Kumiai Chemical Industry Co., Ltd. (4996) AI Stock Analysis

• Market Cap: ¥87.95B
• Dividend Yield: 3.41%
• Average Volume (3M): 671.09K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.56
• Revenue Growth: 5.84%
• EPS Growth: -67.78%
• Country: JP
• Employees: 2,134
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -38.77
• Shares Outstanding: 133,184,600
• 10 Day Avg. Volume: 1,051,730
• 30 Day Avg. Volume: 671,093
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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): 13,276.75
• Revenue Forecast (FY): ¥25.62T

• Rating: 64 Neutral
• Price Target: ¥742.00 ▲(4.51% Upside)

Kumiai Chemical Industry Co., Ltd. has a solid financial foundation with steady revenue growth and operational efficiency. However, profitability margins and rising debt levels are concerns. The technical analysis indicates a bearish trend, but the stock's valuation is reasonable with an attractive dividend yield. These factors combine to give a moderate overall stock score.

Positive Factors

Steady Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability.

Operational Efficiency

Efficient operations help maintain profitability and competitiveness, ensuring the company can withstand market fluctuations.

Strong Capital Structure

A strong capital structure provides financial stability and flexibility, enabling strategic investments and growth opportunities.

Negative Factors

Rising Debt Levels

Rising debt levels can strain financial resources and limit the company's ability to invest in growth or weather economic downturns.

Declining Profit Margins

Decreasing profit margins may indicate cost pressures or pricing challenges, potentially impacting long-term financial health.

Volatile Free Cash Flow

Volatile free cash flow can affect the company's ability to fund operations and growth initiatives, posing risks to financial stability.

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

Company Description

Kumiai Chemical Industry Co., Ltd. (4996) is a leading Japanese manufacturer specializing in agrochemicals, pharmaceuticals, and specialty chemicals. Established in 1948, the company operates primarily in the agricultural sector, providing innovative crop protection solutions, including pesticides and herbicides, aimed at enhancing agricultural productivity. Additionally, Kumiai Chemical is involved in the production of chemical intermediates and fine chemicals for various industrial applications. The company is committed to sustainability and invests in research and development to create environmentally friendly products that meet the evolving needs of its customers.

How the Company Makes Money

Kumiai Chemical Industry Co., Ltd. generates revenue primarily through the sale of its agrochemical products, including pesticides, herbicides, and fungicides, which are essential for modern agriculture. The company also earns income from its pharmaceutical and specialty chemical divisions, which cater to various sectors, including healthcare and manufacturing. Key revenue streams include direct sales to agricultural producers, distribution partnerships, and licensing agreements for its proprietary technologies. Significant partnerships with agricultural cooperatives and distribution channels further enhance its market reach, while ongoing investments in R&D enable the company to innovate and meet regulatory standards, thereby maintaining competitive pricing and attracting a broader customer base.

Kumiai Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Kumiai Chemical Industry Co., Ltd. shows strong revenue growth and operational efficiency. However, recent declines in profitability and negative cash flows are concerning. The company maintains a strong equity base, but increasing debt levels and cash flow issues suggest a need for careful financial management.

Income Statement

Kumiai Chemical Industry Co., Ltd. has shown consistent revenue growth over the years, with a notable increase from 2019 to 2024. The gross profit margin has been stable, reflecting effective cost management. However, the recent decline in net income and EBIT margins indicates pressure on profitability. EBITDA margins remain healthy, suggesting good operational efficiency.

Balance Sheet

The company maintains a strong equity base, with a stable debt-to-equity ratio that reflects controlled leverage. The equity ratio is solid, indicating financial stability. However, the increase in total debt over the years could pose a risk if not managed effectively. Return on equity has been strong, although it has shown some recent decline.

Cash Flow

Cash flow analysis reveals challenges, particularly with negative operating and free cash flows in the latest year. The operating cash flow to net income ratio is negative, indicating inefficiencies in turning income into cash. Historical free cash flow fluctuations highlight potential liquidity risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	166.33B	170.46B	161.05B	161.00B	145.30B	118.18B
Gross Profit	33.44B	34.37B	35.38B	36.66B	34.20B	29.04B
EBITDA	13.46B	16.06B	23.32B	28.63B	28.14B	16.88B
Net Income	9.81B	4.38B	13.59B	18.02B	16.33B	9.02B
Balance Sheet
Total Assets	267.31B	248.21B	275.47B	226.94B	204.60B	169.17B
Cash, Cash Equivalents and Short-Term Investments	29.09B	21.98B	27.40B	27.08B	22.30B	20.05B
Total Debt	67.16B	51.11B	74.26B	45.76B	34.93B	22.39B
Total Liabilities	111.34B	97.10B	122.53B	87.09B	82.61B	59.22B
Stockholders Equity	148.81B	144.49B	145.92B	133.02B	115.47B	103.89B
Cash Flow
Free Cash Flow	0.00	25.53B	-25.91B	-4.06B	-9.14B	-2.46B
Operating Cash Flow	0.00	33.80B	-16.73B	4.76B	-1.16B	4.48B
Investing Cash Flow	0.00	-8.93B	-8.76B	-10.10B	-7.82B	-5.31B
Financing Cash Flow	0.00	-27.85B	23.61B	6.86B	5.62B	439.00M

Kumiai Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 710.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4996, the sentiment is Positive. The current price of 710 is above the 20-day moving average (MA) of 691.50, above the 50-day MA of 692.45, and below the 200-day MA of 764.99, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 86.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4996.

Kumiai Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4979	75 Outperform	¥23.98B	9.63	―	3.82%	8.02%	42.17%
4041	74 Outperform	¥203.81B	12.97	―	4.09%	1.69%	0.94%
4028	74 Outperform	¥110.03B	7.90	―	4.15%	1.16%	167.89%
4992	72 Outperform	¥39.55B	9.58	―	2.86%	4.66%	19.39%
4997	69 Neutral	¥79.83B	15.56	―	2.35%	6.95%	8.85%
4996	64 Neutral	¥87.95B	19.32	―	3.41%	5.84%	-67.78%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Kumiai Chemical Industry Co., Ltd. Corporate Events

Kumiai Chemical Reports Increased Sales but Declining Profits

Kumiai Chemical Industry Co., Ltd. reported its consolidated financial results for the six months ending April 30, 2025, showing a 9.2% increase in net sales compared to the previous year. However, the company experienced a significant decline in ordinary profit and profit attributable to owners of the parent, with decreases of 36.2% and 32.7% respectively, indicating challenges in profitability despite increased sales.

Kumiai Chemical Revises Q2 Earnings Forecast Amid Strong Overseas Sales

Kumiai Chemical Industry Co., Ltd. has revised its earnings forecast for the second quarter of the fiscal year ending October 31, 2025, due to increased net sales driven by advanced shipments to overseas markets in its agricultural chemicals and agriculture-related business. While operating income is expected to rise significantly, ordinary and net income remain largely unchanged due to foreign exchange losses from the yen’s appreciation. The full-year earnings forecast remains unchanged, with potential revisions to be disclosed if necessary.