Toho Chemical Industry Company, Limited (4409) AI Stock Analysis

• Market Cap: ¥17.32B
• Dividend Yield: 2.46%
• Average Volume (3M): 7.75K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.28
• Revenue Growth: 5.96%
• EPS Growth: 182.60%
• Country: JP
• Employees: 868
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Chemicals - Specialty
• EPS (TTM): 11.87
• Shares Outstanding: 21,350,000
• 10 Day Avg. Volume: 15,050
• 30 Day Avg. Volume: 7,750
• PEG Ratio: -0.36
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.26
• 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

• Rating: 74 Outperform
• Price Target: ¥909.00 ▲(11.95%Upside)

The overall stock score is primarily driven by strong technical performance and reasonable valuation metrics. Financial performance is stable but requires attention to debt management and cash flow improvements. The lack of notable earnings call data or corporate events means these factors do not influence the score.

Toho Chemical Industry Company, Limited Business Overview & Revenue Model

Company Description

Toho Chemical Industry Company, Limited is a Japanese company engaged in the production and sale of a wide range of chemical products. The company operates in various sectors, including industrial chemicals, fine chemicals, and specialty chemicals, serving multiple industries such as automotive, electronics, pharmaceuticals, and agriculture. Its core products include resins, adhesives, and chemical additives that are crucial in manufacturing and industrial processes.

How the Company Makes Money

Toho Chemical Industry Company, Limited generates revenue primarily through the sale of its chemical products to industrial clients across diverse sectors. The company's revenue model is based on manufacturing and supplying high-quality chemical products that cater to the specific needs of its clients, ensuring long-standing business relationships. Key revenue streams include bulk sales of industrial chemicals and customized chemical solutions for specialty applications. Additionally, strategic partnerships and collaborations with other industrial players and research institutions help Toho Chemical enhance its product offerings and expand its market reach, thereby contributing significantly to its earnings.

Toho Chemical Industry Company, Limited Financial Statement Overview

Summary

Toho Chemical Industry Company, Limited demonstrates stable financial health with moderate growth in revenue and profitability. The balance sheet supports growth with a manageable debt profile, although the high debt level could be a concern. Cash flow improvements are necessary to ensure sustained financial flexibility. Overall, the company is on a stable trajectory, but attention to debt management and cash flow generation remains crucial.

Income Statement

The company exhibits moderate revenue growth with a recent jump from JPY 50.6 billion to JPY 53.6 billion. Gross profit margin is stable at around 15.25%, but net profit margin shows volatility, improving to 2.88% from 1.08%. EBIT and EBITDA margins have shown consistent performance, but overall profitability remains moderate due to fluctuating net income.

Balance Sheet

The balance sheet shows a steady increase in stockholders' equity and a manageable debt-to-equity ratio of approximately 1.36, indicating moderate leverage. Equity ratio is stable at about 30.92%, reflecting a solid asset base supported by equity. However, the company has a significant level of total debt which could pose risks if not managed well.

Cash Flow

The cash flow statement reflects challenges in free cash flow, which has been negative in past years but showed improvement recently. Operating cash flow is higher than net income, indicating efficient cash generation, but free cash flow growth has been inconsistent, posing a challenge for financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	52.78B	53.61B	50.60B	55.36B	49.89B	40.65B
Gross Profit	7.98B	8.18B	6.84B	7.29B	7.23B	6.65B
EBITDA	4.02B	5.20B	4.00B	4.39B	3.87B	3.53B
Net Income	1.52B	1.54B	546.00M	977.00M	1.40B	1.00B
Balance Sheet
Total Assets	70.96B	67.86B	69.94B	67.95B	66.49B	58.42B
Cash, Cash Equivalents and Short-Term Investments	7.55B	5.90B	6.75B	6.08B	7.50B	9.29B
Total Debt	28.45B	28.58B	30.26B	29.94B	28.18B	24.59B
Total Liabilities	51.01B	46.78B	50.78B	50.19B	49.58B	43.30B
Stockholders Equity	19.87B	20.99B	19.08B	17.69B	16.81B	15.04B
Cash Flow
Free Cash Flow	0.00	450.00M	1.40B	-3.15B	-5.03B	-839.00M
Operating Cash Flow	0.00	3.30B	3.40B	1.70B	-572.00M	2.46B
Investing Cash Flow	0.00	-2.55B	-1.93B	-4.59B	-4.50B	-3.31B
Financing Cash Flow	0.00	-1.86B	-900.00M	1.42B	3.11B	1.12B

Toho Chemical Industry Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 812.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4409, the sentiment is Positive. The current price of 812 is above the 20-day moving average (MA) of 734.25, above the 50-day MA of 708.66, and above the 200-day MA of 631.51, indicating a bullish trend. The MACD of 18.24 indicates Negative momentum. The RSI at 85.53 is Negative, neither overbought nor oversold. The STOCH value of 97.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4409.

Toho Chemical Industry Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4113	79 Outperform	¥17.54B	11.87		3.59%	4.85%	80.14%
4229	79 Outperform	¥18.87B	9.83		3.51%	0.78%	-5.93%
4064	76 Outperform	¥17.65B	7.90		4.27%	12.71%	123.52%
4231	76 Outperform	¥16.08B	4.71		8.96%	3.08%	12.74%
4409	74 Outperform	¥17.32B	11.07		2.46%	5.96%	182.60%
4092	73 Outperform	¥17.89B	6.99		4.53%	0.79%	60.97%
Sector *	44 Neutral	C$979.74M	-6.70	-13.35%	2.68%	17.20%	-32.62%