Yuki Gosei Kogyo Co., Ltd. (4531) AI Stock Analysis

• Market Cap: ¥8.49B
• Dividend Yield: 2.97%
• Average Volume (3M): 39.67K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.87
• Revenue Growth: 9.92%
• EPS Growth: -27.64%
• Country: JP
• Employees: 290
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 3.41
• Shares Outstanding: 21,974,000
• 10 Day Avg. Volume: 32,460
• 30 Day Avg. Volume: 39,673
• PEG Ratio: 0.39
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -4.79
• 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: 72 Outperform
• Price Target: ¥432.00 ▲(36.28% Upside)

The score is driven primarily by solid financial performance (consistent revenue growth and improving margins) tempered by negative free cash flow from high capex. Technicals are mixed with short-term weakness but supportive longer-term trend signals. Valuation is reasonable with a moderate P/E and a supportive dividend yield.

Positive Factors

Consistent Revenue Growth

Five-year revenue expansion demonstrates durable demand for the company's products and supports scale advantages. Sustained top-line growth provides a foundation for reinvestment, capacity build-out, and margin improvement, strengthening long-term competitive position.

Stable Gross Margins and Improving Profitability

Consistent ~20% gross margins and recent net margin improvements indicate effective production efficiency and pricing discipline. Margin stability supports durable free cash flow potential (absent heavy capex) and resilience versus input cost swings in the chemicals industry.

Strengthening Balance Sheet Equity

Rising equity and a stable debt-to-equity profile provide a stronger capital cushion and financial flexibility. This improved solidity reduces insolvency risk, supports strategic investments, and enhances the company's ability to withstand industry cyclicality over the medium term.

Negative Factors

Negative Free Cash Flow

Persistent negative FCF from heavy capex can erode liquidity and force external financing if prolonged. Even with positive operating cash flow, ongoing negative FCF limits discretionary spending, dividends, or buybacks and raises execution risk for long-term investment plans.

Rising Total Debt

An elevated and rising absolute debt stock increases interest and refinancing exposure, particularly if macro rates or credit conditions tighten. Higher leverage reduces financial flexibility and magnifies downside risk if earnings or cash conversion weaken.

Modest Revenue Growth Pace

A roughly 3% growth rate is modest for a specialty chemicals firm and may limit long-term scale benefits and investor returns absent margin expansion. Slow top-line growth increases reliance on cost cuts or pricing power to drive sustainable earnings growth.

Yuki Gosei Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Yuki Gosei Kogyo Co., Ltd. researches, develops, manufactures, and markets fine chemical products in Japan and internationally. It offers food additives, pharmaceuticals, and industrial and agricultural chemicals; and glycine, glycine compounds, nicotinic acid amide, isoniazid, drug intermediates, and cosmetic ingredients. The company also provides amino acid, pyridine, piperidine, silicon, and other compounds; DNA, nucleoside, and protamine; and active pharmaceutical ingredients. In addition, it engages in the contract manufacturing of pharmaceuticals and chemical products. Yuki Gosei Kogyo Co., Ltd. was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yuki Gosei Kogyo Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products, including generic medications and APIs. The company capitalizes on the growing demand for affordable healthcare solutions, focusing on high-quality generics that cater to a wide range of medical needs. Additionally, Yuki Gosei Kogyo may engage in partnerships or collaborations with other pharmaceutical companies for research and development projects, which can lead to licensing agreements or joint ventures that further enhance their income streams. The company may also benefit from government contracts and subsidies, particularly in markets that support the use of generics in public healthcare systems.

Yuki Gosei Kogyo Co., Ltd. Financial Statement Overview

Summary

Strong income statement with steady revenue growth and improving profitability (Income Statement Score: 80). Balance sheet is solid with rising equity and manageable leverage, though total debt has increased (Balance Sheet Score: 75). Operating cash flow is positive, but recent negative free cash flow from heavy capex is a key risk (Cash Flow Score: 70).

Income Statement

The company has demonstrated consistent revenue growth over the past five years, with a revenue increase from ¥10,717 million in 2020 to ¥15,128 million in 2025. Gross profit margins have been stable, averaging around 20% over recent years, indicating efficient production and pricing strategies. Net profit margins have improved, particularly in the last two years, showing enhanced profitability and cost control. EBITDA margins have also strengthened, reflecting robust operating performance.

Balance Sheet

The balance sheet is strong with an improving equity position, as stockholders' equity has grown from ¥10,535 million in 2020 to ¥13,106 million in 2025. The debt-to-equity ratio has been stable, indicating manageable leverage levels. Return on equity has shown positive trends, suggesting efficient use of equity capital. However, the increasing total debt to ¥8,418 million warrants monitoring for potential leverage risks.

Cash Flow

Operating cash flow has been positive and growing, supporting the company's operational needs. However, free cash flow has been negative in recent years due to significant capital expenditures, which might indicate strategic investments or expansion. The operating cash flow to net income ratio is strong, showcasing good cash conversion efficiency, although consistent negative free cash flow could pose a challenge if not managed well.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.86B	15.13B	12.93B	12.84B	12.36B	11.09B
Gross Profit	3.19B	3.23B	3.26B	3.05B	2.36B	1.82B
EBITDA	1.93B	2.23B	1.93B	1.56B	1.18B	1.27B
Net Income	708.00M	896.00M	776.00M	556.00M	248.00M	288.00M
Balance Sheet
Total Assets	27.35B	26.87B	24.37B	22.12B	21.17B	21.00B
Cash, Cash Equivalents and Short-Term Investments	1.05B	973.00M	588.00M	1.14B	1.86B	1.26B
Total Debt	9.06B	8.51B	6.87B	5.64B	5.54B	6.14B
Total Liabilities	14.31B	13.76B	11.94B	10.64B	10.17B	10.05B
Stockholders Equity	13.03B	13.11B	12.43B	11.48B	11.00B	10.95B
Cash Flow
Free Cash Flow	0.00	-1.20B	-1.37B	-490.00M	1.40B	-208.00M
Operating Cash Flow	0.00	2.14B	388.00M	668.00M	1.79B	352.00M
Investing Cash Flow	0.00	-3.25B	-1.89B	-1.24B	-442.00M	-648.00M
Financing Cash Flow	0.00	1.50B	948.00M	-158.00M	-772.00M	106.00M

Yuki Gosei Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 317.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4531, the sentiment is Neutral. The current price of 317 is below the 20-day moving average (MA) of 414.15, below the 50-day MA of 345.18, and above the 200-day MA of 287.65, indicating a neutral trend. The MACD of 36.75 indicates Positive momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 17.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4531.

Yuki Gosei Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4040	77 Outperform	¥7.32B	6.31	―	1.96%	8.43%	2.99%
4531	72 Outperform	¥8.49B	12.65	―	2.97%	9.92%	-27.64%
4366	71 Outperform	¥12.29B	14.22	―	1.81%	9.07%	―
4960	71 Outperform	¥12.82B	134.39	―	1.06%	-9.63%	-1.71%
4885	69 Neutral	¥3.54B	10.56	―	4.25%	7.90%	-39.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4360	53 Neutral	¥7.25B	-23.17	―	1.93%	13.64%	-151.98%

Yuki Gosei Kogyo Co., Ltd. Corporate Events

Yuki Gosei Kogyo Posts Higher Sales but Sharp Profit Decline and Cuts Full-Year Outlook

Yuki Gosei Kogyo reported non-consolidated net sales of ¥11,017 million for the nine months ended December 31, 2025, a modest 1.6% increase year on year, but saw profitability weaken sharply, with operating income down 41.5% to ¥364 million and net income falling 49.4% to ¥238 million, pushing net income per share down to ¥11.06. Despite a slight increase in total assets and net assets and an equity ratio holding around 49%, the company cut its full-year profit outlook even as it projects small growth in sales, now forecasting net sales of ¥15.3–15.5 billion but a steep decline in full-year operating and ordinary income versus the previous year, underscoring pressure on margins. Dividend policy remains shareholder-friendly but conservative, with no interim dividend and a planned year-end dividend of ¥10 per share for the fiscal year ending March 31, 2026, signaling an intention to maintain returns to investors while navigating a period of earnings compression.

The most recent analyst rating on (JP:4531) stock is a Hold with a Yen499.00 price target. To see the full list of analyst forecasts on Yuki Gosei Kogyo Co., Ltd. stock, see the JP:4531 Stock Forecast page.

Yuki Gosei Kogyo Reports Mixed Financial Results for H1 2025

Yuki Gosei Kogyo Co., Ltd. reported its non-consolidated financial results for the six months ending September 30, 2025, showing an increase in net sales by 8.7% compared to the previous year. However, the company experienced a significant decline in operating income, ordinary income, and net income, with decreases of 45.8%, 48.1%, and 55.0% respectively. Despite the sales growth, the financial results indicate challenges in maintaining profitability, which could impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:4531) stock is a Buy with a Yen310.00 price target. To see the full list of analyst forecasts on Yuki Gosei Kogyo Co., Ltd. stock, see the JP:4531 Stock Forecast page.