Zeon (4205) AI Stock Analysis

• Market Cap: ¥352.71B
• Dividend Yield: 3.91%
• Average Volume (3M): 643.60K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.70
• Revenue Growth: 0.87%
• EPS Growth: 16.71%
• Country: JP
• Employees: 4,462
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 75.70
• Shares Outstanding: 209,251,250
• 10 Day Avg. Volume: 562,710
• 30 Day Avg. Volume: 643,596
• PEG Ratio: -0.87
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -36.95
• 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: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,011.00 ▲(18.16% Upside)

Zeon's strong technical momentum and reasonable valuation are the most significant factors driving its score. While financial performance is solid, recent declines in profitability metrics suggest areas for improvement. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Market Position

Strategic partnerships strengthen market position, providing stability and opportunities for growth in key sectors like automotive and electronics.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, supporting sustainable growth and investment capacity.

Negative Factors

Net Profit Margin Decline

Declining net profit margins can indicate rising costs or inefficiencies, potentially affecting profitability and long-term financial health.

Free Cash Flow Fluctuations

Fluctuating free cash flow can limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Profitability Metrics Decline

Declines in profitability metrics may signal operational challenges, requiring strategic adjustments to maintain financial performance.

Zeon Business Overview & Revenue Model

Company Description

Zeon Corporation (4205) is a leading Japanese company specializing in the manufacture and sale of synthetic rubber, specialty chemicals, and advanced materials. Operating primarily in the automotive, electronics, and healthcare sectors, Zeon produces a wide range of products, including high-performance elastomers, adhesives, and various chemical intermediates. The company is recognized for its innovative solutions that meet the evolving needs of its diverse customer base globally.

How the Company Makes Money

Zeon generates revenue through the production and sale of its core products across several industries. The primary revenue stream comes from the sale of synthetic rubber, which is widely used in the automotive sector for tires and other components. Additionally, Zeon earns income from its specialty chemicals and advanced materials, which cater to the electronics industry and healthcare applications. Significant partnerships with major automotive manufacturers and electronics companies enhance its market reach and stability. The company's focus on research and development facilitates the introduction of new products, further contributing to its revenue growth.

Zeon Financial Statement Overview

Summary

Zeon displays strong financial health with consistent revenue growth and robust equity management. However, recent declines in net profit margin and free cash flow suggest areas for improvement.

Income Statement

Zeon has shown consistent revenue growth over the years, with a notable increase in the most recent year. The gross profit margin is strong, indicating effective cost management. However, the net profit margin has slightly decreased, suggesting increased expenses or other financial pressures impacting net income.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, reflecting low financial leverage. The return on equity is solid, implying effective use of shareholders' investments to generate profit. The equity ratio also indicates a stable financial structure with significant equity financing.

Cash Flow

Zeon has experienced fluctuations in free cash flow, with a decline in recent periods due to higher capital expenditures. The operating cash flow remains positive, but the free cash flow to net income ratio has decreased, highlighting potential challenges in converting earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	417.63B	420.65B	382.28B	388.61B	361.73B	301.96B
Gross Profit	120.98B	117.89B	102.51B	109.64B	120.36B	97.55B
EBITDA	49.70B	52.51B	64.04B	34.93B	67.83B	51.45B
Net Income	25.52B	26.20B	31.10B	10.57B	33.41B	27.72B
Balance Sheet
Total Assets	504.85B	533.79B	532.25B	522.87B	484.66B	448.82B
Cash, Cash Equivalents and Short-Term Investments	32.87B	27.37B	42.78B	30.08B	47.27B	51.97B
Total Debt	27.96B	25.96B	8.96B	27.96B	18.96B	18.96B
Total Liabilities	148.57B	175.79B	168.52B	183.56B	162.83B	150.57B
Stockholders Equity	355.66B	357.34B	362.47B	336.40B	318.75B	295.41B
Cash Flow
Free Cash Flow	0.00	-8.32B	10.99B	-12.95B	8.97B	32.05B
Operating Cash Flow	0.00	20.78B	47.41B	14.36B	33.14B	56.08B
Investing Cash Flow	0.00	-22.03B	-5.43B	-28.90B	-26.44B	-30.24B
Financing Cash Flow	0.00	-17.12B	-30.09B	-2.82B	-11.88B	-8.26B

Zeon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1702.00
• 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:4205, the sentiment is Positive. The current price of 1702 is below the 20-day moving average (MA) of 1799.45, below the 50-day MA of 1737.52, and above the 200-day MA of 1569.79, indicating a bullish trend. The MACD of 27.37 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 84.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4205.

Zeon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4205	79 Outperform	¥352.71B	10.10	9.65%	3.91%	0.87%	16.71%
4118	74 Outperform	¥285.59B	10.82	5.47%	3.41%	2.60%	9.50%
4631	71 Outperform	¥343.51B	10.60	8.14%	2.61%	-1.45%	―
4203	71 Outperform	¥451.50B	23.02	6.52%	1.82%	3.25%	-11.31%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4208	57 Neutral	¥256.43B	44.39	1.47%	4.29%	-7.45%	-71.68%
4182	55 Neutral	¥566.07B	-76.75	-1.15%	3.49%	-6.83%	-123.67%

Zeon Corporate Events

Zeon to Cancel 2.79% of Its Treasury Shares to Streamline Capital Structure

Zeon Corporation has resolved to cancel 6,000,600 of its common treasury shares, representing 2.79% of its issued shares, with the cancellation scheduled for January 7, 2026. Following this move, the company’s total number of issued shares will decrease to 209,251,256, a capital measure that is expected to enhance capital efficiency and shareholder value by reducing share float and potentially improving per-share metrics.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen2011.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Completes Treasury Share Acquisition

Zeon Corporation has completed the acquisition of 2,277,900 treasury shares, valued at approximately ¥4 billion, as part of a broader plan approved by the Board of Directors to acquire up to 10 million shares. This strategic move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen2011.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Completes Share Repurchase to Boost Shareholder Value

Zeon Corporation has successfully repurchased 2,277,900 of its own shares at a cost of ¥3,999,992,400 through the Tokyo Stock Exchange’s off-auction trading system. This move is part of Zeon’s strategy to enhance shareholder returns and improve capital efficiency, aligning with a board resolution to acquire up to 10 million shares or a total value of ¥10 billion.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen1758.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Announces Share Repurchase Plan

Zeon Corporation announced its decision to acquire its own shares through the Off-Auction Own Share Repurchase Trading System (ToSTNeT-3) at a specified price, following a resolution made by its Board of Directors. This move is part of a broader strategy to repurchase up to 10 million shares, reflecting the company’s efforts to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen1758.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Updates on Treasury Share Acquisition Status

Zeon Corporation announced the status of its treasury share acquisition, revealing that no shares were acquired between October 1 and October 31, 2025. Despite this, the company has previously acquired 3,722,700 shares worth approximately ¥5.99 billion as part of a broader plan to acquire up to 10 million shares by February 2026, reflecting a strategic move to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen1758.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Reports Mixed Financial Results with Increased Profitability

Zeon Corporation reported a decline in net sales by 3.2% for the six months ending September 30, 2025, compared to the previous year. Despite this, the company saw a significant increase in profit attributable to owners of the parent, which rose by 81.3%, indicating improved operational efficiency and cost management. The company’s equity-to-asset ratio remained stable, reflecting a strong financial position. Zeon also announced an increase in its annual dividend per share, signaling confidence in its future earnings potential.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen1828.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Revises Profit Expectations from Securities Sale

Zeon Corporation announced an updated expectation of extraordinary profits from the sale of investment securities, initially estimated at ¥10.9 billion but now recorded at ¥16.9 billion due to market fluctuations. This adjustment reflects the company’s strategic efforts to reallocate investment funds to improve capital efficiency, with potential implications for the fiscal year’s earnings forecast ending March 31, 2026.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen1828.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.