Zeon (4205) AI Stock Analysis

• Market Cap: ¥360.35B
• Dividend Yield: 3.91%
• Average Volume (3M): 643.60K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.75
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,260.00 ▲(32.78% 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

Diversified End Markets

Zeon's product mix across synthetic rubber, specialty chemicals and advanced materials serving automotive, electronics and healthcare creates diversified demand. This reduces single-market cyclicality, supports steady revenue streams and long-term resilience to sector shocks.

Consistent Revenue Growth

Reported consistent revenue growth with a notable recent increase indicates expanding market share and product adoption. Sustained top-line growth supports reinvestment in R&D and capacity, enabling durable competitive positioning and funding for strategic initiatives.

Healthy Balance Sheet

Balance sheet shows low financial leverage and a strong equity ratio, giving flexibility to fund R&D, capex or return capital. Strong solvency supports investment through cycles and reduces refinancing risk, a durable advantage for capital-intensive chemical manufacturing.

Negative Factors

Net Profit Margin Decline

Even with strong revenues, a slight decline in net profit margin signals rising costs or pricing pressure. Persistent margin erosion would reduce free cash generation and ROE, constraining long-term investment capacity and dividend sustainability if not reversed.

Free Cash Flow Volatility

Fluctuating free cash flow and a falling free cash flow to net income ratio—driven by higher capital expenditures—weakens cash conversion. Reduced FCF limits ability to deleverage, fund dividends or pursue M&A, tightening financial flexibility over multiple quarters.

Automotive Revenue Concentration

Primary dependence on synthetic rubber sales tied to automotive markets exposes Zeon to vehicle demand cycles and tire market dynamics. Structural shifts in auto production or material substitution could materially affect volumes and margins over a multi-quarter horizon.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 1897.73, below the 50-day MA of 1818.07, and above the 200-day MA of 1606.39, indicating a neutral trend. The MACD of 29.49 indicates Positive momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 12.27 is Positive, 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	¥360.35B	10.71	9.65%	3.91%	0.87%	16.71%
4118	74 Outperform	¥296.02B	11.22	5.47%	3.41%	2.60%	9.50%
4631	71 Outperform	¥357.80B	11.04	8.14%	2.61%	-1.45%	―
4203	71 Outperform	¥476.74B	24.31	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	¥260.72B	45.14	1.47%	4.29%	-7.45%	-71.68%
4182	55 Neutral	¥594.20B	-80.57	-1.15%	3.49%	-6.83%	-123.67%

Zeon Corporate Events

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.

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.