New Japan Chemical Co., Ltd. (4406) AI Stock Analysis

• Market Cap: ¥8.87B
• Dividend Yield: 1.27%
• Average Volume (3M): 188.41K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.73
• Revenue Growth: -1.40%
• EPS Growth: 65.76%
• Country: JP
• Employees: 410
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 7.02
• Shares Outstanding: 37,286,903
• 10 Day Avg. Volume: 126,840
• 30 Day Avg. Volume: 188,413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥235.00
• Price Target Upside: -0.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥235.00 ▼(-0.42% Downside)

The stock scores a 68, primarily driven by a strong technical analysis position and reasonable valuation metrics. While the financial performance shows moderate health, concerns over cash flow stability and liquidity need to be addressed. The absence of recent earnings call insights or notable corporate events limits further assessment.

New Japan Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

New Japan Chemical Co., Ltd. (4406) is a Japanese company specializing in the production and distribution of chemical products. The company operates across various sectors, including industrial chemicals, specialty chemicals, and resin materials. Its core products comprise a wide range of raw materials and chemical solutions that cater to industries such as automotive, electronics, and construction. New Japan Chemical is known for its innovation in developing environmentally friendly and high-performance chemical products.

How the Company Makes Money

New Japan Chemical Co., Ltd. generates revenue primarily through the sale of its chemical products to various industries. The company's key revenue streams include industrial and specialty chemicals, which are used as essential components in manufacturing processes. Additionally, the company benefits from strategic partnerships and collaborations with other firms to drive innovation and expand its market reach. The demand for high-quality chemical solutions in sectors like automotive and electronics significantly contributes to the company's earnings. Furthermore, New Japan Chemical invests in research and development to create advanced materials that meet evolving industry standards and customer needs.

New Japan Chemical Co., Ltd. Financial Statement Overview

Summary

New Japan Chemical Co., Ltd. displays moderate financial health with stable profitability and manageable leverage. However, there are concerns regarding cash flow stability and revenue growth. The positive trends in operational efficiency are encouraging, but liquidity concerns need to be addressed to ensure long-term sustainability.

Income Statement

The company shows moderate profitability with a gross profit margin of around 16-17% in recent years. However, the net profit margin remains low, indicating significant expenses or inefficiencies. There is a slight decline in revenue over the past few years, but the EBIT and EBITDA margins have improved recently, reflecting better operational efficiency.

Balance Sheet

The balance sheet is relatively stable with a debt-to-equity ratio of approximately 0.4, suggesting manageable leverage. The equity ratio is strong, indicating a solid financial structure. However, there's been a slight decline in total assets and equity over the last few years, which might limit future growth.

Cash Flow

Cash flow performance is mixed with significant fluctuations. The operating cash flow to net income ratio has been volatile, and free cash flow has been negative in recent years, indicating potential liquidity issues. The inconsistency in free cash flow growth further adds to the concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.70B	32.70B	32.86B	33.10B	32.36B	24.44B
Gross Profit	5.45B	5.45B	5.32B	4.42B	5.88B	4.56B
EBITDA	1.61B	1.56B	1.31B	532.00M	1.78B	1.35B
Net Income	523.00M	522.00M	220.00M	-444.00M	811.00M	501.00M
Balance Sheet
Total Assets	37.52B	37.52B	40.11B	38.55B	40.09B	35.89B
Cash, Cash Equivalents and Short-Term Investments	2.94B	2.94B	3.82B	2.96B	3.50B	3.15B
Total Debt	7.13B	7.13B	7.58B	10.16B	9.96B	8.91B
Total Liabilities	18.52B	18.52B	21.64B	21.60B	23.09B	19.67B
Stockholders Equity	17.79B	17.79B	17.29B	15.86B	15.94B	15.21B
Cash Flow
Free Cash Flow	0.00	-889.00M	2.80B	-593.00M	-705.00M	-680.00M
Operating Cash Flow	0.00	-224.00M	3.58B	104.00M	1.08B	1.25B
Investing Cash Flow	0.00	-174.00M	-60.00M	-659.00M	-1.60B	-1.71B
Financing Cash Flow	0.00	-513.00M	-2.60B	-3.00M	861.00M	519.00M

New Japan Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 236.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4406, the sentiment is Positive. The current price of 236 is above the 20-day moving average (MA) of 234.95, above the 50-day MA of 219.98, and above the 200-day MA of 199.79, indicating a bullish trend. The MACD of 4.63 indicates Positive momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 67.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4406.

New Japan Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4957	76 Outperform	¥9.15B	6.24		1.32%	10.66%	69.54%
4629	75 Outperform	¥7.19B	11.20		2.54%	4.93%	4.12%
4409	74 Outperform	¥17.11B	12.27		2.48%	4.46%	25.80%
4112	71 Outperform	¥29.18B	13.62		3.81%	-6.65%	-45.46%
4406	68 Neutral	¥8.87B	16.22		1.27%	-1.40%	65.76%
4092	68 Neutral	¥25.23B	10.03		2.83%	-1.44%	-1.26%
Sector *	61 Neutral	$10.37B	6.45	-0.08%	2.84%	3.09%	-36.03%