Taki Chemical Co., Ltd. (4025) AI Stock Analysis

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Taki Chemical Co., Ltd.

(TSE/TYO:4025)

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Rating:69Neutral

Price Target:JPY 5,475.00▲(3.89% Upside)

Action:downgraded

Date:10/23/26

The score is supported primarily by improving profitability and an exceptionally low-leverage balance sheet, which strengthen financial resilience. This is tempered by inconsistent cash-flow generation and currently weak technical momentum (below key short-term moving averages with negative MACD). Valuation is reasonable (P/E 12.64) but the dividend yield is modest (~1.17%).

Positive Factors

Improving ProfitabilityMeaningful margin expansion since 2023 indicates stronger operating economics and improved earnings quality. Higher profitability can provide greater resilience against cost pressure, support reinvestment, and allow more earnings to accumulate over the next several quarters.

Negative Factors

Volatile Cash GenerationUneven free-cash-flow generation weakens the connection between reported earnings and internally available cash. The sharp 2025 reduction could constrain discretionary investment, shareholder distributions, or balance-sheet strengthening if inconsistent conversion persists.

Taki Chemical Co., Ltd. (4025) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 43.99B
Dividend Yield: 1.23%
Average Volume (3M): 23.82K
Price to Earnings (P/E): 11.4
Beta (1Y): 0.74
Revenue Growth: 8.56%
EPS Growth: 38.01%
Country: Japan
Employees: 640
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals

Taki Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Taki Chemical Co., Ltd., founded in 1885 and headquartered in Kakogawa, Japan, is a diversified company operating in the agriculture, chemical, and real estate sectors. Formerly known as Taki Fertilizer Manufacturing Co., Ltd. until its name change i...

How the Company Makes Money

Taki Chemical Co., Ltd. generates revenue primarily by selling chemical products to corporate customers (B2B) under commercial supply agreements. Its earnings are driven by (1) product sales volume and mix across its chemical product lineup, (2) unit...

Taki Chemical Co., Ltd. Financial Statement Overview

Summary

Profitability has improved meaningfully (gross margin ~24.4% and net margin ~7.8% in 2025 vs. ~19.9% and ~3.9% in 2023) and the balance sheet is very conservatively financed (debt-to-equity ~0.03) with growing equity. Offsetting this, cash-flow quality is weaker with volatile free cash flow (negative in 2022–2023 and only ~¥0.75B in 2025) and uneven cash conversion versus net income.

Income Statement

76Positive

Balance Sheet

88Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.89B	41.98B	38.92B	34.85B	35.85B	32.81B
Gross Profit	10.67B	10.24B	8.74B	6.74B	8.61B	8.44B
EBITDA	4.83B	4.53B	3.91B	2.06B	4.03B	3.85B
Net Income	3.42B	3.28B	2.30B	1.36B	2.06B	1.92B
Balance Sheet
Total Assets	68.41B	65.65B	58.40B	51.30B	50.32B	46.04B
Cash, Cash Equivalents and Short-Term Investments	6.98B	7.37B	7.46B	5.08B	6.26B	6.53B
Total Debt	1.27B	1.26B	1.22B	1.15B	1.24B	1.34B
Total Liabilities	23.02B	22.32B	20.44B	17.40B	18.26B	16.66B
Stockholders Equity	44.94B	42.89B	37.88B	33.82B	31.95B	29.24B
Cash Flow
Free Cash Flow	0	748.00M	2.53B	-529.00M	-34.00M	218.00M
Operating Cash Flow	0	2.31B	4.34B	1.62B	1.44B	2.82B
Investing Cash Flow	0	-1.06B	-1.61B	-1.64B	-1.08B	-2.32B
Financing Cash Flow	0	-1.46B	-352.00M	-1.17B	-543.00M	-498.00M

Taki Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price5270.00

Price Trends

50DMA5641.20Negative

100DMA5422.20Negative

200DMA4948.90Positive

Market Momentum

MACD-131.28Positive

RSI42.16Neutral

STOCH59.63Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4025, the sentiment is Negative. The current price of 5270.00 is below the 20-day moving average (MA) of 5443.00, below the 50-day MA of 5641.20, and above the 200-day MA of 4948.90, indicating a neutral trend. The MACD of -131.28 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 59.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4025.

Taki Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4025 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5013	84Outperform	JPY 41.31B	8.94	―	3.82%	-0.92%	0.66%
JP:4463	71Outperform	JPY 29.46B	7.77	―	3.46%	10.62%	52.17%
JP:4025	69Neutral	JPY 45.86B	11.38	―	1.23%	8.56%	38.01%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:4960	59Neutral	JPY 8.07B	20.98	―	1.02%	6.87%	300.65%
JP:4366	48Neutral	JPY 14.38B	11.80	―	1.88%	10.12%	43.23%

* Basic Materials Sector Average

Performance Comparison

JP:4025 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4025	Taki Chemical Co., Ltd.	5270.00	1766.77	50.43%
JP:4366	Daito Chemix Corporation	426.00	166.39	64.10%
JP:4463	Nicca Chemical Co., Ltd.	1881.00	448.04	31.27%
JP:4960	Chemipro Kasei Kaisya,Ltd.	488.00	164.43	50.82%
JP:5013	Yushiro Chemical Industry Co., Ltd.	3195.00	1014.39	46.52%

Taki Chemical Co., Ltd. Corporate Events

Taki Chemical Reports Higher Nine-Month Revenue and Profit

Nov 9, 2026

Taki Chemical Co., Ltd. is a Tokyo-listed chemical company, although the release does not specify its primary products or market focus. For the nine months ended September 30, 2026, revenue rose 9.5% year on year to ¥33.05 billion, while operating pr...

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.

Date of analysis: Oct 23, 2026

Taki Chemical Co., Ltd. AI Stock Analysis