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

• Market Cap: ¥33.81B
• Dividend Yield: 1.9%
• Average Volume (3M): 36.88K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.77
• Revenue Growth: 2.15%
• EPS Growth: 16.14%
• Country: JP
• Employees: 274
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 58.20
• Shares Outstanding: 15,153,680
• 10 Day Avg. Volume: 18,950
• 30 Day Avg. Volume: 36,883
• PEG Ratio: 0.34
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 9.37
• 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: 78 Outperform
• Price Target: ¥2,739.00 ▲(17.55% Upside)

Ishihara Chemical Company scores well due to its strong financial performance and reasonable valuation. Technical analysis supports a positive outlook, although potential overbought conditions warrant caution. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong free cash flow generation

High operating and free cash flow conversion ratios indicate durable cash generation that supports R&D, capex, dividends or opportunistic M&A without relying on external financing. Strong cash conversion reduces execution risk and underpins long-term strategic flexibility.

Low leverage and solid equity position

Minimal leverage and a healthy equity ratio lower financial risk and provide resilience through downturns. A 11.26% ROE shows the company uses equity productively, enabling sustained investment in innovation and capacity while keeping bankruptcy and refinancing risk limited.

Healthy margins with recent revenue growth

Sizable gross and operating margins reflect product differentiation and pricing power typical of specialty chemicals. Combined with reported revenue growth, these margins support durable profitability and internal funding for product development and customer programs over the medium term.

Negative Factors

Reported revenue growth metric negative

A deeply negative revenue growth figure in the fundamentals is a structural red flag: sustained top-line contraction would erode scale economics, pressure margins and free cash flow, and could force strategic retrenchment unless revenue stabilizes or reverses promptly.

Eroding stockholders' equity trend

A gradual decline in equity diminishes the capital buffer that supports growth and cushions losses. Over time this can limit financing flexibility, increase perceived risk among counterparties, and constrain the company’s ability to invest or absorb cyclical downturns without external funding.

Exposure to cyclical end markets

Concentration in electronics and related industrial end markets creates structural exposure to demand cycles and capex swings. Persistent downturns in these industries can reduce product demand and capacity utilization, pressuring long-term revenue visibility and investment planning.

Ishihara Chemical Company,Ltd. Business Overview & Revenue Model

Company Description

Ishihara Chemical Co., Ltd. engages in the manufacture and sale of chemical products in Japan and internationally. The company provides plating chemicals that are used in the production of electronic components for use in household appliances, communications devices, office equipment, and other products; and analytical equipment for surface treatment solutions utilized in production processes for printed circuit boards and display panels used in flat-panel televisions, mobile phones, game consoles, and other media devices, as well as provides reagents for use with these devices, and after-sales services. It also offers electronic materials, such as submicron nickel powders that are used in the manufacture of capacitor electrodes; ceramic products, including machinable and engineering ceramics; and ceramic parts, which are used in various components and fixtures, such as semiconductor and LCD manufacturing equipment. In addition, the company develops, manufactures, and sells automotive chemicals under the Unicon brand, including car wash detergents for use at gas stations; maintenance chemicals for use at automotive inspection and repair shops; FMC compounds and repair chemicals for use at automotive sheet metal painting plants; and anti-spatter agents for welding, as well as consumer products for resale at automotive and other shops. Further, it distributes inorganic compounds and fine chemicals, including acids, alkalis, catalysts, etc. to steel, chemical, and heavy industries, as well as to government agencies. Ishihara Chemical Co., Ltd. was founded in 1900 and is headquartered in Kobe, Japan.

How the Company Makes Money

Ishihara Chemical Company generates revenue primarily through the sale of its chemical products and materials, which are utilized in numerous industries such as electronics, pharmaceuticals, and coatings. The company has established key revenue streams through long-term contracts and partnerships with major manufacturers in these sectors, ensuring a steady demand for its innovative solutions. Additionally, Ishihara invests in research and development to create advanced products, which can command premium pricing. The company's ability to adapt to market trends and maintain high product quality further enhances its profitability.

Ishihara Chemical Company,Ltd. Financial Statement Overview

Summary

Ishihara Chemical Company exhibits strong financial performance with consistent revenue growth, solid profit margins, and efficient cash flow management. The balance sheet is stable with low leverage, although a slight decline in equity requires monitoring.

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	23.22B	23.63B	20.71B	20.35B	19.04B	16.97B
Gross Profit	7.93B	8.01B	6.68B	6.27B	6.27B	5.56B
EBITDA	4.66B	3.95B	3.14B	2.96B	3.29B	2.62B
Net Income	2.29B	2.47B	1.91B	1.68B	2.05B	1.50B
Balance Sheet
Total Assets	26.93B	27.00B	27.92B	26.51B	25.88B	24.94B
Cash, Cash Equivalents and Short-Term Investments	8.28B	7.92B	6.54B	5.93B	5.54B	5.32B
Total Debt	642.70M	17.27M	21.37M	23.94M	26.99M	20.00M
Total Liabilities	4.75B	5.10B	4.81B	4.61B	4.39B	4.41B
Stockholders Equity	22.18B	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: Positive
• Last Price: 2330.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4462, the sentiment is Positive. The current price of 2330 is below the 20-day moving average (MA) of 2339.00, above the 50-day MA of 2253.10, and above the 200-day MA of 2055.49, indicating a bullish trend. The MACD of 28.86 indicates Positive momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 56.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4462	78 Outperform	¥33.81B	12.59	―	1.90%	2.15%	16.14%
4022	75 Outperform	¥56.49B	13.24	―	2.22%	5.17%	79.36%
4275	75 Outperform	¥51.10B	18.81	―	1.92%	-0.86%	17.65%
4027	74 Outperform	¥30.63B	16.36	―	3.24%	1.83%	-8.54%
4461	70 Outperform	¥106.03B	20.80	―	1.24%	8.78%	19.37%
4112	65 Neutral	¥37.53B	19.61	―	2.37%	-11.70%	-54.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Ishihara Chemical Company,Ltd. Corporate Events

Ishihara Chemical Lifts Earnings and Dividend Outlook Despite Lower Nine-Month Sales

For the nine months ended December 31, 2025, Ishihara Chemical reported a 2.8% year-on-year decline in net sales to ¥17.5 billion, but operating profit and ordinary profit were essentially flat, and profit attributable to owners of parent rose 3.2% to ¥2.06 billion, driving basic earnings per share up to ¥151.14. The company’s financial position strengthened, with total assets rising to ¥28.4 billion and the equity ratio improving to 83.6%, and it confirmed unchanged guidance for the full fiscal year to March 2026, targeting modest growth in revenue and profit alongside a planned increase in annual dividends to ¥44 per share, signaling continued confidence and commitment to shareholder returns despite softer top-line growth.

The most recent analyst rating on (JP:4462) stock is a Buy with a Yen2704.00 price target. To see the full list of analyst forecasts on Ishihara Chemical Company,Ltd. stock, see the JP:4462 Stock Forecast page.

Ishihara Chemical Announces Changes in Directors’ Responsibilities

Ishihara Chemical Co., Ltd. announced changes in its directors’ responsibilities, effective April 1, 2026, as resolved in their Board of Directors meeting. Akihiko Fujimoto will continue as Representative Director and President, while Yoshitaka Ito will take on the role of Director, Chief Sales Officer, and General Manager of the Industrial Chemicals Department. These changes are expected to streamline leadership roles and potentially enhance operational efficiency.

The most recent analyst rating on (JP:4462) stock is a Buy with a Yen2310.00 price target. To see the full list of analyst forecasts on Ishihara Chemical Company,Ltd. stock, see the JP:4462 Stock Forecast page.