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Tohoku Chemical Co., Ltd. (JP:7446)
:7446
Japanese Market
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Tohoku Chemical Co., Ltd. (7446) AI Stock Analysis

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JP:7446

Tohoku Chemical Co., Ltd.

(7446)

Rating:62Neutral
Price Target:
¥4,240.00
▲(4.69% Upside)
Tohoku Chemical's overall stock score is primarily influenced by its financial performance challenges, including declining profitability and cash flow issues. However, the stock's valuation is attractive, with a low P/E ratio and a reasonable dividend yield, providing some support. Technical indicators suggest a neutral to slightly bearish short-term outlook.

Tohoku Chemical Co., Ltd. (7446) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionTohoku Chemical Co., Ltd. (7446) is a Japanese company engaged in the manufacture and distribution of chemical products. The company specializes in providing a wide range of chemicals that cater to various industries, including pharmaceuticals, agriculture, and manufacturing. It offers products such as raw materials, intermediates, and specialty chemicals, which are essential for various industrial applications.
How the Company Makes MoneyTohoku Chemical Co., Ltd. generates revenue through the sale of its chemical products to various industries. The company supplies raw materials and specialty chemicals to manufacturers in the pharmaceutical, agricultural, and industrial sectors. It leverages its expertise in chemical production and distribution to meet the diverse needs of its clients. The company's earnings are driven by its ability to maintain strong relationships with its clients and its focus on quality and innovation in product development. Additionally, strategic partnerships and a well-established supply chain contribute significantly to its revenue streams.

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
55
Neutral
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
65
Positive
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
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue33.35B32.16B35.09B37.33B36.22B31.04B
Gross Profit3.15B3.14B3.34B3.47B3.18B2.78B
EBITDA638.30M551.46M886.70M1.07B841.78M661.24M
Net Income295.70M237.45M556.19M657.62M516.73M378.15M
Balance Sheet
Total Assets18.48B17.24B18.92B17.52B16.13B14.59B
Cash, Cash Equivalents and Short-Term Investments1.51B763.00M2.25B1.41B799.00M769.00M
Total Debt859.85M783.39M576.30M597.49M714.65M818.98M
Total Liabilities10.82B9.73B11.65B10.84B9.85B8.93B
Stockholders Equity7.56B7.42B7.18B6.61B6.23B5.62B
Cash Flow
Free Cash Flow0.00-1.22B919.08M814.79M284.36M386.82M
Operating Cash Flow0.00-1.04B1.27B886.12M322.34M440.57M
Investing Cash Flow0.00-107.84M-335.38M-92.01M-171.79M204.92M
Financing Cash Flow0.00-209.98M-95.52M-185.64M-221.00M-511.50M

Tohoku Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4050.00
Price Trends
50DMA
4035.40
Positive
100DMA
3965.60
Positive
200DMA
3861.50
Positive
Market Momentum
MACD
13.41
Positive
RSI
51.42
Neutral
STOCH
4.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7446, the sentiment is Positive. The current price of 4050 is above the 20-day moving average (MA) of 4044.50, above the 50-day MA of 4035.40, and above the 200-day MA of 3861.50, indicating a bullish trend. The MACD of 13.41 indicates Positive momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7446.

Tohoku Chemical Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥3.70B12.71
2.44%0.68%5.33%
74
Outperform
¥3.27B26.06
3.03%-1.03%-30.75%
71
Outperform
¥2.97B9.95
3.23%-0.88%-40.19%
69
Neutral
¥2.54B18.69
1.19%-3.85%
62
Neutral
¥3.69B8.88
2.59%4.78%60.64%
62
Neutral
$10.28B6.210.76%2.84%3.10%-36.03%
52
Neutral
¥4.25B
-2.64%44.05%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7446
Tohoku Chemical Co., Ltd.
4,050.00
445.52
12.36%
JP:4098
Titan Kogyo Kabushiki Kaisha
843.00
-5.97
-0.70%
JP:4120
Sugai Chemical Industry Co., Ltd.
2,165.00
185.20
9.35%
JP:4247
POVAL KOGYO CO.LTD.
1,253.00
104.07
9.06%
JP:4625
Atomix Co., Ltd.
693.00
46.09
7.12%
JP:5103
Showa Holdings Co., Ltd.
56.00
9.00
19.15%

Tohoku Chemical Co., Ltd. Corporate Events

Tohoku Chemical Reports Strong Quarterly Growth
Jul 31, 2025

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.

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: Aug 16, 2025