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Kanto Denka Kogyo Co., Ltd. (4047) AI Stock Analysis
Kanto Denka Kogyo Co., Ltd.
(TSE/TYO:4047)
The overall score of 51 reflects a company in transition with significant headwinds. The primary concern is the weak technical picture, with the stock in a clear downtrend and strong bearish momentum. This is compounded by deteriorating cash flows, which pose a financial risk despite a solid balance sheet. Positively, the company is showing operational recovery and trades at a reasonable valuation, but these factors are not strong enough to offset the near-term technical and cash flow pressures.
Kanto Denka Kogyo Co., Ltd. (4047) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 112.30B
- Dividend Yield
- 1.48%
- Average Volume (3M)
- 704.99K
- Price to Earnings (P/E)
- 17.3
- Beta (1Y)
- 1.35
- Revenue Growth
- 12.86%
- EPS Growth
- 148.69%
- Country
- Japan
- Employees
- 1,169
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
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 Chemica...
Kanto Denka Kogyo Co., Ltd. Financial Statement Overview
Summary
Financial performance is mixed. The income statement shows a recovery with 5.4% revenue growth and improving margins, but profitability remains below historical peaks and a recent sharp loss highlights cyclical risks. The balance sheet is healthy with manageable leverage (D/E 0.55) and growing equity. However, cash flow has deteriorated significantly, with negative free cash flow and a low coverage ratio, presenting a liquidity risk.
Income Statement
55NeutralBalance Sheet
60NeutralCash Flow
40Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.40B | 65.40B | 62.35B | 64.77B | 78.67B | 62.29B |
| Gross Profit | 15.83B | 15.83B | 13.99B | 7.17B | 22.57B | 19.86B |
| EBITDA | 14.79B | 14.79B | 12.52B | 6.53B | 20.65B | 17.84B |
| Net Income | 3.79B | 3.79B | 3.25B | -4.61B | 9.38B | 7.76B |
Balance Sheet | ||||||
| Total Assets | 131.31B | 131.31B | 123.62B | 125.30B | 130.76B | 109.90B |
| Cash, Cash Equivalents and Short-Term Investments | 20.22B | 20.22B | 20.29B | 25.41B | 22.36B | 26.73B |
| Total Debt | 39.84B | 39.84B | 37.88B | 41.68B | 37.79B | 30.91B |
| Total Liabilities | 57.06B | 57.06B | 55.99B | 59.72B | 61.98B | 49.99B |
| Stockholders Equity | 72.40B | 72.40B | 65.96B | 64.01B | 67.48B | 58.25B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -1.27B | -2.45B | 242.00M | -8.51B | 270.00M |
| Operating Cash Flow | 0 | 7.28B | 13.09B | 11.21B | 7.29B | 11.18B |
| Investing Cash Flow | 0 | -9.22B | -14.08B | -10.55B | -16.63B | -11.12B |
| Financing Cash Flow | 0 | 676.00M | -4.72B | 1.78B | 4.42B | 2.42B |
Kanto Denka Kogyo Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4047, the sentiment is Negative. The current price of 1958.00 is below the 20-day moving average (MA) of 2211.20, below the 50-day MA of 2246.01, and below the 200-day MA of 2244.83, indicating a bearish trend. The MACD of -96.84 indicates Positive momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 63.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4047.
Kanto Denka Kogyo Co., Ltd. Peers Comparison
Overall Rating
JP:463385Outperform
JP:418780Outperform
JP:495677Outperform
JP:411674Outperform
JP:436966Neutral- JP:404751Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4633 | 85Outperform | JPY 123.48B | 10.95 | ― | 3.71% | 8.94% | 22.70% |
| JP:4187 | 80Outperform | JPY 96.59B | 10.10 | 16.64% | 1.90% | 17.54% | 90.80% |
| JP:4956 | 77Outperform | JPY 99.98B | 9.68 | ― | 2.48% | 6.76% | 29.50% |
| JP:4116 | 74Outperform | JPY 96.04B | 10.66 | ― | 3.86% | 1.64% | -24.06% |
| JP:4369 | 66Neutral | JPY 98.79B | 16.16 | ― | 1.15% | 12.47% | 7.08% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| JP:4047 | 51Neutral | JPY 112.48B | 17.31 | ― | 1.48% | 12.86% | 148.69% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4047 | Kanto Denka Kogyo Co., Ltd. | 1958.00 | 931.62 | 90.77% | |
| JP:4187 | Osaka Organic Chemical Industry Ltd. | 4360.00 | 592.03 | 15.71% | |
| JP:4116 | Dainichiseika Color & Chemicals Mfg.Co., Ltd. | 1328.00 | 423.54 | 46.83% | |
| JP:4369 | Tri Chemical Laboratories Inc. | 3040.00 | 78.13 | 2.64% | |
| JP:4633 | Sakata Inx Corp. | 2694.00 | 507.58 | 23.21% | |
| JP:4956 | Konishi Co., Ltd. | 1530.00 | 326.31 | 27.11% |
Kanto Denka Kogyo Co., Ltd. Corporate Events
Kanto Denka Kogyo Lifts Earnings Outlook on Strong Semiconductor Gas Demand
Kanto Denka Kogyo Co., Ltd. revised its consolidated forecast for the six months ending September 30, 2026, after reporting stronger-than-expected results, driven mainly by increased sales of specialty gas products to the semiconductor industry. Inte...
Kanto Denka Kogyo Delivers Strong Q1 on Semiconductor Gas and Battery Materials Demand
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, and...
Kanto Denka Kogyo Lifts Profit Outlook on Strong Semiconductor Gas Pricing
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 bil...
Kanto Denka Kogyo Posts Strong Q1 Rebound and Lifts Full-Year Outlook
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. Ba...
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 19, 2026