16.36B	11.73	―	2.61%	4.46%	25.80%

Taoka Chemical Co., Ltd. Corporate Events

Taoka Chemical Reports Strong Financial Growth in Q1 2025

Taoka Chemical Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 12.6% and operating profit increasing by 45% compared to the same period last year. The company’s strong financial results indicate robust growth and improved profitability, which may enhance its competitive positioning in the chemical industry.

Taoka Chemical Reports Strong Quarterly Growth

Taoka Chemical Co., Ltd. reported a significant increase in its financial performance for the quarter ending June 2025, with net sales rising by 12.6% and operating profit increasing by 45%. This growth reflects the company’s strong market positioning and operational efficiency, which could positively impact stakeholders and enhance its competitive edge in the chemical industry.