Zeon Corporation (JP:4205)
:4205
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Zeon
(4205)
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Rating:73Outperform
Price Target:
¥2,572.00
▲(41.36% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial stability (low leverage and improved profitability) and attractive valuation (low P/E and solid dividend yield). Technicals are supportive but somewhat capped by overbought signals, and recent revenue decline plus uneven free-cash-flow consistency remain key risks.
Positive Factors
Balance Sheet Strength
Zeon’s very low debt-to-equity (~0.04 in 2026) and sizable equity base provide durable financial flexibility. This conservative capital structure supports investment in specialty materials, cushions commodity-driven cycles typical of chemicals, and preserves capacity to sustain dividends or make opportunistic capex or M&A without stressing liquidity.
Negative Factors
Revenue Contraction
A sharp revenue decline in 2026 weakens the structural growth profile and can erode economies of scale. For a specialty chemicals player, sustained revenue drops reduce ability to spread fixed costs, constrain reinvestment in higher-value product development, and may pressure margins if the mix or pricing power deteriorates further.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Zeon’s very low debt-to-equity (~0.04 in 2026) and sizable equity base provide durable financial flexibility. This conservative capital structure supports investment in specialty materials, cushions commodity-driven cycles typical of chemicals, and preserves capacity to sustain dividends or make opportunistic capex or M&A without stressing liquidity.
Read all positive factors
Zeon (4205) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥402.09B
Dividend Yield3.91%
Average Volume (3M)643.60K
Price to Earnings (P/E)9.4
Beta (1Y)0.88
Revenue Growth-2.06%
EPS Growth46.42%
CountryJP
Employees4,462
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)126.68
Shares Outstanding209,251,250
10 Day Avg. Volume562,710
30 Day Avg. Volume643,596
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)0.90
Price to Sales (P/S)0.83
P/FCF Ratio20.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)152.7
Revenue Forecast (FY)¥424.49B
Zeon Business Overview & Revenue Model
Company Description
Zeon Corporation engages in the elastomers, specialty materials, and other businesses. The company offers synthetic rubbers, such as general-purpose rubbers for use in automobile tire applications; and various specialty rubbers, including NBR and ...
How the Company Makes Money
Zeon makes money primarily by manufacturing and selling chemical and polymer products to industrial customers, with revenue generated from product shipments priced per volume/weight (and in some cases linked to contract terms and feedstock/raw-mat...
Zeon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 417.63B | 411.97B | 420.65B | 382.28B | 388.61B | 361.73B |
| Gross Profit | 121.19B | 120.46B | 118.23B | 102.51B | 109.64B | 120.36B |
| EBITDA | 51.82B | 52.01B | 52.51B | 64.04B | 34.93B | 67.83B |
| Net Income | 25.52B | 36.23B | 26.20B | 31.10B | 10.57B | 33.41B |
Balance Sheet | ||||||
| Total Assets | 504.85B | 548.25B | 533.79B | 532.25B | 522.87B | 484.66B |
| Cash, Cash Equivalents and Short-Term Investments | 32.87B | 28.68B | 27.37B | 42.78B | 30.08B | 47.27B |
| Total Debt | 34.55B | 15.96B | 28.28B | 10.51B | 29.84B | 20.52B |
| Total Liabilities | 148.57B | 169.99B | 175.79B | 168.53B | 183.56B | 162.82B |
| Stockholders Equity | 355.66B | 377.56B | 357.34B | 362.47B | 336.40B | 318.75B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 16.96B | -8.32B | 13.74B | -9.89B | 9.86B |
| Operating Cash Flow | 0.00 | 76.44B | 20.78B | 47.41B | 14.36B | 33.14B |
| Investing Cash Flow | 0.00 | -42.44B | -22.03B | -5.43B | -28.90B | -26.44B |
| Financing Cash Flow | 0.00 | -34.92B | -17.12B | -30.09B | -2.82B | -11.88B |
Zeon Technical Analysis
Positive
1819.50
Price Trends
1883.38
Positive
1890.59
Positive
1762.16
Positive
Market Momentum
83.64
Negative
62.17
Neutral
45.82
Neutral
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 1819.5 is below the 20-day moving average (MA) of 1998.03, below the 50-day MA of 1883.38, and above the 200-day MA of 1762.16, indicating a bullish trend. The MACD of 83.64 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 45.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4205.
Zeon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥555.59B | 12.73 | 6.52% | 1.82% | 4.95% | 52.94% | |
73 Outperform | ¥402.09B | 9.42 | 9.59% | 3.91% | -2.06% | 46.42% | |
73 Outperform | ¥321.56B | 9.57 | 5.47% | 3.41% | 0.55% | 25.37% | |
72 Outperform | ¥1.99T | 15.54 | 11.98% | 1.54% | 1.41% | 0.76% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥801.51B | 20.28 | 2.01% | 3.82% | -7.76% | 7.92% | |
55 Neutral | ¥322.46B | 31.63 | 9.34% | 4.27% | -1.18% | -78.57% |
* Basic Materials Sector Average
JP:4205
Zeon
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Zeon Corporate Events
Zeon Moves to Broaden Authority Over Chairing Board Meetings
May 13, 2026
Zeon Corporation’s board has approved a proposal to amend its Articles of Incorporation to broaden who can convene and chair board meetings. Instead of limiting these roles to the board chairman, any director, including outside directors, ma...
Zeon Raises Year-End Dividend, Lifting Annual Payout to 76 Yen
May 13, 2026
Zeon Corporation has announced that its board will propose a higher year-end dividend of 40 yen per share for the fiscal year ended March 31, 2026, up from its previous forecast of 36 yen and the prior-year level of 35 yen. The move reflects the c...
Zeon Lifts Profit and Dividend Despite Lower Sales
May 13, 2026
Zeon Corporation reported a 2.1% decline in net sales to ¥411.97 billion for the fiscal year ended March 31, 2026, but operating profit rose 24.1% to ¥36.38 billion and profit attributable to owners of parent jumped 38.3% to ¥36.23 ...
Zeon Revamps Board as Chairman Retires and New Outside Director Is Nominated
Mar 30, 2026
Zeon Corporation has announced changes to its top management, with Representative Director and Chairman Kimiaki Tanaka set to retire from his roles and transition to Senior Advisor, marking a notable shift in the company’s leadership structu...
Zeon Revamps Management, Promotes Two New Corporate Officers
Feb 27, 2026
Zeon Corporation has announced changes to its management structure, appointing Toyoaki Kishikawa and Akira Honma as new corporate officers effective April 1, 2026. Kishikawa, currently division manager of the Production Innovation Center, and Honm...
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.