Tri Chemical Laboratories Inc. (4369) AI Stock Analysis

• Market Cap: ¥107.24B
• Dividend Yield: 1.3%
• Average Volume (3M): 842.32K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.18
• Revenue Growth: 47.56%
• EPS Growth: 49.58%
• Country: JP
• Employees: 274
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 38.31
• Shares Outstanding: 32,498,640
• 10 Day Avg. Volume: 589,290
• 30 Day Avg. Volume: 842,316
• PEG Ratio: 0.21
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 5.60
• P/FCF Ratio: 174.89
• 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: 72 Outperform
• Price Target: ¥3,660.00 ▲(35.06% Upside)

Tri Chemical Laboratories Inc. has a strong financial foundation with robust profitability and a stable balance sheet, but faces challenges in cash flow management. Technical indicators suggest short-term bullish momentum, while valuation metrics indicate the stock is fairly priced. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Low leverage / strong balance sheet

A debt-to-equity ratio of 0.047 indicates minimal leverage, reducing interest burden and insolvency risk. This durable capital structure preserves financial flexibility to fund R&D or capex, supports operations through cycles, and keeps strategic optionality for M&A or payouts without heavy refinancing need.

Robust margins and operating efficiency

Sustained gross margins (~41-42%) and a 24% net margin demonstrate strong operating leverage and pricing power in specialty chemicals. These durable margins support reinvestment in product development, provide buffer against input-cost volatility, and underpin long-term cash generation and competitive resilience.

Stable revenue and margin profile

Positive TTM revenue growth (2.17%) combined with healthy EBIT/EBITDA margins signals steady end-market demand and operational resilience. For a specialty chemical business, consistent top-line growth plus margin durability supports predictable cash flows and incremental market share gains over multiple quarters.

Negative Factors

Negative free cash flow

Negative free cash flow in the trailing twelve months constrains the company's ability to self-fund capex, debt paydown, or shareholder returns. If persistent, it increases reliance on external financing or asset sales, raising the cost of capital and potentially limiting strategic investments over the medium term.

Weak cash conversion

An operating-cash-flow-to-net-income ratio of ~0.36 implies earnings are not converting to cash efficiently, likely due to working-capital build or noncash items. Over time this can strain liquidity, reduce funding for growth initiatives, and increase dependence on external funding or short-term borrowings.

Margin pressure risk

A slight year-over-year decline in gross profit margin suggests emerging cost or pricing pressures. In specialty chemicals, persistent margin erosion from raw-material inflation or competitive pricing can steadily reduce profitability, weaken reinvestment capacity, and erode long-term competitive advantage if not addressed.

Tri Chemical Laboratories Inc. Business Overview & Revenue Model

Company Description

Tri Chemical Laboratories Inc. provides precursors for semiconductors, optical fibers, solar cells, and compound semiconductors. It also offers catalysts, special reagents, etc. In addition, the company provides containers, such as stainless-steel containers with valves, seamless cylinders for high pressure gas, glass ampoules, polyethylene bottles, glass bottles, and glass vial bottles. Tri Chemical Laboratories Inc. was incorporated in 1978 and is headquartered in Uenohara, Japan.

How the Company Makes Money

Tri Chemical Laboratories generates revenue through multiple streams, including the sale of specialty chemical products, analytical testing services, and consulting on regulatory compliance. The primary revenue comes from direct sales of its custom chemical formulations to agricultural businesses and industrial clients. Additionally, the company earns income from its laboratory services, which provide essential testing and analysis for clients in various sectors. Strategic partnerships with agricultural and industrial firms enhance its market reach, while ongoing investments in research and development allow Tri Chemical to innovate and introduce new products, further driving revenue growth.

Tri Chemical Laboratories Inc. Financial Statement Overview

Summary

Tri Chemical Laboratories Inc. demonstrates strong profitability and a stable balance sheet, with low leverage and effective equity utilization. However, cash flow management poses a challenge due to negative free cash flow, which could impact future investments.

Income Statement

Tri Chemical Laboratories Inc. shows strong profitability with a consistent gross profit margin around 41-42% and a net profit margin of 24% in TTM. Revenue growth is positive at 2.17% TTM, indicating stable demand. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.047, indicating low leverage and financial stability. Return on equity is strong at 17.64%, showcasing effective use of equity to generate profits. The equity ratio is solid, reflecting a strong capital structure. However, the slight increase in debt from the previous year warrants monitoring.

Cash Flow

Operating cash flow is positive, but free cash flow is negative in TTM, indicating potential cash management issues. The operating cash flow to net income ratio is moderate at 0.36, suggesting some conversion efficiency. The significant negative free cash flow to net income ratio highlights challenges in generating free cash flow, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.81B	18.91B	11.25B	13.80B	11.57B	9.80B
Gross Profit	9.40B	8.01B	4.09B	5.58B	4.84B	4.38B
EBITDA	8.33B	6.63B	4.61B	7.42B	6.35B	5.17B
Net Income	5.76B	4.96B	2.47B	4.83B	4.10B	3.38B
Balance Sheet
Total Assets	42.19B	36.94B	31.86B	32.12B	28.29B	19.87B
Cash, Cash Equivalents and Short-Term Investments	5.42B	9.44B	10.50B	11.14B	8.03B	1.70B
Total Debt	4.24B	1.78B	2.40B	3.24B	4.28B	5.05B
Total Liabilities	7.67B	5.36B	4.29B	6.24B	6.97B	7.27B
Stockholders Equity	34.52B	31.59B	27.57B	25.88B	21.32B	12.60B
Cash Flow
Free Cash Flow	-5.86B	605.75M	1.19B	4.84B	2.71B	-872.24M
Operating Cash Flow	1.07B	3.68B	2.97B	6.39B	3.64B	2.09B
Investing Cash Flow	-7.69B	-3.12B	-1.78B	-1.56B	-932.88M	-2.96B
Financing Cash Flow	1.09B	-1.62B	-1.86B	-1.70B	3.59B	948.34M

Tri Chemical Laboratories Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2710.00
• 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:4369, the sentiment is Positive. The current price of 2710 is below the 20-day moving average (MA) of 3158.34, below the 50-day MA of 2924.65, and below the 200-day MA of 2916.58, indicating a bullish trend. The MACD of 123.35 indicates Negative momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4369.

Tri Chemical Laboratories Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4365	80 Outperform	¥65.04B	8.14	―	2.03%	-4.42%	10.23%
4028	74 Outperform	¥117.11B	8.41	―	4.15%	1.16%	167.89%
4099	72 Outperform	¥191.83B	22.24	―	1.81%	-0.52%	5.18%
4369	72 Outperform	¥107.24B	18.63	―	1.30%	47.56%	49.58%
4113	69 Neutral	¥16.22B	9.47	―	3.23%	13.09%	89.45%
4008	68 Neutral	¥74.03B	11.96	―	3.74%	-0.68%	-9.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tri Chemical Laboratories Inc. Corporate Events

Tri Chemical Laboratories Reports Strong Financial Growth for Nine Months Ending October 2025

Tri Chemical Laboratories Inc. reported its consolidated financial results for the nine months ended October 31, 2025, showing significant growth in net sales and profits compared to the previous year. The company achieved a 37.4% increase in net sales and a 30.2% rise in operating profit, indicating strong operational performance and market demand. Additionally, the company’s total assets increased, reflecting a robust financial position. The inclusion of a new subsidiary, AD-Trichem (Anhui) Electronic Materials Co., Ltd., highlights the company’s expansion efforts in the electronic materials sector.

The most recent analyst rating on (JP:4369) stock is a Hold with a Yen2788.00 price target. To see the full list of analyst forecasts on Tri Chemical Laboratories Inc. stock, see the JP:4369 Stock Forecast page.