Ishihara Chemical Company,Ltd. (4462) AI Stock Analysis

• Market Cap: ¥27.75B
• Dividend Yield: 2.09%
• Average Volume (3M): 32.78K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.76
• Revenue Growth: 5.92%
• EPS Growth: 11.71%
• Country: JP
• Employees: 274
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 33.56
• Shares Outstanding: 15,153,680
• 10 Day Avg. Volume: 23,560
• 30 Day Avg. Volume: 32,776
• 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: ¥2,067.00
• Price Target Upside: 8.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥2,067.00 ▲(8.11% Upside)

Ishihara Chemical Company has a strong financial foundation with consistent growth and solid margins. However, bearish technical indicators suggest caution in the short term. The stock is reasonably valued with a moderate dividend yield, making it attractive for long-term investors despite current market momentum challenges.

Ishihara Chemical Company,Ltd. Business Overview & Revenue Model

Company Description

Ishihara Chemical Company, Ltd. (4462) is a Japan-based specialty chemical manufacturer primarily focused on the production of various chemical products, including pigments, resins, and functional materials. The company operates in sectors such as industrial chemicals, electronics, and automotive, providing innovative solutions that meet the diverse needs of its global clientele. With a strong emphasis on research and development, Ishihara Chemical is committed to sustainability and advancing technologies that enhance product performance and environmental safety.

How the Company Makes Money

Ishihara Chemical generates revenue through the sale of its specialty chemical products across various industries. Key revenue streams include the manufacturing and distribution of pigments used in coatings, plastics, and inks, as well as resins utilized in adhesives and electronic components. The company also benefits from long-term partnerships with major manufacturers in the automotive and electronics sectors, which provide stable demand for its products. Additionally, Ishihara Chemical invests in R&D to innovate new products and improve existing ones, allowing it to capture market share and command premium pricing. The company's focus on sustainability and eco-friendly products further strengthens its competitive advantage and appeals to environmentally conscious customers, contributing to its overall earnings.

Ishihara Chemical Company,Ltd. Financial Statement Overview

Summary

Ishihara Chemical Company demonstrates strong financial performance with consistent revenue growth, solid profit margins, a stable balance sheet with low leverage, and robust cash flow generation. The company is well-positioned financially, though monitoring equity trends is advised.

Income Statement

Ishihara Chemical Company has demonstrated consistent revenue growth over the years, with a notable 3.65% increase in the most recent year. The company maintains strong profitability metrics, including a gross profit margin of 33.88% and a net profit margin of 10.43%. EBIT and EBITDA margins are also solid at 14.44% and 16.72%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects a robust financial performance with positive growth trends.

Balance Sheet

The balance sheet of Ishihara Chemical Company shows a strong equity position with a low debt-to-equity ratio, effectively zero in the latest year, highlighting minimal leverage risk. The return on equity stands at 11.26%, reflecting effective use of equity to generate profits. The equity ratio is healthy, indicating a stable financial structure. However, the slight decline in stockholders' equity over the years suggests a need for careful monitoring of equity trends.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow, with a remarkable growth rate, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.82, suggesting efficient conversion of income into cash. The free cash flow to net income ratio of 0.89 further supports the company's ability to generate cash relative to its net income. Overall, the cash flow position is strong, with positive growth and efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.63B	23.63B	20.71B	20.35B	19.04B	16.97B
Gross Profit	8.01B	8.01B	6.68B	6.27B	6.27B	5.56B
EBITDA	3.95B	3.95B	3.14B	2.96B	3.29B	2.62B
Net Income	2.47B	2.47B	1.91B	1.68B	2.05B	1.50B
Balance Sheet
Total Assets	27.00B	27.00B	27.92B	26.51B	25.88B	24.94B
Cash, Cash Equivalents and Short-Term Investments	7.92B	7.92B	6.54B	5.93B	5.54B	5.32B
Total Debt	17.27M	17.27M	21.37M	23.94M	26.99M	20.00M
Total Liabilities	5.10B	5.10B	4.81B	4.61B	4.39B	4.41B
Stockholders Equity	21.90B	21.90B	23.11B	21.90B	21.49B	20.53B
Cash Flow
Free Cash Flow	0.00	3.20B	1.13B	538.07M	1.55B	1.84B
Operating Cash Flow	0.00	3.59B	1.84B	947.42M	1.79B	2.41B
Investing Cash Flow	0.00	182.80M	-281.44M	716.59M	-604.65M	-1.46B
Financing Cash Flow	0.00	-3.68B	-883.04M	-1.18B	-862.55M	-355.80M

Ishihara Chemical Company,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1912.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4462, the sentiment is Negative. The current price of 1912 is below the 20-day moving average (MA) of 1970.70, below the 50-day MA of 1967.48, and below the 200-day MA of 2119.28, indicating a bearish trend. The MACD of -18.25 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 16.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4462.

Ishihara Chemical Company,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4022	77 Outperform	¥35.82B	10.33		2.66%	5.16%	32.19%
4275	74 Outperform	¥31.94B	12.61		2.68%	0.81%	2.21%
4027	74 Outperform	¥28.00B	13.42		2.82%	5.29%	1.50%
4112	69 Neutral	¥26.64B	12.38		4.14%	-6.65%	-45.46%
4461	69 Neutral	¥56.42B	17.72		1.46%	11.99%	31.00%
4462	65 Neutral	¥27.75B	11.64		2.09%	5.92%	11.71%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%

Ishihara Chemical Company,Ltd. Corporate Events

Ishihara Chemical Co., Ltd. Announces Leadership Restructuring

Ishihara Chemical Co., Ltd. announced significant changes in its leadership structure, with new appointments in the roles of representative director and executive officers. These changes, set to be finalized at the upcoming Annual General Meeting, aim to adapt to the evolving management environment and enhance corporate value. The restructuring is expected to rejuvenate the management team, potentially impacting the company’s strategic direction and stakeholder relations.