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

• Market Cap: ¥4.02B
• Dividend Yield: 3.29%
• Average Volume (3M): 600.00
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.31
• Revenue Growth: 7.11%
• EPS Growth: 80.59%
• Country: JP
• Employees: 330
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 217.61
• 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: ¥4,743.00 ▲(23.68% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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

Consistent revenue growth

Sustained revenue growth demonstrates ongoing demand for the company's specialty chemical products and underpins predictable topline expansion. Over a 2–6 month horizon this supports stable production planning, incremental investment in capacity or R&D, and reduces reliance on one-off sales surges.

Conservative balance sheet

Low leverage and a strong equity base provide lasting financial flexibility, helping fund capex, absorb cyclical downturns, and pursue strategic initiatives without heavy refinancing. This structural strength supports resilience and optionality for multimonth planning.

Stable gross margins

Consistent gross margins reflect reliable manufacturing efficiency and pricing discipline in specialty chemicals. Margin stability implies durable unit economics, enabling predictable cash generation and the ability to invest in process improvements or product development over the medium term.

Negative Factors

Weak net profitability / falling ROE

Declining ROE coupled with low net margins constrains long-term shareholder returns and limits internal funding for growth. Persistently low bottom-line profitability reduces the firm's ability to scale, pay rising dividends, or reinvest for product and market expansion without improving operational leverage.

Volatile cash conversion

Inconsistent conversion of earnings into operating cash and volatile free cash flow undermine reliable funding for capex, debt servicing, and dividends. Over months this can force tradeoffs between investment and liquidity management, constraining strategic flexibility and increasing refinancing risk.

Limited scale and market liquidity

Small operational scale and very low trading liquidity limit economies of scale, bargaining power with suppliers or customers, and access to public capital without dilution. Over time this can slow growth initiatives, make large contracts harder to execute, and amplify financing or execution risk.

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

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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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	34.44B	32.16B	35.09B	37.33B	36.22B
Gross Profit	3.29B	3.14B	3.34B	3.47B	3.18B
EBITDA	684.34M	508.74M	830.81M	1.04B	805.67M
Net Income	428.80M	237.45M	556.19M	657.62M	516.73M
Balance Sheet
Total Assets	18.52B	17.31B	18.97B	17.58B	16.19B
Cash, Cash Equivalents and Short-Term Investments	924.60M	763.79M	2.20B	1.41B	799.18M
Total Debt	813.75M	783.39M	576.30M	597.49M	714.65M
Total Liabilities	10.50B	9.80B	11.71B	10.90B	9.91B
Stockholders Equity	7.93B	7.42B	7.18B	6.61B	6.23B
Cash Flow
Free Cash Flow	134.36M	-1.11B	1.17B	864.44M	303.20M
Operating Cash Flow	154.37M	-1.04B	1.27B	887.91M	334.34M
Investing Cash Flow	14.59M	-109.84M	-335.38M	-93.80M	-183.79M
Financing Cash Flow	-2.95M	-209.98M	-95.52M	-185.64M	-221.00M

Tohoku Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3835.00
• 50DMA: Positive
• 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:7446, the sentiment is Neutral. The current price of 3835 is below the 20-day moving average (MA) of 4568.00, below the 50-day MA of 4251.30, and below the 200-day MA of 3952.57, indicating a neutral trend. The MACD of 42.48 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 35.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4462	78 Outperform	¥35.96B	9.56	―	1.90%	2.15%	16.14%
4611	74 Outperform	¥36.35B	15.61	―	3.70%	14.83%	51.42%
4119	66 Neutral	¥8.27B	2.66	―	2.84%	37.67%	-117.29%
4409	66 Neutral	¥16.64B	9.21	―	2.78%	1.30%	-5.03%
7446	65 Neutral	¥4.02B	4.41	―	3.29%	7.11%	80.59%
4968	62 Neutral	¥26.13B	9.97	―	4.27%	5.72%	28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Tohoku Chemical Co., Ltd. Corporate Events

Tohoku Chemical Delivers Strong Profit Growth on Flat Sales in First Quarter

Tohoku Chemical Co., Ltd. reported first-quarter consolidated results for the period ended December 2025 showing largely flat revenue but sharply improved profitability. Net sales edged down 0.8% year-on-year to ¥8,885 million, but operating profit more than doubled to ¥241 million, ordinary profit rose 92.2% to ¥267 million, and profit attributable to owners of parent jumped 116.5% to ¥196 million, lifting basic earnings per share to ¥217.61. Comprehensive income also surged 218.1% to ¥285 million. On the balance sheet, total assets increased to ¥20,515 million and net assets to ¥8,173 million, though the capital adequacy ratio slipped from 43.0% to 39.4%, indicating expansion accompanied by some dilution of capital strength. Overall, the results suggest improved cost efficiency or margin enhancement despite slightly lower sales, supporting a stronger earnings profile at the start of the fiscal year, while the modest decline in the capital ratio will be monitored by investors as the company continues to grow its asset base.

The most recent analyst rating on (JP:7446) stock is a Buy with a Yen4313.00 price target. To see the full list of analyst forecasts on Tohoku Chemical Co., Ltd. stock, see the JP:7446 Stock Forecast page.