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

• Market Cap: ¥18.69B
• Dividend Yield: 3.55%
• Average Volume (3M): 13.88K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.79
• Revenue Growth: 0.78%
• EPS Growth: -5.93%
• Country: JP
• Employees: 543
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 79.27
• Shares Outstanding: 8,998,308
• 10 Day Avg. Volume: 8,270
• 30 Day Avg. Volume: 13,876
• PEG Ratio: -0.61
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -54.24
• 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

• Rating: 71 Outperform
• Price Target: ¥3,202.00 ▲(11.76%Upside)

Gun Ei Chemical Industry Co., Ltd. has a strong financial foundation, which is the most significant factor in its overall positive stock score. However, short-term technical indicators suggest bearish momentum, which tempers the score. Valuation metrics are favorable, offering reasonable pricing and a good dividend yield.

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

Company Description

Gun Ei Chemical Industry Co., Ltd. (4229) is a Japanese company engaged in the manufacture and sale of chemical products. The company's operations are primarily focused on the production of chemical intermediates, specialty chemicals, and related products that serve various industries, including pharmaceuticals, agrochemicals, and industrial applications. Gun Ei Chemical prioritizes innovation and quality, ensuring that its products meet the highest standards required by its diverse clientele.

How the Company Makes Money

Gun Ei Chemical Industry Co., Ltd. generates revenue primarily through the sale of its chemical products. The company's key revenue streams include the sale of chemical intermediates used in the production of pharmaceuticals and agrochemicals, as well as specialty chemicals for industrial applications. The company likely engages in strategic partnerships with other firms for research and development to enhance its product offerings and maintain competitive pricing. Additionally, Gun Ei Chemical may benefit from long-term contracts with major industrial clients, providing a stable source of income. The company's focus on high-quality and innovative products helps it maintain a strong market position, contributing to its overall financial performance.

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. Despite a slight dip in 2025, the company's overall trajectory remains positive.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
29.80B	30.55B	30.31B	31.39B	29.41B	25.19B
	Gross Profit
6.25B	6.53B	6.88B	5.91B	6.70B	6.03B
	EBIT
2.02B	2.29B	2.73B	1.66B	2.49B	2.22B
	EBITDA
3.33B	4.42B	4.62B	3.41B	4.11B	3.89B
	Net Income Common Stockholders
1.59B	1.92B	2.04B	1.20B	1.93B	1.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.29B	10.95B	9.55B	9.26B	10.69B	11.14B
	Total Assets
61.76B	63.02B	61.01B	54.60B	54.68B	51.98B
	Total Debt
698.00M	735.00M	690.00M	662.00M	633.00M	91.00M
	Net Debt
-8.69B	-8.52B	-7.94B	-7.10B	-6.36B	-6.65B
	Total Liabilities
10.69B	11.28B	10.73B	8.49B	9.78B	8.23B
	Stockholders Equity
49.22B	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: Negative
• Last Price: 2865.00
• 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:4229, the sentiment is Negative. The current price of 2865 is below the 20-day moving average (MA) of 2895.65, below the 50-day MA of 2980.74, and above the 200-day MA of 2768.88, indicating a neutral trend. The MACD of -50.99 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4113	79 Outperform	¥17.70B	11.97		3.56%	4.85%	80.14%
4973	72 Outperform	¥17.96B	11.71		3.93%	10.43%	187.34%
4229	71 Outperform	¥18.69B	9.74		3.55%	0.78%	-5.93%
4968	71 Outperform	¥20.89B	7.90		4.75%	11.10%	―
4092	69 Neutral	¥17.52B	6.85		4.62%	0.79%	61.23%
4410	59 Neutral	¥19.78B	24.99		5.34%	9.40%	―
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

Gun Ei Chemical Industry Co., Ltd. Corporate Events

Gun-Ei Chemical Reports Fiscal Year 2025 Results with Modest Sales Growth

Gun-Ei Chemical Industry Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.8% to ¥30,545 million. However, there was a decline in operating profit by 16% and ordinary profit by 14.1%. The company plans to maintain its dividend payout, reflecting a stable approach despite the decrease in profits. The financial forecast for the next fiscal year indicates a modest growth in net sales by 1.5%, with a slight increase in operating profit, but a decrease in ordinary profit and profit attributable to owners of the parent.

Gun Ei Chemical Industry Announces Director Candidates for Shareholder Meeting

Gun Ei Chemical Industry Co., Ltd. announced a resolution by its Board of Directors to propose candidates for director positions at the upcoming Annual General Meeting of Shareholders. This decision includes both reappointments and new appointments, such as Mitsuhiro Arai’s elevation to Director Executive Officer and Division Manager of Sales & Marketing Division, reflecting strategic leadership continuity and potential shifts in company operations.