Japan Pure Chemical Co., Ltd. (4973) AI Stock Analysis

• Market Cap: ¥17.77B
• Dividend Yield: 3.97%
• Average Volume (3M): 10.94K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.49
• Revenue Growth: 10.43%
• EPS Growth: 187.34%
• Country: JP
• Employees: 49
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Chemicals - Specialty
• EPS (TTM): 23.40
• Shares Outstanding: 6,067,200
• 10 Day Avg. Volume: 9,530
• 30 Day Avg. Volume: 10,943
• PEG Ratio: 2.51
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ―

Japan Pure Chemical Co., Ltd. presents a mixed picture. The strongest aspect is its robust financial health, with significant equity financing and no debt burden. However, the stock faces technical challenges due to bearish momentum and declining revenue. The valuation appears attractive due to a low P/E ratio and high dividend yield, making it potentially appealing for value and income investors. The key risk remains the need for revenue growth and cash flow stabilization.

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

Company Description

Japan Pure Chemical Co., Ltd. develops, manufactures, and sells metal plating chemicals for electronic devices in Japan. The company provides gold electroplating formulation for semiconductor applications; gold electroplating formulation for PWB, connector, contact, and soldering uses; strike gold plating formulation that enhances the adherence of plated coatings; flash gold plating formulation for leadframe uses; and palladium electroplating formulation for connector, leadframe, and decorative uses. It also offers gold coating for soldering and wire bonding; electroless palladium plating formulation for wire bonding and soldering uses; and silver-plating formulations. In addition, the company provides non-cyanide immersion silver plating formulations on Cu surfaces; anti-microbial agents for plating tanks and drag-out tanks; impurity removal resin that removes Cu ions dissolved in Au and Pd bath solutions; and carbon filter that is applied to JPC plating chemicals. Additionally, it offers other surface treatment chemicals and stripping agents. Japan Pure Chemical Co., Ltd. was founded in 1971 and is based in Tokyo, Japan.

How the Company Makes Money

Japan Pure Chemical Co., Ltd. generates revenue primarily through the sale of its high-purity chemical products. The company's key revenue streams include supplying chemicals for electronic materials, which are crucial in the production of semiconductors and other electronic components. Additionally, the company serves the automotive industry by providing chemicals that are used in various manufacturing processes. The pharmaceutical sector also contributes to the company's earnings, as its high-purity chemicals are essential for the development and production of medical compounds. Significant partnerships with major industrial players and a focus on innovation and quality assurance further enhance its market position and revenue generation capabilities.

Japan Pure Chemical Co., Ltd. Financial Statement Overview

Summary

Japan Pure Chemical Co., Ltd. shows a strong balance sheet with no debt and high equity utilization. While profitability remains high with a solid net profit margin, challenges exist with declining revenue and volatile cash flows. The company needs to focus on stabilizing cash flow and improving revenue growth.

Income Statement

The company's income statement shows a mixed performance. The TTM gross profit margin is approximately 12.45%, which is moderate. The net profit margin is high at 11.82%, indicating strong profitability. The revenue growth rate from the previous year is negative, showing a decline which could be concerning. However, the EBIT and EBITDA margins both show solid profitability with 3.81% and 9.16% respectively in the TTM. Despite the revenue decline, the company maintains healthy margins, suggesting effective cost management.

Balance Sheet

The balance sheet reflects a strong financial position with no debt, resulting in a debt-to-equity ratio of zero. This is a significant strength and indicates no leverage risk. The return on equity (ROE) for the TTM is high at 10.66%, showcasing effective use of equity to generate income. The equity ratio is robust at 85.26%, indicating a solid capital structure primarily financed by equity. Overall, the balance sheet is stable and well-structured.

Cash Flow

The cash flow statement is less informative due to missing data for the TTM period. However, based on the previous annual data, the operating cash flow to net income ratio was positive, suggesting decent cash generation from operations. The free cash flow growth has been volatile, with a significant decline noted in the latest annual report compared to the TTM. This raises concerns about cash flow stability and sustainability in the short term.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.61B	11.42B	16.25B	18.71B	16.62B
Gross Profit	1.63B	1.37B	1.58B	2.19B	1.96B
EBITDA	2.26B	402.00M	651.98M	1.32B	1.06B
Net Income	1.58B	548.26M	569.98M	974.20M	790.52M
Balance Sheet
Total Assets	15.86B	17.14B	15.61B	16.87B	16.15B
Cash, Cash Equivalents and Short-Term Investments	7.59B	6.16B	5.77B	4.03B	4.37B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.26B	2.60B	2.11B	2.62B	2.90B
Stockholders Equity	13.59B	14.54B	13.51B	14.24B	13.25B
Cash Flow
Free Cash Flow	500.71M	551.90M	2.52B	94.59M	332.71M
Operating Cash Flow	540.82M	684.68M	2.54B	180.01M	363.91M
Investing Cash Flow	1.56B	166.77M	19.76M	-93.61M	-40.68M
Financing Cash Flow	-676.56M	-457.99M	-824.05M	-425.58M	-447.16M

Japan Pure Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4973, the sentiment is Positive. The current price of 3220 is above the 20-day moving average (MA) of 3136.00, above the 50-day MA of 3134.04, and above the 200-day MA of 3116.66, indicating a bullish trend. The MACD of 20.84 indicates Negative momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 80.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4973.

Japan Pure Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4021	81 Outperform	€670.73B	15.72	18.55%	3.53%	10.88%	14.80%
4204	78 Outperform	$1.10T	13.53	10.10%	2.98%	3.28%	6.55%
4043	77 Outperform	$238.16B	10.18	9.01%	3.02%	0.32%	31.76%
4973	72 Outperform	¥17.77B	12.68		3.97%	10.43%	187.34%
4183	71 Outperform	$656.15B	20.23	3.69%	4.35%	3.40%	-35.47%
4188	70 Outperform	$1.15T	25.68	2.49%	3.94%	0.46%	-62.37%
Sector *	63 Neutral	$10.55B	10.83	1.51%	2.68%	2.24%	-33.79%

Japan Pure Chemical Co., Ltd. Corporate Events

Japan Pure Chemical Co., Ltd. Corrects Financial Results for 2025

Japan Pure Chemical Co., Ltd. announced corrections to its non-consolidated financial results for the year ended March 31, 2025. The corrections involve adjustments in cash flow figures, specifically in operating and investing activities, which reflect minor changes in financial performance. These adjustments may impact stakeholders’ understanding of the company’s financial health and operational efficiency.

Japan Pure Chemical Unveils Medium-Term Management Plan FY2025-2027

Japan Pure Chemical Co., Ltd. has announced its medium-term management plan for FY2025-2027, building on its RDD2030 vision. Despite a slower market recovery than expected, the company is focusing on strategic investments and strengthening its management infrastructure to enhance corporate and customer value, aiming to meet market and stakeholder expectations.

Japan Pure Chemical Co., Ltd. Revamps Executive Remuneration System

Japan Pure Chemical Co., Ltd. announced a revision to its executive remuneration system aimed at boosting motivation for sustainable growth and aligning with shareholder interests. The new system emphasizes performance-linked remuneration, introduces non-financial performance metrics, and includes non-performance-based stock remuneration for non-executive directors, reflecting a strategic shift to enhance corporate governance and long-term value creation.

Japan Pure Chemical Co., Ltd. Announces Governance Overhaul

Japan Pure Chemical Co., Ltd. announced proposed amendments to its Articles of Incorporation and changes in its board of directors, aiming to transition to a company with an audit and supervisory committee. This move is expected to enhance decision-making efficiency and strengthen the board’s supervisory function, potentially impacting the company’s governance and shareholder relations.

Japan Pure Chemical Co., Ltd. Reports Strong Financial Growth and Increased Dividends

Japan Pure Chemical Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 10.4% and net profit surging by 188.1% compared to the previous year. The company also announced an increase in annual dividends, reflecting its improved profitability and strong financial position, which could positively impact shareholders and enhance its market standing.