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

• Market Cap: ¥16.36B
• Dividend Yield: 2.61%
• Average Volume (3M): 5.01K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.27
• Revenue Growth: 4.46%
• EPS Growth: 25.80%
• Country: JP
• Employees: 868
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 16.59
• 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: ¥822.00
• Price Target Upside: 7.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥822.00 ▲(7.17% Upside)

The overall stock score reflects stable financial performance and attractive valuation, offset by bearish technical indicators. The company's financial health is supported by moderate growth and a manageable debt profile, but technical analysis indicates potential downside risks.

Toho Chemical Industry Company, Limited Business Overview & Revenue Model

Company Description

Toho Chemical Industry Company, Limited (4409) is a leading Japanese manufacturer specializing in the production of chemical products, including petrochemicals, specialty chemicals, and advanced materials. The company operates across various sectors, providing essential materials for industries such as automotive, electronics, and pharmaceuticals. Toho Chemical focuses on innovation and sustainability, delivering high-quality products that meet the diverse needs of its global clientele.

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 growth in revenue and profitability. The balance sheet indicates a manageable debt profile with some risks due to high debt levels. Cash flow improvements are necessary to ensure 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 767.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4409, the sentiment is Negative. The current price of 767 is below the 20-day moving average (MA) of 792.20, below the 50-day MA of 800.36, and above the 200-day MA of 710.22, indicating a neutral trend. The MACD of -9.42 indicates Positive momentum. The RSI at 32.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4229	80 Outperform	¥22.47B	12.14	―	2.95%	2.14%	-5.12%
4231	75 Outperform	¥19.31B	5.62	―	5.18%	3.11%	12.90%
4064	74 Outperform	¥19.72B	9.36	―	3.87%	11.19%	122.83%
4113	69 Neutral	¥18.10B	11.13	―	3.17%	7.57%	35.66%
4092	68 Neutral	¥25.14B	9.99	―	3.71%	-1.44%	-1.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4409	60 Neutral	¥16.36B	11.73	―	2.61%	4.46%	25.80%