Matsumoto Yushiseiyaku Co., Ltd. (4365) AI Stock Analysis

• Market Cap: ¥64.42B
• Dividend Yield: 2.03%
• Average Volume (3M): 313.00
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.54
• Revenue Growth: -4.42%
• EPS Growth: 10.23%
• Country: JP
• Employees: 403
• Sector: Healthcare
• Sector Strength: 45
• Industry: Chemicals - Specialty
• EPS (TTM): 692.22
• Shares Outstanding: 4,512,651
• 10 Day Avg. Volume: 310
• 30 Day Avg. Volume: 313
• PEG Ratio: -0.85
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 7.93
• 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: 80 Outperform
• Price Target: ¥23,000.00 ▲(21.12% Upside)

The score is driven primarily by strong financial quality (notably a debt-free balance sheet and solid margins) and supportive valuation (low P/E with a ~2% dividend). Technicals are constructive but mixed, with neutral RSI and a slightly negative MACD tempering the near-term setup. The main fundamental risk is consistently weaker operating cash flow conversion relative to reported earnings.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides significant financial flexibility, reducing risk and allowing the company to invest in growth opportunities without the burden of interest payments.

Strong Profitability

High margins indicate efficient operations and pricing power, which can sustain competitive advantage and support long-term earnings growth.

Consistent Cash Generation

Consistent cash generation supports reinvestment in the business, dividends, and potential strategic acquisitions, enhancing long-term shareholder value.

Negative Factors

Weak Operating Cash Flow Conversion

Weak cash flow conversion can indicate inefficiencies or issues in working capital management, potentially limiting the company's ability to fund operations and growth internally.

Declining Net Margin

A declining net margin suggests rising costs or pricing pressures, which could impact future profitability if not addressed.

Revenue Growth Decline

A decline in revenue growth may indicate market saturation or increased competition, potentially affecting the company's ability to expand its market share and sustain long-term growth.

Matsumoto Yushiseiyaku Co., Ltd. Business Overview & Revenue Model

Company Description

Matsumoto Yushi-Seiyaku Co.,Ltd. manufactures and markets fiber and textile chemicals, microcapsules, various surfactants, and high polymer based products in Japan and Indonesia. The company provides spin finishes for extrusion spinning, textile spinning, and functional surface treatment of fibers; sizing chemicals for weaving; lubricating oils for knitting and weaving; textile scouring agents and detergents; and textile dyeing and processing auxiliaries. It also offers thermo-expandable microcapsules; microbeads; three-dimensional copying systems; anti-tack powder for batch off and inner parting lubricants for bladder-tire parting for processing rubber compounds; and modifiers, antistatic agents, anti-fogging agents, and lubricants for plastic materials. In addition, the company provides various emulsifiers, base materials for shampoo and body soaps, fragrance and oil solubilizing agents, and pearl forming agents for use in cosmetics and toiletries; civil engineering and construction chemicals; and environment conservation products for treating and de-foaming nonionic surfactants. Its products are used in various industries and applications, including information and electronics, automobile, precision instruments, civil engineering, construction, rubber, plastics, cosmetics, toiletries, and agriculture. The company was founded in 1926 and is headquartered in Yao, Japan.

How the Company Makes Money

Matsumoto Yushiseiyaku Co., Ltd. generates revenue primarily through the sale of its chemical products and pharmaceutical ingredients. The company supplies these products to various industries, including pharmaceuticals and cosmetics, which rely on high-quality chemical components for their products. Additionally, the company may engage in collaborations and partnerships with other firms to enhance its product offerings and market reach, further contributing to its revenue streams. The company's focus on research and development ensures a steady pipeline of innovative products, catering to the evolving needs of its clients and maintaining its competitive edge in the market.

Matsumoto Yushiseiyaku Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: steady multi-year revenue growth and robust profitability (gross margin ~32% and operating margin low-to-mid 20%s in 2025). Balance sheet is exceptionally conservative with zero debt, supporting flexibility. Key watch items are recurring cash conversion weakness (operating cash flow consistently below net income) and a modest recent step-down in net margin and ROE.

Income Statement

Revenue has expanded steadily over the last several years (from 2021–2025 annual), and profitability is strong for a specialty chemicals business, with gross margin improving to ~32% (2025) and operating margin in the low-to-mid 20%s. Net margin remains healthy (~16% in 2025), but it did step down from 2023–2024 levels (~18%), suggesting some cost pressure or mix changes despite continued revenue growth.

Balance Sheet

The balance sheet is exceptionally conservative with zero reported debt across all periods, resulting in no leverage risk and strong financial flexibility. Equity has grown over time, and returns on equity are solid (mid-to-low double digits historically), though ROE eased to ~8.6% in 2025 from the 10–11% range seen in 2023–2024.

Cash Flow

Cash generation is consistently positive, with free cash flow generally tracking net income well (free cash flow roughly ~85–92% of net income from 2021–2025). However, cash conversion is not perfect: operating cash flow runs below accounting earnings in each year shown (operating cash flow at ~38%–70% of net income), which is a recurring watch item even though absolute operating and free cash flow have improved since 2022.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.96B	43.13B	41.53B	39.63B	37.25B	29.61B
Gross Profit	12.71B	13.69B	12.96B	12.02B	9.81B	7.61B
EBITDA	10.49B	10.80B	11.70B	11.12B	8.70B	5.73B
Net Income	5.65B	6.83B	7.50B	7.25B	5.49B	3.43B
Balance Sheet
Total Assets	94.66B	95.19B	89.51B	79.19B	76.21B	68.65B
Cash, Cash Equivalents and Short-Term Investments	47.45B	49.04B	51.06B	45.88B	43.66B	40.49B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	13.14B	13.82B	14.18B	12.72B	12.82B	10.31B
Stockholders Equity	79.65B	79.40B	73.36B	64.69B	63.23B	58.20B
Cash Flow
Free Cash Flow	0.00	6.59B	6.31B	4.98B	3.87B	4.23B
Operating Cash Flow	0.00	7.77B	7.37B	5.42B	4.33B	5.04B
Investing Cash Flow	0.00	-9.05B	-17.87B	144.00M	-685.00M	-764.00M
Financing Cash Flow	0.00	-1.24B	-1.02B	-5.93B	-983.00M	-987.00M

Matsumoto Yushiseiyaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18990.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4365, the sentiment is Neutral. The current price of 18990 is below the 20-day moving average (MA) of 20054.50, below the 50-day MA of 19916.40, and below the 200-day MA of 19240.20, indicating a neutral trend. The MACD of 63.54 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4365.

Matsumoto Yushiseiyaku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4365	80 Outperform	¥64.42B	8.06	―	2.03%	-4.42%	10.23%
4187	80 Outperform	¥91.72B	12.24	10.57%	1.74%	15.12%	40.72%
4116	76 Outperform	¥78.93B	12.41	―	3.04%	1.57%	-33.97%
4362	75 Outperform	¥56.60B	12.51	―	2.92%	3.03%	28.27%
4078	70 Outperform	¥55.73B	8.81	―	4.37%	-1.09%	―
4008	68 Neutral	¥75.82B	11.96	―	3.74%	-0.68%	-9.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%