Zeon (4205) AI Stock Analysis

• Market Cap: ¥313.16B
• Dividend Yield: 4.4%
• Average Volume (3M): 555.14K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.74
• Revenue Growth: 10.04%
• EPS Growth: -13.38%
• Country: JP
• Employees: 4,462
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 30.69
• Shares Outstanding: 215,251,860
• 10 Day Avg. Volume: 487,140
• 30 Day Avg. Volume: 555,136
• PEG Ratio: -0.96
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,609.51
• Price Target Upside: 2.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,756.00 ▲(12.13%Upside)

Zeon's strong financial performance and attractive valuation provide a solid foundation for the stock's appeal. However, technical indicators signal caution due to overbought conditions, warranting careful monitoring for potential price corrections. The absence of recent earnings call data limits insights into management's outlook.

Zeon Business Overview & Revenue Model

Company Description

Zeon Corporation, established in 1950 and headquartered in Tokyo, Japan, is a leading chemical company that specializes in the production of synthetic rubbers, chemicals, and specialty materials. The company operates across multiple sectors, including elastomers, specialty materials, and chemicals, serving a wide range of industries such as automotive, electronics, healthcare, and consumer goods. Zeon is known for its innovative solutions and commitment to sustainability, leveraging advanced technologies to enhance functionality and performance in its products.

How the Company Makes Money

Zeon Corporation generates revenue primarily through the manufacturing and sale of its diverse range of chemical products. Its key revenue streams include the Elastomer Business, which involves the production and sale of synthetic rubbers used in various applications like tires and industrial goods. The Specialty Materials Business focuses on high-performance materials used in electronics, optics, and healthcare, contributing significantly to the company's earnings. The Chemicals Business provides specialty chemicals and solvents for a variety of industrial uses. Zeon’s strategic partnerships and collaborations with other industry leaders further bolster its market position and revenue potential, enabling the company to innovate and meet evolving market demands.

Zeon Financial Statement Overview

Summary

Zeon shows solid financial health with robust equity management and consistent revenue growth. However, declines in net profit margin and free cash flow indicate potential areas for operational 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	420.65B	382.28B	388.61B	361.73B	301.96B
Gross Profit	117.89B	102.51B	109.64B	120.36B	97.55B
EBITDA	52.51B	64.04B	47.33B	65.75B	51.45B
Net Income	26.20B	31.10B	10.57B	33.41B	27.72B
Balance Sheet
Total Assets	533.79B	532.25B	522.87B	484.66B	448.82B
Cash, Cash Equivalents and Short-Term Investments	27.37B	42.78B	30.08B	47.27B	51.97B
Total Debt	25.96B	8.96B	27.96B	18.96B	18.96B
Total Liabilities	175.79B	168.52B	183.56B	162.83B	150.57B
Stockholders Equity	357.34B	362.47B	336.40B	318.75B	295.41B
Cash Flow
Free Cash Flow	-8.32B	10.99B	-12.95B	8.97B	32.05B
Operating Cash Flow	20.78B	47.41B	14.36B	33.14B	56.08B
Investing Cash Flow	-22.03B	-5.43B	-28.90B	-26.44B	-30.24B
Financing Cash Flow	-17.12B	-30.09B	-2.82B	-11.88B	-8.26B

Zeon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1566.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1566 is above the 20-day moving average (MA) of 1528.25, above the 50-day MA of 1471.20, and above the 200-day MA of 1426.11, indicating a bullish trend. The MACD of 34.88 indicates Negative momentum. The RSI at 82.45 is Negative, neither overbought nor oversold. The STOCH value of 88.63 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
4182	77 Outperform	$501.18B	11.28	6.78%	3.68%	-4.90%	20.59%
4203	75 Outperform	€393.18B	20.63	6.45%	1.14%	6.09%	-10.60%
4631	74 Outperform	$282.07B	9.35	7.73%	3.36%	3.67%	―
4118	74 Outperform	¥268.77B	10.60	5.38%	3.06%	5.89%	11.95%
4205	71 Outperform	¥313.16B	12.47	7.16%	4.40%	10.04%	-13.38%
4208	54 Neutral	$227.14B	11.14	-1.23%	4.73%	3.96%	-116.62%
Sector *	44 Neutral	AU$1.51B	-6.04	-41.37%	3.90%	-3.45%	-43.04%

Zeon Corporate Events

Zeon Corporation Reports No Treasury Share Acquisitions in May 2025

Zeon Corporation announced that no treasury shares were acquired during the specified period from May 1 to May 31, 2025, despite a board resolution allowing for the purchase of up to 10 million shares. This lack of acquisition may impact the company’s financial strategies and shareholder value, as the planned buyback was intended to optimize capital structure and potentially increase share value.

The most recent analyst rating on (JP:4205) stock is a Hold with a Yen1610.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Announces Management Restructuring

Zeon Corporation has announced changes in its management structure, including the retirement and appointment of directors, Audit & Supervisory Board members, and corporate officers. These changes, effective from June 27, 2025, are aimed at enhancing the company’s management framework and involve the appointment of new individuals to key positions, which may impact the company’s strategic direction and governance.

Zeon Corporation Announces Share Buyback and Cancellation Plan

Zeon Corporation has announced a resolution to acquire and subsequently cancel up to 10 million of its own shares, representing 5.07% of its issued shares, with a maximum total value of ¥10 billion. This strategic move is aimed at enhancing shareholder returns and improving capital efficiency, potentially strengthening the company’s market position and benefiting its stakeholders.

Zeon Corporation Reports FY2025 Financial Results with Increased Sales and Dividends

Zeon Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 10% increase in net sales to ¥420,647 million and a 43% rise in operating profit to ¥29,321 million. Despite these gains, profit attributable to owners fell by 15.8% to ¥26,199 million, and comprehensive income decreased by 25.7%. The company also announced an increase in annual dividends per share from ¥45.00 to ¥70.00, reflecting a higher payout ratio. The forecast for the next fiscal year anticipates a slight decline in net sales and profits, indicating potential challenges ahead.