Aica Kogyo Company, Limited (4206) AI Stock Analysis

• Market Cap: ¥228.15B
• Dividend Yield: 3.9%
• Average Volume (3M): 178.31K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.40
• Revenue Growth: 2.65%
• EPS Growth: 7.16%
• Country: JP
• Employees: 5,007
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 79.77
• Shares Outstanding: 67,590,670
• 10 Day Avg. Volume: 196,960
• 30 Day Avg. Volume: 178,310
• PEG Ratio: 0.98
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 11.31
• 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: 73 Outperform
• Price Target: ¥4,047.00 ▲(15.83% Upside)

Aica Kogyo's strong financial performance is the primary driver of its score, supported by solid profitability and low leverage. The valuation is favorable with a reasonable P/E ratio and attractive dividend yield. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Profitability Margins

Robust profitability margins reflect efficient operations and cost management, enhancing the company's ability to reinvest in growth.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and flexibility, allowing the company to navigate economic fluctuations effectively.

Negative Factors

Cash Flow Concerns

Decreasing operating cash flow may impact the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Cash Reserve Decrease

Reduced cash reserves can limit the company's ability to invest in new opportunities or buffer against unexpected expenses, affecting long-term resilience.

Cash Flow Reductions

Cash flow reductions could strain the company's ability to maintain operations and invest in strategic growth, impacting future performance.

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 generates revenue primarily through the sale of its chemical products and materials. Key revenue streams include the manufacturing and distribution of decorative laminates for the construction and interior design sectors, industrial adhesives for automotive and manufacturing applications, and functional materials for electronics. The company capitalizes on its extensive R&D capabilities to create advanced products that enhance performance and sustainability, which helps maintain competitive pricing and market share. Additionally, strategic partnerships with other manufacturers and suppliers facilitate broader market access and customer engagement, further contributing to its earnings.

Aica Kogyo Company, Limited Financial Statement Overview

Summary

Aica Kogyo exhibits 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, although there are minor concerns about 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.62B	248.70B	236.63B	242.06B	214.51B	174.63B
Gross Profit	68.91B	65.14B	64.14B	56.80B	54.09B	49.53B
EBITDA	44.25B	35.63B	32.36B	27.14B	29.28B	25.05B
Net Income	17.23B	16.90B	15.13B	10.06B	13.12B	10.76B
Balance Sheet
Total Assets	278.39B	288.06B	274.74B	250.05B	240.39B	207.36B
Cash, Cash Equivalents and Short-Term Investments	57.25B	59.57B	62.02B	50.99B	47.18B	42.42B
Total Debt	26.72B	28.21B	28.54B	29.59B	16.64B	7.27B
Total Liabilities	94.67B	98.33B	98.20B	91.98B	77.66B	56.86B
Stockholders Equity	167.89B	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: Neutral
• Last Price: 3494.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4206, the sentiment is Neutral. The current price of 3494 is above the 20-day moving average (MA) of 3441.15, below the 50-day MA of 3507.68, and below the 200-day MA of 3513.52, indicating a neutral trend. The MACD of -5.45 indicates Negative momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 92.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
5393	79 Outperform	¥456.84B	14.63	13.63%	1.95%	-1.33%	9.21%
8078	79 Outperform	€289.74B	6.83	11.34%	3.38%	3.44%	6.97%
4206	73 Outperform	¥228.15B	12.57	―	3.90%	2.65%	7.16%
8020	73 Outperform	¥290.72B	10.18	―	3.13%	1.50%	9.82%
5706	69 Neutral	¥1.03T	22.11	13.77%	0.97%	6.71%	-14.98%
3401	65 Neutral	¥257.40B	9.60	-20.43%	3.72%	-8.20%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Aica Kogyo Company, Limited Corporate Events

Aica Kogyo Announces Interim Dividend Aligned with Growth Strategy

Aica Kogyo Company, Limited announced an interim dividend of ¥66 per share for the fiscal year ending March 31, 2026, aligning with its policy to maintain a progressive dividend strategy. This decision reflects the company’s commitment to balancing shareholder returns with sustainable growth, as outlined in its medium-term business plan ‘Value Creation 3000 & 300.’

Aica Kogyo Reports Modest Growth in Semi-Annual Financial Results

Aica Kogyo Company, Limited reported a slight increase in its consolidated financial results for the six months ending September 30, 2025, with net sales rising by 1.0% and profit attributable to owners increasing by 6.4% compared to the previous year. Despite a decrease in comprehensive income, the company maintained a stable financial position with an improved equity-to-asset ratio, and it plans to increase its annual dividends per share, reflecting confidence in its future performance.

Aica Kogyo Completes Share Repurchase

Aica Kogyo Company, Limited has completed the acquisition of its own shares, as decided by its Board of Directors. The company repurchased 102,900 common shares for JPY 376,269,400 through market purchases on the Tokyo Stock Exchange. This acquisition is part of a larger plan to repurchase up to 2,250,000 shares, with a total budget of JPY 6,000,000,000, aimed at optimizing capital structure and enhancing shareholder value.

Aica Kogyo Reports Progress on Treasury Share Acquisition

Aica Kogyo Company, Limited announced the status of its treasury share acquisition, having repurchased 271,500 of its common shares for JPY 1,035,098,800 between September 1 and September 30, 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 2,250,000 shares by the end of December 2025, aiming to enhance shareholder value and optimize capital structure.