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

• Market Cap: €70.89B
• Dividend Yield: 2.16%
• Average Volume (3M): 76.88K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.08
• 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: 107,090
• 30 Day Avg. Volume: 76,880
• 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: €3,808.85
• Price Target Upside: 19.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,208.00 ▲(0.25% Upside)

Osaka Organic Chemical Industry Ltd. is a financially strong company with solid profitability, low leverage, and robust cash flow generation. The technical analysis suggests caution due to overbought conditions, but the fair valuation and attractive dividend yield offer a balanced investment opportunity.

Osaka Organic Chemical Industry Ltd. Business Overview & Revenue Model

Company Description

Osaka Organic Chemical Industry Ltd. engages in the production and marketing of organic chemistry industry products, organic reagents, petrochemical products, and special polymers in Japan. It offers chemical products that include acrylic monomers for use in coating raw materials and adhesives; and electronics materials comprising display device and semiconductor materials for use in smartphones, tablet PCs, etc. The company also provides specialty chemicals consisting of cosmetics raw materials, such as cationic, anionic, betaine, nonionic, and acidic thickening polymers; functional materials, including inkjet and coating materials; esters; and medical intermediates, functional organic compounds, and functional polymers, as well as equipment comprising reaction tanks and distillation columns. In addition, it is involved in the refining and processing of solvents. The company was founded in 1941 and is headquartered in Osaka, Japan.

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. exhibits a strong financial position with robust revenue growth, healthy profit margins, low leverage, and strong cash flow generation. The company's effective cost management, operational efficiency, and conservative capital structure indicate a well-managed and financially sound company with good growth prospects.

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: Neutral
• 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 Neutral. The current price of 3200 is below the 20-day moving average (MA) of 3229.00, above the 50-day MA of 3076.14, and above the 200-day MA of 2688.18, indicating a neutral trend. The MACD of 73.33 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 is Neutral, 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
4365	79 Outperform	¥61.45B	9.75	―	2.11%	-1.66%	-29.18%
4116	79 Outperform	¥70.03B	5.94	―	3.16%	3.55%	214.69%
4187	73 Outperform	€70.89B	14.15	10.57%	2.16%	15.12%	40.72%
4078	73 Outperform	¥47.94B	9.45	―	4.83%	0.10%	―
4362	71 Outperform	¥59.37B	13.75	―	3.37%	5.45%	25.48%
4008	69 Neutral	¥65.60B	14.03	―	4.21%	0.32%	-43.10%
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 Ltd. Increases Interim Dividend Amid Strong Semiconductor Demand

Osaka Organic Chemical Industry Ltd. has announced an increase in its interim dividend to 35 yen per share, up from the initially planned 34 yen, due to strong performance in its Electronic Materials Business driven by a recovery in semiconductor demand. The company aims to balance shareholder returns with internal reserves, maintaining a payout ratio of 40% as a key guideline.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4400.00 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 Ltd. Reports Strong Financial Growth and Strategic Expansion

Osaka Organic Chemical Industry Ltd. reported a significant improvement in its financial performance for the six months ended May 31, 2025, with a 13.4% increase in net sales and a 57.2% rise in operating profit compared to the previous year. The company also announced the inclusion of its Korean subsidiary in its consolidated results, reflecting its strategic expansion efforts. Despite a slight decrease in total assets, the company maintained a strong capital adequacy ratio, indicating robust financial health. The announcement suggests a positive outlook for stakeholders, with an increase in dividends and a stable financial forecast for the fiscal year ending November 30, 2025.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen4400.00 price target. To see the full list of analyst forecasts on Osaka Organic Chemical Industry Ltd. stock, see the JP:4187 Stock Forecast page.