Bando Chemical Industries Ltd. (5195) AI Stock Analysis

• Market Cap: ¥87.55B
• Dividend Yield: 3.82%
• Average Volume (3M): 39.43K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.93
• Revenue Growth: 3.68%
• EPS Growth: -46.19%
• Country: JP
• Employees: 4,023
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 52.43
• Shares Outstanding: 44,213,535
• 10 Day Avg. Volume: 39,370
• 30 Day Avg. Volume: 39,433
• PEG Ratio: -0.62
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 10.75
• 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: 71 Outperform
• Price Target: ¥2,245.00 ▲(9.62% Upside)

Bando Chemical Industries Ltd. scores well due to its strong financial performance, characterized by robust cash flow and a solid balance sheet. The technical analysis supports a positive outlook with bullish trends. However, the high P/E ratio indicates a relatively expensive valuation, which is partially mitigated by a good dividend yield.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation indicates the company's ability to fund operations, invest in growth opportunities, and return capital to shareholders, supporting long-term financial stability.

Minimal Leverage

Minimal leverage reduces financial risk, providing the company with greater flexibility to navigate economic fluctuations and invest in strategic initiatives.

Consistent Revenue Growth

Consistent revenue growth demonstrates the company's ability to maintain market demand and expand its customer base, which is crucial for long-term success and competitiveness.

Negative Factors

Low Net Profit Margin

A low net profit margin suggests potential issues with cost management or pricing strategies, which could impact profitability and limit reinvestment in growth.

Modest Return on Equity

A modest return on equity indicates that the company may not be utilizing its equity base efficiently to generate profits, potentially limiting shareholder value creation.

Earnings Decline

A significant decline in earnings per share reflects challenges in maintaining profitability, which could affect investor confidence and the company's ability to fund future growth.

Bando Chemical Industries Ltd. Business Overview & Revenue Model

Company Description

Bando Chemical Industries, Ltd., together with its subsidiaries, manufactures and markets belts and belt-related products in Japan, China, rest of Asia, Europe, America, and internationally. It operates through three segments: Automotive Parts Business, Industrial Products Business, and Advanced Elastomer Products Business. The Automotive Parts Business segment offers automotive power transmission belt products, such as accessory drive power transmission belts, system products, variable speed belts for scooters, etc. The Industrial Products Business segment offers industrial power transmission belt products, such as industrial machinery V-belts, toothed belts, pulleys, etc.; other power transmission products; conveyor belts comprising resin and synchronous conveyor belts; conveyor system products; and rice-hulling rolls, etc. The Advanced Elastomer Products Business segment provides cleaning blades, rollers, precision belts, polyurethane functional parts, precision polishing materials, films for construction materials, medical films, decorative display films, industrial films, etc. The company also offers belt and belt-related products for agricultural machinery; and light-duty belt products. In addition, it offers elastomer products, such as OA equipment products comprising cleaning blades, resin products, high performance rollers, and precision belts; optoelectronics products, including squeegees, precision polishing materials, cleaning systems, and others; and film products comprising digital print media, medical applications, PVC films, olefin films, and others. Further, the company provides tension meters and robot devices. Bando Chemical Industries, Ltd. was founded in 1906 and is headquartered in Kobe, Japan.

How the Company Makes Money

Bando Chemical Industries generates revenue through the sale of its synthetic rubber products and various chemical materials, which are supplied to a range of industries including automotive, construction, and consumer goods. The company's revenue model is primarily driven by direct sales to manufacturers and distributors, with contracts often established for bulk supply agreements. Key revenue streams include the sale of rubber compounds, specialty chemicals, and custom formulations tailored to specific customer requirements. Additionally, Bando Chemical Industries benefits from strategic partnerships with major automotive manufacturers and other industrial players, which helps secure long-term contracts and stabilize revenue flow. Research and development investments also enable the company to innovate and expand its product offerings, contributing to potential new revenue opportunities.

Bando Chemical Industries Ltd. Financial Statement Overview

Summary

Bando Chemical Industries Ltd. shows a stable financial position with low leverage and consistent cash flow generation. However, declining revenue and profitability margins in the TTM period pose challenges, impacting future growth prospects.

Income Statement

The income statement shows a mixed performance. The gross profit margin is stable at around 28%, indicating consistent cost management. However, the net profit margin has decreased significantly in the TTM period to 1.29% from 5.71% in 2024, reflecting reduced profitability. Revenue growth has turned negative in the TTM period, with a decline of 21.8%, which is concerning. EBIT and EBITDA margins have also decreased, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet is relatively strong, with a low debt-to-equity ratio of 0.087 in the TTM period, suggesting low financial leverage and risk. The return on equity has decreased to 1.74% in the TTM period, indicating reduced profitability for shareholders. The equity ratio remains healthy, showing a stable capital structure.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, with a 33.55% increase in the TTM period. The operating cash flow to net income ratio is stable, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased slightly, suggesting some pressure on cash flow relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.59B	115.59B	108.28B	103.61B	93.74B	81.37B
Gross Profit	33.63B	32.79B	31.03B	29.42B	27.66B	24.85B
EBITDA	10.04B	8.25B	13.15B	13.07B	8.40B	11.20B
Net Income	3.02B	1.50B	6.18B	5.72B	1.21B	3.94B
Balance Sheet
Total Assets	119.90B	120.69B	125.62B	118.97B	116.38B	116.28B
Cash, Cash Equivalents and Short-Term Investments	17.02B	17.71B	17.93B	17.96B	19.57B	19.30B
Total Debt	2.04B	7.14B	7.59B	11.57B	13.83B	20.00B
Total Liabilities	33.76B	38.19B	40.11B	40.96B	43.95B	45.52B
Stockholders Equity	85.89B	82.13B	85.16B	77.66B	72.13B	70.49B
Cash Flow
Free Cash Flow	9.30B	6.50B	9.69B	3.99B	5.99B	6.27B
Operating Cash Flow	13.50B	10.76B	14.06B	7.71B	9.59B	10.17B
Investing Cash Flow	-2.79B	-4.19B	-4.74B	-3.98B	-534.00M	-2.77B
Financing Cash Flow	-11.06B	-6.91B	-8.96B	-6.43B	-9.94B	-3.63B

Bando Chemical Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2048.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5195, the sentiment is Positive. The current price of 2048 is below the 20-day moving average (MA) of 2049.35, above the 50-day MA of 2010.78, and above the 200-day MA of 1802.90, indicating a bullish trend. The MACD of 22.16 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 59.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5195.

Bando Chemical Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5192	78 Outperform	¥109.93B	16.52	―	4.64%	3.99%	-28.28%
6455	78 Outperform	¥128.52B	12.30	―	2.25%	12.64%	34.19%
5195	71 Outperform	¥87.55B	28.82	―	3.82%	3.68%	-46.19%
6486	69 Neutral	¥144.91B	19.89	―	3.88%	1.70%	18.50%
6284	68 Neutral	¥92.93B	12.55	―	3.24%	18.70%	33.93%
6490	67 Neutral	¥124.84B	15.37	―	2.50%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Bando Chemical Industries Ltd. Corporate Events

Bando Chemical Completes Share Buyback as Part of Strategic Acquisition Plan

Bando Chemical Industries Ltd. has completed the acquisition of its own shares, purchasing a total of 25,300 shares for 51,560,199 yen between December 1 and December 2, 2025. This acquisition is part of a larger plan approved by the Board of Directors to acquire up to 1,800,000 shares, with a maximum budget of 2 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:5195) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Bando Chemical Industries Ltd. stock, see the JP:5195 Stock Forecast page.

Bando Chemical Industries Announces Share Buyback Progress

Bando Chemical Industries, Ltd. announced the acquisition of its own shares, acquiring 203,200 shares at a cost of 399,889,495 yen during November 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 1,800,000 shares by April 2026, enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:5195) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Bando Chemical Industries Ltd. stock, see the JP:5195 Stock Forecast page.

Bando Chemical Industries Revises Financial Forecast Upwards for FY 2026

Bando Chemical Industries, Ltd. has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, increasing revenue and profit expectations due to favorable exchange rate assumptions and insurance claim income. Despite rising costs, the company anticipates higher operating profits, reflecting steady growth and strategic financial management.

The most recent analyst rating on (JP:5195) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Bando Chemical Industries Ltd. stock, see the JP:5195 Stock Forecast page.

Bando Chemical Industries Reports Strong Financial Performance for H1 2025

Bando Chemical Industries reported a 1.7% increase in revenue to 59,094 million yen for the six months ending September 30, 2025, with a notable 45.7% rise in profit before tax. The company also announced an increase in dividends, reflecting strong financial performance and improved equity ratio, which may positively impact stakeholders and enhance its market position.

The most recent analyst rating on (JP:5195) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Bando Chemical Industries Ltd. stock, see the JP:5195 Stock Forecast page.

Bando Chemical Industries Announces Share Acquisition Progress

Bando Chemical Industries, Ltd. has announced the acquisition of its own shares, acquiring 186,600 shares at a cost of 367,251,596 yen during October 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 1,800,000 shares by April 2026, reflecting the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:5195) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Bando Chemical Industries Ltd. stock, see the JP:5195 Stock Forecast page.