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

• Market Cap: ¥3.54B
• Dividend Yield: 3.29%
• Average Volume (3M): 600.00
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.25
• Revenue Growth: 7.11%
• EPS Growth: 80.59%
• Country: JP
• Employees: 330
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 63.02
• Shares Outstanding: 960,000
• 10 Day Avg. Volume: 800
• 30 Day Avg. Volume: 600
• PEG Ratio: 0.10
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 26.89
• 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: 65 Neutral
• Price Target: ¥4,087.00 ▲(6.57% Upside)

Tohoku Chemical Co., Ltd. has a solid financial foundation with stable revenue growth and efficient cost management. However, the stock is currently experiencing bearish technical indicators, which may pose short-term risks. The attractive valuation with a low P/E ratio and high dividend yield offers potential upside for long-term investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Strong Equity Base

A strong equity base provides a solid foundation for sustainable growth and resilience against economic fluctuations.

Negative Factors

Profitability Margins

Low profitability margins can limit reinvestment in the business and shareholder returns, impacting long-term competitiveness.

Cash Flow Stability

Volatile cash flow can hinder strategic investments and operational flexibility, affecting long-term financial health.

Return on Equity

Declining return on equity may indicate inefficient use of capital, potentially reducing investor confidence and growth prospects.

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 Co., Ltd. demonstrates stable financial performance with consistent revenue growth and efficient cost management. However, profitability margins and cash flow stability need improvement. The company's low leverage and strong equity base provide a solid foundation for future growth.

Income Statement

Tohoku Chemical Co., Ltd. has shown a consistent revenue growth trend, with a recent growth rate of 1.073% in the latest year. The gross profit margin has remained stable around 9-10%, indicating efficient cost management. However, the net profit margin has been relatively low, suggesting room for improvement in profitability. The EBIT and EBITDA margins have shown slight fluctuations but remain positive, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is healthy, showing a strong equity base relative to total assets. However, the return on equity has decreased over the years, signaling a need for improved profitability to enhance shareholder returns.

Cash Flow

The cash flow statement reveals a volatile free cash flow growth rate, with recent improvements. The operating cash flow to net income ratio has been inconsistent, indicating potential challenges in converting earnings into cash. The free cash flow to net income ratio is positive, suggesting that the company is generating cash relative to its net income, but there is room for improvement in cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.08B	34.44B	32.16B	35.09B	37.33B	36.22B
Gross Profit	3.24B	3.29B	3.14B	3.34B	3.47B	3.18B
EBITDA	791.35M	809.63M	551.46M	886.70M	1.07B	841.78M
Net Income	410.87M	428.80M	237.45M	556.19M	657.62M	516.73M
Balance Sheet
Total Assets	18.11B	18.42B	17.24B	18.92B	17.52B	16.13B
Cash, Cash Equivalents and Short-Term Investments	1.38B	924.60M	763.00M	2.25B	1.41B	799.00M
Total Debt	907.82M	813.75M	783.39M	576.30M	597.49M	714.65M
Total Liabilities	10.32B	10.40B	9.73B	11.65B	10.84B	9.85B
Stockholders Equity	7.70B	7.93B	7.42B	7.18B	6.61B	6.23B
Cash Flow
Free Cash Flow	0.00	134.36M	-1.22B	919.08M	814.79M	284.36M
Operating Cash Flow	0.00	154.37M	-1.04B	1.27B	886.12M	322.34M
Investing Cash Flow	0.00	14.59M	-107.84M	-335.38M	-92.01M	-171.79M
Financing Cash Flow	0.00	-2.95M	-209.98M	-95.52M	-185.64M	-221.00M

Tohoku Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3835.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3835 is below the 20-day moving average (MA) of 3860.00, above the 50-day MA of 3829.90, and below the 200-day MA of 3843.44, indicating a bullish trend. The MACD of 19.43 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 15.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.85B	10.68	―	2.27%	1.79%	31.63%
4247	75 Outperform	¥3.68B	20.07	―	2.98%	7.64%	37.45%
4120	71 Outperform	¥3.32B	6.78	―	3.15%	1.14%	50.47%
7446	65 Neutral	¥3.54B	8.15	―	3.29%	7.11%	80.59%
4098	64 Neutral	¥3.48B	37.26	―	1.28%	-1.01%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5103	52 Neutral	¥3.41B	-12.92	―	―	-3.45%	56.08%

Tohoku Chemical Co., Ltd. Corporate Events

Tohoku Chemical Co., Ltd. Reports Strong Financial Performance in FY 2025

Tohoku Chemical Co., Ltd. reported a significant improvement in its financial performance for the fiscal year ending September 2025. The company achieved a 7.1% increase in net sales and an 80.6% rise in profit attributable to owners of the parent, indicating a strong recovery from the previous year’s downturn. This positive trend in financial metrics, including operating and ordinary profits, suggests a robust operational strategy and improved market positioning, which could have favorable implications for stakeholders.

The most recent analyst rating on (JP:7446) stock is a Hold with a Yen3999.00 price target. To see the full list of analyst forecasts on Tohoku Chemical Co., Ltd. stock, see the JP:7446 Stock Forecast page.