Arakawa Chemical Industries,Ltd. (JP:4968)
:4968
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Arakawa Chemical Industries,Ltd.
(4968)
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Rating:58Neutral
Price Target:
¥2,218.00
▲(108.07% Upside)
Action:Reiterated
Date:06/19/26
The score reflects a financial turnaround that is not yet consistently durable, with volatile margins and notably weak/volatile free cash flow as the main constraint. Technicals are supportive due to a strong uptrend and positive MACD, but overbought signals (high RSI/Stoch) add near-term risk. Valuation is reasonable but not especially cheap, with a moderate dividend yield.
Positive Factors
Specialty-chemicals business serving diversified industrial end-markets
A focus on specialty and functional materials across paper, adhesives, coatings and inks supports durable, repeatable B2B demand and higher-value product mix versus commodity chemicals. This business model promotes stickier customer relationships and recurring revenue when formulations are qualified into customer lines.
Negative Factors
Volatile margins and inconsistent profit performance
Large swings in margins and profits reduce forecast reliability and make cash generation unpredictable. For a specialty-chemicals player, such volatility can reflect raw-material pass-through limits, pricing power variability, or mix shifts—raising execution risk and complicating long-term planning for investment and dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty-chemicals business serving diversified industrial end-markets
A focus on specialty and functional materials across paper, adhesives, coatings and inks supports durable, repeatable B2B demand and higher-value product mix versus commodity chemicals. This business model promotes stickier customer relationships and recurring revenue when formulations are qualified into customer lines.
Read all positive factors
Arakawa Chemical Industries,Ltd. (4968) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥42.32B
Dividend Yield4.27%
Average Volume (3M)44.42K
Price to Earnings (P/E)19.0
Beta (1Y)0.99
Revenue Growth2.37%
EPS Growth-16.75%
CountryJP
Employees1,668
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)110.95
Shares Outstanding20,652,400
10 Day Avg. Volume62,310
30 Day Avg. Volume44,420
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)0.40
Price to Sales (P/S)0.30
P/FCF Ratio50.40
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)126
Revenue Forecast (FY)¥89.60B
Arakawa Chemical Industries,Ltd. Business Overview & Revenue Model
Company Description
Arakawa Chemical Industries, Ltd. is a global chemical producer with operations across Asia, China, Europe, and the United States. The company specializes in the development and sale of diverse chemical products, including performance coatings, ma...
How the Company Makes Money
Arakawa Chemical Industries primarily makes money by manufacturing and selling specialty chemical products to corporate customers. Revenue is generated from product sales across multiple end-use markets, with key streams typically including: (1) p...
Arakawa Chemical Industries,Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
44
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 82.14B | 80.24B | 72.22B | 79.43B | 80.52B |
| Gross Profit | 17.05B | 16.09B | 11.68B | 11.57B | 17.97B |
| EBITDA | 8.09B | 9.00B | 4.76B | 49.00M | 6.29B |
| Net Income | 2.20B | 2.64B | -1.04B | -4.94B | 1.50B |
Balance Sheet | |||||
| Total Assets | 126.06B | 122.30B | 125.42B | 119.03B | 117.74B |
| Cash, Cash Equivalents and Short-Term Investments | 10.60B | 9.43B | 11.58B | 11.14B | 10.37B |
| Total Debt | 40.62B | 39.41B | 42.42B | 35.16B | 26.87B |
| Total Liabilities | 66.82B | 65.06B | 68.50B | 62.52B | 55.16B |
| Stockholders Equity | 62.36B | 58.47B | 56.13B | 54.08B | 59.18B |
Cash Flow | |||||
| Free Cash Flow | 496.00M | 712.00M | -5.70B | -6.69B | -2.43B |
| Operating Cash Flow | 4.18B | 5.12B | 1.16B | -575.00M | 3.99B |
| Investing Cash Flow | -2.10B | -3.24B | -7.14B | -6.05B | -7.40B |
| Financing Cash Flow | -286.00M | -4.70B | 5.48B | 6.67B | 4.93B |
Arakawa Chemical Industries,Ltd. Technical Analysis
Positive
1066.00
Price Trends
1399.18
Positive
1376.20
Positive
1242.09
Positive
Market Momentum
133.14
Negative
74.86
Negative
92.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4968, the sentiment is Positive. The current price of 1066 is below the 20-day moving average (MA) of 1569.60, below the 50-day MA of 1399.18, and below the 200-day MA of 1242.09, indicating a bullish trend. The MACD of 133.14 indicates Negative momentum. The RSI at 74.86 is Negative, neither overbought nor oversold. The STOCH value of 92.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4968.
Arakawa Chemical Industries,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥48.59B | 16.83 | ― | 3.84% | 3.45% | 14.22% | |
74 Outperform | ¥32.00B | 18.98 | ― | 3.63% | 43.31% | 13.91% | |
69 Neutral | ¥55.51B | 12.23 | ― | 2.92% | -5.24% | 17.49% | |
67 Neutral | ¥36.10B | 13.73 | ― | 3.21% | 2.43% | 17.77% | |
65 Neutral | ¥32.21B | 16.34 | ― | 2.47% | 2.49% | 2.71% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | ¥42.32B | 18.97 | ― | 4.27% | 2.37% | -16.75% |
* Basic Materials Sector Average
JP:4968
Arakawa Chemical Industries,Ltd.
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Arakawa Chemical Industries,Ltd. Corporate Events
Arakawa Chemical Taps Sustainability Expert as New Outside Director
May 14, 2026
Arakawa Chemical Industries has announced a planned change to its boardroom structure, resolving at a recent directors’ meeting to nominate a new outside director. The appointment is scheduled to be put before shareholders at the companyR...
Arakawa Chemical Posts Profit Recovery and Projects Further Growth for FY2027
May 14, 2026
Arakawa Chemical Industries reported consolidated net sales of ¥82.1 billion for the fiscal year ended March 31, 2026, a 2.4% increase from the prior year, while operating income more than doubled to ¥2.5 billion as profitability recover...
Arakawa Chemical Boosts Profits, Cash and Dividends as It Eyes Further Growth in FY2027
May 14, 2026
Arakawa Chemical Industries reported a modest 2.4% increase in net sales to ¥82.1 billion for the year ended March 31, 2026, while operating profit more than doubled and ordinary profit nearly tripled, reflecting improved profitability despit...
Arakawa Chemical Sets 6th Medium-Term Plan to Reshape Portfolio and Boost Capital Efficiency
Mar 30, 2026
Arakawa Chemical Industries has outlined its 6th Medium-Term Management Plan for fiscal 2026–2030, timed with its 150th anniversary, to drive long-term value creation under the slogan “V-ACTION for the Future -Refining our Minds and Ma...
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.