Daito Chemix Corporation (4366) AI Stock Analysis

• Market Cap: ¥14.75B
• Dividend Yield: 1.81%
• Average Volume (3M): 110.75K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.03
• Revenue Growth: 9.07%
• EPS Growth: N/A
• Country: JP
• Employees: 304
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 7.98
• 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: 71 Outperform
• Price Target: ¥492.00 ▲(64.00% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is driven primarily by improved financial performance—especially the sharp rebound in free cash flow and solid balance sheet leverage. This is tempered by technicals that look overbought (RSI 86, Stoch 82.8) despite strong trend strength, and a valuation that is reasonable on earnings but offers only a modest dividend yield.

Positive Factors

Revenue Growth

A 17.9% revenue rebound indicates durable demand recovery and expanding sales scale. Sustained top-line growth over a fiscal year supports capacity utilization, spreads fixed costs, and provides the firm flexibility to invest in products, margins, or market penetration over the next 2–6 months.

Free Cash Flow Recovery

A 209% jump in free cash flow and operating cash flow 3.35x net income show markedly improved cash conversion. This enhances financial flexibility to fund capex, deleverage, or return cash, and provides a durable buffer against cyclical weakness in chemicals over multiple quarters.

Moderate Leverage and Strong Equity Base

Manageable leverage with a 0.37 D/E and 61.1% equity ratio signals conservative financing and room to absorb shocks or finance growth without stressing liquidity. This structural balance sheet strength supports sustained investment and credit resilience over the medium term.

Negative Factors

Modest Net Profitability

Net margins around 4.4% and gross margin near 11.1% indicate limited pricing power and thin value capture. Over the medium term this constrains retained earnings and makes profitability more sensitive to feedstock or energy cost increases, reducing margin resiliency.

Low Return on Equity

A 5.5% ROE suggests the company generates only modest returns on shareholder capital, implying inefficiencies or capital intensity. Persistently low ROE can limit long-term shareholder value creation and reduce flexibility for organic growth or attractive capital allocation.

Limited Income Yield

A modest 1.36% dividend yield offers limited direct income to investors and signals constrained distributable cash relative to total capital. For income-focused holders this reduces appeal; structurally it also suggests capital may be retained for operations rather than returned to investors.

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

Strong improvement in fundamentals: revenue rose 17.9% (2024–2025) and profitability rebounded to a 4.4% net margin. Cash flow strength stands out with free cash flow up 209% and operating cash flow well exceeding net income (3.35x). Balance sheet leverage is manageable (debt-to-equity 0.37) with a solid equity ratio (61.1%), though ROE is modest at 5.5%.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• STOCH: Neutral

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 410.50, below the 50-day MA of 368.34, and above the 200-day MA of 294.18, indicating a bullish trend. The MACD of 19.46 indicates Negative momentum. The RSI at 64.67 is Neutral, neither overbought nor oversold. The STOCH value of 40.33 is Neutral, 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
4093	79 Outperform	¥13.98B	11.09	―	3.89%	-3.00%	-29.83%
5013	78 Outperform	¥42.87B	8.34	―	3.53%	-3.45%	30.52%
4366	71 Outperform	¥14.75B	17.06	―	1.81%	9.07%	―
9227	68 Neutral	¥15.63B	-46.01	―	―	-16.76%	74.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4960	60 Neutral	¥11.01B	84.19	―	1.06%	-9.63%	-1.71%
4080	48 Neutral	¥13.27B	-10.19	-7.76%	―	-19.70%	-159.15%