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

• Market Cap: ¥9.92B
• Dividend Yield: 1.93%
• Average Volume (3M): 4.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• 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: 56 Neutral
• Price Target: ¥1,144.00 ▲(73.33% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held back primarily by deteriorating fundamentals—loss-making results, margin compression, and negative free cash flow in the last two years—despite the strength of a debt-free balance sheet. Technicals are a meaningful positive with a clear uptrend and supportive momentum, while valuation is only modestly supported by the dividend given the negative P/E from recent losses.

Positive Factors

Debt-free balance sheet

A virtually zero debt load meaningfully reduces refinancing and interest-rate risk, preserving financial flexibility. Over a 2–6 month horizon this capital structure supports continued operations, potential opportunistic investment or M&A, and shields the company while earnings recover.

Prior profitable track record (2022–2023)

The firm delivered healthy net margins (~6.7%–6.9%) recently, showing the business model can generate sustainable profits. This historical profitability indicates underlying product economics and operational levers that could be redeployed to restore margins if cost or demand pressures ease.

Demonstrated strong cash generation in 2023

A prior ability to generate strong operating cash flow signals that the company can convert earnings into cash when margins stabilize. This supports medium-term resilience and the potential to fund investments or dividends without relying on external financing once operations normalize.

Negative Factors

Recent sharp profit deterioration

A swing to a sizable loss and negative margins undermines internal funding and erodes retained earnings. Persisting losses reduce reinvestment capacity, may force cost cuts or strategic shifts, and weaken stakeholders' confidence in a sustainable earnings recovery over the next several months.

Negative free cash flow in 2024–2025

Consecutive years of negative free cash flow strain liquidity and limit strategic optionality despite no debt. Continued cash burn can force asset sales, dividend cuts, or equity funding, increasing execution risk and making it harder to sustain operations if profitability does not recover.

Two-year revenue decline and margin compression

Falling revenue and materially compressed gross margins indicate weakening demand or worsening cost structure. Loss of scale and pricing power can be persistent, making margin recovery harder and threatening long-term competitiveness unless structural issues are addressed.

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

Income statement and cash flow trends are weak: margins compressed sharply, profitability fell to a sizable loss in 2025, and free cash flow was negative in 2024–2025. The key offset is a conservative balance sheet with essentially no debt, which supports resilience despite the earnings downturn.

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: Negative
• 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 965.95, below the 50-day MA of 831.74, and above the 200-day MA of 625.17, indicating a bullish trend. The MACD of 71.60 indicates Negative momentum. The RSI at 74.16 is Negative, neither overbought nor oversold. The STOCH value of 91.73 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	¥8.69B	3.04	―	1.96%	8.43%	2.99%
4531	72 Outperform	¥10.67B	15.77	―	2.97%	9.92%	-27.64%
6568	69 Neutral	¥10.16B	20.66	―	2.98%	-9.60%	-38.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4960	60 Neutral	¥11.54B	93.74	―	1.06%	-9.63%	-1.71%
4360	56 Neutral	¥9.92B	-42.95	―	1.93%	13.64%	-151.98%
4080	48 Neutral	¥13.27B	-10.19	-7.76%	―	-19.70%	-159.15%