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Bando Chemical Industries Ltd. (JP:5195)
:5195
Japanese Market

Bando Chemical Industries Ltd. (5195) AI Stock Analysis

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JP

Bando Chemical Industries Ltd.

(5195)

Rating:72Outperform
Price Target:
¥1,820.00
▲(8.33%Upside)
Bando Chemical Industries Ltd. benefits from strong financial stability and a solid dividend yield, which are attractive to investors. However, high valuation and declining net income and cash flow metrics pose risks. Technical indicators support a neutral to slightly positive outlook.

Bando Chemical Industries Ltd. (5195) vs. iShares MSCI Japan ETF (EWJ)

Bando Chemical Industries Ltd. Business Overview & Revenue Model

Company DescriptionBando Chemical Industries Ltd. (5195) is a diversified manufacturing company headquartered in Japan, specializing in the production of power transmission belts and related equipment. The company operates primarily in the automotive and industrial sectors, offering a wide range of products including V-belts, synchronous belts, and conveyor belts. Bando is committed to innovation and quality, providing solutions that enhance efficiency and performance for its global clientele.
How the Company Makes MoneyBando Chemical Industries Ltd. generates revenue primarily through the manufacturing and sale of its power transmission and conveyor belts. The company's key revenue streams include the automotive sector, where it supplies belts for a range of vehicles, and the industrial sector, providing belts and systems for machinery and equipment. Bando also benefits from strategic partnerships and collaborations, which help expand its market reach and product offerings. Factors such as technological innovation, product quality, and customer service play significant roles in driving sales and maintaining its competitive edge in the market.

Bando Chemical Industries Ltd. Financial Statement Overview

Summary
Bando Chemical Industries Ltd. presents a commendable financial position with strong revenue growth and efficient cost management. However, declining net income and cash flow metrics pose challenges. The low leverage and high equity ratio underscore financial stability, providing a strong foundation.
Income Statement
78
Positive
Bando Chemical Industries Ltd. demonstrates a solid performance in the Income Statement with consistent revenue growth of 6.75% over the last year. The Gross Profit Margin stands at 28.37%, and the Net Profit Margin is 1.29%, indicating effective cost management despite lower net profitability. The EBIT Margin is 6.70%, and the EBITDA Margin is 7.14%, showing stable operating efficiency. However, net income has decreased significantly from the previous year, which could be a concern.
Balance Sheet
82
Very Positive
The Balance Sheet of Bando Chemical Industries Ltd. reflects strong financial health, with a Debt-to-Equity Ratio of 0.09, indicating low leverage and prudent financial management. The Return on Equity (ROE) is 1.82%, slightly lower than desired, but the company maintains a high Equity Ratio of 68.06%, highlighting robust financial stability and low reliance on debt.
Cash Flow
75
Positive
Cash Flow analysis indicates a moderate performance with a decrease in Operating Cash Flow by 23.45% compared to the previous year. The Free Cash Flow Growth Rate declined by 32.91%. The Operating Cash Flow to Net Income Ratio is 7.19, suggesting strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is 4.34, which is healthy but shows a decline. Cash reserves are sufficient to cover liabilities, indicating sound liquidity management.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue115.59B108.28B103.61B93.74B81.37B
Gross Profit32.79B31.03B29.42B27.66B24.85B
EBITDA8.25B13.56B12.76B11.88B10.98B
Net Income1.50B6.18B5.72B1.21B3.94B
Balance Sheet
Total Assets120.69B125.62B118.97B116.38B116.28B
Cash, Cash Equivalents and Short-Term Investments17.71B17.93B17.96B19.57B19.30B
Total Debt7.14B7.59B11.57B13.83B20.00B
Total Liabilities38.19B40.11B40.96B43.95B45.52B
Stockholders Equity82.13B85.16B77.66B72.13B70.49B
Cash Flow
Free Cash Flow6.50B9.69B3.99B5.99B6.27B
Operating Cash Flow10.76B14.06B7.71B9.59B10.17B
Investing Cash Flow-4.19B-4.74B-3.98B-534.00M-2.77B
Financing Cash Flow-6.91B-8.96B-6.43B-9.94B-3.63B

Bando Chemical Industries Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1680.00
Price Trends
50DMA
1602.20
Positive
100DMA
1622.99
Positive
200DMA
1696.22
Positive
Market Momentum
MACD
22.20
Negative
RSI
60.92
Neutral
STOCH
60.74
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 1680 is above the 20-day moving average (MA) of 1654.85, above the 50-day MA of 1602.20, and below the 200-day MA of 1696.22, indicating a bullish trend. The MACD of 22.20 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥91.27B10.85
3.68%-1.05%-23.08%
75
Outperform
¥93.14B17.64
5.27%0.68%-32.97%
74
Outperform
¥98.62B9.95
3.05%17.37%58.50%
74
Outperform
¥87.25B12.14
2.58%17.01%16.10%
72
Outperform
¥70.52B47.50
4.53%6.76%-76.11%
69
Neutral
¥93.64B10.59
5.31%7.73%27.77%
68
Neutral
$2.52B13.387.40%4.65%-0.87%8.24%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5195
Bando Chemical Industries Ltd.
1,698.00
-216.54
-11.31%
JP:5192
Mitsuboshi Belting Ltd.
3,415.00
-1,001.15
-22.67%
JP:6284
Nissei ASB Machine Co,. Ltd.
5,840.00
408.74
7.53%
JP:6455
Morita Holdings Corporation
2,110.00
336.08
18.95%
JP:6486
Eagle Industry Co., Ltd.
1,908.00
69.83
3.80%
JP:6490
Nippon Pillar Packing Co., Ltd.
3,865.00
-1,548.22
-28.60%

Bando Chemical Industries Ltd. Corporate Events

Bando Chemical Industries Announces Share Buyback Progress
Jul 1, 2025

Bando Chemical Industries, Ltd. announced the acquisition of 100,900 of its own shares, amounting to 165,344,993 yen, during the period from June 1 to June 30, 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 1,800,000 shares by April 30, 2026, with a maximum budget of 2 billion yen, which could impact the company’s stock value and shareholder equity.

Bando Chemical Industries Announces Share Buyback Plan
Jun 2, 2025

Bando Chemical Industries, Ltd. announced the acquisition of 76,300 of its own shares, amounting to a total cost of 124,256,894 yen, as part of a broader plan approved by the Board of Directors to acquire up to 1,800,000 shares by April 30, 2026. This strategic move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value, reflecting a proactive approach in managing its financial resources.

Bando Chemical Records Significant Insurance Claim Income
May 30, 2025

Bando Chemical Industries, Ltd. announced the recording of ¥1,524 million in insurance claim income for the first quarter of the fiscal year ending March 31, 2026, due to hail damage at its Kakogawa Plant. This income was not included in the company’s previous financial forecast, and the company is assessing the need for revisions, which could impact its financial outlook and stakeholder expectations.

Bando Chemical Industries Announces Share Buyback Plan
May 15, 2025

Bando Chemical Industries, Ltd. has announced a strategic move to acquire up to 1,800,000 of its own shares, representing 4.27% of its total issued shares, as part of a flexible capital policy aimed at adapting to changes in the business environment and enhancing shareholder returns. This decision, set to be executed between May 16, 2025, and April 30, 2026, reflects the company’s commitment to optimizing its capital structure and potentially increasing shareholder value.

Bando Chemical Reports Financial Discrepancies for FY 2025
May 15, 2025

Bando Chemical Industries, Ltd. reported a notable difference in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced a 5.8% increase in net sales but saw significant declines in operating profit, ordinary profit, and profit, primarily due to losses on the valuation of shares of subsidiaries and affiliates. This financial performance may impact the company’s market positioning and stakeholder confidence.

Bando Chemical Reports Financial Discrepancies Due to Impairment Losses
May 15, 2025

Bando Chemical Industries, Ltd. announced a significant discrepancy in its consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company reported an increase in revenue but a substantial decrease in profits due to impairment losses related to a consolidated subsidiary, impacting its financial performance and potentially affecting stakeholder confidence.

Bando Chemical Industries Reports Fiscal Year 2025 Financial Results
May 15, 2025

Bando Chemical Industries reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a revenue increase of 6.8% to ¥115,593 million. However, the company faced a significant drop in operating profit and profit before tax, with declines of 55.2% and 60.0% respectively, due to increased costs. Despite these challenges, the company announced an increase in annual dividends per share to ¥76.00, reflecting a commitment to shareholder returns.

Bando Chemical Industries Revises Financial Forecast Amid Impairment Losses
May 9, 2025

Bando Chemical Industries, Ltd. announced significant financial adjustments for the fiscal year ended March 31, 2025, due to impairment losses and a decline in the valuation of shares in subsidiaries and affiliates. The company recorded an impairment loss of ¥5,035 million, primarily due to delays in FDA approval affecting its subsidiary Aimedic MMT Co., Ltd., and decreased profitability in its Advanced Elastomer Products Business. Additionally, a loss of ¥4,049 million was recorded on the valuation of shares, with notable declines in the value of shares in Aimedic MMT Co., Ltd. and Bando USA, Inc. These financial adjustments have led to a downward revision of the company’s consolidated financial results forecast, with operating profit and profit attributable to owners expected to be lower than previously anticipated.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025