Kanto Denka Kogyo Co., Ltd. AI Stock Analysis
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Kanto Denka Kogyo Co., Ltd. (4047) AI Stock Analysis
Kanto Denka Kogyo Co., Ltd.
(TSE/TYO:4047)
Kanto Denka Kogyo's moderate overall score is primarily anchored by its highly attractive valuation (P/E under 10) and a stabilizing balance sheet with low leverage and recovering margins. However, the stock is heavily weighed down by a severe technical downtrend, with shares trading far below all key moving averages. Furthermore, persistently negative free cash flow limits the company's financial flexibility, presenting a notable fundamental risk.
Kanto Denka Kogyo Co., Ltd. (4047) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 98.13B
- Dividend Yield
- 2.16%
- Average Volume (3M)
- 684.19K
- Price to Earnings (P/E)
- 9.4
- Beta (1Y)
- 1.50
- Revenue Growth
- 27.51%
- EPS Growth
- 443.00%
- 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
The company boasts a solid balance sheet with a comfortable debt-to-equity ratio of 0.55 and recovering profitability margins. However, heavy capital expenditures have led to declining operating cash flows and persistently negative free cash flow, significantly restraining the overall financial score.
Income Statement
68PositiveBalance Sheet
78PositiveCash Flow
46Neutral| 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 1711.00 is below the 20-day moving average (MA) of 1903.40, below the 50-day MA of 2134.25, and below the 200-day MA of 2269.92, indicating a bearish trend. The MACD of -147.70 indicates Positive momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 51.51 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:495680Outperform
JP:411674Outperform
JP:418773Outperform
JP:463369Neutral- JP:404762Neutral
JP:436962Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:4956 | 80Outperform | JPY 105.93B | 10.26 | ― | 2.34% | 6.76% | 29.50% |
| JP:4116 | 74Outperform | JPY 98.79B | 9.36 | ― | 3.75% | 5.48% | 65.96% |
| JP:4187 | 73Outperform | JPY 94.93B | 9.93 | 16.64% | 1.94% | 17.54% | 90.80% |
| JP:4633 | 69Neutral | JPY 118.49B | 10.78 | ― | 3.87% | 10.82% | 13.57% |
| JP:4047 | 62Neutral | JPY 98.29B | 9.42 | ― | 2.16% | 27.51% | 443.00% |
| JP:4369 | 62Neutral | JPY 92.78B | 15.18 | ― | 1.23% | 12.47% | 7.08% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4047 | Kanto Denka Kogyo Co., Ltd. | 1711.00 | 716.14 | 71.98% | |
| JP:4187 | Osaka Organic Chemical Industry Ltd. | 4285.00 | 477.73 | 12.55% | |
| JP:4116 | Dainichiseika Color & Chemicals Mfg.Co., Ltd. | 1366.00 | 443.71 | 48.11% | |
| JP:4369 | Tri Chemical Laboratories Inc. | 2855.00 | 39.59 | 1.41% | |
| JP:4633 | Sakata Inx Corp. | 2585.00 | 341.01 | 15.20% | |
| JP:4956 | Konishi Co., Ltd. | 1621.00 | 379.33 | 30.55% |
Kanto Denka Kogyo Co., Ltd. Corporate Events
Kanto Denka Sets November 30 Date for Head Office Relocation
Kanto Denka Kogyo said its board determined November 30, 2026, as the date for relocating its head office to 6-7-29 Kitashinagawa, Shinagawa-ku, Tokyo. The company said the relocation’s impact on consolidated financial results was taken into account...
Kanto Denka Kogyo Approves 26-Yen Interim Dividend
Kanto Denka Kogyo Co., Ltd. announced that its board approved an interim dividend of 26 yen per share for shareholders of record on September 30, 2026, with total payments of 1.495 billion yen. The dividend is scheduled to take effect on December 8,...
Kanto Denka Reports 44.0% First-Half Sales Growth
Kanto Denka Kogyo Co., Ltd. reported consolidated net sales of ¥44,405 million for the six months ended September 30, 2026, up 44.0% year on year. Operating profit was ¥9,448 million, ordinary profit was ¥9,524 million, and profit attributable to own...
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...
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: Nov 12, 2026