Tokyo Ohka Kogyo Co (4186) AI Stock Analysis

• Market Cap: $720.96B
• Dividend Yield: 1.08%
• Average Volume (3M): 576.71K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.25
• Revenue Growth: 19.45%
• EPS Growth: 41.03%
• Country: JP
• Employees: 1,996
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 70.78
• Shares Outstanding: 127,800,000
• 10 Day Avg. Volume: 637,990
• 30 Day Avg. Volume: 576,710
• PEG Ratio: 0.24
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 76.74
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 9.50
• 1Y Price Target: $6,070.09
• Price Target Upside: 2.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥6,134.00 ▲(3.51% Upside)

Tokyo Ohka Kogyo Co's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability. Technical analysis presents mixed signals, with some positive momentum indicators. The valuation suggests moderate pricing, with a P/E ratio indicating the stock is fairly valued. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong demand for TOK's products, enhancing its market position and supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects financial stability and a robust capital structure, providing flexibility for future investments and growth.

Cash Flow Improvement

Improved cash flow generation enhances financial flexibility, allowing for strategic investments and strengthening the company's ability to weather economic fluctuations.

Negative Factors

Cash Flow Conversion Efficiency

Limited cash flow conversion efficiency may constrain the company's ability to reinvest in growth initiatives or return capital to shareholders, impacting long-term financial health.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially affecting the stock's attractiveness and limiting shareholder returns over time.

Valuation Concerns

A high valuation could limit upside potential and increase vulnerability to market corrections, impacting investor sentiment and long-term stock performance.

Tokyo Ohka Kogyo Co Business Overview & Revenue Model

Company Description

Tokyo Ohka Kogyo Co., Ltd., together with its subsidiaries, manufactures and sells chemical products and process equipment in Japan and internationally. The company offers optimal photoresists and photolithography relative chemicals; and coating, developing, vacuum UV hardening, and chemical supply machines. It also provides adhesive materials, thinners for the removing of adhesive materials, structure materials, surface modification materials, micro processing films, thin film mmWave absorbers, polyimide films, and zero Newton bonding and debonding machines for 3D semiconductor packaging. The company's products are used in the production of semiconductor devices, mobile devices, tablets, personal computers, wearable devices, servers, supercomputers, game consoles, MEMS and image sensors, IoT, AI autonomous vehicles, ADAS, robotics, renewable energy equipment, eco-cars, panel manufacturing, televisions, and various displays. In addition, it offers insurance agency services. The company was incorporated in 1940 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Tokyo Ohka Kogyo generates revenue through the sale of its specialized chemical products, predominantly photoresists used in semiconductor manufacturing. The company's revenue model relies on direct sales to semiconductor manufacturers, which are typically large-scale operations with high-volume needs. Key revenue streams include the development and supply of advanced materials for photolithography, as well as custom chemical solutions tailored to specific customer requirements. Additionally, TOK may engage in partnerships or collaborations with major technology firms and research institutions to develop new products, thus enhancing its market reach and driving growth. Factors contributing to its earnings include the increasing demand for semiconductor devices, technological advancements in electronics, and the company's ongoing investment in research and development to maintain its competitive edge.

Tokyo Ohka Kogyo Co Financial Statement Overview

Summary

Tokyo Ohka Kogyo Co exhibits robust financial health with strong revenue growth, efficient cost management, and solid profitability. The balance sheet reflects stability with low leverage and a high equity ratio. Cash flow generation shows significant improvement, though there's room for enhanced efficiency.

Income Statement

Tokyo Ohka Kogyo Co has demonstrated strong revenue growth with a 23.82% increase from 2023 to 2024. The gross profit margin for 2024 is 36.54%, and the net profit margin is 11.29%, indicating efficient cost management and profitability. The EBIT margin stands at 16.47%, and the EBITDA margin is 20.61%, both reflecting strong operational performance. The company shows a stable upward trajectory in revenue and profitability metrics.

Balance Sheet

The company's debt-to-equity ratio is 0.05, suggesting a conservative leverage strategy. With a return on equity of 11.31% in 2024, the company effectively generates returns on shareholder investments. The equity ratio is 71.15%, indicating a robust capital structure with a strong equity base. Overall, the balance sheet reflects stability with low leverage and healthy equity levels.

Cash Flow

The free cash flow growth rate from 2023 to 2024 is 181.44%, showing significant improvement in cash generation. The operating cash flow to net income ratio is 1.33, indicating cash flows are well-aligned with profitability. However, the free cash flow to net income ratio is 0.25, suggesting room for improvement in cash flow conversion from profits. The cash flow statement portrays a positive trend in cash generation, though there's potential for enhanced efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.85B	200.97B	162.27B	175.43B	140.06B	117.58B
Gross Profit	81.16B	73.44B	57.95B	63.12B	49.53B	41.21B
EBITDA	49.63B	41.42B	29.71B	37.63B	32.30B	22.18B
Net Income	27.16B	22.68B	12.71B	19.69B	17.75B	9.93B
Balance Sheet
Total Assets	293.52B	281.93B	251.86B	238.07B	217.26B	201.19B
Cash, Cash Equivalents and Short-Term Investments	59.16B	63.05B	60.81B	59.37B	60.83B	50.82B
Total Debt	16.45B	10.54B	10.49B	10.22B	10.61B	10.96B
Total Liabilities	74.65B	68.46B	56.39B	57.12B	52.08B	41.19B
Stockholders Equity	207.75B	200.65B	183.79B	169.92B	156.04B	151.86B
Cash Flow
Free Cash Flow	0.00	5.58B	1.98B	7.54B	11.63B	16.95B
Operating Cash Flow	0.00	30.15B	17.21B	18.99B	19.76B	22.95B
Investing Cash Flow	0.00	-2.73B	-9.38B	-12.38B	-4.58B	-3.48B
Financing Cash Flow	0.00	-15.42B	-7.38B	-8.61B	-18.11B	-5.94B

Tokyo Ohka Kogyo Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5926.00
• 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:4186, the sentiment is Positive. The current price of 5926 is below the 20-day moving average (MA) of 5948.20, above the 50-day MA of 5564.10, and above the 200-day MA of 4264.66, indicating a neutral trend. The MACD of 108.04 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 49.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4186.

Tokyo Ohka Kogyo Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6856	77 Outperform	$639.57B	16.96	11.99%	0.66%	8.50%	14.06%
4980	77 Outperform	¥528.74B	20.59	―	1.96%	-6.10%	-7.03%
6965	74 Outperform	$515.99B	35.29	4.19%	2.16%	3.97%	-41.79%
4186	70 Outperform	$720.96B	25.82	14.01%	1.08%	19.45%	41.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5214	61 Neutral	$431.99B	-400.67	-0.30%	2.18%	1.90%	-105.45%
7732	58 Neutral	$346.15B	-35.89	-9.57%	1.28%	-2.92%	-319.34%

Tokyo Ohka Kogyo Co Corporate Events

Tokyo Ohka Kogyo Reports Strong Q3 Growth Amid Semiconductor Demand

Tokyo Ohka Kogyo Co., Ltd. reported a significant increase in net sales and operating income for the third quarter of fiscal year 2025, driven by strong demand for semiconductors and generative AI-related products. The company expects continued growth in revenue and income, forecasting record highs, and plans to maintain its dividend growth policy for the eighth consecutive year.

Tokyo Ohka Kogyo Reports Strong Q3 Financial Results

Tokyo Ohka Kogyo Co., Ltd. reported strong financial results for the third quarter of the fiscal year ending December 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s robust performance is reflected in a 17.9% rise in net sales and a 41.1% increase in profit attributable to owners of the parent, indicating a solid market position and positive outlook for stakeholders.