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

• Market Cap: ¥72.10B
• Dividend Yield: 3.14%
• Average Volume (3M): 45.72K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.95
• Revenue Growth: 3.55%
• EPS Growth: 214.69%
• Country: JP
• Employees: 3,634
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 145.43
• Shares Outstanding: 18,113,110
• 10 Day Avg. Volume: 45,360
• 30 Day Avg. Volume: 45,716
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: -1.85% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥3,936.00 ▼(-1.85% Downside)

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 leading Japanese manufacturer specializing in the production of pigments, printing inks, and various chemical products. The company operates across multiple sectors, including automotive, construction, and consumer goods, providing high-quality colorants and chemical solutions to a diverse range of industries. Dainichiseika is known for its innovative approach to product development and commitment to sustainability, which has established it as a prominent player in the global chemicals market.

How the Company Makes Money

Dainichiseika Color & Chemicals Mfg. Co., Ltd. generates revenue primarily through the sale of its pigments, printing inks, and chemical products. The company serves a broad spectrum of industries, including automotive, construction, electronics, and packaging, offering tailored solutions that meet specific industrial needs. Key revenue streams include the supply of pigments for automotive coatings, printing inks for packaging and publication industries, and specialty chemicals for various manufacturing processes. The company's earnings are also bolstered by strategic partnerships and collaborations with other industry leaders, enhancing its market reach and technological capabilities. Additionally, Dainichiseika invests in research and development to innovate and improve its product offerings, ensuring its competitive edge in the market.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.76B	124.76B	119.82B	122.00B	121.93B	138.49B
Gross Profit	25.22B	25.22B	22.36B	21.31B	25.66B	22.22B
EBITDA	19.54B	19.54B	10.80B	8.87B	14.18B	13.52B
Net Income	10.29B	10.29B	3.66B	2.01B	6.17B	6.34B
Balance Sheet
Total Assets	196.78B	196.78B	194.85B	192.76B	196.71B	197.72B
Cash, Cash Equivalents and Short-Term Investments	24.25B	24.25B	23.58B	24.76B	26.35B	36.65B
Total Debt	21.04B	21.04B	25.28B	31.00B	32.91B	42.70B
Total Liabilities	66.28B	66.28B	75.69B	78.47B	86.22B	94.06B
Stockholders Equity	128.01B	128.01B	116.75B	112.06B	108.45B	101.90B
Cash Flow
Free Cash Flow	0.00	-1.27B	4.48B	-2.24B	-252.00M	4.26B
Operating Cash Flow	0.00	4.17B	9.02B	3.00B	7.58B	11.52B
Investing Cash Flow	0.00	1.42B	-1.45B	-2.19B	-6.64B	-3.77B
Financing Cash Flow	0.00	-7.00B	-10.21B	-3.84B	-11.42B	-358.00M

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

• Technical Analysis Sentiment: Positive
• Last Price: 4010.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 4010 is above the 20-day moving average (MA) of 3743.50, above the 50-day MA of 3452.00, and above the 200-day MA of 3057.37, indicating a bullish trend. The MACD of 132.71 indicates Negative momentum. The RSI at 87.50 is Negative, neither overbought nor oversold. The STOCH value of 90.48 is Negative, 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	¥64.71B	10.19		2.00%	-1.66%	-29.18%
4116	79 Outperform	¥72.10B	6.11		3.14%	3.55%	214.69%
4362	77 Outperform	¥62.24B	14.23		2.81%	5.45%	25.48%
4028	74 Outperform	¥98.73B	9.24		3.44%	8.46%	74.58%
4078	73 Outperform	¥49.55B	9.74		4.57%	0.10%	―
4008	69 Neutral	¥63.88B	13.64		4.32%	0.32%	-43.10%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%