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Kanto Denka Kogyo Co., Ltd. (4047) AI Stock Analysis

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JP:4047

Kanto Denka Kogyo Co., Ltd.

(TSE/TYO:4047)

Select Model
Rating:55Neutral
Price Target:JPY 1,857.00â–²(2.48% Upside)
Action:reiterated
Date:11/12/26

The score is primarily driven by mixed fundamentals: a clear earnings rebound and a manageable balance sheet are offset by inconsistent cash generation and negative recent free cash flow. Technically, the setup is weak with the price below all key moving averages and negative MACD, which drags the score. Valuation helps, supported by a low P/E and a moderate dividend yield.

Positive Factors
Earnings RecoveryThe return to revenue growth and positive earnings after the FY2024 loss indicates that the business has regained operating traction. If maintained, the recovery can rebuild internal funding capacity, support investment in specialty products, and improve resilience over the next several quarters.
Negative Factors
Negative Free Cash FlowRepeated negative free cash flow shows that reported earnings are not consistently converting into discretionary cash. Continued investment needs or uneven working-capital conversion could restrict self-funded growth, reduce capital-allocation flexibility, and make financial performance less durable.

Kanto Denka Kogyo Co., Ltd. (4047) vs. iShares MSCI Japan ETF (EWJ)

-50%0%50%100%150%200%250%300%350%JP:4047+82.14%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 103.01B
Dividend Yield
2.04%
Average Volume (3M)
696.52K
Price to Earnings (P/E)
10.0
Beta (1Y)
1.51
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

Earnings rebounded in FY2026 (revenue +5.4% YoY; net income 3.8B, ~5.8% net margin) and leverage is manageable (debt-to-equity ~0.55), but overall quality is held back by volatile profitability (including FY2024 losses) and weak/uneven cash conversion with negative free cash flow in FY2025–FY2026.

Income Statement

64Positive

Balance Sheet

70Positive

Cash Flow

41Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue65.40B65.40B62.35B64.77B78.67B62.29B
Gross Profit15.83B15.83B13.99B7.17B22.57B19.86B
EBITDA14.79B14.79B12.52B6.53B20.65B17.84B
Net Income3.79B3.79B3.25B-4.61B9.38B7.76B
Balance Sheet
Total Assets131.31B131.31B123.62B125.30B130.76B109.90B
Cash, Cash Equivalents and Short-Term Investments20.22B20.22B20.29B25.41B22.36B26.73B
Total Debt39.84B39.84B37.88B41.68B37.79B30.91B
Total Liabilities57.06B57.06B55.99B59.72B61.98B49.99B
Stockholders Equity72.40B72.40B65.96B64.01B67.48B58.25B
Cash Flow
Free Cash Flow0-1.27B-2.45B242.00M-8.51B270.00M
Operating Cash Flow07.28B13.09B11.21B7.29B11.18B
Investing Cash Flow0-9.22B-14.08B-10.55B-16.63B-11.12B
Financing Cash Flow0676.00M-4.72B1.78B4.42B2.42B

Kanto Denka Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1812.00

Price Trends

50DMA2159.01Negative
100DMA2581.99Negative
200DMA2264.76Negative

Market Momentum

MACD-156.22Positive
RSI40.64Neutral
STOCH36.11Neutral

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 1812.00 is below the 20-day moving average (MA) of 1951.60, below the 50-day MA of 2159.01, and below the 200-day MA of 2264.76, indicating a bearish trend. The MACD of -156.22 indicates Positive momentum. The RSI at 40.64 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 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

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4047 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4956JP:495680OutperformJPY 106.97B10.44―2.32%6.76%29.50%
JP:4116JP:411674OutperformJPY 95.46B9.43―3.76%5.48%65.96%
JP:4187JP:418773OutperformJPY 94.15B10.3116.64%1.92%17.54%90.80%
JP:4633JP:463369NeutralJPY 115.64B10.49―3.93%10.82%13.57%
JP:4369JP:436962NeutralJPY 90.05B15.82―1.19%12.47%7.08%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4047JP:404755NeutralJPY 96.91B9.98―2.04%27.51%443.00%

* Basic Materials Sector Average

Performance Comparison

0%100%200%300%JP:4047JP:4187JP:4116JP:4369JP:4633JP:4956Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4047 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4047Kanto Denka Kogyo Co., Ltd.1812.00824.0383.41%
JP:4187Osaka Organic Chemical Industry Ltd.4330.00591.5115.82%
JP:4116Dainichiseika Color & Chemicals Mfg.Co., Ltd.1362.00452.7849.80%
JP:4369Tri Chemical Laboratories Inc.2937.00113.684.03%
JP:4633Sakata Inx Corp.2545.00315.4014.15%
JP:4956Konishi Co., Ltd.1635.00388.4631.16%

Kanto Denka Kogyo Co., Ltd. Corporate Events

Kanto Denka Sets November 30 Date for Head Office Relocation

Nov 10, 2026

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

Nov 10, 2026

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

Nov 10, 2026

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

Oct 22, 2026

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...

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: Nov 12, 2026