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

• Market Cap: ¥85.32B
• Dividend Yield: 4.99%
• Average Volume (3M): 945.61K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.60
• Revenue Growth: 4.08%
• EPS Growth: -40.10%
• Country: JP
• Employees: 2,134
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 23.04
• Shares Outstanding: 133,184,600
• 10 Day Avg. Volume: 1,186,970
• 30 Day Avg. Volume: 945,613
• PEG Ratio: -0.29
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -3.79
• 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

• Rating: 62 Neutral
• Price Target: ¥801.00 ▲(12.82% Upside)

The overall stock score of 62 reflects a mix of strengths and challenges. The company's financial performance is supported by revenue growth and operational efficiency, but is hindered by declining profitability and negative cash flows. Technical analysis indicates bearish momentum, while valuation metrics suggest the stock may be undervalued, offering a potential opportunity for value investors.

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 strengths in revenue growth and operational efficiency. However, recent declines in profitability and negative cash flows raise concerns. Strong equity positions support stability, 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.33B	161.05B	161.00B	145.30B	118.18B	107.28B
Gross Profit	33.44B	35.38B	36.66B	34.20B	29.04B	26.89B
EBITDA	13.46B	23.32B	28.63B	28.14B	16.88B	12.90B
Net Income	9.81B	13.59B	18.02B	16.33B	9.02B	6.62B
Balance Sheet
Total Assets	267.31B	275.47B	226.94B	204.60B	169.17B	154.86B
Cash, Cash Equivalents and Short-Term Investments	29.09B	27.40B	27.08B	22.30B	20.05B	19.39B
Total Debt	67.16B	74.26B	45.76B	34.93B	22.39B	19.74B
Total Liabilities	111.34B	122.53B	87.09B	82.61B	59.22B	50.90B
Stockholders Equity	148.81B	145.92B	133.02B	115.47B	103.89B	98.41B
Cash Flow
Free Cash Flow	0.00	-25.91B	-4.06B	-9.14B	-2.46B	-1.16B
Operating Cash Flow	0.00	-16.73B	4.76B	-1.16B	4.48B	4.53B
Investing Cash Flow	0.00	-8.76B	-10.10B	-7.82B	-5.31B	-4.73B
Financing Cash Flow	0.00	23.61B	6.86B	5.62B	439.00M	5.07B

Kumiai Chemical Industry Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4996, the sentiment is Negative. The current price of 710 is below the 20-day moving average (MA) of 736.42, below the 50-day MA of 790.41, and below the 200-day MA of 773.62, indicating a bearish trend. The MACD of -30.82 indicates Positive momentum. The RSI at 22.94 is Positive, neither overbought nor oversold. The STOCH value of -23.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	¥23.86B	9.77	―	3.87%	10.55%	31.08%
4041	―	¥187.06B	13.18	―	4.40%	3.26%	-13.75%
4992	―	¥41.54B	9.67	―	2.22%	4.66%	19.39%
4028	―	¥94.97B	8.85	―	4.84%	8.46%	74.58%
4996	―	¥85.32B	8.37	―	4.99%	4.08%	-40.10%
Sector *	―	$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.