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

• Market Cap: ¥79.53B
• Dividend Yield: 1.74%
• Average Volume (3M): 72.62K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.16
• 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: ¥4,825.00
• Price Target Upside: 50.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 250.81
• Revenue Forecast (FY): ¥39.17B

• Rating: 80 Outperform
• Price Target: ¥5,049.00 ▲(57.78% Upside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

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

Margin Strength

The company reported a material improvement in profitability and strong margins across the income statement. Durable margin expansion in specialty chemicals suggests pricing power, product mix improvements and operational leverage that can sustain cash earnings and ROE over the medium term.

Conservative Balance Sheet

Exceptionally low leverage and steady equity growth provide financial flexibility to fund capex, withstand demand downturns, and limit refinancing risk. A conservative capital structure supports long-term investment in custom production and preserves strategic optionality.

Recent Revenue & EPS Acceleration

After uneven years, top-line acceleration and a large EPS gain indicate improving demand, better pricing or mix and more efficient cost absorption. Sustained top-line recovery would underpin margins and cash generation, making recent performance structurally meaningful if maintained.

Negative Factors

Cash‑flow Volatility

Historic negative free cash flow in recent years highlights volatility from investment or working-capital swings. Periodic FCF shortfalls can constrain reinvestment, dividend policy or buffer against cyclical demand, making cash conversion an ongoing execution risk.

Operating Cash < Net Income

Operating cash persistently trailing net income suggests accrual-driven earnings or working-capital absorption. If earnings are not consistently converted to cash, liquidity for capex, special projects or downturns may be weaker than headline profits imply.

Top‑line Cyclicality

Historical uneven revenue and past declines reveal sensitivity to cyclical industrial demand or customer order patterns. This cyclicality raises the risk that recent margin and profit improvements may be harder to sustain through downcycles without durable structural shifts in demand or contracts.

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

Strong overall fundamentals: profitability improved materially with strong margins (Income Statement score 86) and the balance sheet is exceptionally low-leverage with steadily growing equity (Balance Sheet score 93). The main offset is cash-flow volatility including prior negative free cash flow years and operating cash flow running below net income at times (Cash Flow score 74).

Income Statement

Profitability improved materially in the latest annual period (2025-11-30), with strong margins across the income statement and a clear step-up in net profitability versus prior years. Revenue growth accelerated sharply in the latest year after a more uneven multi-year path (including declines in 2022 and 2023), indicating stronger recent demand/price mix but some historical cyclicality. Overall, earnings quality looks strong on margins, with the main weakness being the volatility in top-line growth over the last several years.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage, as debt relative to equity declined to an exceptionally modest level in the latest year. Equity has grown steadily over the period, supporting a solid capital base, while returns on equity improved meaningfully in the latest year versus the prior year. The primary watch item is not leverage but sustaining returns at the newly higher level through the cycle.

Cash Flow

Cash generation is positive overall, with solid operating cash flow and free cash flow in the latest two years and free cash flow tracking net income reasonably well recently. However, cash flow has shown volatility—free cash flow was negative in 2022 and 2023—suggesting periods of heavier investment or working-capital swings. Operating cash flow has been consistently below net income in recent years, which is manageable given profitability and low debt, but it bears monitoring for consistency.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	36.27B	32.70B	28.91B	32.24B	35.03B
Gross Profit	11.55B	9.67B	7.94B	10.27B	10.23B
EBITDA	9.21B	7.91B	6.03B	8.24B	8.30B
Net Income	6.89B	4.04B	3.27B	4.73B	5.00B
Balance Sheet
Total Assets	63.71B	59.96B	54.64B	52.84B	49.87B
Cash, Cash Equivalents and Short-Term Investments	15.92B	13.05B	7.89B	8.09B	9.92B
Total Debt	1.40B	3.53B	4.94B	3.60B	2.29B
Total Liabilities	13.18B	13.82B	11.01B	11.44B	10.74B
Stockholders Equity	49.70B	45.44B	42.98B	40.83B	38.65B
Cash Flow
Free Cash Flow	5.87B	7.57B	-337.47M	-773.50M	3.52B
Operating Cash Flow	7.09B	8.60B	4.37B	4.73B	5.84B
Investing Cash Flow	1.46B	-298.37M	-4.13B	-4.85B	-1.04B
Financing Cash Flow	-5.88B	-3.13B	-476.17M	-1.56B	-1.83B

Osaka Organic Chemical Industry Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3200.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3200 is below the 20-day moving average (MA) of 4304.25, below the 50-day MA of 4215.00, and below the 200-day MA of 3465.94, indicating a neutral trend. The MACD of -105.23 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 15.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥79.53B	11.63	15.07%	1.74%	15.12%	40.72%
4471	77 Outperform	¥109.42B	12.08	9.19%	3.33%	-17.97%	―
4116	76 Outperform	¥77.58B	6.04	―	3.04%	1.57%	-33.97%
4362	75 Outperform	¥54.38B	16.36	―	2.92%	3.03%	28.27%
4109	73 Outperform	¥59.22B	18.37	6.31%	4.01%	6.38%	22.81%
4008	70 Outperform	¥83.56B	10.34	―	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 to Grant Restricted Treasury Shares to Directors

Osaka Organic Chemical Industry has approved the disposal of 2,000 treasury shares as restricted stock compensation for four internal directors, valued at a total of ¥9.26 million and priced at ¥4,630 per share. The move is part of a compensation plan designed to align management incentives with shareholder interests and enhance long-term corporate value.

Under the restricted stock plan, eligible directors contribute monetary claims in kind to receive company shares that are subject to a three-year transfer restriction period ending March 18, 2029. By tying equity awards to continued service and company performance, the scheme strengthens retention of key management and reinforces governance practices as the company operates under its Audit & Supervisory Committee structure.

The most recent analyst rating on (JP:4187) stock is a Buy with a Yen5204.00 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 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.