Free Cash Flow RecoveryA sustained positive free cash flow (589.59M JPY) and a very high operating-cash-to-net-income ratio (10.83) indicate the business generates real cash versus accounting profits. That cash cushion supports working capital, capex, deleveraging or investments even while earnings remain weak.

Improving LeverageA meaningful reduction in debt-to-equity (1.16 to 0.97) and a stable equity ratio (28.8%) reduce financial risk and interest burden. Lower leverage increases strategic flexibility for capex or reshoring, and improves resilience to auto-cycle downturns over the medium term.

Top-Line Growth And Gross MarginConsistent revenue growth (7.81% YoY) combined with a modestly improved gross margin (15.43%) points to demand resilience and some pricing or efficiency gains in molding operations. This supports scale benefits and the ability to invest in process improvements over coming quarters.

Bears Say

Negative Net IncomePersistently negative net income and a razor-thin EBIT margin (1.02%) mean operating profitability is weak. Such low operating leverage leaves little buffer for raw-material cost swings or order losses, constraining retained earnings and long-term reinvestment capacity.

Negative Return On EquityA negative ROE signals the company is not generating acceptable returns on shareholder capital. Over time this limits ability to attract incremental equity, can raise the cost of capital, and may force reliance on debt or curtailment of growth investments if profitability doesn’t improve.

Customer And Input Concentration RiskRevenue dependence on customer production schedules and exposure to resin commodity prices and capacity utilization creates structural cyclicality. If customers cut automotive output or resin pass-through is limited, margins and volumes can swing materially over multiple quarters.

4222 FAQ

What was KODAMA CHEMICAL INDUSTRY CO., LTD.’s price range in the past 12 months?

KODAMA CHEMICAL INDUSTRY CO., LTD. lowest stock price was ¥303.00 and its highest was ¥1491.00 in the past 12 months.

What is KODAMA CHEMICAL INDUSTRY CO., LTD.’s market cap?

KODAMA CHEMICAL INDUSTRY CO., LTD.’s market cap is ¥17.27B.

When is KODAMA CHEMICAL INDUSTRY CO., LTD.’s upcoming earnings report date?

KODAMA CHEMICAL INDUSTRY CO., LTD.’s upcoming earnings report date is Aug 06, 2026 which is in 148 days.

How were KODAMA CHEMICAL INDUSTRY CO., LTD.’s earnings last quarter?

KODAMA CHEMICAL INDUSTRY CO., LTD. released its earnings results on Feb 13, 2026. The company reported ¥64.18 earnings per share for the quarter, beating the consensus estimate of N/A by ¥64.18.

Is KODAMA CHEMICAL INDUSTRY CO., LTD. overvalued?

According to Wall Street analysts KODAMA CHEMICAL INDUSTRY CO., LTD.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does KODAMA CHEMICAL INDUSTRY CO., LTD. pay dividends?

KODAMA CHEMICAL INDUSTRY CO., LTD. does not currently pay dividends.

What is KODAMA CHEMICAL INDUSTRY CO., LTD.’s EPS estimate?

KODAMA CHEMICAL INDUSTRY CO., LTD.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does KODAMA CHEMICAL INDUSTRY CO., LTD. have?

KODAMA CHEMICAL INDUSTRY CO., LTD. has 15,637,144 shares outstanding.

What happened to KODAMA CHEMICAL INDUSTRY CO., LTD.’s price movement after its last earnings report?

KODAMA CHEMICAL INDUSTRY CO., LTD. reported an EPS of ¥64.18 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -6.303%.

Which hedge fund is a major shareholder of KODAMA CHEMICAL INDUSTRY CO., LTD.?

Currently, no hedge funds are holding shares in JP:4222

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

KODAMA CHEMICAL INDUSTRY CO., LTD.

Kodama Chemical Industry Co.,Ltd. manufactures and sells plastic products in Japan and internationally. The company offers rear seat structural material, center console molding, door trim accent panel, door upper, back panel, west spoiler, construction equipment and cab interior ceiling, and exterior ceiling for tractors. It also provides bathroom vanity and interior, towel rack, mirror cabinet, paper roll, and handrail. In addition, it develops and manufactures hydroponic resin transport trays for unmanned cultivation systems. The company was formerly known as Kodama Metal Industry Co., Ltd. and changed its name to Kodama Chemical Industry Co.,Ltd. in 1955. Kodama Chemical Industry Co.,Ltd. was incorporated in 1946 and is headquartered in Tokyo, Japan.