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

• Market Cap: ¥12.26B
• Dividend Yield: 1.06%
• Average Volume (3M): 36.18K
• Price to Earnings (P/E): 93.7
• Beta (1Y): 0.40
• Revenue Growth: -9.63%
• EPS Growth: -1.71%
• Country: JP
• Employees: 193
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 5.80
• 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: 60 Neutral
• Price Target: ¥704.00 ▲(113.33% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is primarily supported by solid financial performance, especially stable profitability and strong operating cash flow. This is tempered by a demanding valuation (very high P/E with a low dividend yield) and mixed technical signals indicating weaker near-term momentum.

Positive Factors

Operating cash flow strength

Consistent operating cash flow provides durable internal funding for working capital, maintenance capex and selective reinvestment without heavy reliance on external financing. Over 2-6 months this bolsters resilience to demand swings and supports strategic initiatives or debt servicing.

Margin sustainability

Stable gross margins and improving net margin indicate the company can manage input costs and operating expenses effectively. This enhances long-term profitability resilience, allowing the firm to sustain earnings through cyclical demand changes and protect cash generation capacity.

Niche B2B specialty-chemical model

A focused B2B specialty-chemicals model often entails technical customization, long-term customer relationships and higher switching costs. These structural advantages support repeat revenue, pricing power on differentiated formulations, and durable market position across industrial end markets.

Negative Factors

Inconsistent / declining revenue

Negative recent revenue growth signals demand weakness or lost volumes in end markets. Over a multi-month horizon, declining top-line undermines fixed-cost absorption, constrains reinvestment, and increases execution risk for margin maintenance, especially if end-market recovery is slow.

Elevated leverage

Relatively high debt-to-equity raises interest and refinancing risk, reducing financial flexibility. In a cyclical chemical business this makes the company more vulnerable to cash-flow volatility and can limit ability to fund R&D, capex or absorb pricing pressure over the next several months.

Free cash flow volatility

Volatile free cash flow weakens the reliability of internally generated funds for investment, dividends and deleveraging. Combined with elevated leverage, FCF swings can force external borrowing or cutbacks, raising execution risk and constraining strategic flexibility in the medium term.

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 margin support profitability, and operating cash flow is consistently strong. The main offset is mixed 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• 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 829.50, below the 50-day MA of 623.88, and below the 200-day MA of 375.70, indicating a neutral trend. The MACD of 15.10 indicates Positive momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 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
4093	79 Outperform	¥16.25B	12.89	―	3.89%	-3.00%	-29.83%
4531	72 Outperform	¥10.59B	15.77	―	2.97%	9.92%	-27.64%
4366	71 Outperform	¥15.21B	17.60	―	1.81%	9.07%	―
6568	69 Neutral	¥10.48B	20.66	―	2.98%	-9.60%	-38.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4960	60 Neutral	¥12.26B	93.74	―	1.06%	-9.63%	-1.71%
4080	48 Neutral	¥13.27B	-10.19	-7.76%	―	-19.70%	-159.15%