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

• Market Cap: ¥30.66B
• Dividend Yield: 1.96%
• Average Volume (3M): 36.88K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.78
• Revenue Growth: 2.15%
• EPS Growth: 16.14%
• Country: JP
• Employees: 274
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 59.38
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥2,310.00 ▲(5.43% 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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns effectively.

Profit Margins

High profit margins reflect efficient operations and cost management, providing a competitive edge and supporting sustainable financial health.

Negative Factors

Decline in Equity

A decline in equity can indicate potential challenges in maintaining financial stability and may limit future investment capabilities.

Equity Monitoring

Monitoring equity is crucial as it impacts the company's ability to leverage financial resources for growth and maintain investor confidence.

Equity Trends

Declining equity trends may signal underlying financial issues, potentially affecting the company's long-term strategic initiatives and shareholder value.

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 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: 2191.00
• 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 2191 is above the 20-day moving average (MA) of 2156.50, above the 50-day MA of 2071.98, and above the 200-day MA of 2014.03, indicating a bullish trend. The MACD of 30.92 indicates Positive momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 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
4275	80 Outperform	¥36.29B	14.36	―	2.18%	-0.86%	17.65%
4462	78 Outperform	¥30.66B	11.79	―	1.96%	2.15%	16.14%
4022	77 Outperform	¥40.07B	11.50	―	2.76%	5.17%	79.36%
4461	76 Outperform	¥78.30B	20.40	―	1.63%	8.78%	19.37%
4027	75 Outperform	¥28.04B	13.64	―	3.04%	1.83%	-8.54%
4112	69 Neutral	¥29.74B	13.88	―	2.75%	-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 Expands with New Subsidiary in China

Ishihara Chemical Co., Ltd. has established a wholly-owned subsidiary in Shanghai, China, named Ishihara Chemical (Shanghai) Technology Co., Ltd. This move aims to enhance the company’s supply chain stability and adaptability to local demands in China. The new subsidiary will focus on manufacturing and selling electronic-related chemical products. Although the financial impact on the company’s results for the fiscal year ending March 31, 2026, is expected to be minimal, this strategic expansion could strengthen Ishihara Chemical’s market position in the region.

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.

Ishihara Chemical Completes Treasury Stock Disposal for Director Compensation

Ishihara Chemical Co., Ltd. has completed the payment procedure for the disposal of 8,100 common shares as restricted stock compensation. This strategic move, involving a total value of 16,710,300 yen, is aimed at compensating six directors of the company, excluding audit and supervisory committee members and outside directors.