Konoshima Chemical Co., Ltd. (4026) AI Stock Analysis

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Konoshima Chemical Co., Ltd.

(TSE/TYO:4026)

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Rating:65Neutral

Price Target:JPY 1,632.00▲(9.90% Upside)

Action:reiterated

Date:09/11/26

The score is driven primarily by solid profitability and balance-sheet positioning but is held back by inconsistent and weakening free-cash-flow conversion. Valuation is a key positive with a low P/E and a ~3.23% dividend yield, while technicals remain a modest headwind because the stock is trading below major moving averages despite neutral momentum readings.

Positive Factors

Steady revenue and improving marginsSteady revenue growth indicates sustained demand for Konoshima Chemical’s ceramic and inorganic-material products. The improvement in 2026 gross and operating margins, alongside higher net profit, suggests better profitability and provides a stronger base for investment and earnings durability.

Negative Factors

Weak free-cash-flow conversionThe sharp deterioration in free cash flow despite higher profits reduces confidence in earnings-to-cash conversion. If this pattern persists, greater reinvestment or working-capital needs could limit internally funded growth, shareholder distributions, and financial flexibility over the next several quarters.

Konoshima Chemical Co., Ltd. (4026) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 13.49B
Dividend Yield: 3.50%
Average Volume (3M): 54.88K
Price to Earnings (P/E): 6.9
Beta (1Y): 1.27
Revenue Growth: 3.43%
EPS Growth: 47.27%
Country: Japan
Employees: 448
Sector: Industrials
Sector Strength: 63
Industry: Construction Materials

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

Company Description

Established in 1917 and headquartered in Osaka, Japan, Konoshima Chemical Co.,Ltd. is a diversified entity engaged in the production and distribution of construction materials, chemical products, and ceramics. The company's extensive range of buildin...

How the Company Makes Money

Konoshima Chemical generates revenue primarily through (1) product sales of ceramic/inorganic-material goods and (2) related processing/manufacturing services where applicable. Key revenue streams generally come from supplying building-material produ...

Konoshima Chemical Co., Ltd. Financial Statement Overview

Summary

Income statement trends are solid with steady revenue growth and improved 2026 margins, and leverage appears manageable with consistent ROE. However, cash-flow quality is a notable weakness: free cash flow has been volatile and deteriorated sharply in 2026 despite higher profits, lowering confidence in earnings-to-cash conversion.

Income Statement

74Positive

Balance Sheet

68Positive

Cash Flow

44Neutral

Financial statement breakdown
Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2023	Apr 2022
Income Statement
Total Revenue	18.37B	28.01B	27.41B	23.98B	25.97B	21.79B
Gross Profit	5.15B	8.11B	6.93B	6.74B	6.83B	6.62B
EBITDA	2.79B	4.66B	3.76B	3.42B	3.92B	3.02B
Net Income	1.31B	1.85B	1.43B	1.53B	1.62B	1.36B
Balance Sheet
Total Assets	29.42B	30.79B	30.80B	29.42B	29.82B	24.74B
Cash, Cash Equivalents and Short-Term Investments	2.15B	1.20B	1.44B	2.15B	1.17B	1.87B
Total Debt	7.98B	9.12B	9.24B	7.98B	10.44B	5.60B
Total Liabilities	18.86B	16.08B	17.83B	18.86B	17.91B	15.37B
Stockholders Equity	10.56B	14.71B	12.96B	10.56B	11.91B	9.37B
Cash Flow
Free Cash Flow	0	182.00M	1.86B	-2.36B	-2.25B	-345.00M
Operating Cash Flow	0	3.16B	3.09B	1.82B	3.34B	2.06B
Investing Cash Flow	0	-3.00B	-1.24B	-4.17B	-5.64B	-2.37B
Financing Cash Flow	0	-390.00M	-1.59B	2.63B	1.32B	1.22B

Konoshima Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1485.00

Price Trends

50DMA1541.77Negative

100DMA1566.11Negative

200DMA1671.47Negative

Market Momentum

MACD-26.78Positive

RSI47.25Neutral

STOCH55.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4026, the sentiment is Negative. The current price of 1485.00 is below the 20-day moving average (MA) of 1495.38, below the 50-day MA of 1541.77, and below the 200-day MA of 1671.47, indicating a bearish trend. The MACD of -26.78 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4026.

Konoshima Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:4026 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7871	78Outperform	JPY 19.80B	10.36	―	3.22%	4.25%	27.60%
JP:5351	77Outperform	JPY 89.10B	3.04	―	4.93%	20.53%	203.93%
JP:5391	70Outperform	JPY 7.76B	13.94	―	4.67%	6.07%	636.37%
JP:4216	68Neutral	JPY 104.57B	25.78	―	2.62%	0.86%	-37.32%
JP:4026	65Neutral	JPY 13.32B	6.88	―	3.50%	3.43%	47.27%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:4212	62Neutral	JPY 85.05B	14.59	―	3.24%	4.65%	63.01%

* Industrials Sector Average

Performance Comparison

JP:4026 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4026	Konoshima Chemical Co., Ltd.	1485.00	69.06	4.88%
JP:4212	Sekisui Jushi Corporation	2841.00	786.75	38.30%
JP:4216	ASAHI YUKIZAI CORPORATION	5720.00	1322.67	30.08%
JP:5351	Shinagawa Refractories Co., Ltd.	1865.00	56.35	3.12%
JP:5391	A&A Material Corporation	1393.00	222.79	19.04%
JP:7871	Fukuvi Chemical Industry Co., Ltd.	962.00	51.04	5.60%

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: Sep 11, 2026

Konoshima Chemical Co., Ltd. AI Stock Analysis