Chemipro Kasei Kaisya,Ltd. (4960) AI Stock Analysis

• Market Cap: ¥12.82B
• Dividend Yield: 1.06%
• Average Volume (3M): 36.18K
• Price to Earnings (P/E): 134.4
• Beta (1Y): 0.33
• Revenue Growth: -9.63%
• EPS Growth: -1.71%
• Country: JP
• Employees: 193
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.72
• Shares Outstanding: 16,623,613
• 10 Day Avg. Volume: 59,080
• 30 Day Avg. Volume: 36,176
• PEG Ratio: 17.94
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 4.49
• 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: ¥862.00 ▲(161.21% Upside)

The score is driven primarily by solid financial performance (stable margins and strong cash generation) and very strong technical trend signals. This is meaningfully tempered by weak valuation, with an extremely high P/E and only a modest dividend yield.

Positive Factors

Strong operating cash flow

Consistent operating cash generation supports durable funding for working capital, capex and dividends without relying on external financing. Over a multi-quarter horizon, reliable OCF improves resilience to demand swings and underpins the company’s ability to reinvest in specialty formulations and production efficiency.

Stable and improving margins

Stable gross and slightly higher net margins indicate sustainable cost control and pricing power in specialty chemical formulations. These margin trends support long-term profitability even if revenue fluctuates, enabling steady operating leverage and reinvestment in product development and customer support.

Improving return on equity

Rising ROE signals the firm is generating higher returns on invested capital, reflecting better asset utilization or profitable mix shifts. Over months this trend supports stronger cash returns to shareholders and validates management’s capital allocation and operational execution in a niche B2B segment.

Negative Factors

Relatively high leverage

Elevated debt levels reduce financial flexibility and raise refinancing and interest risks if industry conditions soften. Over a 2–6 month horizon, high leverage can pressure cash available for R&D or capex, and amplify earnings volatility if downstream demand weakens or input costs rise.

Inconsistent revenue growth

Negative and uneven top-line performance indicates exposure to end-market cycles or pricing/volume pressure. Sustained revenue variability limits predictability of margins and cash flow, making long-term planning and reinvestment harder, and raising the bar on maintaining differentiated formulations and customer relationships.

Volatile free cash flow growth

While operating cash is strong, fluctuating free cash flow signals uneven capex, working capital swings or timing effects. Persistent FCF volatility can strain funding for growth projects, dividend stability or debt servicing, reducing runway for strategic initiatives in a capital-intense specialty-chemicals business.

Chemipro Kasei Kaisya,Ltd. Business Overview & Revenue Model

Company Description

Chemipro Kasei Kaisha, Ltd. manufactures and sells chemicals and household products in Japan. The company offers chemicals, including UV absorbers, light stabilizers, antioxidants, organic electronic materials, intermediates for dyestuffs, and other products, such as color developer, corrosion inhibitors, and intermediates. It also provides ultraviolet absorbers, medical and agricultural chemical intermediates, electronic materials, etc. In addition, the company manufactures plastic additives. Further, it develops, manufactures, and sells wood preservatives, fungicides, and insecticides. Chemipro Kasei Kaisha, Ltd. was incorporated in 1949 and is based in Kobe, Japan.

How the Company Makes Money

Chemipro Kasei Kaisya, Ltd. generates revenue primarily through the sale of its chemical products to various industries. The company operates on a business-to-business (B2B) model, where it supplies its products to manufacturers and other businesses in need of chemical solutions. Key revenue streams include sales of fine chemicals used in pharmaceuticals, agrochemicals, and materials for industrial applications. Additionally, the company may engage in long-term contracts and partnerships with other firms in related sectors, providing a stable revenue base. Factors contributing to its earnings include the demand for specialty chemicals driven by advancements in technology and increasing regulations in the agricultural and pharmaceutical sectors.

Chemipro Kasei Kaisya,Ltd. Financial Statement Overview

Summary

Overall fundamentals are solid: stable margins and improving net profit/ROE, supported by strong operating cash flow. The main offsets are inconsistent revenue trends and a relatively high debt-to-equity ratio that adds balance-sheet risk.

Income Statement

The company shows a stable gross profit margin and a slight increase in net profit margin, indicating efficient cost management. However, revenue growth has been inconsistent, particularly a decline from 2020 to 2021. EBIT and EBITDA margins show minor fluctuations, reflecting stability in core operations despite revenue challenges.

Balance Sheet

The debt-to-equity ratio is relatively high, suggesting significant leverage which could be a risk in a volatile market. The equity ratio is stable, indicating the company maintains a balanced asset base. Return on equity has been improving, showing increasing profitability relative to shareholder equity.

Cash Flow

The company demonstrates strong cash flow management with consistent operating cash flow, though free cash flow growth shows some volatility. The operating cash flow to net income ratio suggests robust cash earnings relative to reported profits, enhancing financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.71B	9.24B	9.76B	9.74B	9.55B
Gross Profit	1.45B	1.50B	1.37B	1.66B	1.43B
EBITDA	651.08M	647.30M	665.54M	830.86M	726.80M
Net Income	128.08M	126.17M	71.08M	179.17M	180.16M
Balance Sheet
Total Assets	13.30B	13.71B	13.78B	13.45B	13.64B
Cash, Cash Equivalents and Short-Term Investments	2.15B	1.88B	956.72M	1.91B	2.14B
Total Debt	5.55B	6.18B	6.08B	5.95B	6.91B
Total Liabilities	8.52B	9.03B	9.19B	8.88B	9.12B
Stockholders Equity	4.78B	4.68B	4.60B	4.57B	4.53B
Cash Flow
Free Cash Flow	1.05B	900.60M	-924.38M	856.60M	267.90M
Operating Cash Flow	1.26B	1.18B	-694.99M	1.11B	588.18M
Investing Cash Flow	-288.57M	-213.17M	-230.97M	-248.94M	-222.80M
Financing Cash Flow	-713.97M	-43.94M	-29.48M	-1.08B	-118.39M

Chemipro Kasei Kaisya,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4960, the sentiment is Positive. The current price of 330 is below the 20-day moving average (MA) of 578.15, below the 50-day MA of 425.88, and above the 200-day MA of 323.16, indicating a bullish trend. The MACD of 157.16 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4960.

Chemipro Kasei Kaisya,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4274	72 Outperform	¥4.26B	26.04	―	0.98%	-4.35%	-19.25%
4531	72 Outperform	¥8.49B	12.65	―	2.97%	9.92%	-27.64%
4960	71 Outperform	¥12.82B	134.39	―	1.06%	-9.63%	-1.71%
4885	69 Neutral	¥3.54B	10.56	―	4.25%	7.90%	-39.51%
4102	62 Neutral	¥3.19B	18.48	―	2.12%	-5.18%	4.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4360	53 Neutral	¥7.25B	-22.67	―	1.93%	13.64%	-151.98%