Inabata & Co., Ltd. (8098) AI Stock Analysis

• Market Cap: ¥215.28B
• Dividend Yield: 3.43%
• Average Volume (3M): 121.20K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.73
• Revenue Growth: 2.05%
• EPS Growth: 7.74%
• Country: JP
• Employees: 4,631
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 53,714,127
• 10 Day Avg. Volume: 92,220
• 30 Day Avg. Volume: 121,203
• PEG Ratio: 18.45
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 10.72
• 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: 79 Outperform
• Price Target: ¥4,986.00 ▲(33.14% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Inabata & Co., Ltd. receives a strong overall stock score due to its robust financial performance, characterized by significant revenue growth and stable profitability. The stock's attractive valuation with a low P/E ratio and high dividend yield further enhances its appeal. Technical indicators suggest a neutral to positive outlook, supporting the stock's overall strength.

Positive Factors

Strong balance sheet and low leverage

A low debt-to-equity ratio (0.35) and a nearly 47% equity ratio provide durable financial flexibility for a trading business that needs working capital and credit lines. This capital structure supports resilience to cyclicality, ability to fund inventory needs and pursue strategic investments without heavy refinancing risk.

Solid free cash flow generation

Consistent and growing free cash flow demonstrates the company converts earnings into cash effectively, supporting dividends, working capital for trading operations, and selective reinvestment. A FCF/net income ratio near 0.8 signals reliable cash conversion that cushions against margin pressure and funds long-term service capabilities.

Sustained revenue growth with stable gross margin

Multi-year revenue expansion alongside steady gross margin implies expanding transaction volumes and maintained pricing or sourcing discipline. For a sōgō shōsha, growing top line and stable gross profitability reflect enduring customer relationships, diversified product flows, and effective value-added services like logistics and supply-chain support.

Negative Factors

Subpar return on equity

ROE below 10% indicates the company is not generating high returns on shareholder capital relative to peers. Over several quarters this constrains shareholder value creation and suggests either low asset turnover or modest profit margins, limiting the pace at which equity can be redeployed to generate higher long-term growth.

Low net profit margin

A net margin near 2.4% leaves limited buffer against cost increases, commodity swings or customer price pressure typical in trading. Structurally thin bottom-line profit constrains retained earnings and reinvestment capacity, making earnings sensitive to small revenue or cost variances over the medium term.

Thin operating (EBITDA) margins

Operating profitability under 5% implies limited operating leverage in core trading activities. Low EBITDA margins reduce room for scaling SG&A, investing in technical support or supply-chain enhancements without eroding returns, and make the business more vulnerable to adverse commodity or logistics cost trends over a multi-quarter horizon.

Inabata & Co., Ltd. Business Overview & Revenue Model

Company Description

Inabata & Co.,Ltd. provides solutions and services for information and electronics, chemicals, life industry, and plastics businesses worldwide. The company offers polarizing films, alignment layer materials, materials for backlights and touch screens, chemical products for LCD manufacturing, and materials and equipment for OLEDs; and LED encapsulants, special use tape materials, chemical products for LCDs, connectors, and devices related to LCDs and OLEDs. It also provides materials for toners and peripheral components; 3D printer-related products and film-related materials; inkjet ingredients and other products; materials and equipment for imaging, semiconductors, automobiles, and life science; industrial, electronics, and optics materials; materials for energy-related fields; semiconductor and electronics peripheral, and processing equipment components; and biotechnology. In addition, the company offers vinyl chloride plastics, plasticizers, additives, commodity resins, compounds, elastomers, engineering plastics, synthetic rubbers, plastic products, machinery, molding machines and auxiliary equipment, laser welding machines, recycling materials, heat dissipating products, printed circuit boards, aluminum products, cellulose nanofiber and plastic composites, polyolefin resins and film products, resin sheets and molded products, sporting goods, and plastic compounds. Further, it sells materials and intermediates for the plastic, super engineering plastic, urethane, fiber, and papermaking and cardboard industries, as well as data recording papers; coating materials; and materials for automobile parts and chemicals, housing, housing material, housing equipment manufacturers, pharmaceutical, advanced medication, chemical, insect repellent, insecticide, and home product industries. Additionally, it offers frozen fruits and vegetables; and fish slices, shrimps, crabs, shellfish, squids, etc. Inabata & Co.,Ltd. was founded in 1890 and is headquartered in Osaka, Japan.

How the Company Makes Money

Inabata & Co., Ltd. generates revenue through multiple streams, primarily by acting as a trading intermediary between manufacturers and end-users. The company earns money by importing and exporting products, with a focus on high-margin items like specialty chemicals and electronic materials. Key revenue streams include direct sales of products, commission fees from transactions, and logistics services that facilitate supply chain management. Inabata has established significant partnerships with various global manufacturers, which enhances its product offerings and market reach. Additionally, the company benefits from its ability to adapt to market trends and customer demands, allowing for diversified revenue generation across different sectors.

Inabata & Co., Ltd. Financial Statement Overview

Summary

Inabata & Co., Ltd. exhibits robust financial health with significant revenue growth and stable profitability margins. The balance sheet is stable with a manageable debt-to-equity ratio and strong equity backing. Cash flow is solid, with effective cash generation relative to net income. However, there is room for improvement in net profit margin and return on equity.

Income Statement

The company demonstrates strong revenue growth with a notable increase from ¥577.58 billion in 2021 to ¥837.84 billion in 2025, reflecting robust market demand. Gross profit margin remained relatively stable, achieving 9.42% in 2025. The net profit margin has shown slight fluctuations, reaching 2.37% in 2025. EBITDA margin is healthy at 4.18% for the same period, indicating efficient cost management. Overall, the company's income statement highlights solid growth and profitability, although net profit margin could be improved.

Balance Sheet

Inabata & Co., Ltd. maintains a stable balance sheet with a manageable debt-to-equity ratio of 0.35 in 2025. The equity ratio stands at 47.11%, underscoring a strong capital structure with significant shareholder equity backing. Return on equity is relatively low at 9.53%, suggesting room for improvement in utilizing equity capital to generate profits. The company's balance sheet reflects stability and prudent financial management, though enhancing ROE would be beneficial.

Cash Flow

The company showcases a solid cash flow position with free cash flow growing from ¥8.49 billion in 2020 to ¥16.12 billion in 2025. Operating cash flow is consistently positive, albeit showing some volatility over the years. The free cash flow to net income ratio of 0.81 indicates effective cash generation relative to net income. Although the free cash flow growth rate was negative from 2024 to 2025, the overall cash flow health is commendable with strong operational cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	828.36B	837.84B	766.02B	735.62B	680.96B	577.58B
Gross Profit	79.52B	78.92B	69.29B	62.88B	57.37B	46.04B
EBITDA	34.83B	35.07B	33.64B	32.88B	34.29B	23.07B
Net Income	19.51B	19.83B	20.00B	19.48B	22.35B	13.79B
Balance Sheet
Total Assets	448.41B	441.97B	427.32B	380.44B	389.06B	353.23B
Cash, Cash Equivalents and Short-Term Investments	59.56B	59.84B	51.31B	36.35B	35.40B	31.46B
Total Debt	81.14B	73.63B	62.84B	64.77B	64.54B	41.21B
Total Liabilities	232.65B	225.41B	220.57B	198.94B	212.15B	177.43B
Stockholders Equity	206.98B	208.16B	200.17B	179.46B	174.92B	173.80B
Cash Flow
Free Cash Flow	0.00	16.12B	25.73B	6.96B	-13.43B	15.10B
Operating Cash Flow	0.00	19.90B	30.19B	9.91B	-11.45B	17.61B
Investing Cash Flow	0.00	-9.50B	-1.39B	8.28B	5.45B	-423.00M
Financing Cash Flow	0.00	-805.00M	-14.98B	-17.57B	6.00B	-17.58B

Inabata & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3745.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8098, the sentiment is Positive. The current price of 3745 is below the 20-day moving average (MA) of 4159.75, below the 50-day MA of 3981.50, and above the 200-day MA of 3518.79, indicating a bullish trend. The MACD of 107.04 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8098.

Inabata & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8098	79 Outperform	¥215.28B	12.01	―	3.43%	2.05%	7.74%
4095	75 Outperform	¥184.67B	13.60	―	3.50%	3.85%	-1.53%
4046	75 Outperform	¥295.69B	21.85	―	1.00%	-3.06%	45.21%
4118	74 Outperform	¥323.41B	12.23	5.47%	3.41%	2.60%	9.50%
4043	63 Neutral	¥297.88B	11.75	8.86%	2.65%	-0.04%	3.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4023	60 Neutral	¥179.79B	18.58	4.24%	3.76%	-7.81%	25.04%

Inabata & Co., Ltd. Corporate Events

Inabata Posts Stable Nine-Month Results, Confirms Dividend Hike and Full-Year Outlook

Inabata & Co., Ltd. reported consolidated results for the nine months ended December 31, 2025, with net sales down 1.6% year on year to ¥624.8 billion and operating profit edging slightly lower by 0.5% to ¥20.3 billion, while ordinary profit rose 3.0% to ¥21.5 billion and profit attributable to owners of parent declined 4.1% to ¥16.7 billion, partly due to a reduced average share count. Total assets increased to ¥493.9 billion and equity expanded to ¥230.2 billion, lifting net assets to ¥240.3 billion, and the company maintained a solid equity ratio of 46.6%; it also confirmed its dividend trajectory with a higher interim dividend and an unchanged full-year payout forecast, and left its full-year FY2026 earnings outlook intact, projecting modest sales growth but slight declines in profits, signaling stable operations but limited near-term earnings expansion for shareholders.

The most recent analyst rating on (JP:8098) stock is a Buy with a Yen4466.00 price target. To see the full list of analyst forecasts on Inabata & Co., Ltd. stock, see the JP:8098 Stock Forecast page.