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

• Market Cap: ¥40.59B
• Dividend Yield: 1.9%
• Average Volume (3M): 36.88K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.83
• 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: ¥3,301.00 ▲(41.67% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is primarily driven by strong financial performance (healthy margins, minimal leverage, and improved free cash flow). Valuation appears reasonable (P/E 14.05 with a modest 1.59% yield). Technicals are supportive via a clear uptrend and positive MACD, but overbought RSI/Stoch readings temper the score due to elevated short-term reversal risk.

Positive Factors

Profitability Margins

Sustained mid-to-high gross and EBITDA margins indicate durable pricing power and efficient production in specialty chemicals. These margins support reinvestment in R&D and product development, helping maintain competitive advantage across end markets over the next several quarters.

Low Leverage / Strong Balance Sheet

Effectively zero leverage and a healthy equity base give the company financial flexibility to fund capex, R&D, and withstand cyclicality. Low debt limits interest exposure and preserves capacity for opportunistic investments or shareholder returns over a multi-month horizon.

Strong Cash Generation

High cash conversion and improving free cash flow demonstrate sustainable internal funding capability. Reliable cash generation supports ongoing R&D, capital intensity of specialty chemicals, and reduces reliance on external financing for growth or strategic initiatives.

Negative Factors

Declining Stockholders' Equity

A gradual decline in shareholders' equity erodes the balance sheet buffer that underpins conservative financing. Over time this can constrain capital allocation flexibility, weaken solvency metrics if continued, and may limit capacity for larger strategic moves or sustained dividend increases.

Inconsistent Revenue Trend

Conflicting revenue signals point to uneven top-line performance or data volatility, complicating forecasting and resource planning. If revenue is unstable, sustaining R&D investment or expanding capacity becomes riskier and long-term growth visibility diminishes over the next several quarters.

Exposure to Cyclical End Markets

Material exposure to cyclical sectors like electronics and coatings can drive demand swings tied to economic cycles and capex patterns. This structural end-market cyclicality increases business volatility and can pressure revenues and utilization during downturns over a 2-6 month horizon.

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

Strong overall fundamentals: consistent revenue growth (+3.65% most recent year), solid profitability (gross margin 33.88%, net margin 10.43%, EBITDA margin 16.72%), very low leverage (debt-to-equity effectively zero), and improved free cash flow with good cash conversion (operating cash flow to net income 0.82; free cash flow to net income 0.89). A slight multi-year decline in stockholders’ equity is the main caution.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• 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 2676.00, below the 50-day MA of 2446.50, and above the 200-day MA of 2114.32, indicating a bullish trend. The MACD of 143.66 indicates Negative momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 72.85 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	¥40.59B	15.65	―	1.90%	2.15%	16.14%
4116	76 Outperform	¥90.26B	12.64	―	3.04%	1.57%	-33.97%
4611	74 Outperform	¥41.90B	5.50	―	3.70%	14.83%	51.42%
4112	67 Neutral	¥38.66B	16.63	―	2.37%	-11.70%	-54.82%
4119	66 Neutral	¥7.49B	-8.05	―	2.84%	37.67%	-117.29%
4047	64 Neutral	¥101.34B	32.66	―	1.60%	1.20%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Ishihara Chemical Company,Ltd. Corporate Events

Ishihara Chemical Expands Shareholder Benefits to Attract Smaller Investors

Ishihara Chemical Co., Ltd. has announced an expansion of its shareholder benefits program aimed at making its shares more attractive to a broader base of investors and improving shareholder satisfaction. The company will lower the eligibility threshold for year-end benefits from 200 to 100 shares as of March 31 each year, introducing a new 500-yen QUO card benefit for holders of 100 to under 200 shares while maintaining existing benefit levels for larger holdings.

The interim shareholder benefits program, which applies to shareholders holding at least 200 shares as of September 30, will remain unchanged, preserving the current QUO card structure for different ownership tiers. The revised year-end program will take effect for shareholders of record on March 31, 2026, signaling a more inclusive approach to retail investors and potentially broadening the company’s shareholder base without altering mid-year incentives.

The most recent analyst rating on (JP:4462) stock is a Buy with a Yen2989.00 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 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.