Tohoku Chemical Co., Ltd. (7446) AI Stock Analysis

• Market Cap: ¥3.47B
• Dividend Yield: 2.65%
• Average Volume (3M): 600.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.25
• Revenue Growth: 4.78%
• EPS Growth: 60.64%
• Country: JP
• Employees: 330
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 114.51
• Shares Outstanding: 960,000
• 10 Day Avg. Volume: 800
• 30 Day Avg. Volume: 600
• PEG Ratio: -0.24
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -2.67
• 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

• Rating: 58 Neutral
• Price Target: ¥4,066.00 ▲(7.57% Upside)

Tohoku Chemical's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability margins, and cash flow issues. The technical analysis suggests a neutral to slightly bearish trend, while the valuation indicates the stock is undervalued with a reasonable dividend yield. The absence of earnings call data and corporate events means these factors did not influence the score.

Tohoku Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Tohoku Chemical Co., Ltd., a trading company, sells pesticides, food additives, and industrial chemicals and reagents in Japan. The company offers chemical industrial reagents/chemical industrial reagent-related apparatus. It also provides clinical diagnostic reagents/clinical diagnostic reagent-related equipment, such as kits inspecting for blood or bacteria helpful for medical examination and diagnosis of various diseases; medical devices that include clinical inspection apparatus and medical imaging systems; and external body diagnosing medicines, medical devices, medical materials, etc. In addition, the company offers food additives/food processing apparatus; and reagents for product inspection analysis hygiene materials, detergents, pesticides, and water treatment, as well as materials for transfer, analytical inspection, and product development. Further, it offers agricultural materials, such as pesticides, soil improvement materials, and agriculture-related materials; agricultural facilities, including steel greenhouses for floriculture; and healthcare products. In addition, the company engages in the sale and repair of computers, scientific instruments, medical equipment, educational devices, and measuring equipment; and cultivation and sale of flowers. Tohoku Chemical Co., Ltd. was founded in 1953 and is headquartered in Hirosaki, Japan.

How the Company Makes Money

Tohoku Chemical Co., Ltd. generates revenue through the sale of its specialty chemicals and materials across various industries. Its revenue model is primarily based on B2B transactions, where it supplies products to manufacturers in the electronics, automotive, and pharmaceutical sectors. Key revenue streams include the sale of high-performance resins and adhesives, which are essential in various applications such as circuit boards and automotive components. The company may also benefit from long-term contracts with major clients, ensuring a steady influx of revenue. Additionally, strategic partnerships with other firms in related industries can contribute to joint product development and expand market reach, further enhancing its earnings potential.

Tohoku Chemical Co., Ltd. Financial Statement Overview

Summary

Tohoku Chemical faces challenges in revenue growth and profitability, with declining margins and cash flow issues. The balance sheet shows low leverage, which is a strength, but overall returns on equity remain weak. The company needs to address its operational efficiencies and cash flow management to improve financial performance.

Income Statement

Tohoku Chemical has experienced declining revenue over the past two years. The gross profit margin for the most recent year is approximately 9.76%, which is a decrease from the previous year. The net profit margin stands at 0.74%, indicating very thin profitability. EBIT and EBITDA margins have also declined, showing a contraction in operational efficiency and profitability.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.11, indicating low leverage and financial risk. However, the equity ratio is around 43%, showing moderate asset financing through equity. Return on equity is relatively low at 3.20%, indicating inefficiencies in generating returns for shareholders.

Cash Flow

Free cash flow has significantly deteriorated, moving from positive to negative, with a recent drop in operating cash flow. The operating cash flow to net income ratio is negative, reflecting operational challenges in cash generation. The free cash flow to net income ratio is also negative, highlighting cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.08B	32.16B	35.09B	37.33B	36.22B	31.04B
Gross Profit	3.24B	3.14B	3.34B	3.47B	3.18B	2.78B
EBITDA	791.35M	551.46M	886.70M	1.07B	841.78M	661.24M
Net Income	410.87M	237.45M	556.19M	657.62M	516.73M	378.15M
Balance Sheet
Total Assets	18.11B	17.24B	18.92B	17.52B	16.13B	14.59B
Cash, Cash Equivalents and Short-Term Investments	1.38B	763.00M	2.25B	1.41B	799.00M	769.00M
Total Debt	782.82M	783.39M	576.30M	597.49M	714.65M	818.98M
Total Liabilities	10.32B	9.73B	11.65B	10.84B	9.85B	8.93B
Stockholders Equity	7.70B	7.42B	7.18B	6.61B	6.23B	5.62B
Cash Flow
Free Cash Flow	0.00	-1.22B	919.08M	814.79M	284.36M	386.82M
Operating Cash Flow	0.00	-1.04B	1.27B	886.12M	322.34M	440.57M
Investing Cash Flow	0.00	-107.84M	-335.38M	-92.01M	-171.79M	204.92M
Financing Cash Flow	0.00	-209.98M	-95.52M	-185.64M	-221.00M	-511.50M

Tohoku Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3780.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7446, the sentiment is Negative. The current price of 3780 is below the 20-day moving average (MA) of 3859.46, below the 50-day MA of 3912.63, and below the 200-day MA of 3816.96, indicating a bearish trend. The MACD of -41.93 indicates Positive momentum. The RSI at 31.36 is Neutral, neither overbought nor oversold. The STOCH value of 75.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7446.

Tohoku Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.58B	12.76	―	2.47%	0.68%	5.33%
4247	74 Outperform	¥3.25B	25.87	―	3.08%	-1.03%	-30.75%
4120	69 Neutral	¥2.95B	9.71	―	3.25%	-0.88%	-40.19%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
7446	58 Neutral	¥3.47B	8.33	―	2.65%	4.78%	60.64%
4098	57 Neutral	¥2.38B	17.49	―	1.26%	-3.85%	―
5103	52 Neutral	¥3.72B	―	―	―	-2.64%	44.05%

Tohoku Chemical Co., Ltd. Corporate Events

Tohoku Chemical Reports Strong Quarterly Growth

Tohoku Chemical Co., Ltd. reported a significant increase in its quarterly operating results for June 2025, with a 7.9% rise in net sales and an 87.3% increase in profit attributable to owners of the parent compared to the previous year. The company’s improved financial performance highlights a positive trend in its operations, potentially strengthening its position in the chemical industry and benefiting its stakeholders.