Kikusui Chemical Industries Co., Ltd. (7953) AI Stock Analysis

• Market Cap: ¥4.89B
• Dividend Yield: 4.23%
• Average Volume (3M): 9.33K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.33
• Revenue Growth: -5.79%
• EPS Growth: -81.85%
• Country: JP
• Employees: 439
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 20.48
• Shares Outstanding: 12,744,054
• 10 Day Avg. Volume: 6,450
• 30 Day Avg. Volume: 9,330
• PEG Ratio: -0.51
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 23.35
• 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: 47 Neutral
• Price Target: ¥382.00 ▼(-1.04% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

The overall stock score of 47 for JP:7953 reflects a cautious outlook, driven primarily by mixed financial performance with declining revenue, weak profitability, and a significant drop in free cash flow, despite a stable balance sheet. Technical indicators show neutral momentum, and a high P/E ratio raises valuation concerns, though a solid dividend yield offers some appeal.

Positive Factors

Financial Health

The company's strong balance sheet and low leverage provide financial stability and flexibility, supporting long-term growth and resilience against market fluctuations.

Cash Flow Generation

Consistent positive free cash flow indicates effective cash management, enabling the company to invest in growth opportunities and weather economic downturns.

Market Diversification

Diverse market presence across multiple sectors reduces dependency on a single industry, enhancing revenue stability and growth potential.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market demand or competition, which could impact long-term growth and profitability if not addressed.

Cash Flow Volatility

Volatility in cash flow generation compared to earnings could signal operational inefficiencies or market pressures, affecting financial predictability.

Declining Shareholder Returns

Decreasing returns to shareholders may reduce investor confidence and limit the company's ability to attract new capital for expansion.

Kikusui Chemical Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Kikusui Chemical Industries Co., Ltd. engages in the manufacture and sale of functional, building finishing, construction, and civil engineering materials in Japan and internationally. The company offers exterior coating materials, exterior construction coating materials, undercoating materials, body modification, strippers, fire proof and heat insulating materials, waterproof roots, interiors, iron bone, and counter measure products, as well as civil engineering products. In addition, it manufactures and sells other machinery and equipment. Kikusui Chemical Industries Co., Ltd. was incorporated in 1959 and is based in Nagoya, Japan.

How the Company Makes Money

Kikusui Chemical Industries generates revenue primarily through the sale of its chemical products across several sectors. Its revenue model is based on direct sales to manufacturers and distributors in industries such as pharmaceuticals, agriculture, and electronics. Key revenue streams include the manufacture of specialty chemicals and resins, which are sold to businesses for use in their production processes. Additionally, the company engages in long-term contracts with industrial clients, ensuring a stable income stream. Strategic partnerships with other companies in related industries enable Kikusui to expand its market reach and enhance product offerings, contributing to its overall earnings. The company's commitment to research and development also plays a crucial role in maintaining competitiveness and driving future growth.

Kikusui Chemical Industries Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed with a score of 47. The balance sheet is stable with a low Debt-to-Equity Ratio (0.19) and a strong Equity Ratio (58.7%), but income statement shows declining revenue (-4.5%) and weak profitability (Net Profit Margin 0.8%). Cash flow is concerning with a -60.6% drop in Free Cash Flow, despite solid cash conversion.

Income Statement

The income statement reflects mixed performance for Kikusui Chemical Industries. Revenue declined by -4.5% from 2024 to 2025, indicating a negative growth trajectory. Gross Profit Margin for 2025 is decent at 23.1%, but Net Profit Margin is low at 0.8%, showing limited profitability. EBIT Margin (1.2%) and EBITDA Margin (3.2%) are also weak, highlighting operational inefficiencies. While the company maintains some gross profitability, the declining revenue and thin margins weigh on the score.

Balance Sheet

The balance sheet shows a stable financial position. The Debt-to-Equity Ratio for 2025 is low at 0.19, indicating minimal leverage risk. Return on Equity (ROE) is modest at 1.7%, reflecting limited returns for shareholders. However, the Equity Ratio of 58.7% demonstrates a strong equity base relative to total assets, providing financial stability. The score reflects a solid balance sheet with low debt but room for improvement in generating returns.

Cash Flow

Cash flow performance is underwhelming. Free Cash Flow for 2025 dropped to 204.3M from 518.1M in 2024, a decline of -60.6%, signaling weaker cash generation. Operating Cash Flow to Net Income Ratio is high at 3.0, indicating strong cash conversion from earnings. However, Free Cash Flow to Net Income Ratio at 1.2 suggests moderate efficiency after capital expenditures. The score reflects concerns over declining free cash flow, despite decent cash flow coverage of earnings.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	21.19B	21.39B	22.39B	22.42B	22.16B	20.53B
Gross Profit	4.88B	4.93B	5.02B	5.26B	5.29B	4.83B
EBITDA	615.47M	683.77M	961.34M	754.01M	417.75M	790.73M
Net Income	122.41M	165.82M	376.34M	246.25M	94.59M	163.45M
Balance Sheet
Total Assets	16.22B	16.21B	18.07B	16.95B	16.51B	16.69B
Cash, Cash Equivalents and Short-Term Investments	4.35B	4.38B	4.38B	4.28B	4.36B	3.59B
Total Debt	1.78B	1.83B	2.27B	2.46B	2.37B	2.64B
Total Liabilities	6.50B	6.54B	8.36B	7.78B	7.42B	7.42B
Stockholders Equity	9.57B	9.52B	9.58B	9.06B	8.99B	9.13B
Cash Flow
Free Cash Flow	0.00	204.33M	518.09M	-189.31M	1.11B	649.33M
Operating Cash Flow	0.00	495.31M	1.08B	500.65M	1.20B	1.03B
Investing Cash Flow	0.00	145.44M	-552.23M	-473.70M	43.33M	-131.79M
Financing Cash Flow	0.00	-676.41M	-443.61M	-142.95M	-525.52M	-563.99M

Kikusui Chemical Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 386.00
• 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:7953, the sentiment is Positive. The current price of 386 is below the 20-day moving average (MA) of 400.85, below the 50-day MA of 396.82, and below the 200-day MA of 386.07, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 67.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7953.

Kikusui Chemical Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5352	76 Outperform	¥149.68B	11.95	―	2.77%	1.43%	91.97%
5357	73 Outperform	¥26.86B	9.01	―	5.04%	-2.29%	-41.92%
5356	68 Neutral	¥12.26B	11.04	―	3.42%	8.37%	8.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5232	61 Neutral	¥118.36B	45.55	6.98%	3.13%	-2.13%	37.10%
4044	55 Neutral	¥95.40B	5.97	―	4.87%	-4.44%	-47.54%
7953	47 Neutral	¥4.89B	4.71	―	4.23%	-5.79%	-81.85%