Zeon (4205) AI Stock Analysis

• Market Cap: $321.53B
• Dividend Yield: 4.29%
• Average Volume (3M): 618.52K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.73
• Revenue Growth: 5.34%
• EPS Growth: -19.93%
• Country: JP
• Employees: 4,462
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 38.06
• Shares Outstanding: 215,251,860
• 10 Day Avg. Volume: 766,380
• 30 Day Avg. Volume: 618,520
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: 4.98
• 1Y Price Target: $1,793.81
• Price Target Upside: 9.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: ¥1,756.00 ▲(7.37% 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 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 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: 1635.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1635.5 is above the 20-day moving average (MA) of 1617.75, above the 50-day MA of 1531.58, and above the 200-day MA of 1447.83, indicating a bullish trend. The MACD of 33.70 indicates Positive momentum. The RSI at 62.95 is Neutral, neither overbought nor oversold. The STOCH value of 50.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4205	71 Outperform	$321.53B	12.87	7.18%	4.29%	5.34%	-19.93%
Sector *	44 Neutral	AU$1.54B	-7.28	-22.62%	4.37%	-3.13%	-36.41%
DICCF	―	$2.14B	9.60	7.05%	―	―	―
KANKF	―	$1.86B	12.33	4.90%	3.09%	―	―
MBGCF	―	$3.25B	11.83	6.42%	3.82%	―	―
UBEOF	―	$1.53B	10.29	-1.26%	4.64%	―	―
SZ8	―	€2.51B	20.24	6.78%	―	―	―

Zeon Corporate Events

Zeon Corporation Acquires Over 1.3 Million Treasury Shares

Zeon Corporation announced the acquisition of 1,347,100 of its common shares, valued at approximately ¥2.1 billion, between July 1 and July 31, 2025. This move is part of a broader plan authorized by the Board of Directors to acquire up to 10 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:4205) stock is a Hold with a Yen1510.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Reports Q1 2025 Financial Results with Revised Earnings Forecast

Zeon Corporation reported a decline in net sales and profit for the three months ended June 30, 2025, compared to the same period last year. Despite a decrease in comprehensive income, the company revised its earnings forecast for the fiscal year ending March 31, 2026, indicating an expected improvement in operating profit and profit attributable to owners, suggesting a strategic adjustment to enhance financial performance.

The most recent analyst rating on (JP:4205) stock is a Hold with a Yen1510.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Announces Sale of Investment Securities for Extraordinary Profits

Zeon Corporation has announced its decision to sell a portion of its investment securities, which is expected to result in extraordinary profits for the fiscal year ending March 31, 2026. This strategic move aims to reallocate investment funds to improve capital efficiency, and the anticipated gain of approximately 10.9 billion yen will be recorded as extraordinary income in the company’s financial statements.

The most recent analyst rating on (JP:4205) stock is a Hold with a Yen1510.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

Zeon Corporation Revises Financial Forecasts Amid Strong Demand

Zeon Corporation has revised its financial forecasts for the six months ending September 30, 2025, and the fiscal year ending March 31, 2026, due to favorable business performance trends. The revisions are driven by the yen’s depreciation and strong demand for optical films, leading to expected increases in sales, operating profit, ordinary profit, and net profit attributable to the parent company. However, the company anticipates a decline in sales in the second half of the fiscal year as a reaction to the strong first-half performance.

The most recent analyst rating on (JP:4205) stock is a Hold with a Yen1510.00 price target. To see the full list of analyst forecasts on Zeon stock, see the JP:4205 Stock Forecast page.

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.