Bando Chemical Industries Ltd. (5195) AI Stock Analysis

• Market Cap: ¥82.97B
• Dividend Yield: 3.95%
• Average Volume (3M): 39.43K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.94
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥2,096.00 ▲(6.23% Upside)

The overall stock score of 62 reflects a stable financial position with low leverage and consistent cash flow, but challenges with declining revenue and profitability margins. Technical analysis shows mixed signals, and the high P/E ratio suggests potential overvaluation despite an attractive dividend yield.

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	115.34B	115.59B	108.28B	103.61B	93.74B	81.37B
Gross Profit	32.97B	32.79B	31.03B	29.42B	27.66B	24.85B
EBITDA	9.89B	8.25B	13.15B	13.07B	8.40B	11.20B
Net Income	2.22B	1.50B	6.18B	5.72B	1.21B	3.94B
Balance Sheet
Total Assets	116.88B	120.69B	125.62B	118.97B	116.38B	116.28B
Cash, Cash Equivalents and Short-Term Investments	15.34B	17.71B	17.93B	17.96B	19.57B	19.30B
Total Debt	2.13B	7.14B	7.59B	11.57B	13.83B	20.00B
Total Liabilities	33.83B	38.19B	40.11B	40.96B	43.95B	45.52B
Stockholders Equity	82.81B	82.13B	85.16B	77.66B	72.13B	70.49B
Cash Flow
Free Cash Flow	8.57B	6.50B	9.69B	3.99B	5.99B	6.27B
Operating Cash Flow	12.88B	10.76B	14.06B	7.71B	9.59B	10.17B
Investing Cash Flow	-3.30B	-4.19B	-4.74B	-3.98B	-534.00M	-2.77B
Financing Cash Flow	-9.48B	-6.91B	-8.96B	-6.43B	-9.94B	-3.63B

Bando Chemical Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1973.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1973 is above the 20-day moving average (MA) of 1966.10, below the 50-day MA of 1976.68, and above the 200-day MA of 1735.04, indicating a neutral trend. The MACD of -2.10 indicates Positive momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 38.56 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	¥102.61B	15.69	―	4.85%	5.22%	-28.13%
6490	75 Outperform	¥121.53B	14.42	―	2.56%	-0.98%	-18.48%
6455	74 Outperform	¥112.20B	10.47	―	2.49%	12.64%	34.19%
6284	73 Outperform	¥100.68B	13.39	―	2.89%	15.99%	32.43%
6486	69 Neutral	¥136.61B	24.01	―	3.82%	>-0.01%	-26.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5195	62 Neutral	¥82.97B	27.12	―	3.95%	3.68%	-46.19%

Bando Chemical Industries Ltd. Corporate Events

Bando Chemical Industries Announces Share Buyback Status

Bando Chemical Industries, Ltd. announced the acquisition of 109,200 of its own shares between September 1 and September 30, 2025, at a cost of 223,709,089 yen. This is part of a larger plan approved in May 2025 to acquire up to 1,800,000 shares, reflecting the company’s strategy to optimize 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.

Bando Chemical Industries Announces Share Acquisition Status

Bando Chemical Industries Ltd. announced the acquisition of its own shares, acquiring 191,400 shares at a cost of 368,523,992 yen during August 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 1.8 million shares by April 2026, reflecting a strategic effort to enhance shareholder value and optimize 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 Shows Strong Profit Growth Amid Slight Revenue Decline

Bando Chemical Industries reported a slight decline in revenue for the three months ended June 30, 2025, with a 0.9% decrease compared to the previous year. Despite this, the company saw significant increases in operating profit and profit before tax, indicating improved operational efficiency. The company’s financial position remains strong, with a high ratio of equity attributable to owners of the parent to total assets. The forecast for the fiscal year ending March 31, 2026, anticipates a slight decrease in revenue but substantial growth in operating profit and profit attributable to owners of the parent, suggesting a positive outlook for stakeholders.

Bando Chemical Industries Announces Share Acquisition Progress

Bando Chemical Industries, Ltd. has announced the acquisition of 172,600 of its own shares, costing approximately 299 million yen, during July 2025. This move is part of a broader plan approved by the Board of Directors to acquire up to 1.8 million shares by April 2026, with a maximum budget of 2 billion yen, indicating a strategic effort to consolidate ownership and potentially enhance shareholder value.