Daicel (4202) AI Stock Analysis

• Market Cap: ¥368.27B
• Dividend Yield: 4.33%
• Average Volume (3M): 536.76K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.00
• Revenue Growth: -0.48%
• EPS Growth: -35.29%
• Country: JP
• Employees: 11,134
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 34.61
• Shares Outstanding: 266,942,700
• 10 Day Avg. Volume: 480,400
• 30 Day Avg. Volume: 536,760
• PEG Ratio: -0.88
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 15.09
• 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: ¥1,379.85
• Price Target Upside: -0.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥1,515.00 ▲(9.31% Upside)

Daicel's strong financial performance and attractive valuation are the primary drivers of its overall score. While technical indicators suggest some short-term bearishness, the stock's low P/E ratio and high dividend yield provide significant upside potential. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth showcases Daicel's ability to expand its market presence and sustain its operations, crucial for long-term success.

Cash Flow Generation

Strong cash flow generation enhances liquidity and financial flexibility, enabling Daicel to invest in growth opportunities and manage debt effectively.

Profit Margins

Sustained high profit margins indicate efficient cost management and pricing power, supporting long-term profitability and competitive positioning.

Negative Factors

Earnings Decline

A significant decline in earnings per share suggests challenges in profitability, which could impact investor confidence and financial stability if not addressed.

Debt Levels

Elevated debt levels can strain cash flow and limit financial flexibility, potentially affecting Daicel's ability to invest in growth and innovation.

Leverage

Moderate leverage requires careful management to prevent financial strain, especially in volatile markets, impacting long-term financial health.

Daicel Business Overview & Revenue Model

Company Description

Daicel 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 Money

Daicel generates revenue through several key streams, primarily from the manufacturing and sale of its chemical products and materials. The company has a strong presence in the automotive sector, providing essential components such as airbags and safety systems, which are critical for vehicle manufacturers. Additionally, Daicel earns revenue from its pharmaceutical business, supplying active pharmaceutical ingredients (APIs) and excipients for drug formulation. The company also benefits from partnerships with major automotive and electronics firms, enhancing its market reach and enabling collaborative innovations. Factors contributing to its earnings include global demand for safety products, advancements in healthcare technologies, and the growing emphasis on environmentally friendly materials in various applications.

Daicel Financial Statement Overview

Summary

Daicel presents a sound financial standing with consistent revenue growth and healthy profit margins. The balance sheet is solid, though maintaining current debt levels is crucial. Cash flow generation has improved significantly, enhancing liquidity and financial flexibility.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	580.23B	586.53B	558.06B	538.03B	467.94B	393.57B
Gross Profit	161.18B	164.75B	159.28B	145.81B	138.61B	111.43B
EBITDA	127.63B	108.86B	111.40B	79.08B	75.84B	61.01B
Net Income	42.91B	49.48B	55.83B	40.68B	31.25B	19.71B
Balance Sheet
Total Assets	839.85B	813.83B	839.17B	765.61B	698.84B	640.38B
Cash, Cash Equivalents and Short-Term Investments	68.82B	65.14B	73.18B	93.84B	90.53B	91.54B
Total Debt	300.82B	280.92B	299.79B	317.83B	280.50B	267.60B
Total Liabilities	461.74B	438.79B	464.31B	455.17B	419.29B	395.38B
Stockholders Equity	362.67B	359.99B	358.90B	295.21B	272.02B	237.85B
Cash Flow
Free Cash Flow	0.00	23.44B	7.52B	-25.08B	-4.48B	21.08B
Operating Cash Flow	0.00	93.41B	76.73B	26.85B	42.99B	57.87B
Investing Cash Flow	0.00	-47.87B	-55.37B	-44.09B	-46.53B	-34.22B
Financing Cash Flow	0.00	-48.85B	-52.37B	19.96B	-5.45B	-17.05B

Daicel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1386.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4202, the sentiment is Positive. The current price of 1386 is above the 20-day moving average (MA) of 1331.15, above the 50-day MA of 1319.22, and above the 200-day MA of 1264.86, indicating a bullish trend. The MACD of 22.07 indicates Negative momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 81.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4202.

Daicel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	80 Outperform	¥368.27B	10.38	9.34%	4.33%	-0.48%	-35.29%
4205	79 Outperform	¥354.63B	9.93	9.65%	3.97%	0.87%	16.71%
4203	71 Outperform	¥463.33B	23.57	6.52%	1.80%	3.25%	-11.31%
4088	69 Neutral	¥505.03B	10.31	10.06%	3.06%	4.35%	7.88%
4183	64 Neutral	¥743.62B	41.56	2.02%	3.82%	-4.63%	-65.11%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4182	55 Neutral	¥554.63B	-75.42	-1.15%	3.50%	-6.83%	-123.67%

Daicel Corporate Events

Daicel Corporation Announces Treasury Stock Acquisition

Daicel Corporation announced the acquisition of 4,209,700 shares of its treasury stock, amounting to over 5.3 billion yen, between November 10 and November 30, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 11 million shares, representing 4.14% of outstanding shares, by March 31, 2026, to enhance shareholder value and optimize capital structure.

Daicel Corporation Completes Share Repurchase to Boost Shareholder Value

Daicel Corporation announced the successful acquisition of 2,883,500 shares of its own stock, valued at approximately ¥3.64 billion, through the Tokyo Stock Exchange’s off-auction trading system. This move is part of Daicel’s mid-term management strategy to enhance shareholder returns and optimize capital efficiency, with a broader plan to acquire up to 11 million shares by March 2026.

Daicel Corporation Announces Strategic Share Buyback Plan

Daicel Corporation announced its plan to acquire up to 2.9 million shares of its own stock through the ToSTNeT-3 trading system, with the purchase price set at ¥1,262 per share. This strategic move, approved by the Board of Directors, is part of a larger plan to repurchase up to 11 million shares, representing 4.14% of outstanding shares, with a total acquisition budget of ¥15 billion, aiming to enhance shareholder value and optimize capital structure.

Daicel Corporation Announces Treasury Stock Acquisition to Enhance Shareholder Returns

Daicel Corporation has announced a decision by its Board of Directors to acquire up to 11 million shares of its own stock, representing 4.14% of its outstanding shares, with a maximum acquisition cost of ¥15 billion. This move aims to enhance shareholder returns and improve capital efficiency as part of its Mid-Term Management Strategy. The acquisition will take place between November 10, 2025, and March 31, 2026, through purchases on the Tokyo Stock Exchange and the ToSTNeT-3 system, with plans to cancel the acquired shares except those needed for employee incentive plans.

Daicel Revises Financial Forecast Amid Market Challenges

Daicel Corporation has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, due to lower-than-expected sales volumes in key product areas such as acetate tow and POM, as well as operational challenges at its carbon monoxide plant. Despite improvements in productivity at its U.S. site, these factors have led to a reduction in expected net sales and profits, reflecting a challenging market environment and uncertain demand trends.

Daicel Corporation Reports Decline in Six-Month Financial Performance

Daicel Corporation reported a decline in its financial performance for the six months ending September 30, 2025, with net sales decreasing by 4.3% and operating profit dropping by 36.3% compared to the previous year. Despite the downturn, the company maintains a stable capital adequacy ratio and has announced a consistent dividend payout, indicating a focus on shareholder returns amidst challenging market conditions.

Daicel Corporation Announces Strategic Reorganization with Polyplastics

Daicel Corporation announced a reorganization plan involving the absorption of its subsidiary, Polyplastics Co., Ltd., to streamline operations and enhance its engineering plastics business. This move aligns with Daicel’s medium-term strategy to transform its business structure, aiming to integrate Polyplastics’ strengths and improve corporate efficiency, ultimately maximizing corporate value.