Osaka Organic Chemical Industry Ltd. (4187) AI Stock Analysis

• Market Cap: ¥86.73B
• Dividend Yield: 1.74%
• Average Volume (3M): 72.62K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.10
• Revenue Growth: 15.12%
• EPS Growth: 40.72%
• Country: JP
• Employees: 463
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 169.05
• Shares Outstanding: 22,410,038
• 10 Day Avg. Volume: 55,420
• 30 Day Avg. Volume: 72,616
• PEG Ratio: 0.15
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.21
• P/FCF Ratio: 13.64
• 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: 80 Outperform
• Price Target: ¥4,502.00 ▲(40.69% Upside)

The score is driven primarily by strong financial performance—high profitability and an exceptionally conservative balance sheet—partly offset by inconsistent cash-flow conversion. Technical signals are neutral-to-mixed (short-term below the 20-day average but above longer-term averages), while valuation is supportive with a ~12 P/E and a modest dividend yield.

Positive Factors

Conservative Balance Sheet

Exceptionally low leverage and steadily growing equity provide durable financial flexibility. This supports capital allocation for R&D, capacity expansion, and stability through chemical-cycle downturns, reducing refinancing risk and preserving optionality for strategic investments over months to years.

Improved Profitability and Margins

A meaningful step-up in margins indicates stronger pricing power and/or mix improvements in specialty and high-purity chemicals. Sustained margin expansion underpins higher returns on capital and cash available for reinvestment, benefiting long-term competitiveness and shareholder returns.

Diversified End Markets and Customized Offerings

Serving multiple high-value sectors and offering custom synthesis and long-term supply contracts creates structural demand resilience and customer stickiness. This business mix supports premium pricing, repeat revenue, and barrier-to-entry advantages versus commodity chemical peers.

Negative Factors

Cash-Flow Volatility

Intermittent negative free cash flow and swings signal uneven conversion of profits into cash. Over a 2–6 month horizon, this can constrain discretionary spending, dividend reliability, or ability to fund capex without drawing on reserves despite strong reported earnings.

Operating Cash Flow Below Net Income

A persistent gap where operating cash flow lags net income implies accruals, working capital pressure, or non-cash earnings drivers. This weakens earnings quality and heightens execution risk when scaling production or absorbing raw-material cost swings, affecting sustainable cash generation.

Revenue Volatility / Cyclicality

An uneven top-line history with recent recovery points to demand cyclicality across served industries. Persistent revenue swings make forecasting, capacity planning, and margin sustainability harder, increasing the risk that earnings gains may prove temporary without durable demand drivers.

Osaka Organic Chemical Industry Ltd. Business Overview & Revenue Model

Company Description

Osaka Organic Chemical Industry Ltd. (4187) is a leading manufacturer and supplier specializing in organic chemicals and fine chemicals. The company operates primarily in the chemical sector, focusing on the development and production of various chemical products that cater to industries such as pharmaceuticals, agriculture, and electronics. Its core offerings include organic intermediates, specialty chemicals, and pharmaceutical ingredients, which are essential for numerous applications across diverse industrial sectors.

How the Company Makes Money

Osaka Organic Chemical Industry Ltd. generates revenue through the sale of its organic and fine chemical products to various industries. The company's revenue model is primarily based on direct sales to manufacturers in the pharmaceutical, agricultural, and electronics sectors. Key revenue streams include the production of high-purity chemicals, custom synthesis services, and long-term supply agreements with major corporations in these industries. Additionally, strategic partnerships with research institutions and collaborations for product development help enhance its market position, leading to increased sales and revenue. The company's commitment to innovation and quality also allows it to command premium pricing for its specialized products.

Osaka Organic Chemical Industry Ltd. Financial Statement Overview

Summary

Osaka Organic Chemical Industry Ltd. demonstrates a strong financial position with solid profitability, effective leverage management, and robust cash flow generation. The company has successfully increased its revenue and margins, while maintaining a conservative capital structure with low debt levels. These factors collectively indicate a well-managed and financially sound company with good growth prospects in the chemicals industry.

Income Statement

Osaka Organic Chemical Industry Ltd. has shown a robust revenue growth rate of 13.13% from the previous fiscal year, indicating strong market demand. The gross profit margin is healthy at 29.62%, and the net profit margin is solid at 12.37%, reflecting effective cost management and profitability. The EBIT margin of 14.10% and EBITDA margin of 27.16% further demonstrate operational efficiency and profitable operations. The steady increase in revenue and profitability metrics positions the company favorably in the chemicals industry.

Balance Sheet

The balance sheet of Osaka Organic Chemical Industry Ltd. is strong, with a debt-to-equity ratio of 0.08, indicating low leverage and reduced financial risk. The company's return on equity (ROE) is commendable at 8.90%, showcasing effective management of equity to generate profits. Additionally, the equity ratio of 75.79% highlights a strong capital structure, with a significant portion of assets financed by equity rather than debt, providing financial stability and flexibility.

Cash Flow

Osaka Organic Chemical Industry Ltd. exhibits impressive cash flow management with a substantial improvement in free cash flow, transitioning from negative to positive. The free cash flow growth rate is remarkable, and the operating cash flow to net income ratio of 2.13 indicates strong cash generation from operations relative to net income. The free cash flow to net income ratio of 1.87 further underscores the company's ability to generate cash, supporting ongoing growth and investment opportunities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	35.61B	36.27B	32.70B	28.91B	32.24B	35.03B
Gross Profit	11.48B	11.55B	9.69B	7.96B	10.29B	10.25B
EBITDA	11.03B	12.75B	8.88B	6.91B	9.12B	9.64B
Net Income	4.67B	6.89B	4.04B	3.27B	4.73B	5.00B
Balance Sheet
Total Assets	57.72B	63.71B	59.96B	54.64B	52.84B	49.87B
Cash, Cash Equivalents and Short-Term Investments	11.45B	15.92B	13.05B	7.89B	8.09B	9.92B
Total Debt	1.48B	1.34B	3.53B	4.92B	3.58B	2.25B
Total Liabilities	11.45B	13.18B	13.82B	11.01B	11.44B	10.74B
Stockholders Equity	45.49B	49.70B	45.44B	42.98B	40.83B	38.65B
Cash Flow
Free Cash Flow	0.00	5.87B	7.56B	-366.50M	-789.48M	3.51B
Operating Cash Flow	0.00	7.09B	8.60B	4.37B	4.73B	5.84B
Investing Cash Flow	0.00	1.46B	-298.37M	-4.13B	-4.85B	-1.04B
Financing Cash Flow	0.00	-5.88B	-3.13B	-476.17M	-1.56B	-1.83B

Osaka Organic Chemical Industry Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4187, the sentiment is Neutral. The current price of 3200 is below the 20-day moving average (MA) of 3976.00, below the 50-day MA of 3889.01, and above the 200-day MA of 3020.07, indicating a neutral trend. The MACD of 35.57 indicates Positive momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 12.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4187.

Osaka Organic Chemical Industry Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4187	80 Outperform	¥86.73B	11.63	10.57%	1.74%	15.12%	40.72%
4365	80 Outperform	¥64.07B	8.02	―	2.03%	-4.42%	10.23%
4362	77 Outperform	¥63.55B	13.98	―	2.92%	3.03%	28.27%
4116	76 Outperform	¥77.31B	12.42	―	3.04%	1.57%	-33.97%
4078	70 Outperform	¥55.03B	8.56	―	4.37%	-1.09%	―
4008	68 Neutral	¥73.89B	11.92	―	3.74%	-0.68%	-9.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Osaka Organic Chemical Industry Ltd. Corporate Events

Osaka Organic Chemical Industry Raises Year-End Dividend on Strong FY2025 Performance

Osaka Organic Chemical Industry Ltd. has resolved to increase its year-end dividend for the fiscal year ending November 30, 2025, to ¥40 per share, up from the previously forecast ¥39 and the prior year’s ¥34, bringing the total annual dividend to ¥75 per share compared with ¥66 in the previous fiscal year. The dividend, totaling ¥813 million and to be paid from retained earnings on February 27, 2026 pending shareholder approval, underscores the company’s commitment to balancing shareholder returns with the reinforcement of internal reserves and long-term business foundations, reflecting confidence in its current business performance and its adherence to a roughly 40% payout ratio policy.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4084.00 price target. To see the full list of analyst forecasts on Osaka Organic Chemical Industry Ltd. stock, see the JP:4187 Stock Forecast page.

Osaka Organic Chemical Releases FY11/25 Results and FY11/26 Outlook

Osaka Organic Chemical Industry Ltd. has released presentation materials covering its financial results for the fiscal year ended November 30, 2025 (FY11/25), along with its forecast for FY11/26 and an update on its medium-term management plan. The document, prepared in Japanese with an accompanying reference translation, is intended to brief investors and stakeholders on recent performance, future expectations, and progress on strategic initiatives that will shape the company’s operational and financial trajectory.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4084.00 price target. To see the full list of analyst forecasts on Osaka Organic Chemical Industry Ltd. stock, see the JP:4187 Stock Forecast page.

Osaka Organic Chemical Industry Posts Profit Surge and Hikes Dividend, Adds Korean Subsidiary

Osaka Organic Chemical Industry reported strong results for the fiscal year ended November 30, 2025, with net sales rising 10.9% year on year to ¥36.3 billion and operating profit climbing 34.2% to ¥6.2 billion, while profit attributable to owners of parent surged 70.3% to ¥6.9 billion. Profitability and financial strength improved, as reflected in a higher operating margin, an equity-to-asset ratio of 78.0%, and growth in net assets, alongside robust operating cash flow and increased cash and cash equivalents. The company is rewarding shareholders with a higher annual dividend of ¥75 per share for FY2025 and plans to raise this further to a forecast ¥80 for FY2026, while also increasing treasury shares, signaling a continued focus on shareholder returns. For FY2026, Osaka Organic Chemical Industry forecasts moderate growth in sales and operating profit but a sharp decline in net profit due to factors not detailed in the release, as well as a stable profit structure; it also expanded its consolidation scope with the addition of Osaka Organic Chemical Industry Korea Ltd., which underscores a push to strengthen its presence in overseas markets. The adoption of new accounting policies and the inclusion of the Korean subsidiary may affect comparability with past periods but indicate ongoing structural and strategic adjustments as the company positions itself for long-term growth.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4084.00 price target. To see the full list of analyst forecasts on Osaka Organic Chemical Industry Ltd. stock, see the JP:4187 Stock Forecast page.

Osaka Organic Chemical to Invest ¥10 Billion in New Semiconductor Materials Facility in Yamagata

Osaka Organic Chemical Industry Ltd. will build a new semiconductor-related materials facility at its Sakata Plant in Yamagata Prefecture, with construction scheduled to start in 2026 and finish in 2028, representing a capital investment of about 10 billion yen. The project, aligned with the company’s medium-term management plan Progress & Development 2030, is designed to boost production capacity and high-purity technology for cutting-edge semiconductor materials, expand market share, and strengthen business continuity through a dual-site production system between the Kanazawa and Sakata plants, enhancing supply stability amid continued global semiconductor demand growth; the company expects no material impact on current fiscal-year results from this investment.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4084.00 price target. To see the full list of analyst forecasts on Osaka Organic Chemical Industry Ltd. stock, see the JP:4187 Stock Forecast page.

Osaka Organic Chemical Nearly Doubles Profit Outlook, Lifts Dividend on Strong Semiconductor Demand and Subsidy Gain

Osaka Organic Chemical Industry Ltd. has sharply raised its consolidated earnings forecast for the fiscal year ending November 30, 2025, citing stronger-than-expected demand for semiconductor materials, especially ArF resists, and higher sales of electronic materials. The company now projects net sales of ¥36.0 billion and profit attributable to owners of parent of ¥6.8 billion, nearly doubling its previous profit outlook, and has also issued a robust non-consolidated forecast reflecting improved profitability. In addition, Osaka Organic will book approximately ¥3.14 billion in subsidy income in the fourth quarter after winning approval under Japan’s supply chain-focused domestic investment promotion program, significantly boosting extraordinary income. Reflecting the improved earnings outlook, the company has raised its full-year dividend forecast from ¥68.00 to ¥74.00 per share, including a higher year-end dividend, signaling stronger shareholder returns underpinned by solid semiconductor-related demand and government support for its investment plans.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4084.00 price target. To see the full list of analyst forecasts on Osaka Organic Chemical Industry Ltd. stock, see the JP:4187 Stock Forecast page.

Osaka Organic Chemical Records Extraordinary Income from Subsidy

Osaka Organic Chemical Industry Ltd. announced the recording of an extraordinary income of 3,140 million yen due to a subsidy received for domestic investment promotion projects aimed at supply chain countermeasures. The impact of this income on the company’s financial results for the fiscal year ending November 30, 2025, is under review, and any necessary revisions to the financial forecast will be communicated promptly.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4084.00 price target. To see the full list of analyst forecasts on Osaka Organic Chemical Industry Ltd. stock, see the JP:4187 Stock Forecast page.