Aica Kogyo Company, Limited (4206) AI Stock Analysis

• Market Cap: ¥236.64B
• Dividend Yield: 3.64%
• Average Volume (3M): 145.73K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.44
• Revenue Growth: 5.10%
• EPS Growth: 12.58%
• Country: JP
• Employees: 5,007
• Sector: Industrials
• Sector Strength: 85
• Industry: Conglomerates
• EPS (TTM): 266.35
• Shares Outstanding: 67,590,670
• 10 Day Avg. Volume: 135,900
• 30 Day Avg. Volume: 145,730
• PEG Ratio: -0.89
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.23
• 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

• Rating: 78 Outperform
• Price Target: ¥4,132.00 ▲(14.02%Upside)

Aica Kogyo's strong financial performance is the primary driver of its high score, supported by effective cash flow management and low leverage. While technical indicators are positive, caution is advised due to overbought signals. The attractive valuation further contributes to the overall positive outlook.

Aica Kogyo Company, Limited Business Overview & Revenue Model

Company Description

Aica Kogyo Company, Limited develops, produces, and sells chemical products, and laminates and building materials in Japan and internationally. The company offers chemical products, including exterior and interior finishing coating materials, organic fine particles, industrial and architectural adhesives, industrial and composite board resins, wall and floor coating materials, repair/reinforcing materials, corrosion preventive materials, hot melts, UV-curable resins, and functional spherical polymer beads for use in wood processing, architectural purpose, civil works, automobiles, electronic materials, industrial products, and household goods. It also provides laminates and building materials comprising melamine veneer, veneer plywood, interior doors, interior building materials, counters, storage doors, non-combustible decorative materials and panels, and extruded cement boards, as well as high pressure laminates, boards, films, counter tops, fittings, and interior housing materials for use in commercial, offices, educational and cultural, transport, health care and welfare, accommodation, warehouses and factories, and housing facilities. The company was formerly known as Aichi Kagaku Kogyo Co., Ltd. and changed its name to Aica Kogyo Company, Limited in June 1966. Aica Kogyo Company, Limited was incorporated in 1936 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Aica Kogyo Company, Limited generates revenue primarily through the sale of its chemical products and building materials. The company's key revenue streams include the production and sale of high-performance resins and adhesives, which are used extensively in the automotive and electronics industries. Another significant source of revenue is the sale of decorative laminates, which are widely used in the construction and interior design sectors. Aica Kogyo leverages its extensive research and development capabilities to innovate and improve product offerings, thus enhancing its competitive position in the market. Additionally, the company's strategic partnerships and collaborations with other industry players contribute to its revenue by expanding its market reach and customer base.

Aica Kogyo Company, Limited Financial Statement Overview

Summary

Aica Kogyo demonstrates robust financial health with consistent revenue growth, strong profitability margins, and effective cash flow management. The balance sheet is solid with low leverage and strong equity backing, though minor concerns exist with cash flow reductions.

Income Statement

Aica Kogyo has shown consistent revenue growth with a 5.09% increase in the latest year. Gross profit margin stands at 26.18%, with a strong net profit margin of 6.79%, indicating robust profitability. EBIT and EBITDA margins of 11.02% and 14.33%, respectively, further underscore efficient operations. The company demonstrates a solid trend of increasing profitability over the years.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.16, signifying low leverage and financial stability. Return on equity is solid at 9.74%, reflecting effective use of shareholder funds. An equity ratio of 60.21% indicates strong asset backing, though the decrease in cash reserves is a point of caution.

Cash Flow

Aica Kogyo's free cash flow grew by 3.32% year-over-year, alongside a strong operating cash flow to net income ratio of 1.58, showcasing effective cash generation. The free cash flow to net income ratio of 1.09 highlights positive cash conversion, though a decline in operating cash flow compared to the previous year warrants attention.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
246.53B	248.70B	236.63B	242.06B	214.51B	174.63B
	Gross Profit
67.17B	65.14B	64.14B	56.80B	54.09B	49.53B
	EBIT
26.98B	27.41B	25.29B	20.56B	20.35B	17.99B
	EBITDA
27.32B	35.63B	32.36B	27.14B	29.28B	25.05B
	Net Income Common Stockholders
17.21B	16.90B	15.13B	10.06B	13.12B	10.76B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.39B	59.57B	62.02B	50.99B	47.18B	42.42B
	Total Assets
275.04B	288.06B	274.74B	250.05B	240.39B	207.36B
	Total Debt
28.50B	28.21B	28.54B	29.59B	16.64B	7.27B
	Net Debt
-21.89B	-31.37B	-33.48B	-21.40B	-30.54B	-35.15B
	Total Liabilities
94.70B	98.33B	98.20B	91.98B	77.66B	56.86B
	Stockholders Equity
166.06B	173.39B	161.81B	145.22B	145.24B	134.81B
Cash Flow		Free Cash Flow
0.00	18.49B	19.37B	11.27B	4.25B	12.85B
	Operating Cash Flow
0.00	26.75B	28.48B	19.85B	11.69B	19.71B
	Investing Cash Flow
0.00	-11.12B	-7.57B	-9.06B	-8.34B	-9.76B
	Financing Cash Flow
0.00	-16.79B	-11.17B	-9.36B	-1.11B	-9.18B

Aica Kogyo Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3624.00
• 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:4206, the sentiment is Positive. The current price of 3624 is above the 20-day moving average (MA) of 3622.55, above the 50-day MA of 3468.32, and above the 200-day MA of 3292.61, indicating a bullish trend. The MACD of 46.78 indicates Positive momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 52.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4206.

Aica Kogyo Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4206	78 Outperform	¥236.64B	13.61		3.64%	5.10%	12.58%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
NICFF		$2.33B	10.94	15.22%	2.20%	―	―
TINLF		$1.46B	7.97	-17.62%	0.03%	―	―
XZJCF		$1.86B	4.43	20.86%	0.02%	―	―
HW4		€1.25B	4.39	12.33%	4.60%	―	―
8020	80 Outperform	¥218.35B	7.95		4.02%	6.59%	18.35%

Aica Kogyo Company, Limited Corporate Events

Aica Kogyo Announces Progress in Treasury Share Acquisition

Aica Kogyo Company, Limited announced the status of its treasury share acquisition, having repurchased 251,200 common shares at a total price of JPY 902,378,000 between May 12 and May 31, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 2,250,000 shares by the end of December 2025, with a maximum budget of JPY 6 billion, potentially impacting shareholder value and market perception.

Aica Kogyo Announces Treasury Share Acquisition to Enhance Corporate Value

Aica Kogyo Company, Limited announced its decision to acquire treasury shares as part of its capital policy aimed at enhancing corporate value. This move is intended to balance shareholder returns, improve capital efficiency, and maintain financial soundness, aligning with their Medium-Term Business Plan ‘Value Creation 3000 & 300’. The acquisition will involve up to 2,250,000 shares, representing 3.58% of the total shares, with a maximum expenditure of ¥6 billion, to be conducted through market purchases on the Tokyo Stock Exchange between May 12, 2025, and December 30, 2025.

Aica Kogyo Announces Dividend Increase Amid Record Profits

Aica Kogyo Company, Limited announced an increase in its year-end dividend per share to ¥70 for the fiscal year ended March 31, 2025, reflecting record-high profits. The company also forecasts a further dividend increase to ¥136 per share for the fiscal year ending March 31, 2026, demonstrating its commitment to steady growth and rewarding shareholders.

Aica Kogyo to Acquire TAKARAINC as Subsidiary to Boost Specialty Materials Segment

Aica Kogyo Company, Limited has announced the signing of a memorandum of understanding to acquire TAKARAINC. CO. Ltd as a subsidiary through a partial share exchange. This acquisition aligns with Aica Kogyo’s medium-term business plan to enhance its specialty and performance materials segment, particularly in the automotive sector, by integrating TAKARAINC’s advanced film processing technologies with Aica’s resin technologies. The acquisition is expected to drive growth and improve competitiveness in the market.

Aica Kogyo Reports Strong Financial Performance and Increased Dividends

Aica Kogyo Company, Limited reported a positive financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 5.1% and operating profit rising by 8.4%. The company also announced an increase in dividends, reflecting a strong commitment to shareholder returns and a positive outlook for the upcoming fiscal year.