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Toho Chemical Industry Company, Limited (JP:4409)
:4409
Japanese Market

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

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JP

Toho Chemical Industry Company, Limited

(4409)

Rating:74Outperform
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 (4409) vs. iShares MSCI Japan ETF (EWJ)

Toho Chemical Industry Company, Limited Business Overview & Revenue Model

Company DescriptionToho 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 MoneyToho 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
67
Positive
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
72
Positive
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
58
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue52.78B53.61B50.60B55.36B49.89B40.65B
Gross Profit7.98B8.18B6.84B7.29B7.23B6.65B
EBITDA4.02B5.20B4.00B4.39B3.87B3.53B
Net Income1.52B1.54B546.00M977.00M1.40B1.00B
Balance Sheet
Total Assets70.96B67.86B69.94B67.95B66.49B58.42B
Cash, Cash Equivalents and Short-Term Investments7.55B5.90B6.75B6.08B7.50B9.29B
Total Debt28.45B28.58B30.26B29.94B28.18B24.59B
Total Liabilities51.01B46.78B50.78B50.19B49.58B43.30B
Stockholders Equity19.87B20.99B19.08B17.69B16.81B15.04B
Cash Flow
Free Cash Flow0.00450.00M1.40B-3.15B-5.03B-839.00M
Operating Cash Flow0.003.30B3.40B1.70B-572.00M2.46B
Investing Cash Flow0.00-2.55B-1.93B-4.59B-4.50B-3.31B
Financing Cash Flow0.00-1.86B-900.00M1.42B3.11B1.12B

Toho Chemical Industry Company, Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price812.00
Price Trends
50DMA
708.66
Positive
100DMA
676.74
Positive
200DMA
631.51
Positive
Market Momentum
MACD
18.24
Negative
RSI
85.53
Negative
STOCH
97.76
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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥17.54B11.87
3.59%4.85%80.14%
79
Outperform
¥18.87B9.83
3.51%0.78%-5.93%
76
Outperform
¥17.65B7.90
4.27%12.71%123.52%
76
Outperform
¥16.08B4.71
8.96%3.08%12.74%
74
Outperform
¥17.32B11.07
2.46%5.96%182.60%
73
Outperform
¥17.89B6.99
4.53%0.79%60.97%
44
Neutral
C$979.74M-6.70-13.35%2.68%17.20%-32.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4409
Toho Chemical Industry Company, Limited
812.00
297.08
57.69%
JP:4064
Nippon Carbide Industries Company,Incorporated
1,875.00
-39.71
-2.07%
JP:4092
Nippon Chemical Industrial Co., Ltd.
2,032.00
-687.05
-25.27%
JP:4113
Taoka Chemical Co., Ltd.
1,224.00
411.46
50.64%
JP:4229
Gun Ei Chemical Industry Co., Ltd.
2,847.00
-230.76
-7.50%
JP:4231
Tigers Polymer Corporation
804.00
-41.09
-4.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025