Natoco Co (4627) AI Stock Analysis

• Market Cap: ¥11.93B
• Dividend Yield: 3.58%
• Average Volume (3M): 2.61K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.43
• Revenue Growth: 7.33%
• EPS Growth: 18.98%
• Country: JP
• Employees: 415
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): 45.91
• Shares Outstanding: 8,144,400
• 10 Day Avg. Volume: 2,490
• 30 Day Avg. Volume: 2,610
• PEG Ratio: 0.55
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 9.40
• 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: 68 Neutral
• Price Target: ¥1,708.00 ▲(10.34% Upside)

The score is primarily supported by strong financial stability (notably zero debt) and attractive valuation (low P/E and solid dividend yield). This is tempered by inconsistent free cash flow and mixed/neutral technical signals, including a negative MACD.

Positive Factors

Balance Sheet Strength

Natoco's zero debt and growing equity indicate conservative financial management, enhancing long-term solvency and financial stability.

Revenue Growth

Strong revenue growth suggests effective market strategies and product demand, supporting future business expansion and competitive positioning.

Profitability

Healthy profitability indicates efficient operations and cost management, contributing to sustainable earnings and shareholder value.

Negative Factors

Cash Flow Volatility

Volatile free cash flow can hinder investment capacity and financial flexibility, posing risks to long-term operational stability.

Cash Conversion

Low cash conversion efficiency indicates potential working capital challenges, affecting liquidity and operational funding.

Margin Pressure

Softening margins suggest pricing or cost pressures, which could impact profitability if not managed effectively over time.

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

Strong balance sheet strength (zero debt and growing equity) supports a high-quality financial profile, and profitability is healthy with improved earnings versus the prior year. The main offset is cash flow reliability: free cash flow has been volatile and often negative historically, and recent operating cash flow appears low versus net income, indicating weaker cash conversion.

Income Statement

TTM (Trailing-Twelve-Months) results show healthy profitability (about 22% gross margin and ~5% net margin) with improved earnings versus the prior year. Revenue growth is strong in the latest period, but longer-term margin trajectory has softened from earlier peaks (notably lower operating and net margins than 2021–2022), which suggests some pricing/cost pressure and a more normalized earnings profile.

Balance Sheet

Balance sheet quality is a key strength: the company reports zero debt across periods and a steadily growing equity base, indicating conservative financial management and strong solvency. Returns on equity are positive but moderate in the most recent period (mid-single digits), implying that while the capital structure is very safe, overall efficiency in generating profits from equity is not exceptionally high.

Cash Flow

Operating cash flow is consistently positive, which supports earnings quality; however, free cash flow has been volatile and often negative in recent years before turning positive in the latest period. Cash conversion remains a watch item, with operating cash flow relatively low versus net income in the most recent year, suggesting working-capital swings and/or cash demands that can pressure near-term financial flexibility despite strong solvency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.12B	22.28B	20.75B	20.16B	20.45B	19.05B
Gross Profit	4.90B	4.97B	4.55B	4.49B	4.89B	5.04B
EBITDA	2.07B	2.30B	2.20B	2.10B	2.84B	2.75B
Net Income	1.10B	1.14B	955.98M	951.21M	1.51B	1.64B
Balance Sheet
Total Assets	30.30B	31.03B	29.83B	28.84B	28.22B	26.28B
Cash, Cash Equivalents and Short-Term Investments	11.05B	11.71B	11.75B	10.27B	9.39B	9.03B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.26B	6.44B	6.26B	6.09B	6.14B	5.69B
Stockholders Equity	23.87B	24.42B	23.57B	22.75B	22.09B	20.60B
Cash Flow
Free Cash Flow	0.00	1.27B	-1.94B	-3.14B	-3.28B	-3.51B
Operating Cash Flow	0.00	1.85B	1.59B	1.69B	2.03B	1.90B
Investing Cash Flow	0.00	-211.87M	-789.66M	-2.32B	-2.12B	-1.31B
Financing Cash Flow	0.00	-398.30M	-413.32M	-383.36M	-414.59M	-384.58M

Natoco Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1548.00
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 1548 is below the 20-day moving average (MA) of 1588.40, below the 50-day MA of 1573.74, and above the 200-day MA of 1488.60, indicating a neutral trend. The MACD of 3.43 indicates Positive momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4627.

Natoco Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4629	70 Outperform	¥7.77B	9.85	―	2.51%	2.26%	51.04%
4635	69 Neutral	¥19.96B	11.55	―	3.61%	8.85%	110.05%
4627	68 Neutral	¥11.93B	10.50	―	3.58%	7.33%	18.98%
4624	66 Neutral	¥5.63B	11.44	―	1.39%	2.67%	37.55%
4620	64 Neutral	¥22.29B	33.66	―	2.86%	-3.46%	-52.24%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4615	44 Neutral	¥4.32B	-22.10	―	―	8.66%	-239.07%