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Microwave Chemical Co., Ltd.
(9227)
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Rating:53Neutral
Price Target:
¥1,199.00
▲(103.91% Upside)
Action:Reiterated
Date:03/05/26
The score is held up by improving profitability and a reasonably stable balance sheet, but is pressured by persistent negative free cash flow and inconsistent revenue trends. Technicals also weaken the outlook as the stock trades below key short-term moving averages with negative MACD, and valuation is constrained by a negative P/E and no provided dividend yield.
Positive Factors
Proprietary microwave process IP
Owning microwave-based chemical process technology is a durable competitive asset: it enables differentiated process efficiency, energy savings and new manufacturing routes for industrial customers. This IP can create barriers to entry, support premium engineering services, and underpins long-term commercial licensing opportunities.
Negative Factors
Consistently negative free cash flow
Persistent negative free cash flow is a structural weakness: it limits the company’s ability to self-fund scaling, capital equipment, or working-capital needs. Even with margin gains, weak cash conversion increases reliance on external financing, raising execution risk and potential dilution or leverage pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary microwave process IP
Owning microwave-based chemical process technology is a durable competitive asset: it enables differentiated process efficiency, energy savings and new manufacturing routes for industrial customers. This IP can create barriers to entry, support premium engineering services, and underpins long-term commercial licensing opportunities.
Read all positive factors
Microwave Chemical Co., Ltd. (9227) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥13.04B
Dividend YieldN/A
Average Volume (3M)940.23K
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth-50.03%
EPS Growth-612.74%
CountryJP
Employees55
SectorGeneral
Sector StrengthN/A
IndustryChemicals
Share Statistics
EPS (TTM)-51.43
Shares Outstanding15,904,500
10 Day Avg. Volume869,720
30 Day Avg. Volume940,230
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)51.41
Price to Sales (P/S)18.81
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Microwave Chemical Co., Ltd. Business Overview & Revenue Model
Company Description
Founded in 2007 and headquartered in Suita, Japan, Microwave Chemical Co., Ltd. focuses on the investigation, creation, engineering, and permissioning of microwave chemical processes throughout Japan. The firm additionally manages a dedicated micr...
How the Company Makes Money
Microwave Chemical Co., Ltd. primarily makes money by monetizing its microwave-assisted process technology through industrial commercialization. Key revenue streams include: (1) technology/engineering services, where the company designs and provid...
Microwave Chemical Co., Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
50
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 803.00M | 1.61B | 1.86B | 1.22B | 860.51M |
| Gross Profit | 222.00M | 1.08B | 1.12B | 863.53M | 657.68M |
| EBITDA | -708.21M | 273.74M | -810.33M | 137.59M | -24.44M |
| Net Income | -816.00M | 161.48M | -944.89M | 75.39M | -110.25M |
Balance Sheet | |||||
| Total Assets | 1.78B | 2.12B | 1.89B | 3.08B | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 607.17M | 507.10M | 529.40M | 1.25B | 220.53M |
| Total Debt | 1.12B | 724.37M | 525.37M | 745.31M | 815.25M |
| Total Liabilities | 1.48B | 1.06B | 1.04B | 1.37B | 956.97M |
| Stockholders Equity | 293.75M | 1.06B | 856.29M | 1.71B | 625.44M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -220.33M | -90.45M | 171.91M | -351.85M |
| Operating Cash Flow | 0.00 | -73.52M | 205.75M | 372.94M | -226.01M |
| Investing Cash Flow | 0.00 | -147.24M | -797.82M | -282.48M | -125.84M |
| Financing Cash Flow | 0.00 | 198.44M | -124.79M | 935.28M | 190.06M |
Microwave Chemical Co., Ltd. Technical Analysis
Negative
588.00
Price Trends
912.08
Negative
968.44
Negative
900.00
Negative
Market Momentum
-21.87
Positive
38.10
Neutral
7.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9227, the sentiment is Negative. The current price of 588 is below the 20-day moving average (MA) of 894.95, below the 50-day MA of 912.08, and below the 200-day MA of 900.00, indicating a bearish trend. The MACD of -21.87 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 7.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9227.
Microwave Chemical Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥43.05B | 12.12 | ― | 0.13% | 8.56% | 41.65% | |
75 Outperform | ¥39.84B | 7.97 | ― | 3.53% | -7.83% | 13.39% | |
64 Neutral | ¥27.35B | 9.16 | ― | 3.53% | 4.47% | 9.89% | |
63 Neutral | ¥14.79B | 11.44 | ― | 3.89% | -0.65% | -0.10% | |
63 Neutral | ¥15.31B | 18.20 | ― | 1.81% | 4.46% | -3.54% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ¥13.04B | -15.38 | ― | ― | -50.03% | -612.74% |
* General Sector Average
JP:9227
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.