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

• Market Cap: ¥12.95B
• Dividend Yield: N/A
• Average Volume (3M): 995.97K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 1.23
• Revenue Growth: 116.38%
• EPS Growth: N/A
• Country: JP
• Employees: 618
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Auto - Parts
• EPS (TTM): 3.18
• Shares Outstanding: 15,671,691
• 10 Day Avg. Volume: 602,750
• 30 Day Avg. Volume: 995,970
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥602.00
• Price Target Upside: -27.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥602.00 ▼(-27.47% Downside)

The overall score reflects modest improvements in the company's financial management, particularly in cash flow and leverage, but these are offset by persistent profitability issues and a weak valuation due to negative earnings. Technical indicators suggest neutral momentum, lacking strong directional signals.

Positive Factors

Cash Flow Improvement

The significant improvement in free cash flow indicates enhanced operational efficiency and financial health, providing more resources for reinvestment and debt reduction.

Leverage Management

Better leverage management reflects the company's ability to control debt levels, reducing financial risk and potentially lowering interest costs, which supports long-term stability.

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market presence and product demand, which is crucial for long-term business sustainability.

Negative Factors

Negative Profit Margins

Persistent negative profit margins highlight ongoing challenges in cost management and profitability, which could hinder future growth and investment capabilities.

Low Operating Margins

Declining operating margins suggest inefficiencies and competitive pressures, potentially limiting the company's ability to invest in growth and innovation.

Negative Net Income

Negative net income indicates challenges in achieving profitability, which can impact the company's ability to fund operations and strategic initiatives without external financing.

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

Company Description

Kodama Chemical Industry Co., Ltd. (4222) is a Japanese company primarily engaged in the production and distribution of chemical products. The company specializes in the development of industrial chemicals, resins, and related materials used in a variety of sectors, including automotive, construction, and electronics. Kodama Chemical is known for its commitment to research and innovation, offering high-quality products that meet the evolving needs of its clients across different industries.

How the Company Makes Money

Kodama Chemical Industry Co., Ltd. generates revenue through the sale of its chemical products and materials. The company's key revenue streams include the production of industrial chemicals and resins, which are supplied to manufacturers in the automotive, construction, and electronics sectors. By leveraging its expertise in chemical engineering and maintaining strong relationships with industry partners, Kodama Chemical ensures a steady demand for its products. Additionally, the company's focus on research and development enables it to innovate and offer new solutions, further enhancing its competitive edge and expanding its market reach.

KODAMA CHEMICAL INDUSTRY CO., LTD. Financial Statement Overview

Summary

Kodama Chemical Industry Co., Ltd. shows improvement in cash flow generation and leverage management. However, persistent negative net income and low operating margins highlight ongoing challenges in achieving profitability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.84B	15.84B	14.70B	15.39B	14.88B	13.77B
Gross Profit	2.44B	2.44B	2.13B	2.22B	2.37B	2.19B
EBITDA	1.35B	1.35B	793.97M	1.17B	1.37B	1.30B
Net Income	-131.94M	-132.85M	-243.87M	189.19M	417.23M	350.07M
Balance Sheet
Total Assets	14.09B	14.09B	14.60B	13.36B	12.89B	13.24B
Cash, Cash Equivalents and Short-Term Investments	1.62B	1.62B	1.80B	1.54B	1.95B	1.95B
Total Debt	3.93B	3.93B	4.68B	3.96B	4.64B	5.40B
Total Liabilities	8.62B	8.62B	9.36B	8.40B	8.42B	9.30B
Stockholders Equity	4.06B	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: 830.00
• 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:4222, the sentiment is Positive. The current price of 830 is below the 20-day moving average (MA) of 842.50, above the 50-day MA of 697.20, and above the 200-day MA of 507.58, indicating a neutral trend. The MACD of 39.46 indicates Positive momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 37.46 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
7551	82 Outperform	¥10.25B	7.17		4.23%	0.94%	-1.43%
7218	78 Outperform	¥10.76B	6.26		2.90%	-7.85%	-34.41%
7247	74 Outperform	¥12.75B	5.08		3.68%	0.85%	94.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4222	58 Neutral	¥12.95B	0.58		―	116.38%	―
7212	58 Neutral	¥14.72B	―		2.53%	-2.19%	-601.89%
3434	55 Neutral	¥11.52B	47.19		4.15%	-3.59%	-130.55%