Yushiro Chemical Industry Co., Ltd. (5013) AI Stock Analysis

• Market Cap: ¥40.23B
• Dividend Yield: 3.53%
• Average Volume (3M): 15.93K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.87
• Revenue Growth: -3.45%
• EPS Growth: 30.52%
• Country: JP
• Employees: 977
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 120.62
• Shares Outstanding: 13,900,065
• 10 Day Avg. Volume: 18,210
• 30 Day Avg. Volume: 15,933
• PEG Ratio: 0.14
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 6.47
• 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: 76 Outperform
• Price Target: ¥3,384.00 ▲(20.64% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by strong financial performance (improving margins, solid balance sheet, and rising free cash flow) and an attractive valuation (low P/E and solid dividend yield). This is partially offset by weaker near-term technicals with the stock trading below its 20-day and 50-day moving averages.

Positive Factors

Improving margins & profitability

Sustained improvement in gross and net margins indicates enduring operational efficiencies and pricing power in core products. Over 2–6 months this supports stronger cash generation per sale, resilience to input cost volatility, and greater flexibility to fund R&D or dividends without relying on revenue growth alone.

Healthy balance sheet and low leverage

A strong equity base and low reliance on debt provide durable financial flexibility. This reduces default and refinancing risk across economic cycles, supports capital expenditure or targeted M&A, and allows the firm to sustain operations and shareholder returns during industry downturns over the next several months.

Growing free cash flow and cash conversion

Improving free cash flow and efficient cash conversion are structural strengths that enable internal funding for capex, working capital, dividends, and debt reduction. Over a multi-month horizon this enhances strategic optionality and reduces reliance on external financing for growth or cyclical cushioning.

Negative Factors

Top-line contraction

Negative year-over-year revenue growth signals weakening demand or market share pressure. Over 2–6 months this can erode operational leverage, make it harder to sustain recent margin improvements, and force tougher choices on pricing, cost structure or investment prioritization if the trend persists.

Exposure to cyclical end markets

High exposure to automotive and metal-processing end markets creates structural cyclicality in demand. Over a multi-month period downturns in CAPEX or vehicle production can rapidly depress volumes and profitability, making revenue and utilization sensitive to broader industrial cycles.

Modest scale may limit optionality

A relatively small workforce and modest trading volume suggest limited scale versus larger chemical peers. This can constrain R&D, geographic expansion, and price negotiation power, and may slow response to large customer shifts or technology investments, affecting competitiveness across quarters.

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

Company Description

Yushiro Chemical Industry Co., Ltd., together with its subsidiaries, manufactures and sells metalworking oils and fluids, and chemicals for building maintenance in Japan, China, India, North and South America, and Southeast Asia. The company provides cutting and grinding oils and fluids, including water miscible cutting and grinding fluids, and straight cutting and grinding oils; forming oils and fluids comprising water miscible cold rolling oils, straight rolling oils, hot rolling oils for seamless pipes, and non-graphite hot forging oils, as well as drawing pressing oils and cold forging oils; and surface treatment agents, such as rust preventives, metal cleaners, car paint protective coatings, and car body protective waxes. It also offers water miscible cutting fluids for inner diamond blade saws; straight slurry bases for multi blade and multi wire saws, fire resistant water miscible slurry bases for multi wire saws, and water miscible slurry bases for multi wire saws; grinding fluids for aluminum and glass disks, and diamond slurries for magnetic heads; die lubricants and others consisting of aluminum and magnesium diecast lubricants, urethane foam mold release agents, and plunger tip lubricants; aquaous quenchant products; fire resistant hydraulic fluids; and deodorant products. In addition, the company provides building maintenance chemicals, including floor polishing chemicals, such as urethane and acrylic resin waxes, and water based and oil-based floor waxes; floor cleaners comprising surface cleaners, stripping agents, and carpet cleaners; hand soaps; and floor maintenance equipment, including maintenance riding carts. It serves automobile, precision machine processing, steel, electric equipment, and other machine processing companies. Yushiro Chemical Industry Co., Ltd. was incorporated in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Yushiro Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Strong profitability and efficiency trends (improving gross, EBIT/EBITDA, and net margins) alongside solid revenue growth. Balance sheet leverage is low with improving ROE, and free cash flow is growing with good cash conversion.

Income Statement

Yushiro Chemical Industry Co., Ltd. showcases a strong and consistent revenue growth with a notable increase from 2024 to 2025. The company’s gross profit margin has improved, indicating efficient cost management. The net profit margin has also seen a significant rise, reflecting enhanced profitability. EBIT and EBITDA margins have strengthened, underscoring operational efficiency and profitability.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity base, as evidenced by a favorable debt-to-equity ratio. The return on equity has improved over the years, highlighting effective use of shareholders' funds. The equity ratio indicates robust financial stability, suggesting a low reliance on debt financing and a strong capacity to withstand economic fluctuations.

Cash Flow

Yushiro Chemical Industry Co., Ltd. reports a positive trend in free cash flow, with a significant growth rate from the previous year, reflecting improved cash generation capabilities. The operating cash flow to net income ratio suggests efficient cash conversion. The free cash flow to net income ratio underscores the company’s ability to generate cash relative to its net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.68B	55.51B	52.98B	46.79B	37.69B	31.66B
Gross Profit	17.71B	17.40B	14.99B	11.52B	10.44B	9.85B
EBITDA	6.52B	6.47B	4.92B	2.34B	2.11B	2.28B
Net Income	4.94B	4.32B	3.01B	899.00M	273.00M	978.00M
Balance Sheet
Total Assets	62.46B	63.40B	62.17B	56.28B	51.09B	48.37B
Cash, Cash Equivalents and Short-Term Investments	10.47B	12.38B	12.34B	8.03B	7.26B	8.08B
Total Debt	5.69B	5.95B	6.59B	7.57B	6.29B	6.93B
Total Liabilities	18.05B	18.43B	19.53B	19.29B	17.21B	16.20B
Stockholders Equity	42.92B	43.43B	40.20B	34.65B	31.44B	30.13B
Cash Flow
Free Cash Flow	0.00	4.04B	3.84B	-351.00M	-104.00M	917.00M
Operating Cash Flow	0.00	4.80B	4.30B	174.00M	294.00M	1.57B
Investing Cash Flow	0.00	-1.14B	413.00M	59.00M	-733.00M	-555.00M
Financing Cash Flow	0.00	-2.41B	-1.60B	-83.00M	-1.42B	208.00M

Yushiro Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2805.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5013, the sentiment is Neutral. The current price of 2805 is below the 20-day moving average (MA) of 3121.05, below the 50-day MA of 3087.12, and above the 200-day MA of 2472.23, indicating a neutral trend. The MACD of -18.88 indicates Positive momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 19.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5013.

Yushiro Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5013	76 Outperform	¥40.23B	5.81	―	3.53%	-3.45%	30.52%
4041	74 Outperform	¥204.37B	8.69	―	4.09%	1.69%	0.94%
4114	69 Neutral	¥346.60B	10.96	―	5.28%	-0.47%	25.41%
4189	67 Neutral	¥103.03B	11.35	―	3.88%	2.61%	30.29%
4463	66 Neutral	¥26.50B	10.33	―	3.53%	6.99%	-0.30%
4970	65 Neutral	¥78.42B	17.82	―	0.67%	10.18%	-14.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Yushiro Chemical Industry Co., Ltd. Corporate Events

Yushiro Posts Higher Profit on Lower Sales, Confirms Full-Year Dividend and Earnings Outlook

For the nine months ended 31 December 2025, Yushiro Inc. reported a 7.5% year-on-year decline in net sales to ¥38.8 billion, with operating profit down 5.7% to ¥3.8 billion and ordinary profit down 3.3% to ¥4.8 billion, even as profit attributable to owners of parent rose 18.8% to ¥4.5 billion, lifting basic earnings per share to ¥340.03. Despite softer top-line performance, the company strengthened its financial base, with total assets increasing to ¥64.6 billion and the equity ratio improving to 71.3%, and it maintained a stable shareholder-return stance by confirming its dividend forecast of ¥98 per share for the fiscal year ending 31 March 2026, while keeping full-year earnings guidance unchanged, signaling confidence in profitability and balance-sheet resilience amid a challenging demand environment.

The most recent analyst rating on (JP:5013) stock is a Buy with a Yen3791.00 price target. To see the full list of analyst forecasts on Yushiro Chemical Industry Co., Ltd. stock, see the JP:5013 Stock Forecast page.