Dainichiseika Color & Chemicals Mfg.Co., Ltd. (4116) AI Stock Analysis

• Market Cap: ¥70.03B
• Dividend Yield: 3.16%
• Average Volume (3M): 35.30K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.92
• Revenue Growth: 3.55%
• EPS Growth: 214.69%
• Country: JP
• Employees: 3,634
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 145.43
• Shares Outstanding: 18,113,110
• 10 Day Avg. Volume: 27,040
• 30 Day Avg. Volume: 35,296
• PEG Ratio: 0.03
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -40.54
• 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: ¥3,936.00
• Price Target Upside: 1.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥3,936.00 ▲(1.05% Upside)

Dainichiseika's strong financial performance, combined with a bullish technical outlook and attractive valuation, makes it a compelling investment. The main risk is the recent cash flow instability, which needs monitoring to ensure long-term financial health.

Dainichiseika Color & Chemicals Mfg.Co., Ltd. Business Overview & Revenue Model

Company Description

Dainichiseika Color & Chemicals Mfg. Co., Ltd. is a Japanese company specializing in the manufacturing of colorants, chemicals, and various additives primarily for the paint, coating, and plastics industries. Established in 1917, the company has developed a diverse portfolio of products that include pigments, dyes, and specialty chemicals, catering to both domestic and international markets. Dainichiseika is dedicated to innovation and sustainability, offering solutions that meet the evolving needs of its customers while adhering to environmental standards.

How the Company Makes Money

Dainichiseika generates revenue primarily through the sale of its wide range of chemical products, including pigments and specialty chemicals, to various industries such as paints, coatings, and plastics. The company leverages its expertise in color and chemical technology to develop high-performance products that command premium pricing in the market. Key revenue streams include direct sales to manufacturers, long-term contracts with large clients, and partnerships with distributors. Additionally, the company may benefit from research and development collaborations that lead to the commercialization of new products, further enhancing its earnings potential.

Dainichiseika Color & Chemicals Mfg.Co., Ltd. Financial Statement Overview

Summary

Dainichiseika exhibits strong financial performance with significant revenue growth and improved profitability. The balance sheet is robust with decreasing leverage, although recent cash flow issues need addressing for long-term sustainability.

Income Statement

The company exhibits strong revenue growth of 4.12% in the latest year, with an impressive jump in net income from 3.66 billion to 10.29 billion. The gross profit margin improved slightly, indicating efficient cost management. However, past fluctuations in EBIT margin suggest some volatility in operational efficiency.

Balance Sheet

The balance sheet is solid with a healthy equity ratio of 65.03% and a decreasing debt-to-equity ratio, indicating reduced financial leverage and increased financial stability over the years. The company's strong equity base supports a favorable return on equity of 8.04%.

Cash Flow

Cash flow stability is a concern, with free cash flow turning negative in the latest year. The operating cash flow to net income ratio has weakened, suggesting challenges in converting earnings into cash. However, the company has historically maintained positive operating cash flow, indicating potential for recovery.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	125.12B	124.76B	119.82B	122.00B	138.49B	121.93B
Gross Profit	25.98B	25.22B	22.36B	21.31B	22.22B	25.66B
EBITDA	14.04B	19.54B	10.80B	8.87B	13.52B	14.18B
Net Income	11.26B	10.29B	3.66B	2.01B	6.34B	6.17B
Balance Sheet
Total Assets	196.87B	196.78B	194.85B	192.76B	197.72B	196.71B
Cash, Cash Equivalents and Short-Term Investments	22.45B	24.25B	23.58B	24.76B	36.65B	26.35B
Total Debt	20.83B	21.04B	25.28B	31.00B	42.70B	32.91B
Total Liabilities	67.55B	66.28B	75.69B	78.47B	94.06B	86.22B
Stockholders Equity	127.00B	128.01B	116.75B	112.06B	101.90B	108.45B
Cash Flow
Free Cash Flow	0.00	-1.27B	4.48B	-2.24B	4.26B	-252.00M
Operating Cash Flow	0.00	4.17B	9.02B	3.00B	11.52B	7.58B
Investing Cash Flow	0.00	1.42B	-1.45B	-2.19B	-3.77B	-6.64B
Financing Cash Flow	0.00	-7.00B	-10.21B	-3.84B	-358.00M	-11.42B

Dainichiseika Color & Chemicals Mfg.Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3895.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4116, the sentiment is Positive. The current price of 3895 is below the 20-day moving average (MA) of 3897.32, above the 50-day MA of 3804.43, and above the 200-day MA of 3160.59, indicating a neutral trend. The MACD of 23.35 indicates Positive momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4116.

Dainichiseika Color & Chemicals Mfg.Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4365	79 Outperform	¥61.45B	9.75	―	2.11%	-1.66%	-29.18%
4116	79 Outperform	¥70.03B	5.94	―	3.16%	3.55%	214.69%
4078	73 Outperform	¥47.94B	9.45	―	4.83%	0.10%	―
4362	71 Outperform	¥59.37B	13.75	―	3.37%	5.45%	25.48%
4008	69 Neutral	¥65.60B	14.03	―	4.21%	0.32%	-43.10%
4028	67 Neutral	¥91.70B	8.55	―	4.98%	8.46%	74.58%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%