Taiyo Holdings Co., Ltd. (4626) AI Stock Analysis

• Market Cap: ¥338.55B
• Dividend Yield: 5.04%
• Average Volume (3M): 220.38K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.48
• Revenue Growth: 13.59%
• EPS Growth: 24.68%
• Country: JP
• Employees: 2,210
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): 193.18
• Shares Outstanding: 58,369,507
• 10 Day Avg. Volume: 361,300
• 30 Day Avg. Volume: 220,380
• PEG Ratio: -2.68
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 219.18
• 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: 70 Outperform
• Price Target: ¥6,853.00 ▲(12.16%Upside)

The stock's overall score is primarily driven by strong financial performance, characterized by revenue and profit growth, and solid cash flow generation. Technical analysis suggests a positive trend, albeit with potential for short-term corrections due to overbought signals. Valuation metrics indicate the stock is on the expensive side, although the dividend yield offers some compensation for investors.

Taiyo Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Taiyo Holdings Co., Ltd. (4626) is a Japan-based company primarily engaged in the development, production, and sale of chemical products, with a particular focus on the electronics industry. The company is known for its production of solder resist, which is an essential material used in the manufacturing of printed circuit boards (PCBs). Taiyo Holdings operates through its subsidiaries and maintains a significant presence in Asian markets, catering to various sectors including consumer electronics, automotive, and telecommunications.

How the Company Makes Money

Taiyo Holdings Co., Ltd. generates revenue primarily through the sale of its chemical products, with solder resist being a significant contributor to its income. The company's revenue model is centered around its ability to supply these essential materials to manufacturers of printed circuit boards, which are used in a wide array of electronic devices. Key revenue streams include both direct sales to electronics manufacturers and through a network of distributors and partners. The company benefits from partnerships with major electronics firms and a strong focus on research and development, which allows it to innovate and meet the evolving needs of the electronics industry. Additionally, Taiyo Holdings leverages its global operational footprint to access and sustain a diverse customer base across multiple regions.

Taiyo Holdings Co., Ltd. Financial Statement Overview

Summary

Taiyo Holdings Co., Ltd. presents a positive financial outlook with strong revenue and profit growth, efficient cost management, and solid cash flow generation. The company is well-positioned to capitalize on growth opportunities in the specialty chemicals industry.

Income Statement

The company has demonstrated strong revenue growth, evidenced by a 13.6% increase in 2025 compared to 2024. Gross profit margin remains robust at 47.2% for 2025, indicating effective cost management. Net profit margin improved to 9.1%, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 18.5% and 21.0% respectively, showcasing operational efficiency. Continued focus on margin improvement and cost control is evident.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. Return on Equity (ROE) improved to 10.5%, reflecting efficient use of equity. The equity ratio is healthy at 53.6%, highlighting a strong equity base. The company exhibits a balanced approach to debt and equity management, though maintaining leverage at current levels is crucial for financial stability.

Cash Flow

Operating cash flow increased by 11.7% in 2025, supporting the company's ability to generate cash from operations. Free cash flow exhibited significant growth, rising from ¥2.4 billion in 2024 to ¥17.4 billion in 2025, driven by reduced capital expenditure. The operating cash flow to net income ratio is robust at 2.2, indicating strong cash conversion. The company effectively manages its cash flows, aiding in growth initiatives and financial flexibility.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
117.42B	119.01B	104.78B	97.34B	97.97B	80.99B
	Gross Profit
55.52B	56.19B	48.83B	42.79B	42.87B	34.87B
	EBIT
21.97B	22.07B	18.20B	15.97B	17.96B	13.94B
	EBITDA
31.41B	24.94B	21.73B	23.75B	25.94B	21.42B
	Net Income Common Stockholders
11.42B	10.78B	8.65B	11.40B	11.80B	9.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.62B	44.90B	58.58B	47.12B	51.56B	54.70B
	Total Assets
198.81B	192.02B	212.75B	187.26B	189.27B	179.00B
	Total Debt
67.19B	64.52B	86.72B	71.50B	78.15B	81.22B
	Net Debt
24.57B	19.62B	29.06B	24.38B	26.59B	26.51B
	Total Liabilities
90.86B	89.04B	112.35B	94.53B	103.81B	102.51B
	Stockholders Equity
107.95B	102.97B	100.39B	92.73B	85.46B	76.14B
Cash Flow		Free Cash Flow
0.00	17.40B	2.41B	10.33B	7.96B	5.24B
	Operating Cash Flow
0.00	23.71B	21.22B	22.74B	18.31B	16.31B
	Investing Cash Flow
0.00	-8.31B	-21.07B	-13.16B	-11.26B	-11.60B
	Financing Cash Flow
0.00	-29.22B	8.95B	-13.94B	-11.28B	19.75B

Taiyo Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6110.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4626, the sentiment is Positive. The current price of 6110 is above the 20-day moving average (MA) of 5693.50, above the 50-day MA of 5148.20, and above the 200-day MA of 4190.13, indicating a bullish trend. The MACD of 296.76 indicates Negative momentum. The RSI at 70.06 is Negative, neither overbought nor oversold. The STOCH value of 70.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4626.

Taiyo Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4203	76 Outperform	¥361.16B	18.95	6.45%	0.25%	6.09%	-10.60%
4631	75 Outperform	$278.05B	9.21	7.73%	3.40%	3.67%	―
4118	73 Outperform	¥244.55B	9.65	5.38%	0.02%	5.89%	11.92%
4205	73 Outperform	$286.17B	11.40	7.16%	4.82%	10.04%	-13.43%
4626	70 Outperform	¥338.55B	30.80		5.04%	13.59%	24.68%
4613	66 Neutral	$344.70B	10.11	13.00%	2.55%	4.72%	-30.40%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%

Taiyo Holdings Co., Ltd. Corporate Events

Taiyo Holdings Finalizes 2030 Committee Details

Taiyo Holdings Co., Ltd., a company listed on the Prime Market of the Tokyo Stock Exchange, has announced the finalization of the details regarding the members and working groups of its newly established 2030 Committee. This committee aims to enhance corporate value and secure shareholders’ interests over the medium to long term by ensuring objectivity and transparency in its discussions.

Taiyo Holdings Evaluates Acquisition Proposals and Forms 2030 Committee

Taiyo Holdings Co., Ltd. has received acquisition proposals from multiple private equity funds aiming to take the company private, though no official decision has been made. To enhance corporate value and ensure shareholder interests, Taiyo Holdings has formed a special committee and established a ‘2030 Committee’ to evaluate future initiatives and address management challenges.

Taiyo Holdings Establishes ‘2030 Committee’ to Enhance Corporate Value

Taiyo Holdings has announced the establishment of a ‘2030 Committee’ to enhance corporate value and ensure transparency and objectivity in its management strategies. This committee will include external experts and will focus on evaluating and recommending capital policies, growth strategies, and governance structures, with an interim report expected by August 2025.

Taiyo Holdings Board Opposes Shareholder Proposals for Director Dismissal

Taiyo Holdings’ Board of Directors has decided to oppose the shareholder proposals submitted by Oasis Japan Strategic Fund Y Ltd. for the upcoming General Shareholders’ Meeting. The proposals included the dismissal of two board directors, including the company’s President and CEO, Eiji Sato. This decision reflects the board’s stance on maintaining its current leadership structure, which may impact stakeholder confidence and influence the company’s governance dynamics.

Taiyo Holdings Announces Board Director Candidates for 2025

Taiyo Holdings Co., Ltd. has announced its candidates for the Board of Directors, which will be presented at the upcoming 79th Ordinary General Shareholders’ Meeting in June 2025. The company is reappointing key figures such as Eiji Sato as President and CEO and introducing new independent directors, signaling a strategic move to strengthen its governance and oversight. This reshuffle may impact the company’s strategic direction and reassure stakeholders of its commitment to robust corporate governance.

Taiyo Holdings Announces Capital Reserve Reductions for Enhanced Flexibility

Taiyo Holdings Co., Ltd. has announced a proposal to reduce its capital legal reserve and retained legal reserve to improve its distributable amount and maintain a flexible capital policy. This decision, which involves transferring the full amount of these reductions to other capital surplus and retained earnings, is expected to have no impact on the company’s net assets or operating results.

Taiyo Holdings Announces Increased Year-End Dividend

Taiyo Holdings Co., Ltd. has announced a year-end dividend of 150 yen per share for the fiscal year ended March 2025, as resolved by its Board of Directors. This decision aligns with the company’s policy of returning profits to shareholders, aiming for a consolidated total payout ratio of 100% until the fiscal year ending March 2028. The dividend reflects a significant increase from the previous year’s 42 yen per share, indicating the company’s commitment to shareholder returns and its strategic financial management.

Taiyo Holdings Announces Key Personnel Changes to Strengthen Operations

Taiyo Holdings Co., Ltd. announced several key personnel changes during its Board of Directors meeting on April 30, 2025. These changes, effective in June and July 2025, involve senior positions within its subsidiaries, including Taiyo Pharma Co., Ltd. and Taiyo Fine Chemicals Co., Ltd. These strategic shifts are expected to enhance the company’s operational efficiency and strengthen its position in the medical and pharmaceutical sectors.

Taiyo Holdings Releases FY2025 Financial Results

Taiyo Holdings Co., Ltd. has released its consolidated financial results for the fiscal year ending March 31, 2025. The announcement highlights the company’s diverse business segments, including ICT, fine chemicals, energy, and food. This financial disclosure may impact stakeholders by providing insights into the company’s operational performance and strategic positioning in its respective industries.

Taiyo Holdings Reports Extraordinary Losses on Non-Consolidated Financials

Taiyo Holdings Co., Ltd. has announced the recognition of extraordinary losses on its non-consolidated financial statements for the fiscal years ending March 31, 2024, and March 31, 2025. These losses, amounting to 4,784 million yen and 1,863 million yen respectively, are attributed to provisions for doubtful accounts related to loans to subsidiaries, including TAIYO Pharma Co., Ltd., which have experienced performance deterioration. However, these losses do not impact the consolidated financial statements, ensuring no direct effect on the overall financial health of the company.

Taiyo Holdings Reports Strong Financial Growth and Increased Dividends

Taiyo Holdings Co., Ltd. reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with net sales rising by 13.6% and operating income by 21.2%. The company also announced a substantial increase in dividends, reflecting strong profitability and a positive outlook for stakeholders.

Taiyo Holdings Announces Major Shareholder Change

Taiyo Holdings Co., Ltd. has announced a significant change in its major shareholders as of March 25, 2025. Oasis Management Company Ltd. increased its voting rights from 8.34% to 11.01%, reflecting a substantial rise in its shareholding. This change could potentially impact Taiyo Holdings’ operations and influence its strategic decisions, although the company has not indicated any immediate effects on its future outlook.

Taiyo Holdings Announces Change in Shareholder Return Policy

Taiyo Holdings Co., Ltd. has announced a change in its shareholder return policy, aiming to increase the year-end dividend for the fiscal year ended March 2025. The company plans to achieve a consolidated total payout ratio of 100% by the fiscal year ending March 2028, reflecting its commitment to improving return on equity and adapting to changes in the management environment.

Taiyo Holdings Revises Earnings Forecast and Increases Dividend Amid Extraordinary Losses

Taiyo Holdings Co., Ltd. announced a revision of its full-year earnings forecast for the fiscal year ended March 31, 2025, due to the recognition of extraordinary losses amounting to 7,010 million yen. These losses were attributed to impairment in the sales rights of its subsidiary, TAIYO Pharma Co., Ltd., driven by factors such as yen weakness, inflation, and changes in the market environment. Despite these challenges, Taiyo Holdings has decided to increase its year-end dividend from 40 yen to 150 yen per share, reflecting its commitment to returning profits to shareholders and maintaining a strong Dividend on Equity ratio.