MUROMACHI CHEMICALS INC. (4885) AI Stock Analysis

• Market Cap: ¥2.75B
• Dividend Yield: 3.36%
• Average Volume (3M): 11.67K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.55
• Revenue Growth: 4.46%
• EPS Growth: -27.53%
• Country: JP
• Employees: 205
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Chemicals
• EPS (TTM): -1.97
• Shares Outstanding: 4,095,500
• 10 Day Avg. Volume: 4,640
• 30 Day Avg. Volume: 11,673
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥933.00
• Price Target Upside: 25.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥933.00 ▲(25.23% Upside)

Muromachi Chemicals Inc.'s overall stock score is driven primarily by strong financial performance and attractive valuation. While the technical analysis indicates short-term bearish momentum, the underlying financial health and valuation metrics suggest potential for long-term growth. The lack of earnings call data and corporate events does not detract from the company's solid financial fundamentals.

MUROMACHI CHEMICALS INC. Business Overview & Revenue Model

Company Description

MUROMACHI CHEMICALS INC. (4885) is a Japan-based company engaged in the manufacture and sale of chemical products. It operates in several sectors, including pharmaceuticals, agrochemicals, and industrial chemicals, offering a range of specialized and high-purity chemical solutions. The company's core products include active pharmaceutical ingredients (APIs), intermediates, and other chemical compounds used in various industrial applications.

How the Company Makes Money

MUROMACHI CHEMICALS INC. generates revenue primarily through the production and sale of its chemical products. The company's key revenue streams include the sale of active pharmaceutical ingredients (APIs) to pharmaceutical companies, providing intermediates for agrochemical production, and supplying high-purity chemicals to various industrial sectors. Significant partnerships with pharmaceutical and industrial clients enhance its market reach and contribute to its earnings. The company's focus on innovation and quality assurance further strengthens its competitive position in the chemical manufacturing industry.

MUROMACHI CHEMICALS INC. Financial Statement Overview

Summary

Muromachi Chemicals Inc. exhibits strong financial performance with improved profitability, robust cash flow generation, and a stable financial position. The company achieved significant revenue growth, effective cost management, and enhanced operational efficiency. However, close monitoring of debt levels and equity ratios is advisable.

Income Statement

Muromachi Chemicals Inc. demonstrated strong revenue growth with a 1.23% increase from the previous year. The gross profit margin stands at 28.53%, indicative of effective cost management. The net profit margin improved to 5.18%, showcasing enhanced profitability. EBIT and EBITDA margins also reflect positive operational efficiency at 6.62% and 9.79% respectively.

Balance Sheet

The company maintains a solid financial structure with a debt-to-equity ratio of 0.63, indicating manageable leverage. The return on equity is robust at 14.54%, signaling effective use of equity capital. The equity ratio is 44.89%, reflecting a stable financial position, although slightly lower than the previous year.

Cash Flow

Muromachi Chemicals Inc. achieved a significant 92.61% increase in free cash flow, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.93, indicating efficient cash flow management. The free cash flow to net income ratio is 1.21, underscoring a healthy cash conversion cycle.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.37B	6.29B	5.68B	4.94B	5.28B
Gross Profit	1.82B	1.75B	1.73B	1.65B	1.59B
EBITDA	623.23M	493.14M	543.84M	351.62M	262.25M
Net Income	330.20M	256.30M	456.27M	180.71M	34.39M
Balance Sheet
Total Assets	5.06B	4.95B	4.80B	4.61B	4.79B
Cash, Cash Equivalents and Short-Term Investments	1.05B	852.61M	865.36M	1.00B	880.95M
Total Debt	1.44B	1.57B	1.69B	2.04B	3.25B
Total Liabilities	2.79B	3.03B	3.12B	3.28B	4.53B
Stockholders Equity	2.27B	1.92B	1.68B	1.33B	252.25M
Cash Flow
Free Cash Flow	398.53M	206.91M	354.57M	431.82M	7.03M
Operating Cash Flow	637.70M	317.19M	524.90M	487.67M	88.92M
Investing Cash Flow	-232.23M	-162.41M	-176.28M	-57.73M	136.70M
Financing Cash Flow	-209.95M	-172.39M	-483.63M	-310.51M	42.23M

MUROMACHI CHEMICALS INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 745.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4885, the sentiment is Negative. The current price of 745 is above the 20-day moving average (MA) of 741.65, below the 50-day MA of 785.22, and below the 200-day MA of 818.90, indicating a neutral trend. The MACD of -11.31 indicates Negative momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 38.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4885.

MUROMACHI CHEMICALS INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4531	73 Outperform	¥5.89B	8.22		3.33%	19.66%	-13.42%
4885	71 Outperform	¥2.75B	12.33		3.36%	4.46%	-27.53%
4960	69 Neutral	¥4.67B	32.55		1.24%	-5.30%	-6.24%
4102	62 Neutral	¥3.02B	32.91		2.14%	-4.02%	-60.20%
Sector *	57 Neutral	£2.52B	6.00	-0.23%	45.97%	10.33%	5.64%
4124	56 Neutral	¥2.58B	102.28		1.43%	19.50%	―
4360	46 Neutral	¥5.07B	521.41		2.55%	1.73%	-914.83%