Tri Chemical Laboratories Inc. (4369) AI Stock Analysis

• Market Cap: ¥82.54B
• Dividend Yield: 1.38%
• Average Volume (3M): 842.32K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.10
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,311.00 ▲(30.35% 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

Revenue Growth

Steady revenue growth suggests sustained demand for Tri Chemical's products and services, supporting long-term business expansion.

Profitability

High profitability margins indicate efficient operations and strong market positioning, which can drive future earnings growth.

Balance Sheet Strength

A robust balance sheet with low leverage enhances financial stability and provides flexibility for future investments.

Negative Factors

Cash Flow Management

Challenges in generating free cash flow may hinder the company's ability to invest in growth opportunities and manage financial obligations.

Cost Pressures

Declining gross margins suggest rising costs, which could pressure profitability if not managed effectively over time.

Debt Increase

An increase in debt, although slight, requires careful management to maintain financial health and avoid potential leverage risks.

Tri Chemical Laboratories Inc. Business Overview & Revenue Model

Company Description

Tri Chemical Laboratories Inc. is a leading provider of specialty chemicals and chemical services, primarily serving the agriculture, industrial, and environmental sectors. The company focuses on developing innovative chemical solutions that enhance product performance and operational efficiency for its clients. Core offerings include custom chemical formulations, analytical testing services, and regulatory compliance assistance, aimed at facilitating a wide range of applications from crop protection to water treatment.

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 revenue growth and profitability, supported by a solid balance sheet with low leverage. However, cash flow challenges, particularly negative free cash flow, could pose risks if not addressed. Overall, the company is financially sound but should focus on improving cash flow management to sustain growth.

Income Statement

Tri Chemical Laboratories Inc. shows strong revenue growth with a 17.43% increase in TTM, indicating robust demand. The company maintains healthy profitability with a gross profit margin of 41.64% and a net profit margin of 24.13% in TTM. EBIT and EBITDA margins are also solid at 30.16% and 36.65%, respectively, reflecting efficient operations. However, slight declines in gross and net profit margins compared to previous periods suggest potential cost pressures.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.0468, indicating low leverage and financial stability. Return on equity is healthy at 17.64%, showcasing effective use of equity to generate profits. The equity ratio stands at 80.71%, reflecting a solid equity base. However, the slight decrease in stockholders' equity over recent periods could be a point of concern.

Cash Flow

Operating cash flow remains positive, but the free cash flow is negative, indicating potential challenges in cash generation after capital expenditures. The operating cash flow to net income ratio is 0.36, suggesting moderate cash conversion efficiency. The negative free cash flow growth rate and free cash flow to net income ratio highlight potential liquidity concerns.

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: Negative
• Last Price: 2540.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4369, the sentiment is Negative. The current price of 2540 is below the 20-day moving average (MA) of 2835.70, below the 50-day MA of 2867.88, and below the 200-day MA of 2926.31, indicating a bearish trend. The MACD of -65.94 indicates Positive momentum. The RSI at 35.38 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	79 Outperform	¥64.04B	8.01	―	2.02%	-4.42%	10.23%
4028	74 Outperform	¥109.95B	7.90	―	4.18%	1.16%	167.89%
4369	72 Outperform	¥82.54B	14.34	―	1.38%	47.56%	49.58%
4099	71 Outperform	¥123.36B	15.09	―	1.81%	-0.52%	5.18%
4008	68 Neutral	¥73.61B	11.90	―	3.75%	-0.68%	-9.93%
4113	66 Neutral	¥17.47B	9.23	―	3.28%	13.09%	89.45%
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.

Tri Chemical Laboratories Secures Financing for New Plant Construction

Tri Chemical Laboratories Inc. has announced the execution of a term-loan agreement and a commitment-line agreement to fund the construction of a new plant in Minami-Alps City, Yamanashi Prefecture. These agreements, totaling 10 billion yen, are designed to secure the necessary capital for growth and expansion, with minimal expected impact on the company’s current fiscal performance.