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

• Market Cap: ¥4.72B
• Dividend Yield: 0.53%
• Average Volume (3M): 10.15K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.29
• Revenue Growth: -4.47%
• EPS Growth: -56.00%
• Country: JP
• Employees: 439
• Sector: Industrials
• Sector Strength: 92
• Industry: Construction Materials
• EPS (TTM): -6.35
• Shares Outstanding: 12,744,054
• 10 Day Avg. Volume: 13,840
• 30 Day Avg. Volume: 10,150
• PEG Ratio: 0.12
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.08
• 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: ¥405.00
• Price Target Upside: 8.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥399.00 ▲(6.68%Upside)

Kikusui Chemical Industries Co., Ltd. shows strong financial stability with a solid balance sheet and cash flow management. However, recent declines in revenue and profitability present challenges. Technical indicators suggest a mixed outlook, with potential bearish trends in the short term. The stock's high valuation relative to earnings and low dividend yield may limit its appeal to value investors.

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

Company Description

Kikusui Chemical Industries Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of building materials and chemical products. The company operates in various sectors including construction, manufacturing, and chemicals, offering a wide range of products that include coatings, adhesives, and other chemical solutions designed for both industrial and consumer use.

How the Company Makes Money

Kikusui Chemical Industries Co., Ltd. generates revenue through the production and sale of its building materials and chemical products. The company's key revenue streams include the sale of paints and coatings for buildings, particularly for construction and renovation projects. Additionally, Kikusui Chemical Industries markets its chemical solutions to various industries, including automotive and manufacturing, providing specialized adhesives and sealants that meet specific industrial needs. The company may also engage in strategic partnerships with construction firms and other industrial clients to supply materials for large-scale projects, further boosting its earnings. Their diversified product offerings and strong industry ties contribute significantly to their overall revenue.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.92B	21.39B	22.39B	22.42B	22.16B	20.53B
Gross Profit	5.22B	4.93B	5.02B	5.26B	5.29B	4.83B
EBITDA	817.75M	683.77M	961.34M	754.01M	417.75M	790.73M
Net Income	301.86M	165.82M	376.34M	246.25M	94.59M	163.45M
Balance Sheet
Total Assets	17.36B	16.21B	18.07B	16.95B	16.51B	16.69B
Cash, Cash Equivalents and Short-Term Investments	4.11B	4.06B	4.38B	4.28B	4.36B	3.59B
Total Debt	1.90B	1.83B	2.27B	2.46B	2.37B	2.64B
Total Liabilities	7.55B	6.54B	8.36B	7.78B	7.42B	7.42B
Stockholders Equity	9.66B	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: 374.00
• 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 374 is below the 20-day moving average (MA) of 379.45, above the 50-day MA of 373.76, and above the 200-day MA of 373.82, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.98 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	70 Outperform	¥5.21B	7.68		1.62%	4.26%	-44.50%
Sector *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%
7953	65 Neutral	¥4.72B	28.39		0.53%	-4.47%	-56.00%
5271	55 Neutral	¥2.92B	8.35		4.27%	-4.41%	-39.78%
5928	54 Neutral	¥2.85B	104.75		2.87%	-11.52%	-65.42%
5380	49 Neutral	¥1.17B	―		2.46%	3.50%	-13.29%