Daito Chemix Corporation (4366) AI Stock Analysis

• Market Cap: ¥11.63B
• Dividend Yield: 1.81%
• Average Volume (3M): 110.75K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.99
• Revenue Growth: 9.07%
• EPS Growth: N/A
• Country: JP
• Employees: 304
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 3.04
• Shares Outstanding: 33,600,000
• 10 Day Avg. Volume: 69,820
• 30 Day Avg. Volume: 110,746
• PEG Ratio: -0.07
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 10.65
• 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: 73 Outperform
• Price Target: ¥361.00 ▲(20.33% Upside)

The score is primarily supported by improved financial performance, especially strong cash flow and returning profitability alongside solid revenue growth. Technicals are constructive given the clear uptrend, but overbought signals temper the near-term outlook. Valuation is reasonable with a moderate P/E and modest yield.

Positive Factors

Strong cash generation

A 209% jump in free cash flow and an operating-cash-to-net-income ratio of 3.35 signal durable, high-quality cash conversion. This supports reinvestment, consistent capex funding, and optional shareholder returns while lowering refinancing risk across business cycles.

Robust revenue recovery

A 17.9% revenue increase year-over-year reflects renewed demand and market traction across served industries. Sustained top-line growth provides scale benefits, better fixed-cost absorption, and a platform to improve margins and ROI over the medium term.

Conservative balance sheet

A low debt-to-equity ratio and strong equity financing (61.1% equity ratio) indicate financial flexibility. This reduces solvency risk, enables strategic investments or R&D spending, and gives the company staying power through industry cyclicality without heavy leverage.

Negative Factors

Modest net profitability

A net margin of 4.4% is modest for a specialty-chemicals producer, leaving limited room to absorb raw-material cost swings or fund margin-enhancing initiatives. Persistently thin net margins constrain retained earnings and limit capacity to drive higher shareholder returns.

Low return on equity

An ROE of 5.5% indicates relatively weak capital efficiency versus peers. Over the medium term this may signal limited ability to convert equity into attractive shareholder returns without either margin expansion or faster, higher-quality growth to improve capital productivity.

Thin gross margins

A gross margin of 11.1% points to cost sensitivity and constrained pricing power in core products. Structurally low gross margins make it harder to fund R&D, marketing, and SG&A while maintaining profitability, pressuring long-term operating leverage unless product mix improves.

Daito Chemix Corporation Business Overview & Revenue Model

Company Description

Daito Chemix Corporation manufactures and sells specialty and fine chemicals in Japan. It offers photosensitive materials for LCD and semiconductor production. The company also provides printing and photographic materials, functional materials, pharmaceutical intermediates, and other chemical products. In addition, it engages in recycling and disposal business for industrial wastes and chemicals. The company was founded in 1938 and is headquartered in Osaka, Japan.

How the Company Makes Money

Daito Chemix Corporation generates revenue through the sale of its chemical products, which include specialty materials and functional polymers. The company employs a direct sales model, engaging with manufacturers in various sectors such as electronics and automotive to supply essential raw materials for their production processes. Key revenue streams include bulk sales of specialty chemicals, custom formulations tailored to specific client requirements, and long-term contracts with major industry players. Additionally, Daito Chemix may benefit from strategic partnerships with research institutions and other companies, allowing for collaborative development of innovative products that can open up new markets and enhance profitability.

Daito Chemix Corporation Financial Statement Overview

Summary

Daito Chemix Corporation exhibits a robust financial position with significant improvements in profitability and cash flow generation. The company shows resilience with strong revenue growth and effective cost management, despite some challenges in ROE. The balance sheet reflects a solid equity base and manageable leverage, suggesting a well-positioned company in the chemicals industry.

Income Statement

Daito Chemix Corporation has shown a strong revenue growth trend with a 17.9% increase from 2024 to 2025, recovering from a dip in 2024. The gross profit margin is 11.1%, and the net profit margin is 4.4%, indicating moderate profitability but a significant improvement from the previous year's loss. The EBIT and EBITDA margins are healthy at 4.5% and 12.8% respectively, reflecting improved operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.37, indicating manageable leverage. The equity ratio stands at 61.1%, showing strong equity financing. However, the return on equity is 5.5%, which, although positive, suggests there is room for improvement in generating returns for shareholders.

Cash Flow

Daito Chemix has demonstrated strong cash flow management with a free cash flow growth rate of 209% from 2024 to 2025, reversing a negative trend. The operating cash flow to net income ratio is 3.35, indicating solid cash generation compared to net income, while the free cash flow to net income ratio of 2.27 underscores effective capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.87B	18.64B	15.81B	16.38B	16.13B	14.00B
Gross Profit	2.24B	2.07B	1.90B	2.44B	2.93B	2.50B
EBITDA	2.18B	2.38B	839.00M	2.08B	2.36B	2.05B
Net Income	858.00M	820.00M	-1.00B	922.00M	1.58B	1.09B
Balance Sheet
Total Assets	25.24B	24.33B	24.98B	24.70B	21.54B	18.82B
Cash, Cash Equivalents and Short-Term Investments	2.75B	2.77B	2.25B	2.39B	3.42B	3.25B
Total Debt	5.53B	5.45B	6.35B	4.72B	3.99B	3.28B
Total Liabilities	10.11B	9.47B	10.45B	9.52B	7.25B	6.07B
Stockholders Equity	15.12B	14.86B	14.54B	15.17B	14.28B	12.76B
Cash Flow
Free Cash Flow	0.00	1.86B	-1.71B	-1.59B	-342.00M	2.14B
Operating Cash Flow	0.00	2.75B	1.05B	404.00M	1.15B	2.53B
Investing Cash Flow	0.00	-1.19B	-2.67B	-2.00B	-1.52B	-376.00M
Financing Cash Flow	0.00	-1.03B	1.48B	563.00M	543.00M	-281.00M

Daito Chemix Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 300.00
• 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:4366, the sentiment is Positive. The current price of 300 is below the 20-day moving average (MA) of 305.25, above the 50-day MA of 286.82, and above the 200-day MA of 261.29, indicating a bullish trend. The MACD of 15.06 indicates Negative momentum. The RSI at 83.36 is Negative, neither overbought nor oversold. The STOCH value of 91.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4366.

Daito Chemix Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4040	77 Outperform	¥7.53B	6.49	―	1.96%	8.43%	2.99%
4531	74 Outperform	¥7.55B	10.73	―	2.97%	9.92%	-27.64%
4366	73 Outperform	¥11.63B	13.92	―	1.81%	9.07%	―
6568	69 Neutral	¥9.30B	13.51	―	2.98%	-9.60%	-38.34%
4960	63 Neutral	¥5.74B	60.13	―	1.06%	-9.63%	-1.71%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4360	53 Neutral	¥6.02B	-19.25	―	1.93%	13.64%	-151.98%