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

• Market Cap: ¥11.21B
• Dividend Yield: 1.06%
• Average Volume (3M): 36.18K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.46
• 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: ¥716.00 ▲(116.97% 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 and a strong operating cash flow-to-net-income ratio indicate the business generates real cash from operations. That durability supports reinvestment in production, funds working capital needs, and reduces reliance on external financing across a multi-month horizon.

Margin sustainability

Stable gross margins coupled with a rising net profit margin reflect effective cost control and pricing power in core formulations. These margin dynamics underpin lasting profitability even if sales fluctuate, supporting operational resilience and cash conversion over several quarters.

Niche B2B specialty-chemicals model

A focused B2B specialty-chemicals business supplying additives and performance formulations creates durable customer relationships and technical differentiation. Supplying tailored intermediates to multiple end markets reduces commoditization risk and supports recurring revenue streams over time.

Negative Factors

Inconsistent revenue growth

Negative and uneven revenue growth indicates demand variability in downstream markets and creates uncertainty for scale-dependent margin improvements. Persistent top-line weakness can limit reinvestment capacity and magnify the impact of fixed costs over several quarters.

Elevated leverage

A relatively high debt-to-equity ratio raises refinancing and interest-rate sensitivity risk, reducing financial flexibility. In an industry with cyclical demand, elevated leverage can pressure liquidity and constrain strategic investments if cash flows soften over the medium term.

Free cash flow volatility

Although operating cash flow is strong, free cash flow growth has been volatile, signaling episodic capital spending or working-capital swings. This variability hampers predictable capital allocation, dividend consistency, and buffer capacity against cyclical downturns across months.

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 makes money primarily by selling specialty chemical products to business customers (B2B). Revenue is generated from (1) product sales of chemical additives and functional materials that are incorporated into customers’ manufacturing processes or finished goods, and (2) sales of related chemical intermediates/industrial chemicals where the company supplies specific formulations or compounds to meet customer specifications. Earnings are driven by shipment volumes and unit pricing, which depend on demand in downstream manufacturing markets, the company’s ability to maintain differentiated performance/quality, and its cost management for raw materials and production. Information on significant partnerships, customer concentration, licensing/royalty income, or segment-by-segment revenue breakdown is null.

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	13.35B	13.79B	13.85B	13.52B	13.70B
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	8.58B	9.11B	9.26B	8.94B	9.18B
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: Neutral
• Last Price: 330.00
• 50DMA: Negative
• 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 Neutral. The current price of 330 is below the 20-day moving average (MA) of 701.00, below the 50-day MA of 718.98, and below the 200-day MA of 404.65, indicating a neutral trend. The MACD of -10.76 indicates Positive momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥15.97B	8.02	―	3.89%	-3.00%	-29.83%
4531	72 Outperform	¥9.08B	23.47	―	2.97%	9.92%	-27.64%
4366	71 Outperform	¥13.72B	9.40	―	1.81%	9.07%	―
6568	69 Neutral	¥9.18B	20.79	―	2.98%	-9.60%	-38.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4960	60 Neutral	¥11.21B	15.26	―	1.06%	-9.63%	-1.71%