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

• Market Cap: ¥16.13B
• Dividend Yield: N/A
• Average Volume (3M): 357.06K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 1.39
• 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: ¥1,129.00 ▲(57.90% 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 turnaround

A sustained positive free cash flow position improves the company's ability to fund capex, service obligations and invest in tooling or process improvements without external financing. Strong operating cash conversion (OCF to net income) cushions operations while profitability recovers.

Improved leverage / balance sheet

Lower leverage reduces refinancing risk and interest burden, increasing financial flexibility for capital allocation. A more conservative debt-to-equity ratio supports sustaining operations through cyclical demand in auto parts and enables targeted investments or working capital support.

Revenue growth with gross margin uptick

Top-line growth alongside a rising gross margin suggests improved sales volumes or mix and incremental cost control. This trend supports longer-term competitiveness in contract plastics manufacturing by enhancing unit economics and capacity to absorb fixed costs.

Negative Factors

Negative net income

Ongoing net losses erode retained earnings and constrain internal equity growth, limiting the company's ability to finance expansion or weather downturns. Persistent losses also weaken stakeholder confidence and can pressure access to capital if unreversed.

Very thin operating margin

Extremely low EBIT margins leave little buffer against raw-material swings, pricing pressure from OEMs, or operational disruptions. Structural margin pressure limits reinvestment capacity and reduces returns on incremental revenue, challenging sustainable profitability.

Negative ROE and limited equity buffer

Negative ROE signals shareholder capital is not generating returns, making it harder to attract investment. A modest equity ratio leaves a thinner cushion against losses or industry cyclicality, increasing vulnerability during prolonged downturns in automotive demand.

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

The company primarily makes money by manufacturing and selling plastic (resin) molded products and processed plastic components to corporate customers. Revenue is generated through (1) sales of mass-produced molded parts supplied under ongoing customer programs (typically tied to customer production volumes), and (2) sales of custom/engineered plastic components where pricing reflects specifications, materials, tooling, processing, and quality requirements. Earnings are influenced by factors common to contract manufacturing and component supply: customer production demand, the ability to secure and retain long-term supply relationships, pricing and pass-through of raw material costs (e.g., resin prices), manufacturing efficiency/yield, and capacity utilization. Specific details on segment breakdowns, named major customers, or material long-term partnership agreements are null.

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	2.38B	2.06B	2.15B	2.30B	2.10B
EBITDA	2.53B	1.32B	882.00M	1.03B	1.38B	1.31B
Net Income	22.34B	-132.85M	-243.86M	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	-392.26M	320.30M	871.40M	282.64M
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: Positive
• RSI: Neutral
• STOCH: Positive

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 1175.80, below the 50-day MA of 1015.92, and below the 200-day MA of 778.50, indicating a neutral trend. The MACD of 7.66 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 12.24 is Positive, 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	¥26.04B	14.38	―	4.20%	-1.15%	-34.09%
5189	75 Outperform	¥6.56B	5.89	―	2.64%	2.28%	41.72%
5161	73 Outperform	¥144.94B	16.04	―	5.78%	-4.26%	17.85%
4222	68 Neutral	¥16.13B	2.79	―	―	220.95%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	57 Neutral	¥4.20B	10.35	―	3.03%	4.17%	-693.96%
6584	47 Neutral	¥24.86B	-5.63	―	3.33%	-3.91%	-36.53%