Osaka Yuka Industry Ltd. (4124) AI Stock Analysis

• Market Cap: ¥2.57B
• Dividend Yield: 1.46%
• Average Volume (3M): 6.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 19.97%
• EPS Growth: -26975.44%
• Country: JP
• Employees: 52
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -30.18
• Shares Outstanding: 1,073,500
• 10 Day Avg. Volume: 2,170
• 30 Day Avg. Volume: 6,950
• PEG Ratio: <0.01
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 19.54
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥2,522.00 ▲(3.36% Upside)

The score is primarily supported by a low-risk, debt-free balance sheet and improved FY2025 cash flow, but it is held back by inconsistent profitability (FY2025 net loss) and only neutral-to-soft technical momentum. Valuation is also less compelling due to negative earnings and only a modest dividend yield.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet provides financial flexibility and reduces solvency risk, allowing the company to invest in growth opportunities without financial strain.

Cash Flow Improvement

Improved cash flow indicates better operational efficiency and financial health, enabling the company to fund operations and strategic initiatives without external financing.

Revenue Growth

Strong revenue growth suggests increased demand for products and effective market positioning, supporting long-term business expansion and competitiveness.

Negative Factors

Inconsistent Profitability

Inconsistent profitability can undermine investor confidence and limit reinvestment capacity, posing challenges for sustainable growth and financial stability.

Negative Return on Equity

Negative ROE indicates inefficient use of equity capital, which can deter investors and affect the company's ability to raise funds for future projects.

Volatile Cash Flow

Volatile cash flow can complicate financial planning and limit the company's ability to consistently invest in growth initiatives, impacting long-term strategic execution.

Osaka Yuka Industry Ltd. Business Overview & Revenue Model

Company Description

Osaka Yuka Industry Ltd. engages in precision distillation services in Japan. It undertakes various project works, including small scale distillation for research; precision distillation of various kinds of chemical substances; and support for the introduction of small distillation apparatuses and other items at plants. The company was founded in 1948 and is based in Hirakata, Japan.

How the Company Makes Money

Osaka Yuka Industry Ltd. generates revenue through the production and sale of its chemical products. The company's revenue model is based on supplying these chemicals to various industrial sectors, where they are used as raw materials or in manufacturing processes. Key revenue streams include long-term contracts with manufacturers in the agriculture, pharmaceutical, and food processing industries, wherein Osaka Yuka provides essential chemicals required for production. Strategic partnerships and maintaining a strong supply chain are significant factors that contribute to the company's earnings, ensuring a steady demand for its products. Additionally, the company may engage in research and development activities to innovate and expand its product offerings, thereby enhancing its revenue potential.

Osaka Yuka Industry Ltd. Financial Statement Overview

Summary

Balance sheet strength is a major positive (zero debt; strong solvency), and FY2025 cash generation improved with positive operating and free cash flow. However, earnings quality is mixed: despite a sharp revenue rebound and better gross margin in FY2025, profitability remains inconsistent and FY2025 returned to a net loss, keeping ROE weak.

Income Statement

Revenue rebounded sharply in FY2025 (+64.7% YoY) after a weak FY2024 (-20.1%), but profitability remains inconsistent. Gross margin improved to ~48% in FY2025 (from ~41% in FY2024), yet the company posted a net loss in FY2025 (-2.7% net margin) following near break-even FY2024 and another loss in FY2023. EBITDA margin is still solid in absolute terms (~8.5% in FY2025), but it has trended down materially from FY2022–FY2023 levels, pointing to pressure below the gross line and/or higher operating costs.

Balance Sheet

The balance sheet is conservatively positioned with zero debt across the period, providing strong financial flexibility and low solvency risk. Equity remains sizable relative to assets, and the company is not relying on leverage to operate. The main weakness is returns: return on equity turned negative in FY2025 (and also negative in FY2023), reflecting inconsistent profitability despite the strong capital base.

Cash Flow

Cash generation improved meaningfully in FY2025, with operating cash flow of ~207M and free cash flow of ~147M, reversing the negative free cash flow seen in FY2024 and FY2021. Operating cash flow was roughly in line with earnings quality in FY2025, but cash flow has been volatile year-to-year (strong in FY2020/FY2022/FY2023, weaker in FY2021/FY2024). Overall, the company can produce healthy cash in good years, but consistency remains a key gap.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.18B	1.18B	987.18M	1.24B	1.18B	1.22B
Gross Profit	597.42M	570.87M	406.21M	545.34M	539.43M	519.45M
EBITDA	273.17M	101.14M	109.12M	249.69M	286.00M	260.45M
Net Income	24.93M	-32.11M	62.00K	-8.67M	88.23M	80.41M
Balance Sheet
Total Assets	1.81B	1.86B	1.93B	1.89B	2.06B	2.02B
Cash, Cash Equivalents and Short-Term Investments	809.14M	872.76M	762.30M	814.20M	801.36M	715.46M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	130.77M	215.56M	213.45M	152.21M	244.78M	281.18M
Stockholders Equity	1.68B	1.65B	1.72B	1.74B	1.81B	1.74B
Cash Flow
Free Cash Flow	0.00	146.55M	-15.11M	98.77M	111.94M	-55.62M
Operating Cash Flow	0.00	206.86M	51.88M	210.85M	218.80M	174.94M
Investing Cash Flow	0.00	-59.81M	-67.58M	-112.06M	-106.53M	-316.27M
Financing Cash Flow	0.00	-36.59M	-36.19M	-85.95M	-26.37M	-26.23M

Osaka Yuka Industry Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2440.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4124, the sentiment is Negative. The current price of 2440 is below the 20-day moving average (MA) of 2454.95, below the 50-day MA of 2452.24, and below the 200-day MA of 2471.07, indicating a bearish trend. The MACD of -3.83 indicates Positive momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 3.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4124.

Osaka Yuka Industry Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4041	74 Outperform	¥205.76B	13.10	―	4.09%	1.69%	0.94%
4531	72 Outperform	¥8.49B	12.65	―	2.97%	9.92%	-27.64%
4366	71 Outperform	¥12.29B	14.22	―	1.81%	9.07%	―
4885	69 Neutral	¥3.54B	10.56	―	4.25%	7.90%	-39.51%
4102	62 Neutral	¥3.19B	18.48	―	2.12%	-5.18%	4.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4124	56 Neutral	¥2.57B	-79.19	―	1.46%	19.97%	-26975.44%