Kaneka (4118) AI Stock Analysis

• Market Cap: ¥249.61B
• Dividend Yield: 0.02%
• Average Volume (3M): 186.01K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.84
• Revenue Growth: 5.89%
• EPS Growth: 11.92%
• Country: JP
• Employees: 11,544
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 120.24
• Shares Outstanding: 66,000,000
• 10 Day Avg. Volume: 184,390
• 30 Day Avg. Volume: 186,010
• PEG Ratio: -0.71
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.10
• 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: ¥3,799.91
• Price Target Upside: -3.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥4,157.00 ▲(5.96%Upside)

Kaneka's overall stock score is driven by strong technical indicators and reasonable valuation, despite some financial performance challenges. The company's operational efficiency and revenue growth are positives, but the negative free cash flow and rising debt levels need attention to maintain financial health.

Kaneka Business Overview & Revenue Model

Company Description

Kaneka Corporation, headquartered in Japan, is a diversified chemical manufacturing company. It operates across several sectors, including chemicals, functional plastics, expandable plastics and products, foodstuffs products, life science products, electronic products, and synthetic fibers. Kaneka is known for its innovative research and development capabilities, providing a wide range of products and solutions tailored to meet the needs of various industries worldwide.

How the Company Makes Money

Kaneka Corporation generates revenue through the production and sale of its diverse range of chemical and functional products. The company's revenue streams are primarily derived from its core business segments: chemicals, which include resins and industrial chemicals; functional plastics, which cover high-performance materials; and life science products, such as pharmaceuticals and medical devices. Additionally, Kaneka earns income from its foodstuffs division, producing ingredients and products for the food industry, and its electronic and synthetic fiber segments. Strategic partnerships, continuous innovation, and a focus on expanding into international markets also play significant roles in enhancing the company's earnings and market presence.

Kaneka Financial Statement Overview

Summary

Kaneka shows solid revenue growth and operational efficiency, with stable equity and strong operating cash flows. However, challenges with declining net profit margins and negative free cash flow due to high capital expenditures are concerning. Rising debt levels also require careful management.

Income Statement

Kaneka's income statement shows strong revenue growth with a compound annual growth rate (CAGR) of approximately 6.4% over the past five years. The gross profit margin has been relatively stable, with a slight improvement to 27.8% in 2025. However, the net profit margin shows a slight decline from previous periods, standing at 3.1% for 2025. EBIT and EBITDA margins have improved, indicating operational efficiency, but the declining net profit margin signals pressure on the bottom line, possibly due to increased expenses or cost of goods sold.

Balance Sheet

Kaneka's balance sheet indicates a stable equity position, with stockholders' equity rising to 471,937 million yen in 2025. The debt-to-equity ratio increased to 0.47, showing a moderate leverage level. The equity ratio improved slightly to 51.3%, suggesting a robust financial position. However, the rise in total debt over the years could pose potential risks if not managed carefully. Overall, the company maintains a balanced approach to leveraging debt while sustaining equity growth.

Cash Flow

The cash flow statement reveals challenges in free cash flow, which turned negative in 2025 at -9,931 million yen, due to high capital expenditures. Operating cash flow remains strong at 41,252 million yen, indicating good cash generation from core operations. The free cash flow to net income ratio is negative due to the capital intensity, but the operating cash flow to net income ratio stands favorably. While cash from operations is solid, the negative free cash flow suggests a need for careful capital management to avoid liquidity issues.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
800.62B	807.20B	762.30B	755.82B	691.53B	577.43B
	Gross Profit
222.91B	224.63B	204.22B	198.93B	196.65B	166.94B
	EBIT
40.10B	39.04B	32.58B	35.09B	43.56B	27.54B
	EBITDA
86.23B	84.74B	81.62B	74.44B	75.98B	60.27B
	Net Income Common Stockholders
27.52B	25.31B	23.22B	23.01B	26.49B	15.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.48B	45.64B	43.97B	41.87B	41.95B	47.92B
	Total Assets
908.62B	920.14B	870.21B	782.64B	726.96B	667.43B
	Total Debt
204.95B	223.06B	195.09B	175.94B	128.62B	119.34B
	Net Debt
160.47B	177.42B	151.82B	134.17B	86.88B	71.63B
	Total Liabilities
424.15B	427.72B	395.82B	346.22B	314.76B	286.39B
	Stockholders Equity
464.25B	471.94B	454.11B	417.99B	387.77B	357.61B
Cash Flow		Free Cash Flow
0.00	-9.93B	-3.35B	-13.28B	-5.82B	31.64B
	Operating Cash Flow
0.00	41.25B	61.91B	28.71B	34.11B	74.04B
	Investing Cash Flow
0.00	-55.04B	-58.77B	-41.97B	-39.59B	-43.23B
	Financing Cash Flow
0.00	14.45B	-1.52B	12.35B	-1.10B	-21.90B

Kaneka Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3923.00
• 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:4118, the sentiment is Positive. The current price of 3923 is above the 20-day moving average (MA) of 3840.30, above the 50-day MA of 3630.44, and above the 200-day MA of 3648.20, indicating a bullish trend. The MACD of 78.70 indicates Positive momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 63.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4118.

Kaneka Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4088	79 Outperform	$479.58B	9.88	9.64%	3.02%	5.02%	10.24%
4182	75 Outperform	¥428.34B	9.64	6.78%	0.03%	-4.90%	20.59%
4118	73 Outperform	¥249.61B	9.85	5.38%	0.02%	5.89%	11.92%
4205	72 Outperform	¥284.89B	11.11	7.16%	4.70%	10.04%	-13.43%
4631	65 Neutral	$279.23B	9.25	7.73%	3.43%	3.67%	―
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%
4208	51 Neutral	$221.34B	11.14	-1.23%	4.85%	3.96%	-116.60%

Kaneka Corporate Events

Kaneka Corporation Announces Strategic Share Repurchase Plan

Kaneka Corporation announced a resolution to repurchase its treasury stock, with a plan to buy back up to 3,000,000 shares, representing 4.77% of its total issued shares, for a maximum of 12 billion yen. This strategic move, executed through market purchases on the Tokyo Stock Exchange, aims to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:4118) stock is a Hold with a Yen4400.00 price target. To see the full list of analyst forecasts on Kaneka stock, see the JP:4118 Stock Forecast page.

Kaneka Unveils ‘Three-Year Initiatives 2025’ Management Plan

Kaneka Corporation has announced its new management plan titled ‘Three-Year Initiatives 2025’, which outlines the company’s strategic goals for fiscal years 2025 to 2027. This plan is expected to guide Kaneka’s operations and potentially enhance its market position, although specific details in English will be provided later.

The most recent analyst rating on (JP:4118) stock is a Hold with a Yen4400.00 price target. To see the full list of analyst forecasts on Kaneka stock, see the JP:4118 Stock Forecast page.

Kaneka Corporation Announces Dividend Increase and Forecast for 2026

Kaneka Corporation has announced a decision to distribute dividends from surplus with a record date of March 31, 2025, and has also provided a dividend forecast for the fiscal year ending March 31, 2026. The company plans to increase its annual dividend to 160 yen per share for the fiscal year 2026, reflecting a progressive dividend policy aimed at enhancing shareholder value while maintaining financial stability.

The most recent analyst rating on (JP:4118) stock is a Hold with a Yen3800.00 price target. To see the full list of analyst forecasts on Kaneka stock, see the JP:4118 Stock Forecast page.

Kaneka Corporation Announces Strategic Share Repurchase and Cancellation

Kaneka Corporation has announced a strategic move to repurchase and cancel 3,000,000 shares of its common stock, representing 4.77% of its total issued shares, as part of a flexible capital policy aimed at enhancing shareholder value. This decision, approved by the Board of Directors, is expected to strengthen the company’s financial position and adaptability in response to market changes.

The most recent analyst rating on (JP:4118) stock is a Hold with a Yen3800.00 price target. To see the full list of analyst forecasts on Kaneka stock, see the JP:4118 Stock Forecast page.

Kaneka Corporation Reports Strong Financial Performance for Fiscal Year 2025

Kaneka Corporation reported a significant improvement in its financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 5.9% and operating income rising by 22.9% compared to the previous year. The company’s strategic initiatives have resulted in a positive impact on its operations, enhancing its industry positioning and providing promising implications for stakeholders.

The most recent analyst rating on (JP:4118) stock is a Hold with a Yen3800.00 price target. To see the full list of analyst forecasts on Kaneka stock, see the JP:4118 Stock Forecast page.