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Kaneka
(4118)
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Rating:73Outperform
Price Target:
¥6,744.00
▲(15.46% Upside)
Action:Reiterated
Date:05/15/26
The score is driven by attractive valuation (low P/E and solid dividend yield) and strong technical uptrend/momentum. These positives are tempered by mixed financial quality—especially inconsistent free cash flow and only modest net margins despite strong revenue growth.
Positive Factors
Revenue Growth
Sustained multi-year revenue expansion indicates durable end-market demand and effective commercial execution. Persistent top-line growth supports scale benefits, capacity utilization and pricing leverage, underpinning longer-term investment capacity and competitive positioning across product lines.
Negative Factors
Volatile Free Cash Flow
Repeated negative or inconsistent free cash flow limits the firm's ability to fund dividends, buybacks, debt paydown or discretionary capex without raising new capital. Over the medium term, FCF volatility raises execution risk for strategic investments and constrains balance sheet strengthening.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained multi-year revenue expansion indicates durable end-market demand and effective commercial execution. Persistent top-line growth supports scale benefits, capacity utilization and pricing leverage, underpinning longer-term investment capacity and competitive positioning across product lines.
Read all positive factors
Kaneka (4118) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥359.75B
Dividend Yield2.65%
Average Volume (3M)189.42K
Price to Earnings (P/E)12.0
Beta (1Y)0.85
Revenue Growth0.55%
EPS Growth26.28%
CountryJP
Employees11,762
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)502.44
Shares Outstanding63,000,000
10 Day Avg. Volume277,740
30 Day Avg. Volume189,416
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)0.59
Price to Sales (P/S)0.37
P/FCF Ratio219.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,733.33Price Target Upside-1.84% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)486.32
Revenue Forecast (FY)¥870.47B
Kaneka Business Overview & Revenue Model
Company Description
Kaneka Corporation, established in Tokyo, Japan, in 1949, operates internationally as a diversified manufacturer providing a wide array of advanced materials and specialized products. Its core chemical business includes the production and global d...
How the Company Makes Money
Kaneka makes money primarily by manufacturing and selling chemical and materials products, earning revenue from (1) sales of industrial materials (e.g., polymers/plastics and other functional materials) to business customers and (2) sales of healt...
Kaneka Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
70
Positive
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 811.64B | 807.20B | 762.30B | 755.82B | 691.53B |
| Gross Profit | 224.29B | 216.22B | 195.20B | 190.47B | 190.43B |
| EBITDA | 96.28B | 85.46B | 81.62B | 74.44B | 75.98B |
| Net Income | 30.98B | 25.31B | 23.22B | 23.01B | 26.49B |
Balance Sheet | |||||
| Total Assets | 959.15B | 920.14B | 870.21B | 782.64B | 726.96B |
| Cash, Cash Equivalents and Short-Term Investments | 50.97B | 45.64B | 43.97B | 41.87B | 41.95B |
| Total Debt | 231.31B | 223.06B | 195.09B | 175.94B | 132.83B |
| Total Liabilities | 437.48B | 427.72B | 395.82B | 346.21B | 314.75B |
| Stockholders Equity | 499.43B | 471.94B | 454.11B | 418.00B | 387.77B |
Cash Flow | |||||
| Free Cash Flow | 1.35B | -9.93B | 596.00M | -10.92B | -3.22B |
| Operating Cash Flow | 50.12B | 41.25B | 61.91B | 28.71B | 34.11B |
| Investing Cash Flow | -26.10B | -55.04B | -58.77B | -41.97B | -39.59B |
| Financing Cash Flow | -19.99B | 14.45B | -1.52B | 12.35B | -1.10B |
Kaneka Technical Analysis
Positive
5841.00
Price Trends
5691.92
Positive
5351.69
Positive
4913.59
Positive
Market Momentum
70.52
Negative
68.39
Neutral
92.95
Negative
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 5841 is above the 20-day moving average (MA) of 5760.85, above the 50-day MA of 5691.92, and above the 200-day MA of 4913.59, indicating a bullish trend. The MACD of 70.52 indicates Negative momentum. The RSI at 68.39 is Neutral, neither overbought nor oversold. The STOCH value of 92.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | ¥2.27T | 17.57 | 12.36% | 1.69% | 4.24% | 6.46% | |
73 Outperform | ¥359.75B | 12.04 | 6.43% | 2.74% | 0.55% | 26.28% | |
67 Neutral | ¥327.00B | 14.56 | 5.75% | 3.31% | 2.52% | ― | |
64 Neutral | ¥442.80B | 11.20 | 10.33% | 4.92% | -0.45% | 50.53% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥851.36B | 12.39 | 4.01% | 3.40% | -3.47% | 348.74% | |
55 Neutral | ¥376.76B | 38.05 | 2.75% | 4.15% | 2.16% | -77.64% |
* Basic Materials Sector Average
JP:4118
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Kaneka Corporate Events
Kaneka Reports Progress on Share Buyback Program
Aug 3, 2026
Kaneka Corporation has disclosed progress on its ongoing share repurchase program authorized by its board in May 2026, carried out under the Companies Act and its Articles of Incorporation. During the period from July 1 to July 31, 2026, the compa...
Kaneka Updates on Progress of Share Repurchase Program
Jul 1, 2026
Kaneka Corporation has disclosed the status of its ongoing share repurchase program authorized by its board in mid-May 2026, conducted under the Companies Act and its Articles of Incorporation. During the period from June 1 to June 30, 2026, the c...
Kaneka Unveils “Three-Year Initiatives 2026” Management Plan
Jun 5, 2026
Kaneka Corporation has introduced a new medium-term management plan titled “Three-Year Initiatives 2026,” covering fiscal years 2026 to 2028, with the year ending March 2027 as its starting point. Branded with the slogan “Change!...
Kaneka Reports Initial Progress on ¥7 Billion Share Buyback Program
Jun 1, 2026
Kaneka Corporation has disclosed the initial status of a share repurchase program authorized by its board on May 14, 2026, under Japan’s Companies Act and its Articles of Incorporation. The company is buying back common stock via market purc...
Kaneka Launches New Three-Year Management Plan Through 2026
May 29, 2026
Kaneka Corporation has introduced a new management plan titled “Three-Year Initiatives 2026,” designating the fiscal year ending March 2027 as the first year of the program. The plan outlines the company’s medium-term direction a...
Kaneka Announces FY2026 Results and Issues FY2027 Outlook
May 14, 2026
Kaneka Corporation released its consolidated financial results for the fiscal year ended March 31, 2026, prepared under Japanese GAAP. While key numerical figures are omitted in the disclosure provided, the filing outlines its performance over the...
Kaneka Releases FY2026 Financial Summary and Outlook
May 14, 2026
Kaneka has issued a financial summary for the fiscal year ended March 31, 2026, outlining key sections such as segment performance, progress in portfolio transformation, balance sheets, cash flows, and investment, depreciation and RD spending. The...
Kaneka Launches ¥7 Billion Share Buyback and Cancellation to Lift Shareholder Value
May 14, 2026
Kaneka Corporation’s board has approved a share buyback and subsequent cancellation of treasury stock to enhance shareholder value and support a more flexible capital policy amid a changing business environment. The company plans to repurcha...
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.