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Daicel Corporation (JP:4202)
:4202

Daicel (4202) AI Stock Analysis

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Daicel

(OTC:4202)

Rating:77Outperform
Price Target:
¥1,367.00
▲(11.91%Upside)
Daicel's strong financial performance and attractive valuation are the primary strengths, indicating a solid investment opportunity. However, technical indicators suggest caution due to potential bearish trends, which slightly dampens the overall score.

Daicel (4202) vs. iShares MSCI Japan ETF (EWJ)

Daicel Business Overview & Revenue Model

Company DescriptionDaicel Corporation manufactures and sells cellulosic derivatives, organic chemicals, plastics, pyrotechnic devices, and other products in Japan, Asia, North America, and Europe. It operates through Medical/Healthcare, Smart, Safety, Materials, Engineering Plastics, and Others segments. The company offers 1,3-Butylene glycol, polyglycerin, and thickener for cosmetics; natural health food materials and supplements; and chiral and achiral columns, chiral reagents, bio reagents, and DNA and RNA-based probes, as well as analytical/purification/synthesis/formulation services, and analytical tools services for pharmaceuticals. It also provides triacetylcellulose and films for display market; solvent for electronic materials, polymers for resist, and semiconductor process cleaning agents; and optical parts and lens units, silver nanoparticle inks, and organic semiconductor devices for visualization technology. In addition, the company offers inflators for air bags and pyro-fuse for automotive market, as well as safety device for non-mobility products; acetic acid and derivatives, cellulose acetate, acetate tow, and other raw materials for resins and inks, and solvents for paints; and cycloaliphatic epoxies, caprolactone, ketene derivatives, alkylamines, and other raw materials for electrical materials and coatings. Further, it provides a range of plastics, such as engineering plastics, plastic compound products, functional sheets, formed trays, and packaging films for engineering plastics segment. Additionally, the company manufactures and distributes water treatment systems and diffusers for a range of industrial applications. Its products are used in transportation, electronics, medical care, personal care, everyday life, and environment and energy applications. The company was formerly known as Daicel Chemical Industries, Ltd. and changed its name to Daicel Corporation in October 2011. Daicel Corporation was incorporated in 1919 and headquartered in Osaka, Japan.
How the Company Makes MoneyDaicel Corporation generates revenue through the production and sale of its diverse range of chemical products. The company's key revenue streams include cellulosic derivatives, which are used in various industrial applications, and organic chemicals that serve as essential components in manufacturing processes. Additionally, Daicel's plastics division contributes significantly to its earnings, with products used in consumer goods, automotive parts, and electronics. The company's pyrotechnic devices, particularly automotive airbag inflators, are another major source of income, benefiting from partnerships with automotive manufacturers worldwide. Daicel's revenue model is bolstered by its commitment to research and development, allowing it to innovate and maintain a competitive edge in the global chemical industry.

Daicel Financial Statement Overview

Summary
Daicel demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and improved cash flow generation. The balance sheet is stable with moderate leverage, but the high level of total debt poses some risk.
Income Statement
85
Very Positive
Daicel shows strong financial performance with a consistent increase in total revenue over the years, reaching 586.5 billion JPY in 2025. The gross profit margin has remained robust, consistently above 27%. The net profit margin, while slightly fluctuating, is solid at 8.4% for 2025. Revenue growth rate from 2024 to 2025 is 5.1%, indicating steady growth. EBIT and EBITDA margins are healthy, suggesting efficient operating performance.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio at approximately 0.78, indicating moderate leverage. The equity ratio is 44.2%, reflecting a strong equity base. Return on equity (ROE) stands at 13.7% for 2025, showing efficient utilization of equity to generate profits. However, the high level of total debt at 280.9 billion JPY poses some risk if not managed properly.
Cash Flow
82
Very Positive
Daicel demonstrates positive cash flow trends, with free cash flow growing significantly from 2024 to 2025, marking a 211.7% increase. The operating cash flow to net income ratio is 1.89, indicating strong cash conversion efficiency. The free cash flow to net income ratio at 0.47 suggests adequate cash generation relative to earnings, although there is room for improvement.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue576.33B586.53B558.06B538.03B467.94B393.57B
Gross Profit164.16B164.75B159.28B145.81B138.61B111.43B
EBITDA78.79B108.86B111.40B79.08B78.89B61.01B
Net Income55.67B49.48B55.83B40.68B31.25B19.71B
Balance Sheet
Total Assets861.56B813.83B839.17B765.61B698.84B640.38B
Cash, Cash Equivalents and Short-Term Investments78.86B65.14B73.18B93.84B90.53B91.54B
Total Debt309.90B280.92B299.79B317.83B280.50B267.60B
Total Liabilities466.04B438.79B464.31B455.17B419.29B395.38B
Stockholders Equity379.17B359.99B358.90B295.21B272.02B237.85B
Cash Flow
Free Cash Flow0.0023.44B7.52B-25.08B-4.48B21.08B
Operating Cash Flow0.0093.41B76.73B26.85B42.99B57.87B
Investing Cash Flow0.00-47.87B-55.37B-44.09B-46.53B-34.22B
Financing Cash Flow0.00-48.85B-52.37B19.96B-5.45B-17.05B

Daicel Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1221.50
Price Trends
50DMA
1205.52
Positive
100DMA
1234.17
Negative
200DMA
1276.06
Negative
Market Momentum
MACD
1.97
Negative
RSI
56.40
Neutral
STOCH
82.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4202, the sentiment is Neutral. The current price of 1221.5 is above the 20-day moving average (MA) of 1198.55, above the 50-day MA of 1205.52, and below the 200-day MA of 1276.06, indicating a neutral trend. The MACD of 1.97 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4202.

Daicel Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥489.99B10.109.64%2.95%5.02%10.23%
77
Outperform
¥319.91B6.6413.58%4.98%5.10%-8.39%
76
Outperform
¥375.39B19.706.45%0.24%6.09%-10.60%
74
Outperform
¥298.68B11.907.16%4.62%10.04%-13.38%
71
Outperform
$634.86B19.583.69%4.49%3.40%-35.47%
69
Neutral
$436.49B9.836.78%4.44%-4.90%20.59%
62
Neutral
$10.16B9.71-0.17%2.93%2.22%-32.49%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4202
Daicel
1,221.50
-252.57
-17.13%
JP:4203
Sumitomo Bakelite Co., Ltd.
4,194.00
-326.64
-7.23%
JP:4205
Zeon
1,528.00
186.63
13.91%
JP:4183
Mitsui Chemicals
3,355.00
-894.63
-21.05%
JP:4088
Air Water
2,191.50
71.16
3.36%
JP:4182
Mitsubishi Gas Chemical Company
2,329.00
-691.26
-22.89%

Daicel Corporate Events

Daicel Corporation Corrects Financial Results for FY 2025
Jun 17, 2025

Daicel Corporation announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025. The corrections pertain to errors found in the investment in equity method investees under the segment information of the financial statements. These adjustments are crucial for accurate financial reporting and may impact stakeholders’ understanding of the company’s financial health.

The most recent analyst rating on (JP:4202) stock is a Buy with a Yen2040.00 price target. To see the full list of analyst forecasts on Daicel stock, see the JP:4202 Stock Forecast page.

Daicel Corporation Corrects Financial Results for FY 2024
Jun 17, 2025

Daicel Corporation announced corrections to its consolidated financial results for the fiscal year ended March 31, 2024. The corrections pertain to errors found in the ‘Investment in equity method investees’ under segment information, which have been rectified to ensure accurate financial reporting. This announcement underscores Daicel’s commitment to transparency and accuracy in its financial disclosures, which is crucial for maintaining stakeholder trust and ensuring proper market positioning.

The most recent analyst rating on (JP:4202) stock is a Buy with a Yen2040.00 price target. To see the full list of analyst forecasts on Daicel stock, see the JP:4202 Stock Forecast page.

Daicel Corporation Proposes Amendments to Enhance Business Alignment and Management Flexibility
May 13, 2025

Daicel Corporation announced proposed amendments to its Articles of Incorporation to better align with its current business operations and enhance flexibility in management. These changes aim to allow more directors, including outside directors, to chair meetings, reflecting a strategic shift to adapt to a dynamic business environment.

The most recent analyst rating on (JP:4202) stock is a Buy with a Yen2040.00 price target. To see the full list of analyst forecasts on Daicel stock, see the JP:4202 Stock Forecast page.

Daicel Corporation Announces Cancellation of 10 Million Treasury Shares
May 13, 2025

Daicel Corporation has announced its decision to cancel 10 million treasury shares, which constitutes 3.61% of its total shares before cancellation. This move, resolved at a Board of Directors meeting, is expected to impact the company’s share structure by reducing the total number of shares issued to 266,942,682, potentially affecting shareholder value and market perception.

The most recent analyst rating on (JP:4202) stock is a Buy with a Yen2040.00 price target. To see the full list of analyst forecasts on Daicel stock, see the JP:4202 Stock Forecast page.

Daicel Corporation Reports Increased Sales but Declining Profits for FY2025
May 13, 2025

Daicel Corporation reported its consolidated financial results for the year ending March 31, 2025, showing a 5.1% increase in net sales to 586,531 million yen. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 2.2%, 8.9%, and 11.4% respectively. The company also announced an increase in annual cash dividends per share from 50 yen to 60 yen, reflecting a higher dividend payout ratio. Despite the challenges in profits, Daicel’s financial position remains stable with a slight improvement in capital adequacy ratio, indicating resilience in its operations.

The most recent analyst rating on (JP:4202) stock is a Buy with a Yen2040.00 price target. To see the full list of analyst forecasts on Daicel stock, see the JP:4202 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025