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

• Market Cap: ¥54.93B
• Dividend Yield: 4.91%
• Average Volume (3M): 40.50K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.93
• Revenue Growth: 4.12%
• EPS Growth: 192.18%
• Country: JP
• Employees: 3,634
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 7.98
• Shares Outstanding: 18,113,110
• 10 Day Avg. Volume: 29,930
• 30 Day Avg. Volume: 40,500
• PEG Ratio: -0.24
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.70
• 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

• Rating: 79 Outperform
• Price Target: ¥3,569.00 ▲(16.82%Upside)

Dainichiseika demonstrates strong financial health with stable revenue growth and a robust balance sheet, although cash flow issues need attention. Technical indicators reflect positive market momentum, reinforcing confidence in the stock's upward trend. The valuation is highly attractive, with a low P/E ratio and high dividend yield, suggesting substantial upside potential for value investors.

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 production and sale of a wide range of colorants and chemical products. The company operates primarily within the chemical industry, manufacturing and distributing pigments, printing inks, and various chemical materials. Its products are used across multiple sectors, including automotive, construction, and consumer goods, providing essential components for color application and chemical processes.

How the Company Makes Money

Dainichiseika Color & Chemicals Mfg.Co., Ltd. generates revenue through the sale of its diverse range of chemical products and colorants. The company’s revenue streams are primarily derived from the production and distribution of pigments and inks, which are essential for various industrial applications. Key revenue channels include direct sales to manufacturers in industries such as automotive, construction, and consumer goods, where their products are used for coloring and coating purposes. Additionally, the company may engage in strategic partnerships and collaborations with other firms to enhance its product offerings and expand its market reach. Dainichiseika leverages its expertise in chemical manufacturing to maintain a strong presence in both domestic and international markets, contributing to its overall earnings.

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

Summary

Dainichiseika exhibits a strong financial position with stable revenue growth and improving profitability. The balance sheet remains robust with decreasing leverage, enhancing the company's financial resilience. However, recent cash flow issues need to be addressed to ensure 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
123.61B	124.76B	119.82B	122.00B	121.93B	138.49B
	Gross Profit
25.09B	25.22B	22.36B	21.31B	25.66B	22.22B
	EBIT
7.00B	7.00B	4.55B	2.63B	7.45B	4.92B
	EBITDA
12.32B	19.54B	10.80B	8.23B	12.72B	9.75B
	Net Income Common Stockholders
10.07B	10.29B	3.66B	2.01B	6.17B	6.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.32B	24.25B	23.58B	24.76B	26.35B	36.65B
	Total Assets
197.52B	196.78B	194.85B	192.76B	196.71B	197.72B
	Total Debt
20.98B	21.04B	25.28B	31.00B	32.91B	42.70B
	Net Debt
-337.00M	-3.21B	3.85B	6.24B	6.57B	6.05B
	Total Liabilities
69.58B	66.28B	75.69B	78.47B	86.22B	94.06B
	Stockholders Equity
125.68B	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: Neutral
• Last Price: 3055.00
• 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 Neutral. The current price of 3055 is below the 20-day moving average (MA) of 3105.75, above the 50-day MA of 2983.18, and above the 200-day MA of 2914.14, indicating a neutral trend. The MACD of 25.92 indicates Positive momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4362	79 Outperform	¥55.26B	13.52		3.18%	6.36%	17.44%
4365	79 Outperform	¥59.80B	7.85		2.16%	5.44%	8.53%
4116	79 Outperform	¥54.93B	5.10		4.91%	4.12%	192.18%
4028	75 Outperform	¥73.08B	8.32		4.65%	4.87%	5.12%
4078	71 Outperform	¥43.40B	8.33		5.63%	3.16%	―
4008	66 Neutral	¥60.06B	9.65		4.60%	3.21%	-1.94%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%