Dexerials Corp. (4980) AI Stock Analysis

• Market Cap: ¥443.63B
• Dividend Yield: 2.18%
• Average Volume (3M): 683.03K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.41
• Revenue Growth: -6.10%
• EPS Growth: -7.03%
• Country: JP
• Employees: 1,892
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 46.58
• Shares Outstanding: 174,741,400
• 10 Day Avg. Volume: 582,590
• 30 Day Avg. Volume: 683,030
• PEG Ratio: 0.35
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 2.82
• P/FCF Ratio: 11.79
• 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: ¥3,066.67
• Price Target Upside: 16.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 164.73
• Revenue Forecast (FY): ¥114.63B

• Rating: 70 Outperform
• Price Target: ¥2,787.00 ▲(6.03% Upside)
• Action: Upgraded Date: 02/14/26
• Date: Action: Upgraded 02/14/26

Score is driven primarily by strong financial performance (profitability and cash flow strength with conservative leverage), partially offset by weak technicals (price below all key moving averages and bearish MACD). Valuation is supportive with a reasonable P/E and a moderate dividend yield.

Positive Factors

High margins and improved profitability

Sustained high gross and operating margins indicate durable product differentiation and pricing power in specialty materials. Strong EBIT/EBITDA margins support reinvestment in R&D and stable operating cash flow, enhancing long-term competitiveness versus commodity suppliers.

Robust free cash flow generation

Material improvement in free cash flow and high cash conversion demonstrates the business converts earnings into liquidity. This durable cash generation funds capex, product development, dividends, or buybacks without heavy reliance on external financing, strengthening financial flexibility.

Conservative leverage and strong equity base

A low debt-to-equity ratio and high equity ratio provide balance sheet resilience through downturns and cyclical troughs. This structural strength reduces refinancing risk, preserves investment capacity for strategic projects, and supports stable credit access over multiple cycles.

Negative Factors

End-market cyclicality exposure

Revenue and margin durability depend on smartphone, display and consumer electronics cycles; qualification/adoption lags make sales lumpy. Structural cyclicality can cause multi-quarter revenue swings and complicate capacity planning and long-term margin predictability.

Rising total liabilities require monitoring

Although current leverage is low, the trend of rising liabilities could erode the conservative capital structure if it continues. Persistent liability growth can reduce financial flexibility, raise interest or covenant risk, and constrain the firm's ability to fund strategic investments without higher borrowing costs.

Negative recent EPS growth

A decline in reported EPS signals potential earnings volatility despite margin strength. This may reflect timing, one-offs, or operational pressures that could recur, making multi-period profit trends less predictable and warranting close monitoring of earnings drivers over the next several quarters.

Dexerials Corp. Business Overview & Revenue Model

Company Description

Dexerials Corporation manufactures and sells electronic components, bonding materials, optics materials, and other products in Japan. The company offers anisotropic conductive films, industrial adhesives, double and single coated tapes, thermal conductive sheets, architectural window films, optical elasticity resins, inorganic wave plates, optical films, inorganic diffusers and polarizers, and anti-reflection films, as well as UV curable resins for optical disks. It also provides surface mounted type fuses and water treatment agents for inorganic effluent; and solar cell conductive films for photovoltaic modules. The company was formerly known as Sony Chemical & Information Device Corporation and changed its name to Dexerials Corporation in September 2012. Dexerials Corporation was founded in 1962 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Dexerials Corp. generates revenue through the sale of its specialized materials and components to various industries, including electronics, automotive, and healthcare. Key revenue streams include the production of optical films used in displays, adhesive materials for electronic assemblies, and thermal interface materials for efficient heat dissipation in electronic devices. The company benefits from long-term partnerships with major manufacturers in its target sectors, enabling it to secure consistent orders and leverage economies of scale. Additionally, Dexerials invests in research and development to create innovative products that meet evolving market demands, thus driving growth and expanding its customer base.

Dexerials Corp. Financial Statement Overview

Summary

Strong fundamentals: revenue grew 4.94% (2024→2025) with improved profitability (gross margin 56.3%, net margin 25.1%) and solid operating efficiency (EBIT margin 34.5%, EBITDA margin 42.3%). Balance sheet leverage is conservative (debt-to-equity 0.22) with a strong equity ratio (63.2%), though rising liabilities warrant monitoring. Cash generation is robust with free cash flow up 59.6% and strong cash conversion (operating cash flow to net income 1.46).

Income Statement

Dexerials Corp. has shown strong revenue growth with a 4.94% increase from 2024 to 2025. Gross profit margin improved to 56.3% in 2025, reflecting better cost management. The net profit margin also increased to 25.1%, indicating enhanced profitability. The company has consistently improved its EBIT and EBITDA margins over the years, with recent figures at 34.5% and 42.3% respectively, showcasing robust operational efficiency.

Balance Sheet

The balance sheet of Dexerials Corp. reflects stability with a debt-to-equity ratio of 0.22, indicating conservative leverage. Return on equity improved to 28.9%, driven by higher net income. The equity ratio stands at 63.2%, highlighting a strong capital structure. However, the increase in total liabilities over the years suggests a need to monitor future leverage closely.

Cash Flow

The cash flow analysis reveals a healthy free cash flow growth rate of 59.6% between 2024 and 2025, driven by higher operating cash flow and controlled capital expenditure. The operating cash flow to net income ratio of 1.46 indicates strong cash generation relative to profits. Free cash flow to net income ratio increased to 0.95, reflecting improved cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	109.35B	110.39B	105.20B	106.17B	95.71B	65.83B
Gross Profit	60.58B	62.14B	57.27B	54.17B	45.19B	28.36B
EBITDA	45.23B	46.71B	36.80B	36.60B	29.82B	14.23B
Net Income	26.61B	27.74B	22.57B	20.68B	16.67B	5.33B
Balance Sheet
Total Assets	154.99B	151.82B	138.02B	126.38B	127.41B	95.20B
Cash, Cash Equivalents and Short-Term Investments	25.84B	34.98B	37.41B	29.29B	29.36B	20.53B
Total Debt	19.62B	21.08B	21.73B	19.71B	19.43B	15.48B
Total Liabilities	59.48B	55.90B	53.06B	52.61B	63.27B	41.90B
Stockholders Equity	95.51B	95.92B	84.95B	72.89B	63.73B	53.30B
Cash Flow
Free Cash Flow	0.00	26.36B	16.52B	9.55B	20.55B	10.45B
Operating Cash Flow	0.00	40.43B	27.46B	21.34B	25.80B	13.19B
Investing Cash Flow	0.00	-22.32B	-10.87B	-9.45B	-12.43B	-2.47B
Financing Cash Flow	0.00	-21.29B	-10.34B	-12.54B	-5.78B	-4.26B

Dexerials Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2628.50
• 50DMA: Negative
• 100DMA: Negative
• 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:4980, the sentiment is Positive. The current price of 2628.5 is above the 20-day moving average (MA) of 2557.88, below the 50-day MA of 2674.83, and above the 200-day MA of 2377.80, indicating a neutral trend. The MACD of -80.82 indicates Negative momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 95.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4980.

Dexerials Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6806	78 Outperform	¥766.87B	25.94	8.09%	2.85%	11.18%	-0.75%
5214	76 Outperform	$555.24B	17.99	-0.30%	2.16%	1.90%	-105.45%
4186	75 Outperform	¥1.14T	33.11	14.01%	1.08%	19.45%	41.03%
6981	74 Outperform	¥7.58T	39.89	8.95%	1.88%	2.88%	28.76%
4980	70 Outperform	¥443.63B	16.99	―	2.18%	-6.10%	-7.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5218	60 Neutral	¥29.56B	17.09	3.48%	2.38%	3.53%	10.37%

Dexerials Corp. Corporate Events

Dexerials Posts Flat Sales, Lower Profits but Holds Forecast and Dividend Plan

Dexerials reported largely flat net sales of ¥87.3 billion for the nine months ended December 31, 2025, with business profit and EBITDA also roughly stable, but operating profit and profit attributable to owners of the parent declined 7.3% and 8.9%, respectively. Despite softer earnings and lower per-share profit following a prior share split, the balance sheet strengthened with higher total assets and equity, and the company maintained its full-year forecast while planning total annual dividends of ¥58 per share, signaling confidence in stable operations and shareholder returns even amid modest profit pressure.

For the full fiscal year ending March 31, 2026, Dexerials projects moderate sales growth of 3.3% to ¥114 billion and a slight increase in business profit, but it expects operating profit and net income to fall year on year, reflecting ongoing margin challenges. The firm’s continued use of business profit and EBITDA as supplemental indicators and its unchanged earnings guidance suggest a focus on recurring operating performance and capital discipline, while incremental treasury share increases indicate active equity management that may support per-share metrics over the longer term.

The most recent analyst rating on (JP:4980) stock is a Buy with a Yen3474.00 price target. To see the full list of analyst forecasts on Dexerials Corp. stock, see the JP:4980 Stock Forecast page.

Dexerials Corporation Executes Strategic Share Buyback

Dexerials Corporation announced the acquisition of 709,600 of its own shares, valued at approximately ¥2.12 billion, as part of a share buyback program authorized by its Board of Directors. This strategic move, executed through the Tokyo Stock Exchange, aims to enhance shareholder value and optimize capital structure, with plans to retire the acquired treasury shares in January 2026.

The most recent analyst rating on (JP:4980) stock is a Buy with a Yen3474.00 price target. To see the full list of analyst forecasts on Dexerials Corp. stock, see the JP:4980 Stock Forecast page.