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

• Market Cap: ¥16.76B
• Dividend Yield: 2.78%
• Average Volume (3M): 5.01K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.25
• Revenue Growth: 1.30%
• EPS Growth: -5.03%
• Country: JP
• Employees: 868
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 20.10
• Shares Outstanding: 21,350,000
• 10 Day Avg. Volume: 3,890
• 30 Day Avg. Volume: 5,010
• PEG Ratio: 0.05
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 31.68
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥849.00 ▲(14.11% Upside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

The overall stock score of 66 reflects stable financial performance with moderate growth and a reasonable valuation. Technical indicators suggest a balanced market sentiment, while the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Toho Chemical's products, supporting its market position and potential for future expansion.

Strategic Partnerships

These partnerships ensure a steady demand for Toho Chemical's products, enhancing revenue stability and providing a competitive edge in key sectors.

Sustainability Focus

By aligning with eco-conscious market trends, Toho Chemical can capture new customer segments and enhance its brand reputation, driving long-term growth.

Negative Factors

High Debt Levels

High debt levels can strain financial resources and limit the company's ability to invest in growth opportunities, potentially impacting long-term stability.

Cash Flow Challenges

Inconsistent free cash flow growth can hinder Toho Chemical's financial flexibility, affecting its ability to fund operations and strategic initiatives.

Profit Margin Volatility

Volatile profit margins can impact Toho Chemical's profitability and investor confidence, making it challenging to maintain stable earnings over time.

Toho Chemical Industry Company, Limited Business Overview & Revenue Model

Company Description

Toho Chemical Industry Company, Limited manufactures and sells surfactants, specialty chemicals, resins, and industrial chemicals in Japan and internationally. It provides chemicals for daily consumable industries, such as cosmetics and toiletry, housekeeping and detergents, pulp and paper, textiles, agricultural pesticides, pharmaceutical formulations, and paint and ink. The company also offers concrete and asphalt related, building material, and water cutoff chemical agents for civil engineering, construction work, and building materials industries; and anti-static and anti-fogging agents for plastics, emulsifiers for emulsion polymerization, and modifiers for plastics. In addition, it provides brake fluid bases, metal working fluids, and energy-related chemical agents for machines, transportation equipment, and energy industries; and chemical agents for electronic information device materials, fine cleaning agents, solvents for electronic materials, and additives for photocopier toners. Toho Chemical Industry Company, Limited was incorporated in 1938 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toho Chemical generates revenue primarily through the sale of its chemical products, which are categorized into several key segments, including petrochemicals, functional materials, and specialty chemicals. The company's revenue model is driven by volume sales to large industrial clients, as well as strategic partnerships with companies in various sectors. Additionally, Toho Chemical invests in research and development to create advanced materials that can command higher prices in niche markets. Significant partnerships with major manufacturers in the automotive and electronics industries further enhance its revenue by ensuring a steady demand for its products. The company's focus on sustainability also opens up new revenue streams through environmentally friendly product lines, appealing to an increasingly eco-conscious market.

Toho Chemical Industry Company, Limited Financial Statement Overview

Summary

Toho Chemical Industry Company, Limited shows stable financial health with moderate revenue growth and profitability. The balance sheet is supported by a manageable debt profile, though high debt levels could pose risks. Cash flow improvements are necessary for sustained financial flexibility.

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	53.48B	53.61B	50.60B	55.36B	49.89B	40.65B
Gross Profit	8.36B	8.18B	6.84B	7.29B	7.23B	6.65B
EBITDA	5.33B	5.20B	4.00B	4.50B	3.87B	3.75B
Net Income	1.38B	1.54B	546.00M	977.00M	1.40B	1.00B
Balance Sheet
Total Assets	67.69B	67.86B	69.94B	67.95B	66.49B	58.42B
Cash, Cash Equivalents and Short-Term Investments	5.45B	5.90B	6.75B	6.08B	7.50B	9.29B
Total Debt	27.84B	28.58B	30.26B	29.94B	28.18B	24.59B
Total Liabilities	47.07B	46.78B	50.78B	50.19B	49.58B	43.30B
Stockholders Equity	20.54B	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: 744.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 744 is below the 20-day moving average (MA) of 762.45, below the 50-day MA of 749.18, and below the 200-day MA of 762.65, indicating a bullish trend. The MACD of 10.91 indicates Negative momentum. The RSI at 64.12 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, 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
4092	72 Outperform	¥31.64B	15.35	―	3.84%	-3.41%	-12.83%
4113	69 Neutral	¥16.25B	9.49	―	3.23%	13.09%	89.45%
4409	66 Neutral	¥16.76B	13.84	―	2.78%	1.30%	-5.03%
4410	66 Neutral	¥26.45B	13.86	―	4.62%	7.19%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4406	61 Neutral	¥8.61B	50.96	―	1.35%	-2.76%	-25.24%
4968	61 Neutral	¥30.87B	18.07	―	4.27%	5.72%	28.92%