Hokko Chemical Industry Co., Ltd. (4992) AI Stock Analysis

• Market Cap: ¥35.64B
• Dividend Yield: 2.87%
• Average Volume (3M): 46.80K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.02
• Revenue Growth: 4.52%
• EPS Growth: 9.37%
• Country: JP
• Employees: 747
• Sector: Basic Materials
• Sector Strength: 75
• Industry: Agricultural Inputs
• EPS (TTM): 52.63
• Shares Outstanding: 28,485,530
• 10 Day Avg. Volume: 38,950
• 30 Day Avg. Volume: 46,796
• PEG Ratio: 0.13
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.14
• 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: ¥1,592.00
• Price Target Upside: 15.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,592.00 ▲(15.45%Upside)

Hokko Chemical Industry Co., Ltd. scores highly due to its strong financial performance and attractive valuation. While technical indicators suggest bullish momentum, overbought signals indicate caution. The absence of earnings call data and corporate events keeps the focus on solid fundamentals and valuation metrics.

Hokko Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Hokko Chemical Industry Co., Ltd. is a Japanese company specializing in the development, production, and distribution of chemical products. Operating primarily in the agrochemical sector, the company offers a wide range of products including pesticides, fungicides, and herbicides. Hokko Chemical Industry Co., Ltd. is known for its research-driven approach, focusing on innovation to enhance agricultural productivity and sustainability.

How the Company Makes Money

Hokko Chemical Industry Co., Ltd. generates revenue through the sale of its chemical products, primarily targeting the agricultural industry. The company's key revenue streams include domestic and international sales of pesticides, fungicides, and herbicides. Significant partnerships with agricultural distributors and research collaborations also contribute to its earnings, allowing for the expansion of its market reach and the development of new, effective chemical solutions tailored to the needs of modern agriculture.

Hokko Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Hokko Chemical Industry Co., Ltd. demonstrates strong financial health across income, balance sheet, and cash flow statements. The company shows robust revenue growth, effective cost management, and solid profitability. It maintains a stable balance sheet with low leverage and strong equity utilization. Positive cash flow trends further bolster its financial position, suggesting potential for growth and investment opportunities.

Income Statement

Hokko Chemical Industry Co., Ltd. has demonstrated consistent growth in its revenue with a positive revenue growth rate over the years. The gross profit margin remains robust, indicating strong cost management. Net profit margin has also improved, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showcasing operational efficiency. Overall, the income statement reflects strong financial performance with slight fluctuations in margins.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. Return on equity (ROE) is strong, highlighting effective utilization of equity. The equity ratio is high, suggesting a stable financial structure. Despite slight variations in asset and equity values, the balance sheet shows financial stability and low risk.

Cash Flow

Hokko Chemical has shown significant growth in free cash flow over recent years, indicative of improving cash generation capabilities. The operating cash flow to net income ratio suggests strong cash earnings conversion. Although fluctuations in capital expenditure are observed, the free cash flow to net income ratio remains healthy, reflecting efficient cash management. Overall, the cash flow statement indicates a positive cash position with potential for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.35B	46.20B	45.23B	44.86B	40.12B	39.26B
Gross Profit	11.52B	12.07B	11.56B	12.01B	10.34B	9.87B
EBITDA	5.98B	7.44B	7.37B	6.14B	4.25B	3.82B
Net Income	3.81B	4.01B	3.72B	4.21B	2.93B	2.40B
Balance Sheet
Total Assets	70.00B	65.32B	67.48B	57.57B	51.99B	48.20B
Cash, Cash Equivalents and Short-Term Investments	7.27B	9.71B	6.63B	4.81B	4.32B	3.96B
Total Debt	1.00B	1.00B	1.00B	1.50B	1.63B	2.09B
Total Liabilities	20.56B	19.13B	20.71B	19.33B	17.77B	17.84B
Stockholders Equity	49.45B	46.20B	46.77B	38.24B	34.22B	30.36B
Cash Flow
Free Cash Flow	1.02B	4.66B	2.81B	1.11B	997.00M	2.67B
Operating Cash Flow	1.02B	6.07B	4.83B	3.87B	2.94B	4.59B
Investing Cash Flow	0.00	-1.31B	-1.98B	-2.81B	-1.69B	-1.89B
Financing Cash Flow	0.00	-1.77B	-1.12B	-691.00M	-965.00M	361.00M

Hokko Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1379.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4992, the sentiment is Positive. The current price of 1379 is above the 20-day moving average (MA) of 1363.70, above the 50-day MA of 1305.47, and above the 200-day MA of 1284.50, indicating a bullish trend. The MACD of 19.11 indicates Positive momentum. The RSI at 63.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4992.

Hokko Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4992	80 Outperform	¥35.64B	9.07		2.87%	4.52%	9.37%
4040	76 Outperform	¥7.28B	6.23		2.22%	4.57%	-13.43%
4979	76 Outperform	¥23.53B	9.66		2.77%	10.02%	56.26%
4462	72 Outperform	¥28.36B	11.20		2.05%	15.27%	48.08%
4996	69 Neutral	¥100.33B	9.16		363.86%	10.07%	-38.38%
Sector *	44 Neutral	C$972.16M	-6.67	-13.73%	2.49%	17.55%	-32.57%