MUROMACHI CHEMICALS INC. (JP:4885)
:4885
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MUROMACHI CHEMICALS INC.
(4885)
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Rating:69Neutral
Price Target:
¥1,119.00
▲(35.31% Upside)
Action:Downgraded
Date:02/18/26
The score is primarily driven by mixed financial fundamentals: strong revenue growth and solid operating margins are offset by weakening cash flow (negative free cash flow) and still-elevated leverage. Technicals are supportive with a strong uptrend, but overbought indicators increase near-term risk. Valuation is a positive contributor with a moderate P/E and a solid dividend yield.
Positive Factors
Revenue Growth
Sustained revenue growth demonstrates durable demand for the company’s products and supports scale advantages. Over multiple periods this trend enables reinvestment, capacity planning, and stronger negotiating leverage with suppliers, underpinning medium-term top-line resilience.
Negative Factors
Weak Cash Generation
Material deterioration in operating cash flow and negative free cash flow point to weakening ability to convert earnings into spendable cash. This undermines capacity to fund capex, pay dividends, or reduce debt without external financing, raising medium-term liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue growth demonstrates durable demand for the company’s products and supports scale advantages. Over multiple periods this trend enables reinvestment, capacity planning, and stronger negotiating leverage with suppliers, underpinning medium-term top-line resilience.
Read all positive factors
MUROMACHI CHEMICALS INC. (4885) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.77B
Dividend Yield4.25%
Average Volume (3M)8.80K
Price to Earnings (P/E)12.5
Beta (1Y)0.85
Revenue Growth10.56%
EPS Growth-15.65%
CountryJP
Employees205
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)23.26
Shares Outstanding4,095,500
10 Day Avg. Volume6,960
30 Day Avg. Volume8,803
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)1.43
Price to Sales (P/S)0.53
P/FCF Ratio-30.96
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 and health foods in Japan. It offers active pharmaceutical ingredients and intermediate synthesis products; commissioned processing services for pharmaceuticals; and commiss...
How the Company Makes Money
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MUROMACHI CHEMICALS INC. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
68
Positive
Cash Flow
60
Neutral
| Breakdown | May 2024 | May 2023 | May 2022 | May 2021 | May 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.65B | 6.37B | 6.29B | 5.68B | 4.94B |
| Gross Profit | 1.91B | 1.82B | 1.72B | 1.71B | 1.63B |
| EBITDA | 593.94M | 558.02M | 493.96M | 542.51M | 493.49M |
| Net Income | 241.28M | 330.20M | 256.30M | 456.27M | 180.71M |
Balance Sheet | |||||
| Total Assets | 5.32B | 5.10B | 4.96B | 4.80B | 4.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.05B | 852.61M | 865.36M | 1.00B |
| Total Debt | 1.65B | 1.44B | 1.57B | 1.69B | 2.04B |
| Total Liabilities | 2.87B | 2.83B | 3.04B | 3.12B | 3.29B |
| Stockholders Equity | 2.45B | 2.27B | 1.92B | 1.68B | 1.33B |
Cash Flow | |||||
| Free Cash Flow | -112.85M | 412.21M | 257.42M | 378.80M | 438.63M |
| Operating Cash Flow | 215.96M | 637.70M | 317.19M | 524.90M | 487.67M |
| Investing Cash Flow | -370.50M | -232.23M | -162.41M | -176.28M | -57.73M |
| Financing Cash Flow | 123.20M | -209.95M | -172.39M | -483.63M | -310.51M |
MUROMACHI CHEMICALS INC. Technical Analysis
Positive
827.00
Price Trends
993.23
Positive
1015.14
Positive
872.65
Positive
Market Momentum
5.63
Negative
56.04
Neutral
70.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4885, the sentiment is Positive. The current price of 827 is below the 20-day moving average (MA) of 958.92, below the 50-day MA of 993.23, and below the 200-day MA of 872.65, indicating a bullish trend. The MACD of 5.63 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4885.
MUROMACHI CHEMICALS INC. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥9.75B | 3.01 | ― | 1.96% | 0.78% | 171.25% | |
69 Neutral | ¥3.77B | 12.46 | ― | 4.25% | 10.56% | -15.65% | |
63 Neutral | ¥13.95B | 10.79 | ― | 3.89% | -0.65% | -0.09% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ¥9.43B | 12.24 | ― | 2.98% | 11.18% | 3.78% | |
43 Neutral | ¥10.12B | 33.67 | ― | 1.06% | -7.88% | 129.32% |
* Basic Materials Sector Average
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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.