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

• Market Cap: ¥88.06B
• Dividend Yield: 1.74%
• Average Volume (3M): 72.62K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.12
• Revenue Growth: 15.12%
• EPS Growth: 40.72%
• Country: JP
• Employees: 463
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 63.92
• Shares Outstanding: 22,410,038
• 10 Day Avg. Volume: 55,420
• 30 Day Avg. Volume: 72,616
• PEG Ratio: 0.55
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 7.42
• 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: 77 Outperform
• Price Target: ¥4,084.00 ▲(27.63% Upside)

Osaka Organic Chemical Industry Ltd. receives a strong overall score driven by its robust financial performance and positive technical indicators. The company's solid profitability, effective leverage management, and strong cash flow generation are significant strengths. Additionally, the stock's upward price trend and reasonable valuation further enhance its attractiveness. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing market demand and successful product adoption, enhancing long-term business prospects.

Cash Flow Management

Positive cash flow management supports sustainable growth and investment, ensuring financial stability and operational resilience.

Balance Sheet Health

A strong balance sheet with low debt enhances financial flexibility and reduces risk, supporting long-term strategic initiatives.

Negative Factors

Lack of Earnings Call Data

The absence of earnings call data may hinder transparency and investor insight into management's strategic vision and operational performance.

Limited Corporate Events

A lack of notable corporate events could imply missed opportunities for strategic partnerships or market expansion, affecting growth potential.

Industry Competition

High competition in the chemicals industry may pressure margins and require continuous innovation to maintain market position.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.76B	32.70B	28.91B	32.24B	35.03B	28.68B
Gross Profit	10.87B	9.69B	7.96B	10.29B	10.25B	8.41B
EBITDA	9.00B	8.88B	6.91B	9.12B	9.64B	6.69B
Net Income	4.16B	4.04B	3.27B	4.73B	5.00B	3.31B
Balance Sheet
Total Assets	58.64B	59.96B	54.64B	52.84B	49.87B	45.32B
Cash, Cash Equivalents and Short-Term Investments	12.59B	13.05B	7.89B	8.09B	9.92B	7.72B
Total Debt	3.12B	3.53B	4.92B	3.58B	2.25B	3.00B
Total Liabilities	13.48B	13.82B	11.01B	11.44B	10.74B	10.30B
Stockholders Equity	44.39B	45.44B	42.98B	40.83B	38.65B	34.66B
Cash Flow
Free Cash Flow	0.00	7.56B	-366.50M	-789.48M	3.51B	409.71M
Operating Cash Flow	0.00	8.60B	4.37B	4.73B	5.84B	4.80B
Investing Cash Flow	0.00	-298.37M	-4.13B	-4.85B	-1.04B	-3.98B
Financing Cash Flow	0.00	-3.13B	-476.17M	-1.56B	-1.83B	-648.20M

Osaka Organic Chemical Industry Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3200.00
• 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:4187, the sentiment is Positive. The current price of 3200 is below the 20-day moving average (MA) of 3913.05, below the 50-day MA of 3746.97, and above the 200-day MA of 2917.89, indicating a bullish trend. The MACD of 52.76 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 65.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4365	79 Outperform	¥62.81B	7.99	―	2.03%	-4.42%	10.23%
4362	77 Outperform	¥63.73B	13.95	―	2.92%	3.03%	28.27%
4187	77 Outperform	¥88.06B	17.53	10.57%	1.74%	15.12%	40.72%
4116	76 Outperform	¥73.45B	11.54	―	3.04%	1.57%	-33.97%
4078	70 Outperform	¥52.84B	8.15	―	4.37%	-1.09%	―
4008	68 Neutral	¥73.61B	11.94	―	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 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.

Osaka Organic Chemical Industry Ltd. Reports Strong Q3 Financial Performance

Osaka Organic Chemical Industry Ltd. reported a significant increase in its financial performance for the third quarter of the fiscal year ending November 30, 2025. The company achieved a 12.3% year-on-year increase in net sales, reaching 26,699 million yen, driven by growth across its chemical products, electronic materials, and specialty chemicals businesses. Operating profit surged by 54.5% to 4,631 million yen, attributed to a decrease in depreciation and increased sales. Despite a gradual economic recovery, the company remains cautious due to uncertainties in global trade policies and geopolitical issues.

Osaka Organic Chemical Industry Reports Strong Financial Growth and Expansion

Osaka Organic Chemical Industry Ltd. reported significant growth in its financial results for the nine months ending August 31, 2025, with net sales increasing by 12.3% and operating profit by 54.5% compared to the previous year. The company has also revised its dividend forecast upwards, reflecting its strong financial performance and strategic expansion, which includes the establishment of a new subsidiary in Korea, potentially enhancing its market position and stakeholder value.