Kuraray Co (KURRY) AI Stock Analysis

• Market Cap: $3.14B
• Dividend Yield: 2.56%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 63.0
• Beta (1Y): 0.70
• Revenue Growth: -1.09%
• EPS Growth: -83.56%
• Country: US
• Employees: 11,941
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.93
• Shares Outstanding: 102,654,530
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.85
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 502.93
• Enterprise Value/Market Cap: 217.01
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 6.28
• 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: 54 Neutral
• Price Target: $31.00 ▲(1.14% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Overall score is held back primarily by the 2025 deterioration in profitability and the sharp weakening/volatility in free cash flow, despite a reasonably solid balance sheet. Technicals are supportive but appear near overbought, and the very high P/E keeps valuation risk elevated even with a moderate dividend yield.

Positive Factors

Specialty materials portfolio

Kuraray’s proprietary PVA/EVOH and other specialty polymers create durable product differentiation and technical barriers to entry. These high-value materials underpin long-term supply relationships with packaging, automotive and healthcare customers, supporting pricing power and resilient demand.

Revenue growth momentum

Consistent revenue growth and a re-acceleration in 2025 indicate underlying demand resilience across diversified industrial end markets. This steady top-line trend supports capacity utilization, long-term customer contracts, and the ability to invest in product development and plant upgrades over the next several months.

Reasonable leverage and expanding equity

A moderate debt profile and growing equity base provide financial flexibility to fund capex and weather cyclical swings. The expanding asset base supports scale and distribution; this balance-sheet resiliency reduces bankruptcy risk and preserves optionality for strategic investments over a medium-term horizon.

Negative Factors

Profitability compression

A collapse to ~1% net margin materially weakens earnings quality and the firm’s ability to generate retained earnings. Sustained low margins limit reinvestment, reduce ROE and make the business more vulnerable to cost inflation or pricing pressure, impairing financial durability over months ahead.

Volatile free cash flow

Highly variable FCF and a swing to near-breakeven in 2025 raise execution and funding risks. Weak cash conversion constrains organic funding for capex and working capital, increasing reliance on external financing and limiting the company's ability to sustain investments or cushion earnings variability over the medium term.

Rising debt and falling returns

An uptick in debt alongside declining ROE signals deteriorating capital efficiency. If earnings remain compressed, higher leverage increases interest and refinancing risk and will further pressure returns to shareholders, constraining strategic flexibility and elevating financial risk across the coming months.

Kuraray Co Business Overview & Revenue Model

Company Description

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. The company was founded in 1926 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kuraray primarily makes money by manufacturing and selling specialty chemical and polymer-based materials to industrial customers (B2B). Its revenue model is largely volume- and contract-driven, with pricing influenced by product performance, customer specifications, and (for some product lines) feedstock and energy costs. Key revenue streams typically include: 1) Specialty resins and barrier materials: Sales of high-value polymers and resins used for performance applications—most notably PVA and EVOH-based materials used for barrier packaging (to block oxygen and preserve food/contents) and other industrial uses. These products tend to earn revenue through long-term supply relationships with packaging and materials converters and brand supply chains. 2) Vinyl chain-related chemicals and derivatives: Sales of chemical intermediates and related specialty materials derived from the company’s polymer chemistry platform, supplied to manufacturers across multiple industries. 3) Performance materials and fibers: Revenue from synthetic fibers, films, elastomers, and other engineered materials sold into applications requiring durability, adhesion, flexibility, or specialized functional performance. 4) Activated carbon and filtration-related products: Sales of activated carbon products and related solutions used for purification, filtration, and industrial processing applications. Kuraray’s earnings are supported by its portfolio of proprietary technologies and specialty-grade products that can command premium pricing versus commodity chemicals, as well as global manufacturing and distribution that allow it to supply multinational customers. Significant partnerships or specific customer contracts are not available in this context and are therefore null.

Kuraray Co Financial Statement Overview

Summary

Mixed fundamentals: steady revenue growth and a reasonably leveraged balance sheet, but a sharp 2025 profitability step-down (net margin ~1%) and weak/volatile free cash flow (near breakeven in 2025) materially reduce earnings quality.

Income Statement

Revenue has grown steadily over the period, with 2025 showing a re-acceleration in growth versus 2024. Profitability, however, has weakened materially: net margin fell sharply from 2022–2024 levels to about 1% in 2025, and operating margin also stepped down versus prior years. Gross margin remains relatively stable around the low-30% range, but the sharp drop in bottom-line results suggests higher costs, weaker pricing/mix, or non-operating headwinds that are pressuring earnings quality.

Balance Sheet

Leverage appears reasonable for a chemicals company, with debt-to-equity in the ~0.32–0.50 range across recent years and improving versus 2020–2022 levels. Equity has grown over time and the asset base has expanded, supporting balance-sheet resilience. The main watch item is that debt rose in 2025 versus 2024, and returns on equity have trended down meaningfully from 2022–2023 highs, consistent with the latest earnings compression.

Cash Flow

Cash generation is the weakest area. While operating cash flow remains positive (and was strong in 2023–2025), free cash flow swung from healthy levels in 2023–2024 to near breakeven in 2025. Cash conversion versus earnings also deteriorated sharply in 2025, implying higher working-capital needs and/or elevated capital spending. The volatility in free cash flow (including negative free cash flow in 2020 and 2022) adds execution and funding-risk considerations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	815.64B	847.64B	826.89B	780.94B	756.38B	629.37B
Gross Profit	251.87B	258.46B	267.52B	239.98B	241.66B	204.14B
EBITDA	108.56B	150.55B	141.17B	141.25B	144.91B	131.26B
Net Income	15.32B	7.83B	31.72B	42.45B	54.31B	37.26B
Balance Sheet
Total Assets	1.26T	1.30T	1.29T	1.25T	1.22T	1.09T
Cash, Cash Equivalents and Short-Term Investments	115.00B	108.39B	121.69B	134.62B	128.58B	155.80B
Total Debt	265.64B	285.11B	244.28B	282.02B	324.40B	307.44B
Total Liabilities	510.33B	548.71B	509.45B	518.33B	553.00B	511.41B
Stockholders Equity	730.12B	743.36B	764.28B	714.63B	647.09B	560.40B
Cash Flow
Free Cash Flow	0.00	981.38M	62.52B	68.75B	-20.93B	8.04B
Operating Cash Flow	0.00	103.37B	138.29B	129.30B	51.73B	78.22B
Investing Cash Flow	0.00	-102.89B	-76.01B	-63.15B	-68.62B	-65.59B
Financing Cash Flow	0.00	-17.10B	-82.50B	-64.96B	-12.05B	-47.45B

Kuraray Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURRY, the sentiment is Negative. The current price of 30.65 is below the 20-day moving average (MA) of 33.01, below the 50-day MA of 32.92, and below the 200-day MA of 34.03, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 36.99 is Neutral, neither overbought nor oversold. The STOCH value of 14.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KURRY.

Kuraray Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CE	58 Neutral	$6.24B	-3.97	-25.13%	0.29%	-7.34%	-382.79%
DOW	56 Neutral	$26.30B	-6.34	-15.53%	9.17%	-5.25%	-208.14%
KURRY	54 Neutral	$3.14B	63.03	1.02%	2.56%	-1.09%	-83.56%
HUN	51 Neutral	$1.81B	-6.29	-10.06%	8.44%	-3.46%	-191.77%
TROX	51 Neutral	$1.11B	-1.41	-29.85%	8.27%	-7.81%	-334.15%
BAK	47 Neutral	$1.43B	-49.30	128.17%	―	-10.68%	36.31%