Zero Debt / Strong SolvencyNatoco's zero-debt capital structure and growing equity provide durable financial flexibility. This conservative balance sheet reduces solvency risk, supports capital allocation for maintenance capex or strategic investments, and improves resilience to cyclical downturns over the next several months.

Healthy Profitability MarginsSustained gross margins near 22% and positive net margin indicate the business generates meaningful profit per sale. Improved earnings versus the prior year support internal funding for operations and reinvestment, bolstering medium-term cash coverage of operating needs and dividends.

Recent Revenue Growth MomentumRecent strength in revenue suggests the company is regaining top-line traction, which can compound into higher absolute profits and scale benefits if sustained. Durable revenue expansion supports margin recovery, better cash generation, and improved returns over the next 2–6 months if trends continue.

Bears Say

Volatile Free Cash FlowHistorical swings in free cash flow and periods of negative FCF indicate weak cash conversion and working-capital sensitivity. Even with recent improvement, this pattern can constrain reinvestment, limit buffer for downturns, and require careful monitoring of operating cash versus reported earnings.

Low Cash Conversion Vs. Net IncomeWhen operating cash lags net income, earnings quality is weaker and cash available for payables, capex, or dividends is uncertain. Structural working-capital needs reduce short-term financial flexibility and raise the risk that profitability improvements do not fully translate into cash flow.

Margin Compression From Earlier PeaksA trend of lower operating and net margins versus prior peak years suggests persistent pricing pressure or cost increases. If these structural pressures persist, they can limit the upside from revenue growth and restrain sustained improvements in return metrics and cash generation.

4627 FAQ

What was Natoco Co Ltd’s price range in the past 12 months?

Natoco Co Ltd lowest stock price was ¥1300.00 and its highest was ¥1869.00 in the past 12 months.

What is Natoco Co Ltd’s market cap?

Natoco Co Ltd’s market cap is ¥13.56B.

When is Natoco Co Ltd’s upcoming earnings report date?

Natoco Co Ltd’s upcoming earnings report date is May 29, 2026 which is in 83 days.

How were Natoco Co Ltd’s earnings last quarter?

Natoco Co Ltd released its earnings results on Feb 27, 2026. The company reported ¥31.51 earnings per share for the quarter, beating the consensus estimate of N/A by ¥31.51.

Is Natoco Co Ltd overvalued?

According to Wall Street analysts Natoco Co Ltd’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Natoco Co Ltd pay dividends?

Natoco Co Ltd pays a Semiannually dividend of ¥29 which represents an annual dividend yield of 3.58%. See more information on Natoco Co Ltd dividends here

What is Natoco Co Ltd’s EPS estimate?

Natoco Co Ltd’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Natoco Co Ltd have?

Natoco Co Ltd has 8,144,400 shares outstanding.

What happened to Natoco Co Ltd’s price movement after its last earnings report?

Natoco Co Ltd reported an EPS of ¥31.51 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.908%.

Which hedge fund is a major shareholder of Natoco Co Ltd?

Currently, no hedge funds are holding shares in JP:4627

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Natoco Co Ltd

Natoco Co., Ltd. manufactures and sells paints, inks, fine chemicals, synthetic resins, and related products in Japan. The company operates through three segments: Paints, Fine Chemicals, and Distillation Business. It offers manufactures and sells functional resins and coatings agents for resin materials; and recycled solvents. The company was formerly known as Natoco Paint Co., Ltd. and changed its name to Natoco Co., Ltd. in November 1998. Natoco Co., Ltd. was incorporated in 1948 and is headquartered in Miyoshi, Japan.