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

• Market Cap: ¥21.07B
• Dividend Yield: 3.63%
• Average Volume (3M): 12.29K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.55
• Revenue Growth: 18.02%
• EPS Growth: 18.04%
• Country: JP
• Employees: 49
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 84.64
• Shares Outstanding: 6,067,200
• 10 Day Avg. Volume: 9,200
• 30 Day Avg. Volume: 12,293
• PEG Ratio: 0.06
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 35.90
• 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: 77 Outperform
• Price Target: ¥3,973.00 ▲(14.17% Upside)

The score is driven primarily by strong financial stability (debt-free balance sheet) and improved profitability, supported by bullish technicals with the price above major moving averages. The main constraints are uneven revenue trends and volatile cash flow conversion, while valuation is reasonable with a solid dividend yield.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and interest-rate sensitivity, providing the company with greater financial stability and flexibility.

Improved Profitability

Improved profitability indicates better cost management and pricing strategies, enhancing the company's ability to generate sustainable earnings.

Strategic Asset Sale

The strategic sale of investment securities enhances financial stability and aligns with long-term management goals, potentially improving shareholder returns.

Negative Factors

Inconsistent Revenue Trends

Inconsistent revenue trends can hinder long-term growth prospects and challenge the company's ability to maintain profitability.

Volatile Cash Flow

Volatile cash flow can impact the company's ability to invest in growth opportunities and meet financial obligations consistently.

Sales Variability

Sales variability, influenced by fluctuating noble metal prices, can affect financial performance and market positioning, posing a risk to revenue stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.94B	12.61B	11.42B	16.25B	18.71B	16.62B
Gross Profit	1.60B	1.63B	1.37B	1.58B	2.19B	1.96B
EBITDA	2.08B	2.26B	402.00M	651.98M	1.32B	1.06B
Net Income	1.44B	1.58B	548.26M	569.98M	974.20M	790.52M
Balance Sheet
Total Assets	15.98B	15.86B	17.14B	15.61B	16.87B	16.15B
Cash, Cash Equivalents and Short-Term Investments	7.00B	7.59B	6.16B	5.77B	4.03B	4.37B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.09B	2.26B	2.60B	2.11B	2.62B	2.90B
Stockholders Equity	13.89B	13.59B	14.54B	13.51B	14.24B	13.25B
Cash Flow
Free Cash Flow	0.00	500.71M	551.90M	2.52B	94.59M	332.71M
Operating Cash Flow	0.00	579.79M	684.68M	2.54B	180.01M	363.91M
Investing Cash Flow	0.00	1.52B	166.77M	19.76M	-93.61M	-40.68M
Financing Cash Flow	0.00	-676.56M	-457.99M	-824.05M	-425.58M	-447.16M

Japan Pure Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3480.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 3480 is above the 20-day moving average (MA) of 3446.75, above the 50-day MA of 3292.30, and above the 200-day MA of 3098.98, indicating a bullish trend. The MACD of 94.43 indicates Negative momentum. The RSI at 73.44 is Negative, neither overbought nor oversold. The STOCH value of 56.65 is Neutral, 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
4064	80 Outperform	¥23.89B	8.17	―	3.21%	9.61%	173.72%
4973	77 Outperform	¥21.07B	15.72	―	3.63%	18.02%	18.04%
4229	75 Outperform	¥25.82B	13.56	―	2.47%	3.53%	8.36%
4092	66 Neutral	¥27.15B	11.96	―	3.84%	-3.41%	-12.83%
4113	66 Neutral	¥19.07B	10.08	―	3.23%	13.09%	89.45%
4409	66 Neutral	¥15.80B	12.90	―	2.78%	1.30%	-5.03%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Japan Pure Chemical Co., Ltd. Corporate Events

Japan Pure Chemical Updates on Investment Securities Sale Gain

Japan Pure Chemical Co., Ltd. has announced an update on its gain from the sale of investment securities, which aligns with its medium-term management plan to reduce the ratio of net assets. The company expects to complete the sale by the third quarter, with the gain on sale now estimated to increase due to rising stock prices, impacting the fiscal year ending March 31, 2026.

Japan Pure Chemical Revises Earnings Forecast, Boosts Net Profit Expectations

Japan Pure Chemical Co., Ltd. has revised its full-year earnings forecast for the fiscal year ending March 31, 2026, maintaining its net sales and profit projections while significantly increasing its net profit forecast due to extraordinary income from the sale of investment securities. This strategic move aligns with the company’s medium-term management plan to reduce the ratio of net assets, potentially impacting stakeholders by enhancing financial stability and shareholder returns.

Japan Pure Chemical Co., Ltd. Reports Interim Financial Results Highlighting Sales Variability

Japan Pure Chemical Co., Ltd.’s interim financial report highlights the variability in sales between noble metals combined with chemicals and standalone chemical sales. The fluctuating prices of noble metals significantly influence overall sales, impacting the company’s financial performance and market positioning.

Japan Pure Chemical Reports Mixed Financial Results for 2025

Japan Pure Chemical Co., Ltd. reported a 19% increase in net sales for the six months ending September 30, 2025, compared to the same period last year. However, the company’s net profit decreased by 24%, reflecting challenges in maintaining profitability despite increased sales. The company has maintained its dividend forecast, indicating stability in shareholder returns, and plans to submit its semiannual report by November 10, 2025. The financial results suggest a mixed performance, with growth in sales but a decline in net profit, which could impact investor sentiment and strategic planning.