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): 0.52
• 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: -0.28
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 3.22
• 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): N/A
• Revenue Forecast (FY): N/A

• 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 steady revenue growth and operational efficiency, but faces challenges in maintaining profitability margins. The balance sheet is stable, though rising debt levels warrant attention. Cash flow management shows improvement, yet remains an area for potential enhancement.

Income Statement

Kumiai Chemical Industry Co., Ltd. has shown consistent revenue growth over the years, with a 2.48% increase in the latest period. However, the gross profit margin has slightly decreased, indicating potential cost pressures. The net profit margin has also declined, suggesting reduced profitability. Despite these challenges, the company maintains a solid EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio. However, the increase in total debt over the years is a concern. Return on equity has decreased, indicating a decline in profitability relative to shareholder equity. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a positive operating cash flow, but free cash flow has been volatile, with recent improvements. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to profits. However, the free cash flow to net income ratio has fluctuated, highlighting potential cash flow management challenges.

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: Neutral

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 694.85, above the 50-day MA of 694.00, and below the 200-day MA of 752.88, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 51.06 is Neutral, 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
4992	82 Outperform	¥42.97B	10.29	―	2.86%	4.66%	19.39%
4979	75 Outperform	¥23.09B	9.28	―	3.82%	8.02%	42.17%
4041	74 Outperform	¥205.76B	13.10	―	4.09%	1.69%	0.94%
4028	74 Outperform	¥117.11B	8.41	―	4.15%	1.16%	167.89%
4997	69 Neutral	¥79.75B	15.55	―	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 Industry Proposes Year-End Dividend Increase

Kumiai Chemical Industry Co., Ltd. has announced a proposed year-end dividend of 14 yen per share, to be discussed at the upcoming Ordinary General Meeting of Shareholders. This decision aligns with the company’s policy of maintaining stable dividends, with a target payout ratio of 30% or more, reflecting its financial performance and strategic plans for future growth.

The most recent analyst rating on (JP:4996) stock is a Hold with a Yen801.00 price target. To see the full list of analyst forecasts on Kumiai Chemical Industry Co., Ltd. stock, see the JP:4996 Stock Forecast page.

Kumiai Chemical Reports Increased Sales but Declining Profits in FY2025

Kumiai Chemical Industry Co., Ltd. reported its consolidated financial results for the fiscal year ending October 31, 2025, showing a 5.8% increase in net sales to ¥170,462 million. However, the company faced a decline in operating profit by 6.9% and a significant drop in profit attributable to owners of the parent by 67.8%. The financial results indicate challenges in maintaining profitability despite increased sales, impacting the company’s return on equity and assets. The company also revised its year-end dividend per share from 12 yen to 14 yen, reflecting adjustments in shareholder returns.

The most recent analyst rating on (JP:4996) stock is a Hold with a Yen801.00 price target. To see the full list of analyst forecasts on Kumiai Chemical Industry Co., Ltd. stock, see the JP:4996 Stock Forecast page.

Kumiai Chemical Industry Revises Earnings Forecast Amid Currency Fluctuations

Kumiai Chemical Industry Co., Ltd. has revised its full-year consolidated earnings forecast for the fiscal year ending October 31, 2025, with expectations of increased ordinary and net income due to a weaker yen and higher tax credits for research expenses. The company also reported differences between its non-consolidated earnings forecast and actual results from the previous fiscal year, driven by increased shipments in its agricultural chemicals business, although foreign exchange losses have limited growth in ordinary and net income.

The most recent analyst rating on (JP:4996) stock is a Hold with a Yen801.00 price target. To see the full list of analyst forecasts on Kumiai Chemical Industry Co., Ltd. stock, see the JP:4996 Stock Forecast page.

Kumiai Chemical Industry Announces Change of Accounting Auditor

Kumiai Chemical Industry Co., Ltd. has announced a change in its accounting auditor, with ARK LLC set to replace Fuyou Audit Corporation following the expiration of the latter’s term at the upcoming Annual General Meeting of Shareholders. This decision was made after a comprehensive evaluation of ARK LLC’s expertise, independence, and quality control systems, aligning with the company’s strategic focus on maintaining robust financial oversight.

The most recent analyst rating on (JP:4996) stock is a Hold with a Yen801.00 price target. To see the full list of analyst forecasts on Kumiai Chemical Industry Co., Ltd. stock, see the JP:4996 Stock Forecast page.