Isamu Paint Co., Ltd. (4624) AI Stock Analysis

• Market Cap: ¥5.25B
• Dividend Yield: 1.43%
• Average Volume (3M): 3.08K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.38
• Revenue Growth: 2.67%
• EPS Growth: 37.55%
• Country: JP
• Employees: 204
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 78.27
• Shares Outstanding: 2,000,000
• 10 Day Avg. Volume: 6,490
• 30 Day Avg. Volume: 3,080
• PEG Ratio: 2.03
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 22.65
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,774.00 ▲(6.91% Upside)

Isamu Paint Co., Ltd. has a strong financial foundation with robust profitability and a stable balance sheet. However, technical indicators suggest a bearish trend, and the stock's valuation is moderate. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for strategic investments or weathering economic downturns.

Healthy Profit Margins

Sustained profit margins indicate effective cost management and pricing power, supporting long-term profitability and competitive positioning.

Revenue Growth

Consistent revenue growth reflects strong demand for products and successful market penetration, which is crucial for long-term business expansion.

Negative Factors

Declining Free Cash Flow

Decreasing free cash flow can limit the company's ability to invest in growth opportunities or return capital to shareholders, potentially impacting future performance.

Slowing Revenue Growth Rate

A slowdown in revenue growth may indicate market saturation or increased competition, posing challenges to sustaining long-term growth momentum.

Challenges in Cash Flow Management

While cash conversion is efficient, challenges in maintaining robust free cash flow could constrain the company's financial flexibility and investment capacity.

Isamu Paint Co., Ltd. Business Overview & Revenue Model

Company Description

Isamu Paint Co., Ltd. (4624) is a leading manufacturer of paints and coatings in Japan, specializing in a wide range of products for industrial, automotive, and architectural applications. The company focuses on innovation and sustainability, offering high-performance solutions that meet the demands of various sectors, including construction, automotive, and consumer goods. With a commitment to quality and environmental responsibility, Isamu Paint provides a diverse catalog of paint products, including water-based and eco-friendly options.

How the Company Makes Money

Isamu Paint Co., Ltd. generates revenue primarily through the sale of its paint and coating products to various industries, including construction, automotive, and manufacturing. The company has established key revenue streams from both direct sales to large industrial clients and retail sales through distribution networks and home improvement stores. Additionally, Isamu Paint benefits from strategic partnerships with construction firms and automotive manufacturers that require specialized coatings, which contributes to consistent demand for its products. The company also invests in research and development to innovate new products, which helps maintain its competitive edge and drive sales growth.

Isamu Paint Co., Ltd. Financial Statement Overview

Summary

Isamu Paint Co., Ltd. demonstrates strong financial health with consistent revenue growth, healthy profit margins, and a robust balance sheet with minimal leverage. However, challenges exist in maintaining revenue growth and improving free cash flow.

Income Statement

Isamu Paint Co., Ltd. shows consistent revenue growth over the years, with a notable Gross Profit Margin of 30.3% and steady Net Profit Margin of 6.7% in the latest fiscal year. The EBIT and EBITDA margins are healthy at 7.7% and 12.0%, respectively. However, the revenue growth rate has slowed down recently, indicating potential saturation or market challenges.

Balance Sheet

The company maintains a robust financial position with a very low Debt-to-Equity Ratio of 0.001, indicating minimal leverage and strong equity backing. Return on Equity (ROE) is solid at 3.2%, and the Equity Ratio is high at 82.4%, suggesting a stable balance sheet with high asset financing through equity. The company demonstrates strong financial health and low financial risk.

Cash Flow

The cash flow statement shows a decline in Free Cash Flow Growth Rate by 54.7%, which is a concern. Nonetheless, the Operating Cash Flow to Net Income Ratio of 0.89 indicates efficient conversion of income into cash, while the Free Cash Flow to Net Income Ratio stands at 0.50. Overall, the company manages cash flows well but needs to address the declining free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.13B	8.16B	8.00B	7.60B	7.07B	7.16B
Gross Profit	2.54B	2.47B	2.45B	2.24B	2.14B	2.20B
EBITDA	977.04M	979.38M	955.59M	820.47M	755.13M	883.74M
Net Income	574.02M	548.83M	520.09M	436.65M	401.46M	509.50M
Balance Sheet
Total Assets	21.08B	20.89B	20.76B	19.86B	19.14B	18.94B
Cash, Cash Equivalents and Short-Term Investments	4.44B	4.68B	5.24B	6.25B	7.04B	6.99B
Total Debt	24.91M	18.95M	17.63M	24.09M	19.54M	32.14M
Total Liabilities	3.32B	3.25B	3.58B	3.33B	3.03B	3.11B
Stockholders Equity	17.34B	17.22B	16.77B	16.13B	15.72B	15.43B
Cash Flow
Free Cash Flow	0.00	273.87M	603.80M	514.47M	228.65M	541.24M
Operating Cash Flow	0.00	486.44M	798.15M	688.36M	510.75M	680.75M
Investing Cash Flow	0.00	-330.74M	-707.30M	-473.76M	-254.51M	-25.92M
Financing Cash Flow	0.00	-109.49M	-105.99M	-105.94M	-106.90M	-107.49M

Isamu Paint Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3530.00
• 50DMA: Negative
• 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:4624, the sentiment is Neutral. The current price of 3530 is below the 20-day moving average (MA) of 3557.00, below the 50-day MA of 3583.83, and above the 200-day MA of 3360.65, indicating a neutral trend. The MACD of -9.76 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 7.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4624.

Isamu Paint Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.61B	12.88	―	2.47%	1.79%	31.63%
4623	72 Outperform	¥6.55B	9.21	―	3.49%	-8.27%	-3.23%
4616	71 Outperform	¥2.42B	20.17	―	1.24%	-2.27%	-12.76%
4624	66 Neutral	¥5.25B	11.57	―	1.43%	2.67%	37.55%
4620	64 Neutral	¥18.46B	30.02	―	2.95%	-3.46%	-52.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	-16.66	―	―	8.66%	-239.07%