Kawaguchi Chemical Industry Co., Ltd. (JP:4361)
:4361
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Kawaguchi Chemical Industry Co., Ltd.
(4361)
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Rating:68Neutral
Price Target:
¥1,606.00
▲(12.46% Upside)
Action:ReiteratedDate:01/22/26
The score is driven by attractive valuation (low P/E and solid yield) and strong technical momentum (trading above major moving averages with positive MACD). Offsetting these positives, financial performance is mixed with a 2025 revenue decline, modest profitability, relatively high leverage, and historically volatile cash flow despite a notable 2025 rebound.
Positive Factors
Specialized product niche
Kawaguchi's focus on rubber chemicals and additives for automotive and industrial elastomers creates a specialized niche with technical know-how and long-term customer relationships. Specialty formulations tend to have higher switching costs and steady industrial demand, supporting durable revenue.
Negative Factors
Inconsistent revenue trends
A 10.6% revenue decline in 2025 and multi-year inconsistency weaken predictability of sales and scale economics. Reliance on cyclical end-markets like automotive and industrial goods makes top-line durability vulnerable to downturns in customers' production volumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized product niche
Kawaguchi's focus on rubber chemicals and additives for automotive and industrial elastomers creates a specialized niche with technical know-how and long-term customer relationships. Specialty formulations tend to have higher switching costs and steady industrial demand, supporting durable revenue.
Read all positive factors
Kawaguchi Chemical Industry Co., Ltd. (4361) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.85B
Dividend Yield4.2%
Average Volume (3M)1.80K
Price to Earnings (P/E)5.9
Beta (1Y)0.73
Revenue Growth-0.77%
EPS Growth-29.54%
CountryJP
Employees171
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)55.59
Shares Outstanding1,220,000
10 Day Avg. Volume3,060
30 Day Avg. Volume1,800
Financial Highlights & Ratios
PEG Ratio-0.52
Price to Book (P/B)0.56
Price to Sales (P/S)0.20
P/FCF Ratio18.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kawaguchi Chemical Industry Co., Ltd. Business Overview & Revenue Model
Company Description
Kawaguchi Chemical Industry Co., Ltd manufactures and sells fine chemicals in Japan. The company offers organic rubber chemicals, such as vulcanization accelerators, antioxidants, curing agents, and other rubber chemicals; and plastic chemicals, i...
How the Company Makes Money
Kawaguchi Chemical Industry makes money primarily by manufacturing and selling specialty chemical products—especially rubber chemicals (e.g., additives and processing agents) that are incorporated into customers’ rubber and elastomer formulations....
Kawaguchi Chemical Industry Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
47
Neutral
| Breakdown | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.81B | 8.92B | 8.61B | 8.37B | 7.94B |
| Gross Profit | 1.64B | 1.61B | 1.51B | 1.50B | 1.57B |
| EBITDA | 868.62M | 858.26M | 765.47M | 697.01M | 789.17M |
| Net Income | 298.39M | 336.27M | 255.53M | 218.86M | 281.27M |
Balance Sheet | |||||
| Total Assets | 8.90B | 8.56B | 8.38B | 8.35B | 7.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.21B | 744.64M | 1.04B | 910.92M | 1.32B |
| Total Debt | 3.54B | 3.10B | 3.18B | 3.08B | 3.16B |
| Total Liabilities | 5.77B | 5.68B | 5.74B | 5.94B | 5.68B |
| Stockholders Equity | 3.13B | 2.88B | 2.64B | 2.41B | 2.25B |
Cash Flow | |||||
| Free Cash Flow | 93.00M | -214.14M | 91.86M | -271.47M | 520.95M |
| Operating Cash Flow | 829.95M | 143.37M | 469.93M | -20.80M | 785.46M |
| Investing Cash Flow | -738.67M | -305.08M | -370.24M | -242.94M | -245.70M |
| Financing Cash Flow | 359.98M | -138.97M | 20.86M | -162.17M | -119.43M |
Kawaguchi Chemical Industry Co., Ltd. Technical Analysis
Positive
1428.00
Price Trends
1541.78
Negative
1513.72
Positive
1469.26
Positive
Market Momentum
-14.12
Negative
51.46
Neutral
81.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4361, the sentiment is Positive. The current price of 1428 is below the 20-day moving average (MA) of 1495.70, below the 50-day MA of 1541.78, and below the 200-day MA of 1469.26, indicating a neutral trend. The MACD of -14.12 indicates Negative momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 81.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4361.
Kawaguchi Chemical Industry Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥1.85B | 5.90 | ― | 4.20% | -0.77% | -29.54% | |
66 Neutral | ¥5.72B | 6.39 | ― | 1.39% | 2.67% | 37.55% | |
66 Neutral | ¥8.24B | 2.66 | ― | 2.84% | 37.67% | -117.29% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥6.56B | 7.93 | ― | 3.50% | -8.27% | -3.23% | |
51 Neutral | ¥1.90B | 29.11 | ― | 2.34% | -2.27% | -12.76% | |
44 Neutral | ¥4.36B | -15.17 | ― | ― | 8.66% | -239.07% |
* Basic Materials Sector Average
JP:4361
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.