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MUROMACHI CHEMICALS INC.
(4885)
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Rating:63Neutral
Price Target:
¥1,033.00
▲(24.91% Upside)
Action:Reiterated
Date:07/15/26
The score is primarily driven by financial performance: operating improvements and rebounding free cash flow are positives, but declining net margins and increasing leverage add risk. Technical signals are mixed and do not strongly confirm an uptrend, while valuation (P/E ~11.8 with a modest yield) provides moderate support.
Positive Factors
Top-line Growth Momentum
Sustained revenue acceleration into 2026 indicates improved market demand or commercial execution. Strong top-line momentum supports longer-term operating leverage, capacity utilization and investment in product lines, reducing reliance on one-off cost actions over the next several quarters.
Negative Factors
Rising Leverage
Increasing reliance on debt reduces financial flexibility and raises interest and refinancing risk. If earnings or cash flow weaken, higher leverage could force tighter capital allocation, slower investment or costly refinancing over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line Growth Momentum
Sustained revenue acceleration into 2026 indicates improved market demand or commercial execution. Strong top-line momentum supports longer-term operating leverage, capacity utilization and investment in product lines, reducing reliance on one-off cost actions over the next several quarters.
Read all positive factors
MUROMACHI CHEMICALS INC. (4885) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.36B
Dividend Yield4.25%
Average Volume (3M)8.80K
Price to Earnings (P/E)22.4
Beta (1Y)0.85
Revenue Growth17.86%
EPS Growth-32.80%
CountryJP
Employees203
SectorGeneral
Sector StrengthN/A
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)-43.53
Shares Outstanding4,095,500
10 Day Avg. Volume6,960
30 Day Avg. Volume8,803
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)1.56
Price to Sales (P/S)0.51
P/FCF Ratio6.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
MUROMACHI CHEMICALS INC. Business Overview & Revenue Model
Company Description
Muromachi Chemicals Inc. plans, produces, and distributes pharmaceuticals, health foods, and chemicals in Japan. It offers active pharmaceutical ingredients and intermediate synthesis products; commissioned processing services for pharmaceuticals;...
How the Company Makes Money
null...
MUROMACHI CHEMICALS INC. Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.84B | 6.65B | 6.37B | 6.29B | 5.68B |
| Gross Profit | 2.30B | 1.91B | 1.82B | 1.72B | 1.71B |
| EBITDA | 933.95M | 540.83M | 623.24M | 493.14M | 547.78M |
| Net Income | 163.03M | 241.28M | 330.20M | 256.30M | 456.27M |
Balance Sheet | |||||
| Total Assets | 6.35B | 5.32B | 5.10B | 4.96B | 4.80B |
| Cash, Cash Equivalents and Short-Term Investments | 1.95B | 1.06B | 1.05B | 852.61M | 865.36M |
| Total Debt | 2.10B | 1.65B | 1.44B | 1.57B | 1.69B |
| Total Liabilities | 3.78B | 2.87B | 2.83B | 3.04B | 3.12B |
| Stockholders Equity | 2.58B | 2.45B | 2.27B | 1.92B | 1.68B |
Cash Flow | |||||
| Free Cash Flow | 578.13M | -112.85M | 412.21M | 257.42M | 378.80M |
| Operating Cash Flow | 808.09M | 215.96M | 637.70M | 317.19M | 524.90M |
| Investing Cash Flow | -237.79M | -370.50M | -232.23M | -162.41M | -176.28M |
| Financing Cash Flow | 317.78M | 123.20M | -209.95M | -172.39M | -483.63M |
MUROMACHI CHEMICALS INC. Technical Analysis
Negative
827.00
Price Trends
943.82
Negative
1005.74
Negative
906.94
Positive
Market Momentum
-1.90
Negative
44.15
Neutral
64.73
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 827 is below the 20-day moving average (MA) of 922.80, below the 50-day MA of 943.82, and below the 200-day MA of 906.94, indicating a neutral trend. The MACD of -1.90 indicates Negative momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 64.73 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥8.46B | 2.60 | ― | 1.96% | 0.78% | 171.33% | |
63 Neutral | ¥3.36B | 22.39 | ― | 4.25% | 17.86% | -32.80% | |
63 Neutral | ¥14.86B | 11.44 | ― | 3.89% | -0.65% | -0.10% | |
57 Neutral | ¥10.27B | 13.09 | ― | 2.98% | 11.18% | 3.75% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
43 Neutral | ¥9.06B | 28.58 | ― | 1.06% | -7.88% | 129.19% |
* General Sector Average
JP:4885
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.