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Japan Pure Chemical Co., Ltd. (JP:4973)
:4973
Japanese Market
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Japan Pure Chemical Co., Ltd. (4973) AI Stock Analysis

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JP:4973

Japan Pure Chemical Co., Ltd.

(4973)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥4,691.00
▲(34.80% Upside)
Action:Reiterated
Date:07/25/26
The score is driven by strong financial safety from a debt-free balance sheet and decent valuation with a high dividend yield. These positives are tempered by a key fundamental risk—negative and volatile cash flow in 2026—and weak technical momentum (below major moving averages with negative MACD and low RSI).
Positive Factors
Debt-free balance sheet
A zero-debt balance sheet materially lowers financial risk and gives management flexibility to fund working capital, R&D or cyclical downturns without refinancing. Over months, this supports stability in operations and cushions the company against industry cyclicality.
Negative Factors
Negative cash flow in 2026
A sharp shift to negative operating and free cash flow undermines the link between reported profits and real cash available for reinvestment or dividends. Persisting cash deficits over months would strain liquidity, force asset sales or require external financing despite no debt today.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt balance sheet materially lowers financial risk and gives management flexibility to fund working capital, R&D or cyclical downturns without refinancing. Over months, this supports stability in operations and cushions the company against industry cyclicality.
Read all positive factors

Japan Pure Chemical Co., Ltd. (4973) vs. iShares MSCI Japan ETF (EWJ)

Japan Pure Chemical Co., Ltd. Business Overview & Revenue Model

Company Description
Japan Pure Chemical Co.,Ltd. develops, manufactures, and sells precious metal plating chemicals for electronic components in Japan and internationally. The company provides gold electrolytic plating formulation for semiconductor applications, as w...
How the Company Makes Money
Japan Pure Chemical primarily makes money by selling specialty chemical materials it manufactures to corporate customers (B2B). Revenue is generated from: (1) Product sales of its specialty chemicals/materials supplied for customer manufacturing p...

Japan Pure Chemical Co., Ltd. Financial Statement Overview

Summary
Balance sheet strength is a major positive (zero debt, low financial risk), and revenue rebounded strongly in 2026 with improved net margins. Offsetting this, operating profitability is inconsistent (large EBIT margin swing) and 2026 operating/free cash flow turned negative, lowering confidence in earnings-to-cash conversion.
Income Statement
71
Positive
Balance Sheet
88
Very Positive
Cash Flow
46
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue20.82B18.07B12.61B11.42B16.25B18.71B
Gross Profit1.92B1.94B1.63B1.37B1.58B2.19B
EBITDA2.05B664.62M2.26B402.00M651.98M1.32B
Net Income1.76B1.80B1.58B548.26M569.98M974.20M
Balance Sheet
Total Assets27.99B21.74B15.86B17.14B15.61B16.87B
Cash, Cash Equivalents and Short-Term Investments6.62B7.75B7.59B6.16B5.77B4.03B
Total Debt0.000.000.000.000.000.00
Total Liabilities5.67B3.67B2.26B2.60B2.11B2.62B
Stockholders Equity22.32B18.06B13.59B14.54B13.51B14.24B
Cash Flow
Free Cash Flow0.00-842.24M500.71M551.90M2.52B94.59M
Operating Cash Flow0.00-772.58M579.79M684.68M2.54B180.01M
Investing Cash Flow0.001.11B1.52B166.77M19.76M-93.61M
Financing Cash Flow0.00-673.07M-676.56M-457.99M-824.05M-425.58M

Japan Pure Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3480.00
Price Trends
50DMA
5168.40
Negative
100DMA
5117.73
Negative
200DMA
4451.45
Positive
Market Momentum
MACD
-201.37
Negative
RSI
45.62
Neutral
STOCH
75.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4973, the sentiment is Neutral. The current price of 3480 is below the 20-day moving average (MA) of 4688.50, below the 50-day MA of 5168.40, and below the 200-day MA of 4451.45, indicating a neutral trend. The MACD of -201.37 indicates Negative momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4973.

Japan Pure Chemical Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥57.22B12.752.92%-2.70%18.12%
76
Outperform
¥65.01B20.016.72%4.01%1.41%7.60%
68
Neutral
¥69.84B23.043.57%-3.84%-43.95%
66
Neutral
¥33.33B10.632.37%-1.11%-3.99%
65
Neutral
¥36.09B16.394.27%2.37%-16.75%
62
Neutral
¥24.01B14.113.63%60.90%21.44%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4973
Japan Pure Chemical Co., Ltd.
4,645.00
1,589.19
52.01%
JP:4109
Stella Chemifa
5,280.00
1,239.44
30.68%
JP:4078
Sakai Chemical Industry Co., Ltd.
3,965.00
1,262.26
46.70%
JP:4112
Hodogaya Chemical Co., Ltd.
2,219.00
713.17
47.36%
JP:4362
Nippon Fine Chemical Co., Ltd.
2,604.00
-123.97
-4.54%
JP:4968
Arakawa Chemical Industries,Ltd.
2,252.00
1,159.18
106.07%

Japan Pure Chemical Co., Ltd. Corporate Events

Japan Pure Chemical boosts sales and assets while profits slip, raises dividend outlook
Jul 24, 2026
Japan Pure Chemical Co., Ltd., listed on the Tokyo Stock Exchange under securities code 4973, operates in the chemical industry, supplying specialty chemical products under Japanese GAAP reporting standards. The company maintains a strong equity b...
Japan Pure Chemical Discloses Change in Largest Major Shareholder
Jul 2, 2026
Japan Pure Chemical Co., Ltd., a Prime Market-listed Japanese chemical manufacturer, serves industrial customers with specialized chemical products and maintains a governance-focused organization with dedicated corporate planning and finance funct...
Japan Pure Chemical Grants New Stock Options to Align Employees With Shareholder Value
Jun 24, 2026
Japan Pure Chemical has approved the issuance of its 23rd series of share acquisition rights as stock options for designated employees, granting 186 rights in total, each linked to 100 shares of common stock. The company aims to boost employee mot...
Japan Pure Chemical Lifts Annual Dividend to ¥200 per Share
May 22, 2026
Japan Pure Chemical Co., Ltd. has approved a year‑end dividend of ¥137 per share for the fiscal year ended March 31, 2026, with a record date of March 31 and payment scheduled for June 9, 2026. Together with the already paid interim div...
Japan Pure Chemical Announces Governance-Focused Director Lineup for 2026
May 22, 2026
Japan Pure Chemical announced board-approved personnel changes to its directors and officers, following recommendations from its Nomination and Compensation Advisory Committee, with final approval scheduled at the 55th Annual General Meeting of Sh...
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.Date of analysis: Jul 25, 2026