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Kanto Denka Kogyo Co., Ltd.
(4047)
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Rating:50Neutral
Price Target:
¥2,393.00
▲(116.56% Upside)
Action:Reiterated
Date:07/18/26
The score is held back primarily by inconsistent cash generation (negative free cash flow in FY2025–FY2026) and weak technical momentum (negative MACD and price below key short-term moving averages). A solid balance sheet and an earnings rebound provide some support, but valuation is a headwind given the high P/E and low dividend yield.
Positive Factors
Revenue Recovery
The return to revenue growth indicates recovering demand across the company’s industrial chemical activities. Sustained sales expansion would improve fixed-cost absorption and provide a foundation for rebuilding earnings toward prior-cycle levels.
Negative Factors
Volatile Free Cash Flow
Repeated negative free cash flow suggests that accounting profits are not consistently converting into discretionary cash. Persistent investment requirements or working-capital needs could constrain debt reduction, shareholder returns, and funding for future growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The return to revenue growth indicates recovering demand across the company’s industrial chemical activities. Sustained sales expansion would improve fixed-cost absorption and provide a foundation for rebuilding earnings toward prior-cycle levels.
Read all positive factors
Kanto Denka Kogyo Co., Ltd. (4047) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥133.62B
Dividend Yield0.84%
Average Volume (3M)173.86K
Price to Earnings (P/E)21.2
Beta (1Y)1.25
Revenue Growth12.86%
EPS Growth148.69%
CountryJP
Employees1,169
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)65.96
Shares Outstanding57,546,047
10 Day Avg. Volume198,850
30 Day Avg. Volume173,856
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)1.07
Price to Sales (P/S)1.18
P/FCF Ratio-60.97
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)133.4
Revenue Forecast (FY)¥98.00B
Kanto Denka Kogyo Co., Ltd. Business Overview & Revenue Model
Company Description
Kanto Denka Kogyo Co., Ltd., founded in Tokyo, Japan, in 1938, is an international manufacturer and supplier of a diverse range of chemical products, segmented into two main divisions: Fundamental Chemicals and Fine Chemicals. The Fundamental Chem...
How the Company Makes Money
Kanto Denka Kogyo primarily makes money by manufacturing and selling chemical products to business customers (B2B), generating revenue from product shipments under supply contracts and recurring customer demand for process materials. Key revenue s...
Kanto Denka Kogyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
41
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 65.40B | 62.35B | 64.77B | 78.67B | 62.29B |
| Gross Profit | 15.83B | 13.99B | 7.17B | 22.57B | 19.86B |
| EBITDA | 14.79B | 12.52B | 6.53B | 20.65B | 17.84B |
| Net Income | 3.79B | 3.25B | -4.61B | 9.38B | 7.76B |
Balance Sheet | |||||
| Total Assets | 131.31B | 123.62B | 125.30B | 130.76B | 109.90B |
| Cash, Cash Equivalents and Short-Term Investments | 20.22B | 20.29B | 25.41B | 22.36B | 26.73B |
| Total Debt | 39.84B | 37.88B | 41.68B | 37.79B | 30.91B |
| Total Liabilities | 57.06B | 55.99B | 59.72B | 61.98B | 49.99B |
| Stockholders Equity | 72.40B | 65.96B | 64.01B | 67.48B | 58.25B |
Cash Flow | |||||
| Free Cash Flow | -1.27B | -2.45B | 242.00M | -8.51B | 270.00M |
| Operating Cash Flow | 7.28B | 13.09B | 11.21B | 7.29B | 11.18B |
| Investing Cash Flow | -9.22B | -14.08B | -10.55B | -16.63B | -11.12B |
| Financing Cash Flow | 676.00M | -4.72B | 1.78B | 4.42B | 2.42B |
Kanto Denka Kogyo Co., Ltd. Technical Analysis
Neutral
1105.00
Price Trends
3001.08
Negative
2753.12
Negative
2006.64
Positive
Market Momentum
-169.55
Positive
38.71
Neutral
18.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4047, the sentiment is Neutral. The current price of 1105 is below the 20-day moving average (MA) of 2598.90, below the 50-day MA of 3001.08, and below the 200-day MA of 2006.64, indicating a neutral trend. The MACD of -169.55 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4047.
Kanto Denka Kogyo Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥123.53B | 10.78 | ― | 3.72% | 8.94% | 22.70% | |
77 Outperform | ¥95.60B | 10.54 | ― | 3.02% | 3.44% | 15.09% | |
74 Outperform | ¥101.17B | 11.27 | ― | 3.04% | 1.64% | -24.06% | |
70 Outperform | ¥102.79B | 11.94 | 15.57% | 1.74% | 11.90% | 93.07% | |
70 Outperform | ¥103.67B | 17.06 | ― | 1.30% | 11.71% | 15.04% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | ¥133.62B | 21.15 | ― | 1.60% | 12.86% | 148.69% |
* Basic Materials Sector Average
JP:4047
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Kanto Denka Kogyo Co., Ltd. Corporate Events
Kanto Denka Kogyo Delivers Strong Q1 on Semiconductor Gas and Battery Materials Demand
Aug 10, 2026
Kanto Denka Kogyo reported strong first-quarter results for the fiscal year ending March 2027, driven by higher sales of specialty gases for semiconductors and increased demand for battery materials in North America. Net sales rose significantly, ...
Kanto Denka Kogyo Lifts Profit Outlook on Strong Semiconductor Gas Pricing
Aug 10, 2026
Kanto Denka Kogyo revised its interim and full-year forecasts, projecting significantly higher profits while keeping net sales unchanged. For the six months ending September 30, 2026, operating and ordinary profit are now expected to be ¥6.6 ...
Kanto Denka Kogyo Posts Strong Q1 Rebound and Lifts Full-Year Outlook
Aug 10, 2026
Kanto Denka Kogyo reported a sharp rebound in earnings for the quarter ended June 30, 2026, with net sales rising 30.6% year-on-year to ¥19.8 billion and profit attributable to owners of parent surging more than fivefold to ¥3.2 billion....
Kanto Denka Kogyo Faces Shareholder Derivative Suit Over Shibukawa Plant Fire
Jul 28, 2026
Kanto Denka Kogyo has disclosed that an individual shareholder filed a derivative lawsuit in the Tokyo District Court seeking ¥1.03 billion in damages from seven current directors and one former director, alleging breach of the duty of care u...
Kanto Denka Kogyo Updates Capital-Efficient Management Initiatives
Jun 29, 2026
Kanto Denka Kogyo Co., Ltd. has updated its initiatives to implement management practices that take into account the cost of capital and stock price, aiming to achieve sustainable growth and enhance corporate value over the medium to long term. Th...
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.