Gun Ei Chemical Industry Co., Ltd. (4229) AI Stock Analysis

• Market Cap: ¥22.73B
• Dividend Yield: 2.89%
• Average Volume (3M): 9.58K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.79
• Revenue Growth: 3.53%
• EPS Growth: 8.36%
• Country: JP
• Employees: 543
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 76.84
• Shares Outstanding: 8,998,308
• 10 Day Avg. Volume: 9,850
• 30 Day Avg. Volume: 9,580
• PEG Ratio: -1.74
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 14.35
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥3,701.00 ▲(3.09% Upside)

Gun Ei Chemical Industry Co., Ltd. receives a solid overall stock score due to its strong financial performance and reasonable valuation. While technical analysis shows some short-term weakness, the company's robust financial health and attractive dividend yield support a positive outlook.

Positive Factors

Financial Health

The company's strong financial health, characterized by consistent revenue and profit growth, positions it well for continued stability and growth in the specialty chemicals industry.

Balance Sheet Strength

A robust balance sheet with low debt levels and a strong equity base provides financial stability and reduces risk, supporting long-term growth and investment capacity.

Cash Flow Management

Effective cash flow management, with stable operating cash flow and positive free cash flow, ensures the company can fund operations and investments, supporting long-term sustainability.

Negative Factors

Revenue Growth Slowdown

A recent dip in revenue growth indicates potential challenges in maintaining past growth rates, which could impact future market position and profitability.

Earnings Decline

A decline in earnings per share growth suggests potential issues in maintaining profitability, which could affect investor confidence and future financial performance.

Free Cash Flow Decline

A decline in free cash flow could limit the company's ability to invest in growth opportunities or return capital to shareholders, impacting long-term strategic initiatives.

Gun Ei Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Gun Ei Chemical Industry Co., Ltd. (4229) is a leading manufacturer in the chemical industry, specializing in the production of high-quality chemical products used across various sectors including textiles, plastics, and electronics. The company is known for its innovative chemical solutions, which include dyes, pigments, and specialty chemicals, aimed at enhancing product performance and sustainability. With a strong commitment to research and development, Gun Ei Chemical focuses on meeting the evolving needs of its clients while adhering to environmental regulations.

How the Company Makes Money

Gun Ei Chemical Industry Co., Ltd. generates revenue primarily through the sale of its chemical products to manufacturers in diverse industries such as textiles, automotive, and electronics. The company's revenue model is based on producing and supplying specialty chemicals, which are often customized to meet specific client requirements. Key revenue streams include bulk sales of dyes and pigments, as well as contract manufacturing services for specific chemical formulations. Additionally, strategic partnerships with major industrial players enhance its distribution capabilities and market reach, contributing to consistent earnings. The company may also benefit from long-term contracts and agreements with significant clients, ensuring a stable cash flow.

Gun Ei Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Gun Ei Chemical Industry Co., Ltd. demonstrates strong financial health with consistent revenue and profit growth, a solid capital structure, and effective cash flow management. The company is well-positioned for continued stability and growth in the specialty chemicals industry.

Income Statement

Gun Ei Chemical Industry Co., Ltd. shows strong performance in its income statement with consistent revenue and net income growth over the years. The gross profit margin and net profit margin indicate healthy profitability. Despite a slight dip in revenue and profitability in 2025, the overall trajectory remains positive.

Balance Sheet

The company maintains a robust balance sheet, characterized by a strong equity base and low debt levels. The debt-to-equity ratio is particularly favorable, reflecting financial stability. The equity ratio is high, indicating a solid capital structure and low financial risk.

Cash Flow

Cash flow analysis reveals a stable operating cash flow with positive free cash flow generation, although there was a decline in free cash flow in 2025. The operating cash flow to net income ratio remains strong, highlighting the company's ability to convert profits into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.64B	30.55B	30.31B	31.39B	29.41B	25.19B
Gross Profit	6.55B	6.53B	6.88B	5.91B	6.70B	6.03B
EBITDA	4.44B	4.42B	4.62B	3.41B	4.35B	4.01B
Net Income	1.85B	1.92B	2.04B	1.20B	1.93B	1.61B
Balance Sheet
Total Assets	63.24B	63.02B	61.01B	54.60B	54.68B	51.98B
Cash, Cash Equivalents and Short-Term Investments	11.17B	10.95B	9.55B	9.26B	10.69B	11.14B
Total Debt	657.00M	735.00M	690.00M	662.00M	633.00M	91.00M
Total Liabilities	11.35B	11.28B	10.73B	8.49B	9.78B	8.23B
Stockholders Equity	50.05B	49.75B	48.53B	44.56B	43.42B	42.20B
Cash Flow
Free Cash Flow	0.00	1.38B	1.82B	-533.00M	1.28B	2.29B
Operating Cash Flow	0.00	4.33B	3.64B	1.20B	2.45B	3.57B
Investing Cash Flow	0.00	-2.81B	-2.16B	-2.46B	-942.00M	-806.00M
Financing Cash Flow	0.00	-875.00M	-774.00M	-687.00M	-746.00M	-1.31B

Gun Ei Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3590.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4229, the sentiment is Positive. The current price of 3590 is above the 20-day moving average (MA) of 3443.50, above the 50-day MA of 3402.82, and above the 200-day MA of 3003.43, indicating a bullish trend. The MACD of 29.87 indicates Negative momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 84.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4229.

Gun Ei Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4229	75 Outperform	¥22.73B	11.94	―	2.89%	3.53%	8.36%
4973	72 Outperform	¥17.57B	13.11	―	4.07%	18.02%	18.04%
4092	66 Neutral	¥25.66B	10.19	―	4.13%	-3.41%	-12.83%
4113	66 Neutral	¥17.11B	9.04	―	3.27%	13.09%	89.45%
4410	66 Neutral	¥21.47B	20.67	―	4.66%	7.19%	―
4968	64 Neutral	¥22.54B	13.00	―	4.44%	5.72%	28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Gun Ei Chemical Industry Co., Ltd. Corporate Events

Gun-Ei Chemical Reports Q1 2025 Financial Results with Mixed Outcomes

Gun-Ei Chemical Industry Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 1.2% year-on-year to ¥7,724 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, reflecting challenges in maintaining profitability despite sales growth. The financial forecast for the fiscal year ending March 31, 2026, predicts a modest increase in net sales but anticipates continued pressure on profits, highlighting the need for strategic adjustments to enhance financial performance.