Arakawa Chemical Industries,Ltd. (JP:4968)
:4968
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Arakawa Chemical Industries,Ltd.
(4968)
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Rating:62Neutral
Price Target:
¥1,322.00
▲(24.02% Upside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by improving financial performance (revenue and earnings recovery) but held back by weak cash generation and negative free cash flow. Valuation is a clear positive (low P/E and attractive yield), while technical signals are broadly neutral with some near-term softness versus the 20-day average.
Positive Factors
Revenue recovery
A clear revenue rebound (+15.7% TTM) with restored positive EBIT and net income indicates the core business and end-market demand have recovered. This durable top-line momentum supports capacity utilization, customer retention, and the potential to gradually normalize margins over multiple quarters.
Negative Factors
Negative free cash flow
Negative TTM free cash flow (-1.49B) after a prior positive year signals weaker internal funding for capex, working capital or dividends. Over several quarters this reduces financial flexibility, may force external financing, and constrains the firm's ability to self-fund strategic initiatives or R&D investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
A clear revenue rebound (+15.7% TTM) with restored positive EBIT and net income indicates the core business and end-market demand have recovered. This durable top-line momentum supports capacity utilization, customer retention, and the potential to gradually normalize margins over multiple quarters.
Read all positive factors
Arakawa Chemical Industries,Ltd. (4968) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.84B
Dividend Yield4.27%
Average Volume (3M)44.42K
Price to Earnings (P/E)10.0
Beta (1Y)1.02
Revenue Growth3.42%
EPS Growth-5.48%
CountryJP
Employees1,668
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)86.10
Shares Outstanding20,652,400
10 Day Avg. Volume62,310
30 Day Avg. Volume44,420
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.37
Price to Sales (P/S)0.27
P/FCF Ratio30.68
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)136.1
Revenue Forecast (FY)¥89.60B
Arakawa Chemical Industries,Ltd. Business Overview & Revenue Model
Company Description
Arakawa Chemical Industries, Ltd. (4968) is a leading Japanese manufacturer specializing in the production of chemical products and materials. The company operates primarily in the chemical sector, focusing on the development and distribution of s...
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
62
Positive
Balance Sheet
64
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 81.40B | 80.24B | 72.22B | 79.43B | 80.52B | 70.57B |
| Gross Profit | 16.90B | 16.09B | 11.68B | 11.57B | 17.97B | 16.69B |
| EBITDA | 7.77B | 9.00B | 4.76B | 49.00M | 6.29B | 7.14B |
| Net Income | 1.71B | 2.64B | -1.04B | -4.94B | 1.50B | 2.17B |
Balance Sheet | ||||||
| Total Assets | 126.62B | 122.30B | 125.42B | 119.03B | 117.74B | 105.76B |
| Cash, Cash Equivalents and Short-Term Investments | 9.40B | 9.43B | 11.58B | 11.14B | 10.37B | 8.46B |
| Total Debt | 42.72B | 39.41B | 42.42B | 35.16B | 26.87B | 21.98B |
| Total Liabilities | 69.73B | 65.06B | 68.50B | 62.52B | 55.16B | 47.16B |
| Stockholders Equity | 59.25B | 58.47B | 56.13B | 54.08B | 59.18B | 57.23B |
Cash Flow | ||||||
| Free Cash Flow | -1.49B | 712.00M | -5.70B | -6.69B | -2.43B | -2.34B |
| Operating Cash Flow | 2.99B | 5.12B | 1.16B | -575.00M | 3.99B | 3.69B |
| Investing Cash Flow | -3.31B | -3.24B | -7.14B | -6.05B | -7.40B | -7.30B |
| Financing Cash Flow | -84.00M | -4.70B | 5.48B | 6.67B | 4.93B | 1.35B |
Arakawa Chemical Industries,Ltd. Technical Analysis
Neutral
1066.00
Price Trends
1355.23
Negative
1269.18
Positive
1165.24
Positive
Market Momentum
-13.03
Negative
46.94
Neutral
35.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4968, the sentiment is Neutral. The current price of 1066 is below the 20-day moving average (MA) of 1282.96, below the 50-day MA of 1355.23, and below the 200-day MA of 1165.24, indicating a neutral trend. The MACD of -13.03 indicates Negative momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥34.60B | 9.15 | ― | 2.47% | 5.25% | 39.47% | |
76 Outperform | ¥25.43B | 6.46 | ― | 3.21% | 8.79% | 18.52% | |
74 Outperform | ¥29.31B | 14.81 | ― | 3.63% | 43.31% | 13.90% | |
73 Outperform | ¥30.10B | 12.16 | ― | 3.84% | -5.73% | -23.28% | |
69 Neutral | ¥55.25B | 12.01 | ― | 2.92% | -5.24% | 17.53% | |
62 Neutral | ¥24.84B | 9.97 | ― | 4.27% | 3.42% | -5.48% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4968
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Arakawa Chemical Industries,Ltd. Corporate Events
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...
Arakawa Chemical Books ¥1.66 Billion Extraordinary Loss on Subsidiary Loans in Non-Consolidated Accounts
Feb 5, 2026
Arakawa Chemical Industries has decided to record an extraordinary loss of 1,659 million yen in its non-consolidated financial results for the third quarter of the fiscal year ending March 31, 2026, by setting up a provision for doubtful accounts ...
Arakawa Chemical Lifts Sales and Operating Profit but Bottom Line Declines in First Nine Months of FY2025
Feb 5, 2026
Arakawa Chemical Industries reported consolidated net sales of ¥61.37 billion for the nine months ended December 31, 2025, up 1.9% year on year, with operating profit surging 80.4% to ¥1.83 billion and ordinary profit rising 76.9% to ...
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.