Daishin Chemical Co., Ltd. (4629) AI Stock Analysis

• Market Cap: ¥7.03B
• Dividend Yield: 2.6%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.24
• Revenue Growth: 4.93%
• EPS Growth: 4.12%
• Country: JP
• Employees: 231
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 26.09
• Shares Outstanding: 4,592,000
• 10 Day Avg. Volume: 1,990
• 30 Day Avg. Volume: 2,973
• PEG Ratio: -1.76
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 2.60
• 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: ¥1,720.00
• Price Target Upside: 11.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,720.00 ▲(11.98% Upside)

Daishin Chemical's strong financial performance, characterized by robust cash flow and a stable balance sheet, is a key strength. However, technical indicators suggest a bearish trend, which weighs on the overall score. The stock's valuation is favorable, offering potential upside with a reasonable P/E ratio and attractive dividend yield.

Daishin Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Daishin Chemical Co., Ltd. (4629) is a prominent player in the chemical manufacturing industry, specializing in the production of various chemical products that cater to a wide range of sectors including agriculture, pharmaceuticals, and industrial applications. The company's core offerings include agrochemicals, specialty chemicals, and custom chemical solutions, which are designed to meet the specific needs of its diverse clientele. With a focus on innovation and sustainability, Daishin Chemical aims to provide high-quality products that enhance productivity and efficiency across its target markets.

How the Company Makes Money

Daishin Chemical generates revenue primarily through the sale of its chemical products to various industries. The company has established key revenue streams from its agrochemical segment, which includes pesticides and herbicides, as well as from its specialty chemicals used in pharmaceuticals and manufacturing processes. Additionally, Daishin Chemical engages in strategic partnerships with other companies to expand its distribution channels and enhance its product offerings, further contributing to its earnings. The company also invests in research and development to innovate and improve its product line, which helps maintain a competitive edge and attract new customers.

Daishin Chemical Co., Ltd. Financial Statement Overview

Summary

Daishin Chemical shows strong financial stability with a high equity ratio and minimal leverage risks. The cash flow is robust, with a significant turnaround in free cash flow. However, profitability margins have faced pressure, necessitating a focus on cost efficiency and profitability enhancement.

Income Statement

Daishin Chemical has demonstrated a consistent revenue growth trajectory, with a 6.93% increase from 2024 to 2025. The company maintains a solid gross profit margin of approximately 12.14% for 2025. However, the net profit margin has decreased to 1.69% due to rising costs or operational inefficiencies. Despite a reduction in EBIT margin to 2.30%, EBITDA margin remains relatively stable at 3.68%, suggesting operational resilience.

Balance Sheet

The balance sheet is robust, with a high equity ratio of 65.57%, indicating strong financial stability. The debt-to-equity ratio is exceptionally low at 0.07, signifying minimal leverage risks. ROE has decreased to 3.56%, highlighting a need for improved profitability to enhance shareholder returns.

Cash Flow

The cash flow situation is strong, with a significant turnaround in free cash flow, growing from negative in 2024 to positive in 2025. The operating cash flow to net income ratio is favorable at 4.67, demonstrating effective cash generation relative to profits. A free cash flow to net income ratio of 4.19 further underscores efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.61B	34.71B	32.46B	34.39B	31.30B	25.65B
Gross Profit	4.34B	4.21B	4.27B	4.55B	4.13B	4.86B
EBITDA	1.24B	1.28B	1.34B	1.68B	1.41B	2.04B
Net Income	642.02M	588.16M	627.19M	955.95M	694.14M	1.14B
Balance Sheet
Total Assets	26.30B	25.20B	24.13B	24.39B	23.26B	21.03B
Cash, Cash Equivalents and Short-Term Investments	7.52B	7.13B	4.86B	5.71B	4.59B	5.16B
Total Debt	374.59M	12.14M	22.21M	59.17M	130.00M	252.60M
Total Liabilities	9.85B	8.68B	8.11B	8.95B	8.74B	7.04B
Stockholders Equity	16.45B	16.52B	16.02B	15.44B	14.51B	13.99B
Cash Flow
Free Cash Flow	0.00	2.46B	-687.07M	1.45B	-202.80M	1.12B
Operating Cash Flow	0.00	2.75B	-185.14M	1.80B	60.44M	1.59B
Investing Cash Flow	0.00	-289.39M	-438.90M	-414.30M	-333.29M	-569.27M
Financing Cash Flow	0.00	-193.47M	-220.41M	-263.61M	-301.03M	-332.96M

Daishin Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1536.00
• 50DMA: Negative
• 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:4629, the sentiment is Negative. The current price of 1536 is below the 20-day moving average (MA) of 1595.65, below the 50-day MA of 1572.56, and above the 200-day MA of 1457.86, indicating a neutral trend. The MACD of -10.04 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 23.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4629.

Daishin Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	73 Outperform	¥3.58B	12.76	―	2.52%	0.68%	5.33%
4629	71 Outperform	¥7.03B	10.94	―	2.60%	4.93%	4.12%
4623	70 Outperform	¥6.52B	9.16	―	3.49%	-4.33%	58.53%
4624	68 Neutral	¥5.26B	11.60	―	1.39%	1.47%	17.40%
4616	65 Neutral	¥2.07B	17.29	―	1.44%	-2.27%	-12.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	20.50	―	―	8.91%	-42.21%