Zeon (4205) AI Stock Analysis

• Market Cap: ¥408.97B
• Dividend Yield: 3.91%
• Average Volume (3M): 643.60K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.77
• Revenue Growth: 0.87%
• EPS Growth: 16.71%
• Country: JP
• Employees: 4,462
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• 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: ¥2,451.00 ▲(44.01% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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 & Gross Margin

Zeon’s consistent revenue expansion and strong gross margins indicate durable product demand and effective cost control in its specialty businesses. Over 2–6 months this supports stable top-line momentum and preserves core earnings power even if net margins fluctuate.

Balance Sheet Strength

Low financial leverage and a solid return on equity provide financial flexibility for capex, R&D, and cyclical shocks. A strong equity ratio reduces refinancing risk and supports sustained investment in specialty chemistries, enhancing resilience over the medium term.

Diversified Specialty End-Markets

Zeon’s portfolio serves multiple end markets (tires, automotive, industrial, electronics) and includes high-value specialty materials. This diversification and technical product focus create customer stickiness and pricing power, supporting durable revenue streams and competitive barriers.

Negative Factors

Declining Net Profit Margin

A falling net profit margin indicates rising operating costs or pricing pressure that can erode long-term earnings capacity. If persistent, margin compression reduces retained cash for reinvestment and dividends, weakening financial returns and strategic flexibility over several months.

Free Cash Flow Volatility

Volatile and declining free cash flow — driven by higher capex — impairs the company’s ability to convert accounting profits into spendable cash. Over 2–6 months this can constrain dividend sustainability, limit opportunistic investments, or necessitate external financing during downturns.

Cyclicality of Key End-Markets

Significant exposure to automotive and tire markets embeds structural cyclicality in demand for Zeon’s products. An industry slowdown can materially reduce volumes and pricing for several quarters, increasing revenue volatility and making planning for capex and margins more challenging.

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 hydrogenated NBR. It also provides synthetic latex comprising styrene-butadiene copolymer latex, polybutadiene, acrylonitrile butadiene copolymer latex, acrylate latex, and soap-free latex for use in processed paper, fiber treatment agents, adhesives, paints, and rubber gloves; and materials for adhesive tapes and hot melt adhesives, binder for traffic paints, and concrete admixtures. In addition, the company offers specialty chemicals, such as synthetic aroma chemicals for flavors and fragrances; cyclopentene, cyclopentanone, and other derivatives for chemical synthesis; intermediates for pharmaceuticals and agrochemicals; and solvents and cleaning agents. Further, it provides electronic materials, rechargeable battery materials, and toners for the production of semiconductors, etching gas, and materials used in rechargeable battery production; and specialty plastics that include cyclo olefin polymers and fine processed products with cyclo olefin polymer for use in optical lenses, medical devices, and various general-purpose engineering plastics. Additionally, the company develops, manufactures, and sells cardiovascular and gastrointestinal medical equipment, as well as nutritional products; and licenses butadiene recovery and butene purification process technologies in approximately 23 countries worldwide. It also offers PENTAM, a resource- and energy-saving molded product. The company was founded in 1950 and is headquartered in Tokyo, Japan.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: 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 1702 is below the 20-day moving average (MA) of 2006.48, below the 50-day MA of 1921.27, and above the 200-day MA of 1671.62, indicating a bullish trend. The MACD of 52.50 indicates Negative momentum. The RSI at 71.32 is Negative, neither overbought nor oversold. The STOCH value of 89.49 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
4202	80 Outperform	¥435.63B	10.54	9.34%	4.27%	-0.48%	-35.29%
4205	79 Outperform	¥408.97B	12.16	9.65%	3.91%	0.87%	16.71%
4203	76 Outperform	¥527.48B	20.36	6.52%	1.82%	3.25%	-11.31%
4118	74 Outperform	¥333.84B	12.62	5.47%	3.41%	2.60%	9.50%
6988	68 Neutral	¥2.35T	18.48	11.98%	1.54%	1.84%	-6.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4183	61 Neutral	¥930.53B	52.39	2.02%	3.82%	-4.63%	-65.11%

Zeon Corporate Events

Zeon Revamps Management, Promotes Two New Corporate Officers

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 Honma, currently plant manager of the Tokuyama Plant, will join the corporate officer ranks in a move aimed at strengthening governance and aligning leadership with the company’s operational and innovation priorities.

The appointments signal an internal promotion of operational leaders into higher management roles, suggesting Zeon is leveraging in-house expertise to support its next phase of organizational development. By elevating executives from production innovation and plant management, the company appears focused on reinforcing its manufacturing capabilities and innovation pipeline, with potential implications for efficiency, competitiveness, and long-term strategic execution.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen2306.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Overhauls Governance With New CXO Management Structure

Zeon Corporation has announced it will abolish its traditional headquarters structure and introduce a CXO-based management system from April 1, 2026, shifting to a framework where a team of chief officers makes medium- to long-term, company-wide decisions. Under the new structure, President Tetsuya Toyoshima will become President & CEO, Kazuyoshi Matsuura will serve as Director, Senior Corporate Officer & CFO, and Yuichiro Konishi will become Director, Senior Corporate Officer & CTO, while other directors’ roles remain unchanged; the company aims to speed up decision-making, delegate more operational authority to divisions, and enable top management to focus on strategic resource allocation and long-term corporate value enhancement.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen2106.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Lifts Profits and Dividend Outlook Despite Slight Sales Decline

Zeon Corporation reported consolidated results for the nine months ended December 31, 2025, showing a 1.8% decline in net sales to ¥309.7 billion but a 14.2% increase in operating profit to ¥27.6 billion and a 40.7% jump in profit attributable to owners of parent to ¥28.3 billion, reflecting improved profitability despite softer top-line growth. The company’s financial position remained solid with total assets of ¥550.3 billion and an equity ratio of 65.7%, it maintained its annual dividend plan with a slight increase to a projected ¥72 per share for the year to March 2026, and it revised its full-year earnings forecast upward for profit metrics while anticipating slightly lower sales, underscoring a focus on margin improvement and shareholder returns amid changes in consolidation scope and accounting policies.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen2093.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Lifts Profit Outlook Despite Lower Sales on Specialty Materials Strength and Weak Yen

Zeon Corporation has revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, slightly lowering expected net sales to ¥407.5 billion but raising projections for operating profit, ordinary profit, and profit attributable to owners of the parent. Despite weaker revenue in its Elastomer Business Segment due to lower selling prices driven by falling raw material costs, the company anticipates stronger performance in its Specialty Material Business Segment on the back of steady demand for optical films for large-screen TVs and battery materials, as well as a profit boost from the continued depreciation of the yen, resulting in a higher earnings-per-share outlook compared with the previous forecast and the prior fiscal year.

The most recent analyst rating on (JP:4205) stock is a Buy with a Yen2093.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Cancels 2.79% of Outstanding Shares to Tighten Capital Base

Zeon Corporation has completed the cancellation of 6,000,600 of its own common shares, representing 2.79% of its issued shares prior to the move, following a resolution by its board of directors in late December 2025. The cancellation, effective January 7, 2026, reduces the company’s total number of issued shares to 209,251,256, a capital measure that typically aims to enhance capital efficiency and could support shareholder value by increasing the relative ownership stake of remaining shares.

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 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.