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Hokko Chemical Industry Co., Ltd. (JP:4992)
:4992
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Hokko Chemical Industry Co., Ltd.
(4992)
Select Model
Select Model
Rating:72Outperform
Price Target:
¥1,806.00
▲(9.72% Upside)
Hokko Chemical Industry Co., Ltd. exhibits strong financial performance with robust revenue growth and solid profitability. The stock's valuation is attractive, supported by a low P/E ratio and a reasonable dividend yield. However, technical indicators suggest potential short-term weakness, which slightly tempers the overall score.
Hokko Chemical Industry Co., Ltd. (4992) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥41.54B
Dividend Yield2.22%
Average Volume (3M)75.40K
Price to Earnings (P/E)9.7
Beta (1Y)0.92
Revenue Growth4.66%
EPS Growth19.39%
CountryJP
Employees747
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)50.63
Shares Outstanding28,485,530
10 Day Avg. Volume88,610
30 Day Avg. Volume75,400
Financial Highlights & Ratios
PEG Ratio1.14
Price to Book (P/B)0.75
Price to Sales (P/S)0.75
P/FCF Ratio7.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Hokko Chemical Industry Co., Ltd. Business Overview & Revenue Model
Company DescriptionHokko 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.
How the Company Makes MoneyHokko Chemical Industry Co., Ltd. generates revenue primarily through the sale of its chemical products, including synthetic resins and adhesives, to various industries such as automotive, electronics, and construction. The company's revenue model is based on direct sales to manufacturers and distributors, which allows it to maintain a steady flow of income. Key revenue streams include bulk sales to large corporations, long-term contracts with industrial clients, and specialized product lines tailored to specific market demands. Additionally, Hokko Chemical benefits from strategic partnerships with other companies in related sectors, enhancing its market presence and allowing for collaborative product development, which can lead to increased sales and revenue growth.
Hokko Chemical Industry Co., Ltd. Financial Statement Overview
Summary
Hokko Chemical Industry Co., Ltd. demonstrates strong financial health with robust revenue growth, effective cost management, and solid profitability. The balance sheet is stable with low leverage and strong equity utilization, while positive cash flow trends suggest 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.85
Very Positive
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.80
Positive
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.92B | 46.20B | 45.23B | 44.86B | 40.12B | 39.26B |
| Gross Profit | 12.36B | 12.07B | 11.56B | 12.01B | 10.34B | 9.87B |
| EBITDA | 6.87B | 7.44B | 7.37B | 7.25B | 5.36B | 4.68B |
| Net Income | 4.13B | 4.01B | 3.72B | 4.21B | 2.93B | 2.40B |
Balance Sheet | ||||||
| Total Assets | 75.19B | 65.32B | 67.48B | 57.57B | 51.99B | 48.20B |
| Cash, Cash Equivalents and Short-Term Investments | 4.63B | 9.71B | 6.63B | 4.81B | 4.32B | 3.96B |
| Total Debt | 4.60B | 1.00B | 1.00B | 1.50B | 1.63B | 2.09B |
| Total Liabilities | 26.33B | 19.13B | 20.71B | 19.33B | 17.77B | 17.84B |
| Stockholders Equity | 48.86B | 46.20B | 46.77B | 38.24B | 34.22B | 30.36B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.66B | 2.81B | 1.11B | 997.00M | 2.67B |
| Operating Cash Flow | 0.00 | 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
Neutral
1646.00
Price Trends
1651.92
Negative
1541.17
Positive
1407.54
Positive
Market Momentum
-4.77
Positive
44.56
Neutral
6.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4992, the sentiment is Neutral. The current price of 1646 is below the 20-day moving average (MA) of 1671.20, below the 50-day MA of 1651.92, and above the 200-day MA of 1407.54, indicating a neutral trend. The MACD of -4.77 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 6.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4992.
Hokko Chemical Industry Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ¥28.98B | 12.15 | ― | 1.96% | 2.15% | 16.14% | |
| ― | ¥23.86B | 9.77 | ― | 3.87% | 10.55% | 31.08% | |
| ― | ¥41.54B | 9.67 | ― | 2.22% | 4.66% | 19.39% | |
| ― | ¥6.44B | 6.25 | ― | 2.23% | 6.80% | -19.87% | |
| ― | ¥85.32B | 8.37 | ― | 4.99% | 4.08% | -40.10% | |
| ― | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
JP:4992
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.