Maezawa Kasei Industries Co., Ltd. (7925) AI Stock Analysis

• Market Cap: ¥36.22B
• Dividend Yield: 3.45%
• Average Volume (3M): 57.22K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.77
• Revenue Growth: 4.17%
• EPS Growth: 23.25%
• Country: JP
• Employees: 567
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 36.09
• Shares Outstanding: 15,732,000
• 10 Day Avg. Volume: 66,800
• 30 Day Avg. Volume: 57,220
• PEG Ratio: 0.62
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 25.50
• 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: 71 Outperform
• Price Target: ¥2,704.00 ▲(22.91% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Maezawa Kasei Industries scores well due to its strong financial performance, characterized by steady revenue growth and a robust balance sheet. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the overall score.

Positive Factors

Very strong balance sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility. With debt-to-equity at 0.008 and equity ratio ~82.98%, the company can fund capex, weather cyclical downturns and pursue strategic investments without significant refinancing risk, underpinning long-term stability.

Healthy profit margins

Sustained high gross and respectable operating margins indicate structural operational efficiency across product lines. Margins near these levels support ongoing cash generation and reinvestment capacity, allowing the company to maintain competitiveness and absorb input cost swings over the medium term.

Specialized industrial product franchise

Focus on resin products for industrial and infrastructure markets creates durable demand linked to construction and public works. Technical know-how and B2B relationships foster stickiness and provide differentiation, enabling steady order visibility and margin protection across multiple business cycles.

Negative Factors

Weakened cash flow generation

A 42.84% drop in free cash flow and FCF/net income of 0.62 signal weaker cash conversion that can constrain capital allocation. If sustained, reduced operating cash flow will limit reinvestment, slow deleveraging or cap dividend support, and increase reliance on retained earnings for growth.

Modest return on equity

ROE of ~4.14% is low relative to equity-heavy capital structure, indicating limited efficiency in converting equity into returns. Persistently modest ROE reduces shareholder value creation and suggests management must boost asset turnover or margin expansion to justify high equity levels.

Concentration in domestic markets

Heavy reliance on domestic industrial and construction demand creates geographic concentration risk. Growth and revenue stability are exposed to local macro cycles and policy changes in infrastructure or construction spending, limiting diversification and making performance sensitive to domestic economic shifts.

Maezawa Kasei Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Maezawa Kasei Industries Co., Ltd. produces and sells water and sewerage related products, and environmental equipment. The company was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Maezawa Kasei Industries generates revenue through the production and sale of a wide array of chemical products, including resins, coatings, and specialty materials. The company has established key revenue streams from its core businesses, which include the automotive sector where it supplies materials for vehicle manufacturing, and the electronics industry, providing advanced materials for component production. Additionally, Maezawa Kasei benefits from long-term partnerships with major manufacturers, ensuring a steady demand for its products. The company also invests in research and development to innovate and expand its product offerings, further enhancing its market position and revenue potential.

Maezawa Kasei Industries Co., Ltd. Financial Statement Overview

Summary

Maezawa Kasei Industries presents a solid financial position characterized by steady revenue growth, strong profit margins, and a healthy balance sheet with low leverage. While cash flow performance has been under pressure, the company's operations remain efficient. The focus should be on enhancing profitability and cash generation to sustain growth and shareholder value.

Income Statement

Maezawa Kasei Industries has shown consistent revenue growth with a 1.01% increase in the most recent year. The company maintains a strong gross profit margin of 36.31% and a solid net profit margin of 7.10%. While EBIT and EBITDA margins are healthy at 8.96% and 15.13% respectively, indicating efficient operations, there is room for improvement in increasing profitability further.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.008, showcasing minimal reliance on debt and strong financial stability. The return on equity is reasonable at 4.14%, although there is potential to enhance shareholder returns. An equity ratio of 82.98% underscores a strong capital structure, providing a cushion against market fluctuations.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow due to reduced operating cash flow, with a year-on-year decline of 42.84%. The operating cash flow to net income ratio of 1.09 and free cash flow to net income ratio of 0.62 suggest adequate cash conversion, although there is an opportunity to enhance cash flow generation to support future investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.62B	24.17B	23.93B	23.50B	21.88B	20.98B
Gross Profit	8.97B	8.77B	8.28B	8.31B	7.33B	6.75B
EBITDA	3.87B	3.66B	3.13B	3.31B	2.47B	2.49B
Net Income	1.87B	1.71B	1.36B	1.46B	797.00M	755.00M
Balance Sheet
Total Assets	49.91B	49.90B	49.35B	46.51B	45.27B	44.92B
Cash, Cash Equivalents and Short-Term Investments	14.04B	14.21B	15.45B	14.30B	14.32B	15.04B
Total Debt	330.00M	330.00M	330.00M	390.00M	430.00M	430.00M
Total Liabilities	8.28B	8.39B	8.93B	8.15B	7.75B	7.56B
Stockholders Equity	41.52B	41.41B	40.32B	38.27B	37.52B	37.36B
Cash Flow
Free Cash Flow	0.00	1.07B	1.87B	1.03B	826.00M	1.57B
Operating Cash Flow	0.00	1.87B	2.62B	1.78B	1.75B	2.17B
Investing Cash Flow	0.00	-459.00M	-761.00M	-1.59B	-694.00M	-642.00M
Financing Cash Flow	0.00	-850.00M	-812.00M	-812.00M	-676.00M	-538.00M

Maezawa Kasei Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7925, the sentiment is Positive. The current price of 2200 is below the 20-day moving average (MA) of 2345.90, below the 50-day MA of 2316.24, and above the 200-day MA of 2082.34, indicating a bullish trend. The MACD of 20.69 indicates Negative momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 93.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7925.

Maezawa Kasei Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4220	83 Outperform	¥92.67B	11.60	―	3.06%	2.02%	30.10%
4025	73 Outperform	¥33.75B	10.03	―	0.13%	9.78%	40.00%
7925	71 Outperform	¥36.22B	18.64	―	3.45%	4.17%	23.25%
4463	66 Neutral	¥28.20B	11.91	―	3.53%	6.99%	-0.30%
4970	65 Neutral	¥91.59B	35.93	―	0.67%	10.18%	-14.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4249	51 Neutral	¥37.32B	-5.61	―	4.66%	-6.34%	-419.93%

Maezawa Kasei Industries Co., Ltd. Corporate Events

Maezawa Kasei Industries Posts Higher Nine-Month Earnings and Confirms Dividend Outlook

Maezawa Kasei Industries reported consolidated net sales of ¥18.59 billion for the nine months ended December 31, 2025, up 4.2% year on year, with operating profit rising 9.3% to ¥1.77 billion and profit attributable to owners of parent increasing 17.3% to ¥1.57 billion. Basic earnings per share climbed to ¥105.94, while total assets reached ¥51.73 billion and the equity-to-asset ratio held at a robust 83.1%, underscoring the company’s strong balance sheet.

The company confirmed an interim dividend of ¥35 per share for the fiscal year ending March 31, 2026, with a full-year dividend forecast of ¥70 unchanged from prior guidance. For the full fiscal year, Maezawa Kasei Industries forecasts modest growth, targeting net sales of ¥25.0 billion and profit attributable to owners of parent of ¥1.73 billion, suggesting continued but slowing earnings expansion after a strong nine-month performance.

The most recent analyst rating on (JP:7925) stock is a Hold with a Yen2547.00 price target. To see the full list of analyst forecasts on Maezawa Kasei Industries Co., Ltd. stock, see the JP:7925 Stock Forecast page.

Maezawa Kasei Announces Shareholder Meeting for Joint Holding Company Formation

Maezawa Kasei Industries Co., Ltd. has announced the setting of a record date for an extraordinary general meeting of shareholders, scheduled for March 31, 2026, to discuss the approval of a share transfer plan with Maezawa Industries, Inc. This move is part of a larger strategy to establish a joint holding company through a joint share transfer, which will result in significant amendments to the company’s Articles of Incorporation. The proposed changes will streamline administrative procedures and eliminate the record date system for ordinary general meetings, as the company will become a wholly-owned subsidiary of the new joint holding company, effective June 1, 2026.

The most recent analyst rating on (JP:7925) stock is a Buy with a Yen2287.00 price target. To see the full list of analyst forecasts on Maezawa Kasei Industries Co., Ltd. stock, see the JP:7925 Stock Forecast page.

Maezawa Industries and MAEZAWA KASEI INDUSTRIES Announce Management Integration

Maezawa Industries, Inc. and MAEZAWA KASEI INDUSTRIES CO., LTD. have agreed to a management integration to form MAEZAWA Holdings CO., LTD., a joint holding company, through a share transfer set for June 1, 2026. This strategic move aims to strengthen their business foundation, enhance corporate value, and support sustainable growth amid market challenges, ultimately benefiting stakeholders by expanding business domains and improving proposal capabilities.

The most recent analyst rating on (JP:7925) stock is a Buy with a Yen2287.00 price target. To see the full list of analyst forecasts on Maezawa Kasei Industries Co., Ltd. stock, see the JP:7925 Stock Forecast page.