Tokyo Printing Ink Manufacturing Co., Ltd. (4635) AI Stock Analysis

• Market Cap: ¥24.60B
• Dividend Yield: 3.61%
• Average Volume (3M): 10.51K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.93
• Revenue Growth: 8.85%
• EPS Growth: 110.05%
• Country: JP
• Employees: 684
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 83.64
• Shares Outstanding: 13,628,790
• 10 Day Avg. Volume: 8,100
• 30 Day Avg. Volume: 10,506
• PEG Ratio: 0.29
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 32.47
• 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: 71 Outperform
• Price Target: ¥1,989.00 ▲(38.61% Upside)

The score is driven primarily by improving financial performance and a strong balance sheet, tempered by weakened free cash flow. Valuation is supportive (low P/E and solid dividend yield), while technicals show strong uptrend but overbought conditions that elevate near-term downside risk.

Positive Factors

Conservative Balance Sheet

The company’s low debt-to-equity and high equity ratio provide durable financial flexibility, lowering refinancing risk and supporting investment or dividend policy through cycles. Conservative leverage helps preserve credit options and resilience to cyclical demand changes in specialty chemicals.

Improving Revenue and Gross Margins

Sustained revenue growth with a healthy gross margin signals effective pricing and cost control in core printing and coating products. This supports long-term margin sustainability and reinvestment capacity, underpinning durable cash generation if trends continue across product cycles.

Strong Operating Cash Conversion and EPS Recovery

Operating cash generation materially exceeds reported earnings, indicating core business converts profits to cash effectively. Coupled with large recent EPS improvement, this suggests improving operational efficiency and potential to fund working capital and selective capex without overreliance on external financing.

Negative Factors

Declining Free Cash Flow

A meaningful drop in free cash flow and a negative FCF-to-net-income signal that after investing needs and working capital, available cash is constrained. Over the medium term this can limit capital allocation flexibility, pressure liquidity and force trade-offs between dividends and reinvestment.

Modest Profitability Metrics

Relatively low operating and net margins and modest ROE indicate limited pricing power or higher operating intensity versus peers. Persistently thin margins reduce buffer against input cost shocks and slow equity value creation, constraining long-term earnings scalability in the specialty chemicals space.

Dividend vs Cash-Flow Mismatch Risk

A sizable dividend commitment alongside volatile and weakening free cash flow creates structural risk: management may face difficult choices between maintaining payouts and funding capex or working capital. This mismatch can force dividend cuts or extra borrowing in adverse periods.

Tokyo Printing Ink Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Printing Ink Mfg. Co., Ltd. manufactures and sells specialty chemicals in Japan and internationally. The company operates through four segments: Inks Business, Chemicals Business, Processed Products Business, and Real Estate Leasing Business. The Ink Business segment offers offset inks and related products; gravure inks and related products; functional coating materials; and other inkjet inks. The Chemical Business segment provides plastic coloring and functional masterbatches, and compounds; dry colors; colorants for thermosetting resins; cleaning agents for molding machines; and powder resins, as well as materials for 3D printers and radiation measurement. The Processed Products Business segment offers packaging and industrial products, including plastic meshes, mono-oriented olefin films, PP-foamed films, and heat-retention non-woven sheets; and civil engineering and outdoor materials for applications in load support enhancement, protection of steep soil slope and channel, earth retention, disaster-prevention, etc. The Real Estate Leasing Business segment rents office buildings. It also engages in the trading of commodities. The company was founded in 1895 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tokyo Printing Ink Manufacturing Co., Ltd. generates revenue through the sale of its printing inks and related products to printers and manufacturers in various industries. The company has established key revenue streams by offering a wide array of specialized inks tailored to different printing processes, such as offset, flexo, and gravure printing. Additionally, Tokyo Printing Ink capitalizes on partnerships with leading printing companies and distributors, which helps expand its market reach. The company's emphasis on research and development enables it to introduce new products and technologies that drive sales. Furthermore, Tokyo Printing Ink may also benefit from providing technical support and consulting services to customers, thereby creating additional income opportunities.

Tokyo Printing Ink Manufacturing Co., Ltd. Financial Statement Overview

Summary

Fundamentals are improving: revenue grew 6.57% (2024–2025) and net margin rose to 2.52%, supported by a healthy 14.63% gross margin. The balance sheet is solid with low leverage (debt-to-equity 0.23) and a 58.30% equity ratio, though ROE remains modest at 3.98%. The main drag is cash flow, with significantly weaker free cash flow (FCF-to-net income ratio 0.29) despite good operating cash generation (OCF-to-net income 1.93).

Income Statement

The income statement indicates a strong recovery trajectory with a notable revenue growth rate of 6.57% from 2024 to 2025 and a net profit margin improving to 2.52% in 2025. Gross profit margin remains healthy at 14.63%, reflecting effective cost management. However, the EBIT margin is modest at 2.82%, suggesting room for operational efficiency improvements. Overall, profitability is improving with EBITDA margin at 6.63%.

Balance Sheet

The balance sheet is stable, with a low debt-to-equity ratio of 0.23, indicating conservative leverage. Return on equity rose to 3.98% in 2025, marking improved shareholder value creation. The equity ratio stands at 58.30%, reflecting a solid equity base. However, the modest ROE suggests potential to enhance profitability.

Cash Flow

The cash flow statement shows a positive operating cash flow to net income ratio of 1.93, indicating efficient cash generation. However, free cash flow has decreased significantly, with a negative free cash flow to net income ratio of 0.29, signaling potential liquidity challenges. Free cash flow growth rate remains volatile, warranting a focus on sustaining positive cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.84B	46.81B	43.92B	43.41B	41.40B	38.16B
Gross Profit	7.42B	6.85B	6.49B	5.86B	6.75B	6.20B
EBITDA	4.38B	3.10B	2.50B	4.28B	2.47B	2.27B
Net Income	1.46B	1.18B	881.00M	1.65B	725.00M	600.00M
Balance Sheet
Total Assets	51.17B	50.83B	52.47B	47.80B	47.31B	45.78B
Cash, Cash Equivalents and Short-Term Investments	3.42B	3.70B	3.74B	3.38B	3.62B	3.16B
Total Debt	7.35B	6.92B	7.53B	7.55B	9.19B	8.89B
Total Liabilities	21.26B	21.00B	23.07B	20.53B	21.62B	20.57B
Stockholders Equity	29.70B	29.63B	29.20B	27.09B	25.54B	25.06B
Cash Flow
Free Cash Flow	0.00	337.00M	408.00M	-2.16B	-190.00M	51.00M
Operating Cash Flow	0.00	2.28B	1.99B	-893.00M	1.43B	1.94B
Investing Cash Flow	0.00	-1.18B	-1.28B	2.46B	-1.04B	-1.67B
Financing Cash Flow	0.00	-1.25B	-398.00M	-2.01B	39.00M	1.32B

Tokyo Printing Ink Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1435.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4635, the sentiment is Positive. The current price of 1435 is below the 20-day moving average (MA) of 1621.10, below the 50-day MA of 1534.56, and above the 200-day MA of 1225.49, indicating a bullish trend. The MACD of 89.74 indicates Negative momentum. The RSI at 74.21 is Negative, neither overbought nor oversold. The STOCH value of 90.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4635.

Tokyo Printing Ink Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	80 Outperform	¥4.73B	14.00	―	2.27%	1.79%	31.63%
4633	77 Outperform	¥133.32B	11.33	―	3.72%	5.40%	14.80%
4628	74 Outperform	¥170.18B	14.61	6.87%	1.11%	2.88%	16.60%
4635	71 Outperform	¥24.60B	10.48	―	3.61%	8.85%	110.05%
4620	65 Neutral	¥30.89B	30.65	―	2.86%	-3.46%	-52.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.25B	-10.44	―	―	8.66%	-239.07%

Tokyo Printing Ink Manufacturing Co., Ltd. Corporate Events

Tokyo Printing Ink Posts Sharp Profit Surge and Lifts FY2026 Forecasts

Tokyo Printing Ink Manufacturing Co., Ltd. reported consolidated net sales of ¥37.6 billion for the nine months ended December 31, 2025, up 8.0% year on year, with operating profit more than doubling to ¥1.9 billion and profit attributable to owners of parent jumping 127.7% to ¥1.85 billion. The company also strengthened its balance sheet, with total assets rising to ¥55.5 billion and equity reaching ¥31.0 billion, while earnings per share climbed to ¥145.37 after reflecting a five-for-one stock split effective January 1, 2026.

The company revised its full-year forecast for the fiscal year ending March 31, 2026, now projecting net sales of ¥49.6 billion, operating profit of ¥2.1 billion and profit attributable to owners of parent of ¥1.95 billion, implying a strong profit recovery versus the prior year. Alongside this, Tokyo Printing Ink adjusted its dividend outlook to factor in the stock split, signaling an intention to maintain a high level of shareholder returns in absolute terms while expanding its shareholder base through the split and an enlarged shareholder benefit program.

The most recent analyst rating on (JP:4635) stock is a Hold with a Yen1669.00 price target. To see the full list of analyst forecasts on Tokyo Printing Ink Manufacturing Co., Ltd. stock, see the JP:4635 Stock Forecast page.