Zeon (4205) AI Stock Analysis

• Market Cap: $292.08B
• Dividend Yield: 4.72%
• Average Volume (3M): 476.70K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.76
• Revenue Growth: 10.04%
• EPS Growth: -13.38%
• Country: JP
• Employees: 4,462
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 30.69
• Shares Outstanding: 215,251,860
• 10 Day Avg. Volume: 531,450
• 30 Day Avg. Volume: 476,703
• PEG Ratio: -0.42
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.86
• 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: $1,610.63
• Price Target Upside: 8.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,608.00 ▲(8.47%Upside)

Zeon's strong financial performance and attractive valuation are significant strengths. Technical indicators show neutral momentum, reinforcing the stock's stability. Investors might find Zeon appealing due to its solid financial structure and favorable income potential.

Zeon Business Overview & Revenue Model

Company Description

Zeon Corporation, identified by its ticker symbol 4205, is a Japanese chemical company primarily engaged in the production and sale of synthetic rubber, latex, and specialty chemicals. The company operates across multiple sectors, including automotive, information technology, healthcare, and energy, providing materials essential for various industrial applications. Zeon is recognized for its innovative approach to chemistry, contributing to advancements in sustainable and high-performance materials.

How the Company Makes Money

Zeon Corporation generates revenue through the development, production, and sale of a wide range of chemical products. Its primary revenue streams include synthetic rubber and latex, which are used extensively in the automotive industry for tires and other components. Additionally, Zeon produces specialty chemicals and materials that cater to the electronics and healthcare sectors, serving clients who require high-performance and durable materials for their products. The company also invests in research and development to innovate and improve its product offerings, ensuring continued demand across its diverse customer base. Strategic partnerships with industry leaders and a global distribution network further enhance Zeon's ability to penetrate various markets and sustain 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. The company should focus on optimizing operational efficiency to enhance cash generation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	413.91B	420.65B	382.28B	388.61B	361.73B	301.96B
Gross Profit	115.80B	117.89B	102.51B	109.64B	120.36B	97.55B
EBITDA	58.46B	52.51B	64.04B	47.33B	65.75B	51.45B
Net Income	30.32B	26.20B	31.10B	10.57B	33.41B	27.72B
Balance Sheet
Total Assets	538.58B	533.79B	532.25B	522.87B	484.66B	448.82B
Cash, Cash Equivalents and Short-Term Investments	30.59B	27.37B	42.78B	30.08B	47.27B	51.97B
Total Debt	36.96B	25.96B	8.96B	27.96B	18.96B	18.96B
Total Liabilities	189.58B	175.79B	168.52B	183.56B	162.83B	150.57B
Stockholders Equity	348.32B	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: 1482.50
• 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 1482.5 is above the 20-day moving average (MA) of 1444.10, above the 50-day MA of 1426.17, and above the 200-day MA of 1402.93, indicating a bullish trend. The MACD of 12.62 indicates Negative momentum. The RSI at 70.47 is Negative, neither overbought nor oversold. The STOCH value of 92.37 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
4203	76 Outperform	€374.38B	19.64	6.45%	0.24%	6.09%	-10.60%
4205	74 Outperform	$292.08B	11.63	7.16%	4.72%	10.04%	-13.38%
4118	73 Outperform	$250.11B	9.87	5.38%	3.52%	5.89%	11.95%
4631	71 Outperform	$274.31B	9.09	7.73%	3.45%	3.67%	―
Sector *	70 Neutral	¥172.64B	11.05	6.37%	3.56%	3.93%	6.22%
4182	69 Neutral	$432.90B	9.75	6.78%	4.48%	-4.90%	20.59%
4208	54 Neutral	$219.14B	11.14	-1.23%	4.86%	3.96%	-116.62%

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.