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

• Market Cap: ¥13.71B
• Dividend Yield: 3.23%
• Average Volume (3M): 39.40K
• Price to Earnings (P/E): 16.5
• 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: ¥1,048.00 ▼(-15.21% Downside)
• Action: Downgraded Date: 01/30/26
• Date: Action: Downgraded 01/30/26

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

Cash Generation

Consistently positive operating and free cash flow provide durable internal funding for capital expenditure, dividends, and debt reduction. Strong cash generation improves financial optionality, supports reinvestment in specialty products, and reduces reliance on external financing over the next 2–6 months.

Balance Sheet Strength

A healthy equity base and low leverage give the company resilience to industry cyclicality and price shocks. This financial flexibility supports strategic investments, working capital needs, and potential M&A without materially increasing financial risk in the medium term.

Profitability and Margins

Sustained revenue growth combined with improving net profit and solid EBIT/EBITDA margins points to durable operating strength and effective cost management. Margin stability in specialty chemicals signals pricing power or production efficiency that supports earnings quality over several quarters.

Negative Factors

Slight Equity Ratio Decline

A declining equity ratio, even if modest, signals a structural shift toward greater liabilities or asset growth financed externally. If the trend continues it could erode the low-leverage advantage, reduce financial flexibility, and raise funding costs or covenant risks over a multi-quarter horizon.

Exposure to Input Costs

Material and energy input cost exposure is a structural margin risk for chemical manufacturers. If raw material or energy prices rise and the company lacks full pass-through or hedging, sustained margin pressure could impair profitability and cash flow resilience across several months.

Limited Segment Transparency

Lack of disclosed product and segment detail hampers assessment of concentration, customer diversification, and competitive positioning. This disclosure gap makes it harder to judge sustainability of revenue growth and vulnerability to end-market declines over the medium term.

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 generates revenue primarily through the manufacture and sale of chemical products to business customers. Its earnings are driven by (1) product sales volume and pricing across its chemical portfolio, and (2) cost management (e.g., raw material and energy costs) that affects gross margins on those sales. Information on specific product lines, segment revenue breakdowns, major end-markets, and significant partnerships is null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	2.93B	3.37B	2.54B	1.91B	4.18B	5.51B
Net Income	1.63B	1.48B	820.48M	310.65M	2.06B	2.62B
Balance Sheet
Total Assets	30.71B	30.41B	29.83B	31.14B	32.50B	28.04B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.18B	972.01M	853.40M	718.63M	4.33B
Total Debt	1.33B	1.75B	2.37B	4.49B	974.58M	721.78M
Total Liabilities	12.04B	11.91B	12.62B	14.57B	15.75B	12.81B
Stockholders Equity	18.68B	18.50B	17.21B	16.57B	16.75B	15.24B
Cash Flow
Free Cash Flow	0.00	2.97B	2.50B	-2.84B	-3.37B	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: 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 1236 is above the 20-day moving average (MA) of 1050.65, above the 50-day MA of 1188.22, and below the 200-day MA of 1257.46, indicating a bearish trend. The MACD of -56.30 indicates Positive momentum. The RSI at 34.72 is Neutral, neither overbought nor oversold. The STOCH value of 31.94 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
4116	76 Outperform	¥79.56B	6.04	―	3.04%	1.57%	-33.97%
4635	71 Outperform	¥20.27B	4.28	―	3.61%	8.85%	110.05%
4113	69 Neutral	¥13.71B	16.46	―	3.23%	13.09%	89.45%
4119	66 Neutral	¥8.27B	2.66	―	2.84%	37.67%	-117.29%
4409	66 Neutral	¥16.64B	9.21	―	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.