Natoco Co (4627) AI Stock Analysis

• Market Cap: ¥12.54B
• Dividend Yield: 3.13%
• Average Volume (3M): 11.77K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.37
• Revenue Growth: 8.63%
• EPS Growth: 11.84%
• Country: JP
• Employees: 415
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): 57.28
• Shares Outstanding: 8,144,400
• 10 Day Avg. Volume: 5,180
• 30 Day Avg. Volume: 11,770
• PEG Ratio: 23.55
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -5.45
• 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: 72 Outperform
• Price Target: ―

Natoco Co demonstrates a strong financial position with zero debt and high equity, which underpins its stability in the chemicals industry. The valuation is attractive with a low P/E ratio and a good dividend yield. However, the stock faces challenges in improving profit margins and free cash flow, and technical indicators show mixed signals. Overall, the stock is stable with potential for growth if profitability and cash flow improve.

Natoco Co Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Natoco Co. makes money through the manufacturing and sale of its paint and chemical products. The company generates revenue by supplying coatings to various industries such as automotive, construction, and electronics. Key revenue streams include the direct sale of products to manufacturers and distributors, as well as through partnerships with other companies in need of specialized coatings solutions. The company's focus on research and development and its ability to meet diverse industrial needs are significant factors contributing to its earnings.

Natoco Co Financial Statement Overview

Summary

Natoco Co shows stable revenue growth and a robust balance sheet with zero debt and high equity. However, there is room for improvement in profit margins and free cash flow management. The financial performance is solid, with a strong foundation for growth, but enhancing profitability will be crucial.

Income Statement

Natoco Co's income statement reveals steady revenue growth with a Revenue Growth Rate of 2.92% from 2023 to 2024 and a Gross Profit Margin of 21.90% in 2024. The company's Net Profit Margin is at 4.61%, indicating modest profitability. However, a decrease in EBIT Margin from 6.21% in 2022 to 5.94% in 2024 suggests some pressure on operating efficiency. Overall, the company shows stable revenue growth with room for improvement in profit margins.

Balance Sheet

The balance sheet of Natoco Co is strong, with no debt, resulting in a Debt-to-Equity Ratio of 0. The company has a solid Equity Ratio of 79.00%, indicating financial stability. Furthermore, a Return on Equity of 4.06% in 2024 suggests moderate efficiency in generating profits from shareholders' equity. Overall, the balance sheet reflects a robust financial position with low leverage and high equity.

Cash Flow

Natoco Co's cash flow statement shows some challenges, as the Free Cash Flow Growth Rate is negative, with a decline from -3,138,368,000 in 2023 to -1,935,109,000 in 2024. However, the Operating Cash Flow to Net Income Ratio of 1.67 indicates strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is negative, pointing to capital expenditure requirements impacting free cash flow. The cash flow position is stable but could improve with better free cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.61B	20.75B	20.16B	20.45B	19.05B	16.25B
Gross Profit	4.77B	4.55B	4.49B	4.89B	5.04B	4.22B
EBITDA	2.37B	2.20B	2.10B	2.84B	2.75B	2.06B
Net Income	1.10B	955.98M	951.21M	1.51B	1.64B	1.03B
Balance Sheet
Total Assets	29.50B	29.83B	28.84B	28.22B	26.28B	24.65B
Cash, Cash Equivalents and Short-Term Investments	11.76B	11.75B	10.27B	9.39B	9.03B	8.83B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.90B	6.26B	6.09B	6.14B	5.69B	5.60B
Stockholders Equity	23.60B	23.57B	22.75B	22.09B	20.60B	19.05B
Cash Flow
Free Cash Flow	0.00	-1.94B	-3.14B	-3.28B	-3.51B	-3.57B
Operating Cash Flow	0.00	1.59B	1.69B	2.03B	1.90B	1.43B
Investing Cash Flow	0.00	-789.66M	-2.32B	-2.12B	-1.31B	-922.20M
Financing Cash Flow	0.00	-413.32M	-383.36M	-414.59M	-384.58M	-305.54M

Natoco Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1662.00
• 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:4627, the sentiment is Positive. The current price of 1662 is above the 20-day moving average (MA) of 1657.70, above the 50-day MA of 1550.74, and above the 200-day MA of 1430.15, indicating a bullish trend. The MACD of 26.04 indicates Positive momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 63.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4627.

Natoco Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4635	80 Outperform	¥18.70B	12.77	―	3.22%	8.19%	97.44%
4624	77 Outperform	¥5.53B	12.18	―	1.34%	1.47%	17.40%
4629	76 Outperform	¥7.20B	11.20	―	2.59%	4.93%	4.12%
4627	72 Outperform	¥12.54B	11.37	―	3.13%	8.63%	11.84%
4620	64 Neutral	¥18.37B	29.87	―	2.90%	0.78%	-53.36%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
4615	44 Neutral	¥4.36B	20.50	―	―	8.91%	-42.21%