Specialty Chemicals Business ModelThe company focuses on specialty functional chemicals and formulated materials for downstream industrial and consumer manufacturers. That vertical focus creates durable B2B relationships, product stickiness, and differentiated technical offerings that support stable demand and pricing power over 2–6 months.

Manageable LeverageA debt-to-equity around 0.4 and a strong equity ratio imply limited financial leverage and cushioning against cyclical revenue swings. This balance-sheet strength supports capacity to fund capex or working capital needs, reducing refinancing risk and preserving strategic flexibility over the medium term.

Improving Operating MarginsRecent improvements in EBIT and EBITDA margins indicate rising operating efficiency and better cost absorption. Sustained margin gains can offset modest revenue declines, enhance cash generation potential once FCF turns positive, and increase resilience to input-cost volatility across several months.

Bears Say

Volatile And Negative Free Cash FlowPersistent negative and inconsistent free cash flow constrains the company’s ability to self-fund capex, R&D, or working capital. Over a 2–6 month horizon this raises the likelihood of external financing needs, limits strategic optionality, and increases vulnerability to funding-cost increases or covenant pressure.

Declining Revenue TrendA multi-year slight revenue decline reduces scale benefits and undermines long-term margin leverage. Without reversing top-line trends, the firm faces pressure on utilization and pricing power, making it harder to translate operational improvements into durable cash generation over coming months.

Low Net Profit Margin / Expense InefficienciesDespite reasonable gross margins (~16-17%), low net profit margins point to high SG&A or other non-production costs. These inefficiencies limit retained earnings and reinvestment capacity and require sustained cost control to preserve profitability and fund growth over the medium term.

4406 FAQ

What was New Japan Chemical Co., Ltd.’s price range in the past 12 months?

New Japan Chemical Co., Ltd. lowest stock price was ¥157.00 and its highest was ¥299.00 in the past 12 months.

What is New Japan Chemical Co., Ltd.’s market cap?

New Japan Chemical Co., Ltd.’s market cap is ¥8.80B.

When is New Japan Chemical Co., Ltd.’s upcoming earnings report date?

New Japan Chemical Co., Ltd.’s upcoming earnings report date is May 07, 2026 which is in 73 days.

How were New Japan Chemical Co., Ltd.’s earnings last quarter?

New Japan Chemical Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥2.46 earnings per share for the quarter, beating the consensus estimate of N/A by ¥2.46.

Is New Japan Chemical Co., Ltd. overvalued?

According to Wall Street analysts New Japan Chemical Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does New Japan Chemical Co., Ltd. pay dividends?

New Japan Chemical Co., Ltd. pays a Annually dividend of ¥4 which represents an annual dividend yield of 1.35%. See more information on New Japan Chemical Co., Ltd. dividends here

What is New Japan Chemical Co., Ltd.’s EPS estimate?

New Japan Chemical Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does New Japan Chemical Co., Ltd. have?

New Japan Chemical Co., Ltd. has 37,286,903 shares outstanding.

What happened to New Japan Chemical Co., Ltd.’s price movement after its last earnings report?

New Japan Chemical Co., Ltd. reported an EPS of ¥2.46 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -5.35%.

Which hedge fund is a major shareholder of New Japan Chemical Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4406

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

New Japan Chemical Co., Ltd.

New Japan Chemical Co., Ltd. produces and sells chemical products in Japan and internationally. The company provides oleo-chemicals, including hardened oils, fatty acids and esters, glycerin, alcohols, non-ionic surfactants, anion surfactants, amino acid-based surfactants, and amphoteric surfactants; and phthalate and non-phthalate plasticizers, and specialty plasticizers. It also offers plastic and coating materials, such as monomers, acid anhydrides for epoxy resin curing agents, synthetic resin materials, clarifiers and nucleating agents, epoxy resins, raw materials for resins, and antistatic agents; evaporation-resistant, low-viscosity, aromatic, high-flash point, and traction drive lubricants, as well as dibasic acid esters. In addition, the company provides custom services for hydrogenation reactions, including high-pressure hydrogenation and hydrogenation controlling for cis/trans isomers. New Japan Chemical Co., Ltd. was founded in 1919 and is headquartered in Osaka, Japan.