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

• Market Cap: ¥11.06B
• Dividend Yield: N/A
• Average Volume (3M): 357.06K
• Price to Earnings (P/E): 0.5
• Beta (1Y): 1.36
• Revenue Growth: 220.95%
• EPS Growth: N/A
• Country: JP
• Employees: 618
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 26.56
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥935.00 ▲(33.95% Upside)

The overall stock score of 62 reflects a combination of improving financial management and positive technical indicators. The company's ability to generate positive cash flow and manage leverage is a strength, but ongoing profitability challenges and a lack of dividend yield weigh on the valuation. The technical analysis suggests a stable upward trend, supporting a moderately positive outlook.

Positive Factors

Cash Flow Improvement

Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Leverage Management

Better leverage management reduces financial risk, supporting long-term sustainability and potential for future investments.

Revenue Growth

Steady revenue growth indicates strong demand for products and effective market positioning, supporting future expansion.

Negative Factors

Negative Net Income

Ongoing profitability challenges can hinder reinvestment and growth, impacting long-term financial health and shareholder returns.

Low Operating Margins

Pressure on operating margins limits profitability, reducing the company's ability to absorb cost increases or invest in growth initiatives.

Negative Return on Equity

Negative ROE reflects inefficient use of equity capital, potentially deterring investors and affecting long-term capital raising capabilities.

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

Company Description

KODAMA CHEMICAL INDUSTRY CO., LTD. (4222) is a Japanese company specializing in the production and sale of specialty chemicals and advanced materials. The company operates primarily in the sectors of chemical manufacturing, focusing on high-performance materials used in various industries, including electronics, automotive, and pharmaceuticals. Core products include chemical intermediates, polymers, and additives that cater to the needs of diverse industrial applications.

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

Kodama Chemical Industry Co., Ltd. shows improvement in cash flow and leverage management, with a positive free cash flow turnaround. However, persistent negative net income and low operating margins highlight ongoing profitability challenges.

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	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: Neutral
• Last Price: 698.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 698 is below the 20-day moving average (MA) of 721.20, below the 50-day MA of 732.54, and above the 200-day MA of 629.17, indicating a neutral trend. The MACD of -13.39 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥10.39B	7.57	―	4.17%	-1.52%	-7.80%
7247	75 Outperform	¥11.98B	4.25	―	3.92%	-1.72%	168.62%
7218	74 Outperform	¥11.64B	6.44	―	2.93%	-3.24%	-26.11%
4222	62 Neutral	¥11.06B	0.49	―	―	220.95%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3434	58 Neutral	¥10.95B	-58.67	―	4.37%	-5.07%	-120.70%
7212	54 Neutral	¥14.61B	-8.26	―	2.54%	-2.67%	33.63%