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

• Market Cap: ¥8.05B
• Dividend Yield: 2.51%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.32
• Revenue Growth: 2.26%
• EPS Growth: 51.04%
• Country: JP
• Employees: 231
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 49.91
• 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: 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: 70 Outperform
• Price Target: ¥1,936.00 ▲(20.55% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Daishin Chemical's overall stock score is driven by its strong financial performance and reasonable valuation. However, the technical analysis indicates potential bearish momentum, which tempers the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance sheet strength

A very high equity ratio and minimal leverage provide durable financial flexibility. This allows the company to fund capex, absorb commodity or demand shocks, and prioritize strategic investments or dividends without needing to take on costly debt, supporting long-term resilience.

Strong cash flow generation

Consistent improvement in operating and free cash flow is a durable strength: it supports reinvestment, working capital and shareholder returns while reducing reliance on external financing. Strong cash conversion underpins strategic optionality over multiple quarters.

Operational margin resilience

A solid gross margin and stable EBITDA margin imply the core specialty-chemical operations retain pricing power or cost control. That operational cushion helps the company manage input cost cycles and supports sustained cash generation even if net margin fluctuates.

Negative Factors

Low net profit margin

A sub-2% net margin materially limits the company's ability to convert revenue into shareholder returns and to self-fund growth. Persistently thin net margins increase exposure to input-cost inflation and reduce buffers against cyclical downturns over coming quarters.

Weak return on equity

ROE near 3.6% signals below-par capital efficiency given the company's equity base. Even with low leverage, weak ROE means shareholders see limited returns on invested capital unless management raises margins, rebalances capital allocation, or deploys excess equity more productively.

Revenue trend volatility

Negative revenue growth in the fundamentals indicates demand or execution volatility that could persist. Inconsistent top-line trends complicate planning and investment prioritization, making it harder to sustainably restore margins and improve returns over the medium term.

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

Company Description

Daishin Chemical Co.,Ltd. manufactures and sells various paints and chemicals in Japan. The company's products include lacquer, melamine, acrylic resin, urethane resin, epoxy resin, paint thinners, and thinners for plastic; printing ink solvents, cleaning solvents, and industrial organic solvents; and paint removers, as well as ethanol and other products. It also offers reagents to support various tests, basic research, analysis, and environment, as well as product development, including pharmaceutical, textile, food, and electric products development. In addition, the company is involved in the sale of various materials ancillary to paint manufacturing; manufacture and sale of external substances and poisons for pharmaceutical industry; and related ancillary businesses. It sells its products to paint manufacturers, and printing ink and other industrial sectors through a network of sales agents. Daishin Chemical Co.,Ltd. was founded in 1952 and is headquartered in Tokyo, Japan.

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 a solid financial position with strong cash flow management and a stable balance sheet. Despite some pressure on profitability margins, the company's revenue growth and low leverage provide a foundation for potential improvement.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 1606.00
• 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:4629, the sentiment is Positive. The current price of 1606 is below the 20-day moving average (MA) of 1771.20, below the 50-day MA of 1714.28, and above the 200-day MA of 1589.79, indicating a neutral trend. The MACD of 20.58 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 51.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4623	72 Outperform	¥6.67B	10.85	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥8.05B	9.17	―	2.51%	2.26%	51.04%
4119	66 Neutral	¥7.49B	-8.05	―	2.84%	37.67%	-117.29%
5695	63 Neutral	¥7.84B	26.87	―	6.58%	4.80%	97.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4406	61 Neutral	¥8.39B	50.96	―	1.35%	-2.76%	-25.24%
4615	44 Neutral	¥4.32B	-10.61	―	―	8.66%	-239.07%