KODAMA CHEMICAL INDUSTRY CO., LTD. (4222) AI Stock Analysis

• Market Cap: ¥19.31B
• Dividend Yield: N/A
• Average Volume (3M): 357.06K
• Price to Earnings (P/E): 0.8
• Beta (1Y): 1.38
• Revenue Growth: 220.95%
• EPS Growth: N/A
• Country: JP
• Employees: 618
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 64.18
• Shares Outstanding: 15,637,144
• 10 Day Avg. Volume: 207,350
• 30 Day Avg. Volume: 357,063
• PEG Ratio: 0.54
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 6.88
• 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: 68 Neutral
• Price Target: ¥1,400.00 ▲(95.80% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by strong technical momentum and improving financial quality through better cash flow and reduced leverage. Offsetting these positives, profitability remains weak with negative net income and low operating margins, which caps the overall rating despite a very low P/E.

Positive Factors

Free Cash Flow Recovery

A 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 Leverage

A 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 Margin

Consistent 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.

Negative Factors

Negative Net Income

Persistently 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 Equity

A 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 Risk

Revenue 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.

KODAMA CHEMICAL INDUSTRY CO., LTD. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

KODAMA CHEMICAL INDUSTRY generates revenue through the manufacturing and sale of its specialty chemicals and materials. The company’s revenue model is primarily based on direct sales to manufacturers in various sectors such as electronics, where high-performance materials are essential for product functionality. Key revenue streams include bulk sales of chemical intermediates and custom formulations tailored to client specifications. Additionally, KODAMA may engage in long-term contracts with major clients, ensuring a steady income flow. Strategic partnerships with other chemical producers and suppliers also enhance its market reach and provide opportunities for collaborative product development, further contributing to its earnings.

KODAMA CHEMICAL INDUSTRY CO., LTD. Financial Statement Overview

Summary

Cash flow is the main positive, with free cash flow turning positive (589.59M JPY) and a strong operating cash flow to net income ratio (10.83). Balance sheet leverage improved (debt-to-equity 0.97 vs 1.16), but profitability remains a key constraint with negative net income and low/pressured operating margins (EBIT margin 1.02%).

Income Statement

The company's gross profit margin shows slight improvement, reaching 15.43% in the latest year, up from 14.52% previously. However, the net profit margin remains negative, despite an increase in revenue by 7.81% from the previous year. The EBIT margin has decreased to 1.02%, and EBITDA margin stands at 8.54%, indicating pressure on operating profitability.

Balance Sheet

The debt-to-equity ratio has improved to 0.97 from 1.16, reflecting better leverage management. Return on equity remains negative due to negative net income. The equity ratio is relatively stable at 28.80%, suggesting a consistent capital structure.

Cash Flow

Free cash flow has seen a positive turnaround to 589.59 million JPY, reflecting a significant improvement. The operating cash flow to net income ratio is strong at 10.83, and the free cash flow to net income ratio shows resilience at -4.44, despite negative net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.07B	15.84B	14.70B	15.39B	14.88B	13.77B
Gross Profit	4.16B	2.44B	2.13B	2.22B	2.37B	2.19B
EBITDA	1.88B	1.35B	793.97M	1.17B	1.37B	1.30B
Net Income	22.34B	-132.85M	-243.87M	189.19M	417.23M	350.07M
Balance Sheet
Total Assets	64.65B	14.09B	14.60B	13.36B	12.89B	13.24B
Cash, Cash Equivalents and Short-Term Investments	11.27B	1.62B	1.80B	1.54B	1.95B	1.95B
Total Debt	17.70B	3.93B	4.68B	3.96B	4.64B	5.40B
Total Liabilities	36.89B	8.62B	9.36B	8.40B	8.42B	9.30B
Stockholders Equity	26.15B	4.06B	4.04B	3.90B	3.65B	3.23B
Cash Flow
Free Cash Flow	0.00	589.59M	-410.81M	306.30M	862.79M	212.67M
Operating Cash Flow	0.00	1.44B	1.41B	905.90M	1.09B	627.64M
Investing Cash Flow	0.00	-1.18B	-1.86B	-609.99M	-384.26M	-387.52M
Financing Cash Flow	0.00	-891.48M	610.11M	-812.14M	-908.17M	917.11M

KODAMA CHEMICAL INDUSTRY CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 715.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4222, the sentiment is Positive. The current price of 715 is below the 20-day moving average (MA) of 1073.65, below the 50-day MA of 901.80, and below the 200-day MA of 748.36, indicating a bullish trend. The MACD of 114.25 indicates Negative momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 36.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4222.

KODAMA CHEMICAL INDUSTRY CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5185	77 Outperform	¥30.01B	12.88	―	4.20%	-1.15%	-34.09%
5189	75 Outperform	¥6.66B	8.95	―	2.64%	2.28%	41.72%
5161	73 Outperform	¥166.35B	23.86	―	5.78%	-4.26%	17.85%
4222	68 Neutral	¥19.31B	0.82	―	―	220.95%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	58 Neutral	¥3.69B	-146.23	―	3.03%	4.17%	-693.96%
6584	47 Neutral	¥32.09B	25.56	―	3.33%	-3.91%	-36.53%