Yasuhara Chemical Co., Ltd. (4957) AI Stock Analysis

• Market Cap: ¥14.05B
• Dividend Yield: 0.88%
• Average Volume (3M): 11.23K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.54
• Revenue Growth: 5.90%
• EPS Growth: 135.08%
• Country: JP
• Employees: 286
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 37.70
• Shares Outstanding: 10,839,663
• 10 Day Avg. Volume: 24,920
• 30 Day Avg. Volume: 11,230
• PEG Ratio: 0.04
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 3.44
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,617.00 ▲(18.29% Upside)

Yasuhara Chemical Co., Ltd. demonstrates strong financial performance with robust growth and profitability, supported by a solid balance sheet and healthy cash flow. The stock is technically strong but shows signs of being overbought, which could lead to a short-term pullback. Valuation metrics suggest the stock is undervalued, making it an attractive investment opportunity. The absence of earnings call and corporate events data does not impact the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Efficient cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Low Leverage

Low leverage minimizes financial risk and interest obligations, providing stability and the ability to weather economic downturns.

Negative Factors

Moderate ROE

Moderate ROE suggests that while the company is profitable, there is room for improvement in generating higher returns on shareholder equity.

ROE Improvement Needed

Improving ROE is crucial for maximizing shareholder value and enhancing the company's attractiveness to investors.

Limited Corporate Events

A lack of recent corporate events may indicate missed opportunities for strategic partnerships or market expansion initiatives.

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

Company Description

Yasuhara Chemical Co.,Ltd. engages in the manufacture and sale of terpene-derived products in Japan. It offers terpene, aromatic terpene, terpene phenolic, liquid, styrene, and hydrogenated terpene phenolic resins for use in adhesives, modifiers, sealants, and inks and paints. The company also provides chemicals, such as turpentine oil solvents, fragrance, and low-molecular-weight polyethylene waxes used in fragrances, solvents, electronics, road marking paints, hot melt adhesives, and PVC lubricants. In addition, it offers hot melt rubber adhesives used in food, packaging, automobile, and construction industries. The company was founded in 1947 and is headquartered in Fuchu, Japan.

How the Company Makes Money

Yasuhara Chemical Co., Ltd. generates revenue through the sale of its chemical products and materials to a wide range of industries. The company's primary revenue streams include the production and distribution of specialty chemicals, which are often tailored for specific applications in sectors such as electronics and pharmaceuticals. Additionally, the company may engage in long-term contracts and partnerships with key clients, ensuring a steady flow of income. Factors contributing to its earnings include investments in research and development that lead to innovative product offerings, as well as a strong focus on quality and customer satisfaction, which helps maintain and grow its market share.

Yasuhara Chemical Co., Ltd. Financial Statement Overview

Summary

Yasuhara Chemical Co., Ltd. exhibits a commendable financial performance. The income statement shows strong growth and profitability, with improved margins. The balance sheet is robust with low leverage, and cash flow is healthy, reflecting efficient cash management. These factors collectively indicate a well-managed company with a strong financial foundation and growth potential.

Income Statement

Yasuhara Chemical has demonstrated strong revenue growth, with a 11.1% increase in the latest year. Gross profit and net profit margins have improved to 26.2% and 9.4% respectively, indicating enhanced profitability. The EBIT and EBITDA margins have also shown significant improvement, reflecting effective cost control and operational efficiency. These factors contribute to a robust income statement performance.

Balance Sheet

The balance sheet reveals a strong equity base with an equity ratio of 76.7%, indicating financial stability. The debt-to-equity ratio of 0.17 suggests low leverage, reducing financial risk. Return on equity stands at 6.5%, reflecting moderate profitability on equity. Overall, the balance sheet is solid but could benefit from improved ROE.

Cash Flow

Yasuhara Chemical's cash flow position is favorable with a substantial increase in free cash flow and a strong operating cash flow to net income ratio of 2.2. The free cash flow to net income ratio is 1.9, highlighting efficient cash generation relative to earnings. The company's ability to generate and grow free cash flow enhances its financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.66B	13.19B	11.88B	12.57B	11.34B
Gross Profit	3.84B	2.65B	2.16B	2.67B	2.07B
EBITDA	2.21B	1.33B	1.36B	1.58B	946.43M
Net Income	1.38B	583.00M	669.00M	757.00M	333.76M
Balance Sheet
Total Assets	27.47B	27.22B	28.67B	24.98B	25.19B
Cash, Cash Equivalents and Short-Term Investments	6.02B	5.32B	6.43B	4.47B	4.18B
Total Debt	3.55B	4.87B	6.75B	2.84B	4.09B
Total Liabilities	6.40B	7.33B	9.12B	5.64B	6.39B
Stockholders Equity	21.07B	19.89B	19.55B	19.34B	18.80B
Cash Flow
Free Cash Flow	2.61B	87.00M	-1.92B	2.01B	1.76B
Operating Cash Flow	3.06B	767.00M	-908.00M	2.38B	1.92B
Investing Cash Flow	-763.00M	76.00M	-328.00M	-959.00M	212.21M
Financing Cash Flow	-1.53B	-2.20B	3.40B	-1.38B	-1.37B

Yasuhara Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1367.00
• 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:4957, the sentiment is Neutral. The current price of 1367 is below the 20-day moving average (MA) of 1372.35, above the 50-day MA of 1306.06, and above the 200-day MA of 984.08, indicating a neutral trend. The MACD of 14.48 indicates Positive momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4957.

Yasuhara Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4957	74 Outperform	¥14.05B	8.11	―	0.88%	5.90%	135.08%
4623	72 Outperform	¥6.51B	10.43	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥7.27B	9.21	―	2.51%	2.26%	51.04%
4635	69 Neutral	¥19.67B	2.35	―	3.61%	8.85%	110.05%
4624	66 Neutral	¥5.38B	10.94	―	1.39%	2.67%	37.55%
4406	62 Neutral	¥8.31B	17.77	―	1.35%	-2.76%	-25.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%