Carlit Holdings Co., Ltd. (4275) AI Stock Analysis

• Market Cap: ¥44.54B
• Dividend Yield: 1.92%
• Average Volume (3M): 112.33K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.03
• Revenue Growth: -0.86%
• EPS Growth: 17.65%
• Country: JP
• Employees: 1,067
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 37.03
• Shares Outstanding: 24,050,000
• 10 Day Avg. Volume: 140,720
• 30 Day Avg. Volume: 112,333
• PEG Ratio: -12.69
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 19.30
• 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: 80 Outperform
• Price Target: ¥1,927.00 ▲(2.83% Upside)

Carlit Holdings Co., Ltd. demonstrates strong financial performance with stable growth and low leverage, complemented by bullish technical indicators. The valuation is attractive, offering a good balance of growth and income potential. The absence of recent earnings call data and corporate events does not detract from the positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Carlit Holdings' products, supporting its market position and potential for future expansion.

Cash Flow Management

Efficient cash flow management allows Carlit Holdings to reinvest in growth opportunities and service debt, enhancing long-term financial stability.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk, providing Carlit Holdings with resilience against economic fluctuations.

Negative Factors

Profit Margin Fluctuations

Fluctuations in profit margins could indicate challenges in cost management or pricing power, potentially affecting long-term profitability.

Earnings Call Data Absence

Lack of earnings call data limits transparency and investor insight into management's strategic direction, affecting confidence in future performance.

Margin Sustainability

Sustaining profit margins is crucial for long-term competitiveness; fluctuations may signal potential issues in cost control or market pressures.

Carlit Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Carlit Holdings Co., Ltd., through its subsidiaries, manufactures and sells industrial explosives used in quarrying limestone and other rocks. It also manufactures and sells automotive emergency flares used to protect people's safety during accidents or disasters; sodium chlorate, which is used as bleach in the paper manufacturing and textile industries; ammonium perchlorate for use as a raw material of solid propellants for rockets; electrolytes for electrolytic capacitors; electrolytic solution for electric double-layer capacitors and computers; and abrasive wheels and fireproofing materials for steelmaking and other industries. In addition, the company is involved in the material hazard assessment testing and battery testing businesses; contract manufacture of canned beverages and PET bottle beverages; and manufacture and sale of silicon wafers for semiconductors used in computers and LED lighting, heat-resistant metal hardware for inside furnaces employed in urban waste incineration and petrochemical-related facilities, and springs for automobiles and construction machinery. Further, it is involved in the design and supervision of sewerage, water supply, and wastewater treatment facilities; sale and application of industrial coatings and paints; and provision of construction engineering services on a contract basis. The company was incorporated in 2013 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Carlit Holdings generates revenue through multiple streams, primarily by manufacturing and selling high-performance materials and components to various industries. Their revenue model includes direct sales to large corporations in the electronics and automotive sectors, where they supply specialized products that meet the specific needs of their clients. Additionally, the company engages in long-term contracts with strategic partners, ensuring a steady flow of income. Research and development initiatives also contribute to their revenue by enabling the introduction of new products to the market, often accompanied by licensing agreements. Overall, Carlit Holdings benefits from its established reputation for quality and innovation, which attracts a diverse client base and fosters long-term relationships, thereby enhancing its earnings potential.

Carlit Holdings Co., Ltd. Financial Statement Overview

Summary

Carlit Holdings Co., Ltd. demonstrates strong financial health with consistent revenue growth, a robust balance sheet, and efficient cash flow management. Despite minor fluctuations in profit margins, the company's low leverage and financial stability provide a solid foundation for future growth.

Income Statement

The company has shown consistent revenue growth from 2022 to 2025, with a notable increase in gross profit margin from 2021. However, there was a slight drop in both EBIT and Net Profit margins in the latest year. Despite this, the overall trend in revenue and profit indicates a stable growth trajectory.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio due to decreasing total debt and increasing stockholders' equity over the years. The equity ratio is high, indicating a solid financial structure and low leverage risk, which enhances financial stability.

Cash Flow

The company has demonstrated strong free cash flow growth, particularly from 2024 to 2025. Operating cash flows have consistently exceeded net income, indicating efficient cash management. The free cash flow to net income ratio is healthy, supporting potential reinvestment and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.81B	36.91B	36.58B	36.01B	33.89B	45.54B
Gross Profit	9.20B	9.25B	9.50B	8.69B	8.65B	7.64B
EBITDA	5.73B	5.76B	5.52B	4.35B	4.36B	3.82B
Net Income	2.50B	2.57B	2.60B	2.25B	2.34B	1.23B
Balance Sheet
Total Assets	55.35B	53.01B	55.15B	51.23B	50.08B	50.95B
Cash, Cash Equivalents and Short-Term Investments	5.73B	4.95B	2.92B	3.97B	3.77B	5.55B
Total Debt	3.41B	1.13B	1.80B	2.88B	3.48B	7.70B
Total Liabilities	18.25B	15.53B	18.37B	18.05B	19.18B	21.98B
Stockholders Equity	37.09B	37.48B	36.77B	33.18B	30.90B	28.98B
Cash Flow
Free Cash Flow	0.00	1.29B	377.00M	989.00M	2.02B	2.86B
Operating Cash Flow	0.00	4.70B	2.15B	2.06B	3.06B	4.19B
Investing Cash Flow	0.00	-991.00M	-1.37B	-65.00M	-984.00M	-1.14B
Financing Cash Flow	0.00	-1.70B	-1.84B	-1.78B	-3.98B	-2.19B

Carlit Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1874.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4275, the sentiment is Positive. The current price of 1874 is above the 20-day moving average (MA) of 1738.25, above the 50-day MA of 1607.58, and above the 200-day MA of 1298.66, indicating a bullish trend. The MACD of 75.27 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 60.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4275.

Carlit Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4275	80 Outperform	¥44.54B	15.81	―	1.92%	-0.86%	17.65%
4462	78 Outperform	¥32.49B	12.49	―	1.90%	2.15%	16.14%
4022	77 Outperform	¥48.56B	11.38	―	2.22%	5.17%	79.36%
4027	75 Outperform	¥26.38B	14.09	―	3.24%	1.83%	-8.54%
4112	67 Neutral	¥32.74B	17.11	―	2.37%	-11.70%	-54.82%
4968	64 Neutral	¥23.21B	13.39	―	4.27%	5.72%	28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Carlit Holdings Co., Ltd. Corporate Events

Carlit Holdings Releases FY2026 First Half Results Briefing Video

Carlit Holdings Co., Ltd. has announced the availability of its Results Briefing video for the first half of FY2026, which was initially live-streamed for institutional investors and securities analysts. The video, now accessible on YouTube, covers financial highlights, full-year plans, and a business overview and strategy, featuring presentations from key executives including the CFO and CEO. This move reflects the company’s commitment to fair disclosure and transparency with its stakeholders.

Carlit Co., Ltd. Advances Share Repurchase Program

Carlit Co., Ltd. has announced the progress of its share repurchase program, which involves the acquisition of 71,500 common shares at a total cost of 115,175,100 yen. This move, part of a broader strategy approved by the Board of Directors, aims to repurchase up to 500,000 shares by February 2026, potentially impacting shareholder value and market perception.

Carlit Holdings Initiates Subsidiary Merger for Enhanced Efficiency

Carlit Holdings Co., Ltd. has announced the commencement of preparations for an absorption-type merger between its subsidiaries, General Design Co., Ltd. and SD Network Co., Ltd., effective April 1, 2026. The merger aims to unify management structures, enhance efficiency, and strengthen governance, with General Design as the surviving entity. The merger is expected to have an immaterial impact on the company’s consolidated results as it involves wholly-owned subsidiaries.

Carlit Holdings Reports Strong Profit Growth Despite Sales Decline

Carlit Holdings Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a slight decline in net sales by 1.6% compared to the previous year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 25.9%, 19.9%, and 20.8% respectively. The company’s comprehensive income also rose by 42.7%, indicating a strong financial performance despite the decrease in sales. The equity-to-asset ratio slightly decreased from 70.7% to 67.3%, reflecting changes in the company’s financial position. The forecast for the full fiscal year anticipates growth in net sales and profits, with a revision in the cash dividend forecast.

Carlit Holdings Revises Financial Forecasts and Increases Dividend Payout

Carlit Holdings Co., Ltd. announced a revision in its financial forecasts for the fiscal year ending March 31, 2026, after surpassing initial projections for the six months ended September 30, 2025. The company’s improved performance is attributed to strong domestic demand and effective cost management, leading to increased profits in its key segments. Consequently, Carlit has adjusted its full-year profit forecasts upward and plans to increase its year-end dividend payout, reflecting a commitment to shareholder returns.

Carlit Holdings Announces Share Repurchase and Cancellation Plan

Carlit Holdings Co., Ltd. announced a decision to repurchase and cancel up to 500,000 of its common shares as part of its medium-term management plan, ‘Challenge 2027.’ This move is intended to provide flexible shareholder returns and improve capital efficiency. The repurchase will occur between November 13, 2025, and February 27, 2026, with a maximum expenditure of ¥0.5 billion. The cancellation of these shares is scheduled for March 27, 2026. This strategic action aligns with the company’s commitment to optimizing its capital structure and enhancing shareholder value.

Carlit Holdings Updates Shareholder Benefits Program

Carlit Holdings Co., Ltd. has announced a partial amendment to its shareholder benefit program, changing the gift card offered from a UC Gift Card to a Jeff Gourmet Card. This change is aimed at strengthening relationships with long-term shareholders and will take effect for shareholders recorded on March 31, 2026.