Tri Chemical Laboratories Inc. (4369) AI Stock Analysis

• Market Cap: ¥97.82B
• Dividend Yield: 1.25%
• Average Volume (3M): 842.32K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.11
• 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: ¥3,500.00
• Price Target Upside: 25.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,788.00 ▼(-0.14% Downside)

Tri Chemical Laboratories Inc. has a strong financial foundation with robust revenue growth and profitability. However, technical indicators show bearish momentum, which is a significant concern. The valuation is fair, but cash flow challenges need to be addressed to ensure long-term sustainability. The lack of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong demand for its products and services, supporting long-term business expansion and market penetration.

Profitability

High profit margins demonstrate efficient operations and pricing power, which contribute to sustainable financial health and competitive advantage.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without significant financial risk.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives without external financing.

Margin Pressures

Decreasing margins may indicate rising costs or pricing pressures, which could impact profitability if not managed effectively over time.

Equity Decline

A decline in stockholders' equity may reflect underlying financial challenges, potentially affecting the company's ability to sustain growth and shareholder value.

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	22.20B	18.91B	11.25B	13.80B	11.57B	9.80B
Gross Profit	9.25B	8.01B	4.09B	5.58B	4.84B	4.38B
EBITDA	8.14B	6.63B	4.61B	7.42B	6.35B	5.17B
Net Income	5.36B	4.96B	2.47B	4.83B	4.10B	3.38B
Balance Sheet
Total Assets	38.80B	36.94B	31.86B	32.12B	28.29B	19.87B
Cash, Cash Equivalents and Short-Term Investments	7.99B	9.44B	10.50B	11.14B	8.03B	1.70B
Total Debt	1.47B	1.78B	2.40B	3.24B	4.28B	5.05B
Total Liabilities	7.49B	5.36B	4.29B	6.24B	6.97B	7.27B
Stockholders Equity	31.32B	31.59B	27.57B	25.88B	21.32B	12.60B
Cash Flow
Free Cash Flow	-1.10B	605.75M	1.19B	4.84B	2.71B	-872.24M
Operating Cash Flow	2.32B	3.68B	2.97B	6.39B	3.64B	2.09B
Investing Cash Flow	-3.48B	-3.12B	-1.78B	-1.56B	-932.88M	-2.96B
Financing Cash Flow	-1.96B	-1.62B	-1.86B	-1.70B	3.59B	948.34M

Tri Chemical Laboratories Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2792.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 2792 is below the 20-day moving average (MA) of 2820.35, below the 50-day MA of 2897.18, and below the 200-day MA of 2974.05, indicating a bearish trend. The MACD of -58.98 indicates Positive momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 57.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥64.71B	8.10	―	1.96%	-4.42%	10.23%
4028	74 Outperform	¥106.40B	7.64	―	4.71%	1.16%	167.89%
4008	68 Neutral	¥65.88B	14.08	―	3.77%	-0.68%	-9.93%
4113	66 Neutral	¥17.11B	9.04	―	3.27%	13.09%	89.45%
4369	63 Neutral	¥97.82B	17.14	―	1.25%	47.56%	49.58%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tri Chemical Laboratories Inc. Corporate Events

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.

The most recent analyst rating on (JP:4369) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Tri Chemical Laboratories Inc. stock, see the JP:4369 Stock Forecast page.

Tri Chemical Laboratories Reports Strong Financial Growth for First Half of 2025

Tri Chemical Laboratories Inc. reported significant growth in its financial results for the six months ended July 31, 2025, with net sales increasing by 55.2% and operating profit rising by 63.9% compared to the previous year. The company also revised its financial forecast for the fiscal year ending January 31, 2026, indicating a positive outlook despite a slight decrease in ordinary profit and profit attributable to owners of the parent.

The most recent analyst rating on (JP:4369) stock is a Buy with a Yen3740.00 price target. To see the full list of analyst forecasts on Tri Chemical Laboratories Inc. stock, see the JP:4369 Stock Forecast page.

Tri Chemical Laboratories Forms Joint Venture in China for Semiconductor Materials

Tri Chemical Laboratories Inc. has announced the establishment of a joint venture with Hefei ADChem Semi-Tech. Co., Ltd. in China to produce and sell semiconductor materials, particularly high-purity precursors. This move aims to capitalize on the rapidly growing Chinese semiconductor market and promote local sourcing of materials. The joint venture, named AD-Trichem (Anhui) Electronic Materials Co., Ltd., will be based in Hefei, Anhui Province, with plant construction starting in the first half of 2026. The collaboration is expected to have minimal impact on the company’s performance for the current fiscal year.

The most recent analyst rating on (JP:4369) stock is a Buy with a Yen3740.00 price target. To see the full list of analyst forecasts on Tri Chemical Laboratories Inc. stock, see the JP:4369 Stock Forecast page.

Tri Chemical Laboratories Revises Financial Forecasts Amid Lower Shipments

Tri Chemical Laboratories Inc. has revised its financial forecasts for the fiscal year ending January 31, 2026, due to lower-than-expected shipments of High-k materials, despite strong demand in the semiconductor sector. The revision reflects anticipated declines in net sales, operating profit, and profit attributable to owners, primarily influenced by major Chinese customers reducing material consumption as they streamline production and manage inventories.

The most recent analyst rating on (JP:4369) stock is a Buy with a Yen3740.00 price target. To see the full list of analyst forecasts on Tri Chemical Laboratories Inc. stock, see the JP:4369 Stock Forecast page.