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

• Market Cap: ¥4.85B
• Dividend Yield: 4.23%
• Average Volume (3M): 9.33K
• Price to Earnings (P/E): 56.2
• Beta (1Y): 0.31
• Revenue Growth: -5.79%
• EPS Growth: -81.85%
• Country: JP
• Employees: 439
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 2.66
• 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: 62 Neutral
• Price Target: ¥411.00 ▲(6.48% Upside)

Kikusui Chemical Industries Co., Ltd. has a solid financial foundation with a strong balance sheet and positive cash flow, but recent declines in revenue and profitability are concerning. The technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates potential overvaluation. However, the attractive dividend yield provides a positive aspect for income-focused investors.

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

Kikusui Chemical Industries Co., Ltd. demonstrates strong financial health with a robust balance sheet and consistent cash flow generation. However, recent declines in revenue and profitability indicate potential market challenges. The company's leverage is low, providing financial flexibility, yet declining shareholder returns and cash flow volatility might impact future performance.

Income Statement

The company's gross profit margin is healthy, but there has been a recent decline in revenue and net profit margins, reflecting a challenging market environment. Revenue growth has been inconsistent, with a notable decrease in the most recent year. While EBIT and EBITDA margins are moderate, the declining trend in net income is concerning.

Balance Sheet

The balance sheet shows strong equity levels with a solid equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting manageable leverage. However, the decline in stockholder equity over the past year could pose future risks if not addressed. ROE has been modest, reflecting stable but unspectacular returns to shareholders.

Cash Flow

Operating cash flow has decreased significantly, but the company maintains positive free cash flow, which is a positive sign. The free cash flow to net income ratio is fluctuating, indicating some volatility in cash generation compared to reported earnings. Cash flow management appears effective, but declining trends warrant attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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	4.06B	4.38B	4.28B	4.36B	3.59B
Total Debt	1.81B	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: Neutral
• 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 Neutral. The current price of 386 is below the 20-day moving average (MA) of 391.60, above the 50-day MA of 385.18, and above the 200-day MA of 379.95, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
5283	79 Outperform	¥5.80B	10.88	―	1.49%	3.10%	-31.38%
5900	64 Neutral	¥4.90B	26.51	―	2.05%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7953	62 Neutral	¥4.85B	56.19	―	4.23%	-5.79%	-81.85%
5380	62 Neutral	¥1.24B	27.68	―	2.30%	-0.62%	―
5271	54 Neutral	¥3.13B	29.03	―	3.85%	0.29%	-45.50%
5928	51 Neutral	¥2.91B	14.78	―	2.96%	-8.43%	135.83%