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

• Market Cap: ¥29.53B
• Dividend Yield: 1.97%
• Average Volume (3M): 16.54K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.81
• Revenue Growth: 15.27%
• EPS Growth: 48.08%
• Country: JP
• Employees: 274
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 34.44
• Shares Outstanding: 15,153,680
• 10 Day Avg. Volume: 13,170
• 30 Day Avg. Volume: 16,540
• PEG Ratio: 1.89
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ―

Ishihara Chemical Company demonstrates strong financial stability with consistent revenue growth and a robust balance sheet. However, concerns about cash flow transparency slightly dampen this outlook. Technical analysis presents a mixed picture, with short-term momentum but longer-term resistance. The stock's low P/E ratio suggests potential undervaluation, complemented by a modest dividend yield. Overall, the company is well-positioned, but attention to cash flow and technical trends is advised.

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 makes money primarily through the sale of its chemical products, particularly plating chemicals and electronic materials. These products are essential for various manufacturing processes, such as surface treatment and electronic component production, which are crucial in industries like automotive and electronics. The company also engages in research and development to innovate and improve its product offerings, thus maintaining a competitive edge in the market. Significant partnerships with manufacturers in these industries help Ishihara Chemical Company secure steady revenue streams by ensuring consistent demand for its products.

Ishihara Chemical Company,Ltd. Financial Statement Overview

Summary

Ishihara Chemical Company, Ltd. exhibits strong financial health, bolstered by consistent revenue growth and robust profitability metrics. The balance sheet is particularly strong with zero debt and high equity levels, ensuring stability and low financial risk. However, cash flow data for the latest period is incomplete, which could signify potential liquidity issues. Overall, the company appears well-positioned for future growth, though improved cash flow transparency would strengthen its financial profile further.

Income Statement

The company demonstrates robust profitability with a steady increase in revenue over the years. The Gross Profit Margin and Net Profit Margin are strong, reflecting efficient cost management. Revenue has consistently grown, with a notable 10.0% increase from 2023 to 2024 (TTM). EBIT and EBITDA margins are healthy, indicating solid operational efficiency.

Balance Sheet

The balance sheet is exceptionally strong, with no debt and a high Equity Ratio of approximately 81.3% in 2024 (TTM), showcasing financial stability. Return on Equity (ROE) is impressive at around 11.1%, highlighting effective use of equity to generate profits.

Cash Flow

Cash flow generation shows some inconsistencies. While the company has maintained positive free cash flow in the past, the 2024 (TTM) report shows a lack of operating cash flow data, which raises concerns about cash generation sustainability. Historically, the Free Cash Flow to Net Income Ratio has been positive, indicating some degree of cash profitability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.63B	20.71B	20.35B	19.04B	16.97B
Gross Profit	8.01B	6.68B	6.27B	6.27B	5.56B
EBITDA	3.95B	3.14B	2.96B	3.29B	2.62B
Net Income	2.47B	1.91B	1.68B	2.05B	1.50B
Balance Sheet
Total Assets	27.00B	27.92B	26.51B	25.88B	24.94B
Cash, Cash Equivalents and Short-Term Investments	7.92B	6.54B	5.93B	5.54B	5.32B
Total Debt	0.00	21.37M	23.94M	26.99M	20.00M
Total Liabilities	5.10B	4.81B	4.61B	4.39B	4.41B
Stockholders Equity	21.90B	23.11B	21.90B	21.49B	20.53B
Cash Flow
Free Cash Flow	3.20B	1.13B	538.07M	1.55B	1.84B
Operating Cash Flow	3.59B	1.84B	947.42M	1.79B	2.41B
Investing Cash Flow	182.80M	-281.44M	716.59M	-604.65M	-1.46B
Financing Cash Flow	-3.68B	-883.04M	-1.18B	-862.55M	-355.80M

Ishihara Chemical Company,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2035.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2035 is above the 20-day moving average (MA) of 1954.70, above the 50-day MA of 1944.58, and below the 200-day MA of 2176.26, indicating a neutral trend. The MACD of 17.06 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 84.73 is Negative, 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
4275	74 Outperform	¥28.21B	10.89		3.03%	0.92%	-0.79%
4112	74 Outperform	¥23.97B	7.34		4.60%	9.75%	28.00%
4027	72 Outperform	¥27.47B	12.18		2.96%	5.18%	30.87%
4462	72 Outperform	¥29.53B	11.73		1.97%	15.27%	48.08%
4461	67 Neutral	¥44.55B	16.20		1.02%	16.06%	120.22%
4022	64 Neutral	¥33.96B	10.73		2.80%	9.33%	45.97%
Sector *	44 Neutral	C$992.55M	-6.64	-13.73%	1.83%	17.55%	-32.57%

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.