Conservative Balance SheetVery low leverage materially reduces refinancing and interest-rate risk and provides durable financial flexibility. This balance-sheet strength supports capital allocation choices (capex, dividends, M&A) through cycles and enhances resilience in a cyclical chemicals end‑market.

Stable Profitability And ROEConsistent mid-single-digit to low-double-digit ROE demonstrates the business reliably converts invested capital into profits. For a specialty chemical manufacturer, steady returns signal durable manufacturing competence, pricing power with customers, and predictable shareholder cash generation.

Positive Free Cash FlowMaterial free cash flow provides a lasting source for dividends, reinvestment and balance‑sheet optionality. Sustained FCF generation supports funding working-capital needs and strategic investments without adding leverage, improving long‑term financial stability.

Bears Say

Uneven Cash ConversionOperating cash conversion lagging accrual earnings indicates working‑capital swings or timing effects. That reduces predictability of cash available for capex or shareholder returns, increasing the risk that earnings growth won't consistently translate into free cash flow.

Margin Stagnation Despite Revenue SurgeA large revenue step-up without margin expansion suggests adverse mix, pricing pressure, or cost increases. If structural, this constrains sustainable profitability and limits the long‑term earnings leverage of future revenue growth absent operational improvement.

Returns Good But Not ExceptionalModerate returns on capital imply limited capital‑efficiency upside relative to peers. Over the medium term, this can cap return on new investments and slow value creation unless management improves margins, asset turnover, or shifts to higher‑return products.

4992 FAQ

What was Hokko Chemical Industry Co., Ltd.’s price range in the past 12 months?

Hokko Chemical Industry Co., Ltd. lowest stock price was ¥1000.00 and its highest was ¥1879.00 in the past 12 months.

What is Hokko Chemical Industry Co., Ltd.’s market cap?

Hokko Chemical Industry Co., Ltd.’s market cap is ¥44.64B.

When is Hokko Chemical Industry Co., Ltd.’s upcoming earnings report date?

Hokko Chemical Industry Co., Ltd.’s upcoming earnings report date is Apr 13, 2026 which is in 51 days.

How were Hokko Chemical Industry Co., Ltd.’s earnings last quarter?

Hokko Chemical Industry Co., Ltd. released its earnings results on Jan 13, 2026. The company reported ¥13.09 earnings per share for the quarter, beating the consensus estimate of N/A by ¥13.09.

Is Hokko Chemical Industry Co., Ltd. overvalued?

According to Wall Street analysts Hokko Chemical Industry Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Hokko Chemical Industry Co., Ltd. pay dividends?

Hokko Chemical Industry Co., Ltd. pays a Semiannually dividend of ¥26 which represents an annual dividend yield of 2.86%. See more information on Hokko Chemical Industry Co., Ltd. dividends here

What is Hokko Chemical Industry Co., Ltd.’s EPS estimate?

Hokko Chemical Industry Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Hokko Chemical Industry Co., Ltd. have?

Hokko Chemical Industry Co., Ltd. has 27,485,530 shares outstanding.

What happened to Hokko Chemical Industry Co., Ltd.’s price movement after its last earnings report?

Hokko Chemical Industry Co., Ltd. reported an EPS of ¥13.09 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.066%.

Which hedge fund is a major shareholder of Hokko Chemical Industry Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4992

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Hokko Chemical Industry Co., Ltd.

Hokko Chemical Industry Co., Ltd. (4992) is a Japanese company specializing in the manufacture and sale of chemical products, primarily focusing on the production of synthetic resins, adhesives, and various specialty chemicals. The company operates in multiple sectors, including automotive, electronics, and construction, providing innovative solutions that cater to the diverse needs of its clients. Hokko Chemical aims to enhance product performance and sustainability through its advanced chemical technologies and extensive research and development efforts.