MANAC Chemical Partners Co.,Ltd (4360) AI Stock Analysis

• Market Cap: ¥9.69B
• Dividend Yield: 1.93%
• Average Volume (3M): 4.14K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.74
• Revenue Growth: 13.64%
• EPS Growth: -151.98%
• Country: JP
• Employees: 220
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 16.88
• Shares Outstanding: 8,625,000
• 10 Day Avg. Volume: 4,080
• 30 Day Avg. Volume: 4,140
• PEG Ratio: <0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -11.40
• 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: 61 Neutral
• Price Target: ¥1,077.00 ▲(63.18% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by deteriorating financial performance and weak recent cash flow (losses, margin compression, and negative free cash flow). Offsetting this are strong technical momentum and a reasonable valuation (low P/E with a modest dividend), plus a low-leverage balance sheet that reduces financial risk.

Positive Factors

Conservative balance sheet — effectively no debt

A near-zero debt position materially reduces refinancing and interest-rate risk, giving management flexibility to absorb operating losses or fund restructuring without immediate external financing. This durable capital-structure strength supports resilience over the next 2–6 months.

History of solid profitability (2022–2023)

Prior years of healthy margins and profit generation indicate the underlying business and cost structure can be profitable when inputs or mix normalize. That operational history suggests a credible path to margin recovery rather than a structurally broken model.

Demonstrated ability to generate strong operating cash (2023)

The firm produced robust operating cashflow in 2023, showing the core operations can convert revenue to cash. Given the low leverage, that capability provides a realistic recovery lever: restoring prior cash conversion would rapidly improve financial flexibility and fund operations.

Negative Factors

Two-year revenue decline and margin compression

A sustained top-line decline and sharp gross-margin compression indicate structural pressure on pricing, mix, or costs. Falling revenue plus lower gross margins materially reduce operating leverage and make returning to prior profitability harder without meaningful operational or market changes.

Negative free cash flow in 2024–2025

Consecutive years of negative free cash flow shrink liquidity and force reliance on reserves or new financing to cover operations and investments. Even with low debt, persistent FCF deficits erode flexibility and could necessitate equity raises or cutbacks that impair long-term growth prospects.

Equity erosion and negative return on equity (2025)

Declining shareholder equity and negative ROE reflect value destruction from recent losses and reduce the capital buffer available for investments or downturns. Eroded equity complicates recovery efforts and increases the longer-term risk that capital structure or strategy changes will be required.

MANAC Chemical Partners Co.,Ltd Business Overview & Revenue Model

Company Description

MANAC Chemical Partners Co.,Ltd, together with its subsidiaries, engages in the development, manufacture, sale, import, and export of industrial chemicals and pharmaceuticals in Japan. It is also involved in the supply of raw materials, including flame retardants, antibacterial agents, veterinary drugs, food additives, photosensitive materials, and other materials to technological industries of various fields. In addition, the company provides warehouse leasing services. MANAC Chemical Partners Co.,Ltd was founded in 1948 and is based in Tokyo, Japan.

How the Company Makes Money

MANAC Chemical Partners Co., Ltd generates revenue through the production and sale of specialty chemicals used in various industrial applications. The company's primary revenue streams include the sale of chemical products to industries like pharmaceuticals, agriculture, and electronics, among others. Additionally, the company may engage in strategic partnerships and collaborations with other firms to enhance its product offerings and expand its market reach. Factors contributing to its earnings include its focus on innovation, efficient production processes, and maintaining strong relationships with its clients.

MANAC Chemical Partners Co.,Ltd Financial Statement Overview

Summary

Recent fundamentals weakened sharply: revenue declined two straight years, margins compressed, and results shifted to a sizable net loss in 2025. Cash generation is also a concern with negative free cash flow in 2024–2025. The key offset is a conservative balance sheet with essentially no debt, which improves resilience despite equity erosion from losses.

Income Statement

Profitability weakened materially: the company moved from healthy profits in 2022–2023 (net margin ~6.7%–6.9%) to near-breakeven in 2024 and a sizable loss in 2025 (net margin about -9.6%), with EBIT also turning meaningfully negative. Revenue has also declined for two consecutive years (down ~0.2% in 2024 and ~5.2% in 2025), and gross margin compressed from ~23.7% (2023) to ~15.8% (2025). The main positive is the history of solid profitability in 2022–2023, but the recent margin and earnings deterioration drives the below-average score.

Balance Sheet

The balance sheet looks conservative with essentially no debt in 2024–2025 (debt-to-equity at 0.0), reducing refinancing and interest-rate risk. However, equity fell from 2024 to 2025, and returns declined sharply with negative return on equity in 2025, reflecting the latest-year loss. Overall, the capital structure is a clear strength, but profitability pressure is starting to erode the equity base.

Cash Flow

Cash flow quality has deteriorated versus the strong 2023 profile: operating cash flow swung from solidly positive in 2023 to negative in 2024, then only modestly positive in 2025. Free cash flow was negative in both 2024 and 2025, indicating cash burn and/or elevated investment needs. While 2023 showed the business can generate strong cash, the last two years’ negative free cash flow meaningfully weakens financial flexibility.

Breakdown	TTM	Mar 2024	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	9.60B	9.30B	9.69B	11.85B	10.70B
Gross Profit	1.66B	1.47B	1.82B	2.81B	2.43B
EBITDA	-182.25M	-312.00M	545.00M	1.62B	1.19B
Net Income	-767.00M	-895.00M	82.00M	821.00M	712.00M
Balance Sheet
Total Assets	13.05B	12.65B	14.10B	15.01B	13.59B
Cash, Cash Equivalents and Short-Term Investments	3.09B	2.77B	3.29B	3.72B	2.04B
Total Debt	0.00	0.00	0.00	290.00M	291.00M
Total Liabilities	2.72B	2.34B	2.85B	3.97B	3.29B
Stockholders Equity	10.33B	10.30B	11.25B	11.04B	10.29B
Cash Flow
Free Cash Flow	0.00	-411.00M	-593.00M	1.40B	30.00M
Operating Cash Flow	0.00	108.00M	-118.00M	1.65B	714.00M
Investing Cash Flow	0.00	-489.00M	-231.00M	199.00M	-422.00M
Financing Cash Flow	0.00	-126.00M	-75.00M	-125.00M	-200.00M

MANAC Chemical Partners Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 660.00
• 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:4360, the sentiment is Positive. The current price of 660 is below the 20-day moving average (MA) of 981.35, below the 50-day MA of 841.30, and above the 200-day MA of 628.36, indicating a bullish trend. The MACD of 74.85 indicates Negative momentum. The RSI at 69.96 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4360.

MANAC Chemical Partners Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4040	77 Outperform	¥7.86B	0.81	―	1.96%	8.43%	2.99%
4531	72 Outperform	¥10.30B	23.47	―	2.97%	9.92%	-27.64%
6568	69 Neutral	¥9.65B	20.79	―	2.98%	-9.60%	-38.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4360	61 Neutral	¥9.69B	10.07	―	1.93%	13.64%	-151.98%
4960	60 Neutral	¥10.85B	15.26	―	1.06%	-9.63%	-1.71%
4080	48 Neutral	¥13.27B	13.41	-7.76%	―	-19.70%	-159.15%