Kaneka Corporation (JP:4118)
:4118
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Kaneka
(4118)
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Rating:74Outperform
Price Target:
¥5,288.00
▲(12.01% Upside)
Action:UpgradedDate:11/01/25
Kaneka's stock is supported by strong valuation metrics and stable technical indicators. Financial performance shows robust revenue growth and operational efficiency, though profitability and cash flow challenges need addressing. The absence of earnings call and corporate events data limits further insights.
Positive Factors
Revenue Growth
Sustained top-line growth (five-year CAGR ~6.4% and recent revenue growth 22.6%) indicates expanding end-market penetration and product adoption across chemicals, specialty materials, and life-science businesses. This durable organic expansion supports scale, investment recovery, and long-term margin improvement as higher-value products gain share.
Negative Factors
Negative Free Cash Flow
Negative free cash flow (¥-9,931m) driven by elevated capital expenditures signals that investment intensity currently outpaces cash generation. If capex remains high, this can erode liquidity, force higher external financing, or constrain dividends and buybacks, raising medium-term funding and allocation risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth (five-year CAGR ~6.4% and recent revenue growth 22.6%) indicates expanding end-market penetration and product adoption across chemicals, specialty materials, and life-science businesses. This durable organic expansion supports scale, investment recovery, and long-term margin improvement as higher-value products gain share.
Read all positive factors
Kaneka (4118) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥302.60B
Dividend Yield3.41%
Average Volume (3M)189.42K
Price to Earnings (P/E)9.1
Beta (1Y)0.85
Revenue Growth2.60%
EPS Growth9.50%
CountryJP
Employees11,544
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)120.21
Shares Outstanding66,000,000
10 Day Avg. Volume277,740
30 Day Avg. Volume189,416
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)0.51
Price to Sales (P/S)0.30
P/FCF Ratio-24.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,897.18Price Target Upside3.73% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)471.56
Revenue Forecast (FY)¥805.60B
Kaneka Business Overview & Revenue Model
Company Description
Kaneka Corporation manufactures and sells polyvinyl chloride (PVC), crosslinked PVC, PVC-PVAc polymers, paste PVC, acryl grafted-vinyl chloride copolymer, and chlorinated PVC in Japan and internationally. It provides impact modifiers, processing a...
How the Company Makes Money
Kaneka makes money primarily by manufacturing and selling chemical and materials products and related solutions to corporate customers across multiple end markets. Revenue is generated from (1) product sales in its chemicals and performance materi...
Kaneka Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 807.50B | 807.20B | 762.30B | 755.82B | 691.53B | 577.43B |
| Gross Profit | 224.42B | 216.22B | 195.20B | 190.47B | 190.43B | 160.91B |
| EBITDA | 83.23B | 83.70B | 72.86B | 74.05B | 82.07B | 64.35B |
| Net Income | 22.54B | 25.31B | 23.22B | 23.01B | 26.49B | 15.83B |
Balance Sheet | ||||||
| Total Assets | 920.22B | 920.14B | 870.21B | 782.64B | 726.96B | 667.43B |
| Cash, Cash Equivalents and Short-Term Investments | 44.35B | 45.64B | 43.97B | 41.87B | 41.95B | 47.92B |
| Total Debt | 212.31B | 223.06B | 195.09B | 175.94B | 132.83B | 122.96B |
| Total Liabilities | 428.71B | 427.72B | 395.82B | 346.21B | 314.75B | 286.39B |
| Stockholders Equity | 470.63B | 471.94B | 454.11B | 418.00B | 387.77B | 357.62B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -9.93B | 596.00M | -10.92B | -3.22B | 34.61B |
| 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
Neutral
4721.00
Price Trends
4889.18
Negative
4611.94
Positive
4374.04
Positive
Market Momentum
-51.56
Positive
41.33
Neutral
11.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4118, the sentiment is Neutral. The current price of 4721 is below the 20-day moving average (MA) of 4948.65, below the 50-day MA of 4889.18, and above the 200-day MA of 4374.04, indicating a neutral trend. The MACD of -51.56 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 11.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4118.
Kaneka Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥360.83B | 5.46 | 9.34% | 4.27% | -0.48% | -35.29% | |
74 Outperform | ¥302.60B | 9.05 | 5.47% | 3.41% | 2.60% | 9.50% | |
68 Neutral | ¥2.07T | 17.01 | 11.98% | 1.54% | 1.84% | -6.57% | |
65 Neutral | ¥361.21B | 10.69 | 8.14% | 2.61% | -1.45% | ― | |
65 Neutral | ¥245.40B | 6.13 | 1.47% | 4.29% | -7.45% | -71.68% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥752.63B | 12.79 | 2.01% | 3.82% | -4.63% | -65.11% |
* Basic Materials Sector Average
JP:4118
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Kaneka Corporate Events
Kaneka Nears Limit of ¥12 Billion Share Buyback as Repurchase Program Concludes
Mar 18, 2026
Kaneka Corporation has completed a share repurchase program authorized under its Articles of Incorporation, buying back 303,600 common shares on the Tokyo Stock Exchange between March 1 and March 17, 2026 for a total of about ¥1.5 billion. Th...
Kaneka Nears Completion of ¥12 Billion Share Buyback Program
Mar 2, 2026
Kaneka Corporation has reported the latest status of its ongoing share repurchase program authorized by its board in May 2025, which allows buybacks of up to 3 million shares or ¥12 billion through market purchases on the Tokyo Stock Exchange...
Kaneka Posts Lower Nine-Month Earnings but Lifts Full-Year Dividend Outlook
Feb 10, 2026
Kaneka reported consolidated net sales of ¥598.3 billion for the nine months ended December 31, 2025, down 0.8% year on year, with operating income falling 23.8% to ¥22.2 billion and ordinary income down 26.1%. Despite weaker profitabili...
Kaneka Issues Cautionary Financial Summary for Nine Months to December 2025
Feb 10, 2026
Kaneka disclosed a financial summary document for the nine months ended December 31, 2025, dated February 10, 2026, outlining results, segment performance, balance sheets, earnings forecasts, and corporate topics. The release emphasizes that all p...
Kaneka Nears Upper Limit of Ongoing Share Buyback Program
Feb 2, 2026
Kaneka Corporation disclosed the latest status of its share repurchase program authorized by its board in May 2025 under Japan’s Companies Act and its Articles of Incorporation. Between January 1 and January 31, 2026, the company bought back...
Kaneka Advances Share Repurchase Program, Buys Back 2.05 Million Shares to Date
Jan 5, 2026
Kaneka Corporation reported progress on its ongoing share repurchase program authorized by its board in May 2025, detailing that it bought back 135,100 shares of common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025 for...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.