Want to see JP:4061 full AI Analyst Report?
Top Page
Denka Co
(4061)
Select Model
Select Model
Rating:56Neutral
Price Target:
¥3,508.00
▲(27.68% Upside)
Action:Reiterated
Date:05/30/26
The score is held back primarily by weak cash generation (negative free cash flow in most recent years) and a cyclical, uneven earnings history despite a 2026 rebound. Offsetting this, the technical setup is constructive with an uptrend across major moving averages, while valuation is middling with a relatively high P/E and only moderate dividend support.
Positive Factors
Diversified specialty materials
Exposure to multiple industrial and healthcare end markets reduces reliance on one customer cycle. Specialty materials can also support customer qualification, recurring orders, and functionality-based pricing over time.
Negative Factors
Persistent negative free cash flow
Repeated negative free cash flow limits internally funded growth and can increase reliance on debt or asset sales. It also suggests that capital spending, working capital, or weak cash conversion may remain a structural constraint.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified specialty materials
Exposure to multiple industrial and healthcare end markets reduces reliance on one customer cycle. Specialty materials can also support customer qualification, recurring orders, and functionality-based pricing over time.
Read all positive factors
Denka Co (4061) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥292.83B
Dividend Yield2.94%
Average Volume (3M)424.75K
Price to Earnings (P/E)21.7
Beta (1Y)1.09
Revenue Growth-2.99%
EPS GrowthN/A
CountryJP
Employees6,454
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)157.04
Shares Outstanding88,555,840
10 Day Avg. Volume419,400
30 Day Avg. Volume424,753
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.98
Price to Sales (P/S)0.79
P/FCF Ratio-9.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,390.00Price Target Upside59.78% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)205.63
Revenue Forecast (FY)¥445.71B
Denka Co Business Overview & Revenue Model
Company Description
Denka Company Limited, a Tokyo, Japan-based entity founded in 1915, operates internationally as a manufacturer and supplier of a wide array of organic and inorganic materials, electronic components, and pharmaceutical products. Its Electronics & I...
How the Company Makes Money
Denka makes money primarily by manufacturing and selling chemical and materials products to business customers (B2B) across multiple end markets. Revenue is generated through: (1) Product sales: the core income source comes from selling proprietar...
Denka Co Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 387.16B | 384.25B | 400.25B | 389.26B | 407.56B | 384.85B |
| Gross Profit | 103.08B | 94.26B | 87.04B | 84.98B | 104.59B | 109.46B |
| EBITDA | 55.95B | 52.63B | 12.87B | 43.09B | 42.79B | 59.44B |
| Net Income | 13.54B | 15.70B | -12.30B | 11.95B | 12.77B | 26.01B |
Balance Sheet | ||||||
| Total Assets | 698.79B | 681.01B | 655.52B | 616.24B | 592.16B | 557.65B |
| Cash, Cash Equivalents and Short-Term Investments | 37.00B | 35.27B | 37.00B | 35.39B | 20.20B | 20.21B |
| Total Debt | 237.88B | 221.71B | 221.88B | 178.03B | 172.68B | 139.43B |
| Total Liabilities | 361.93B | 342.18B | 347.23B | 299.33B | 291.81B | 265.55B |
| Stockholders Equity | 309.78B | 310.71B | 296.18B | 307.54B | 296.48B | 288.47B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -31.01B | -40.13B | -7.59B | -29.86B | 5.28B |
| Operating Cash Flow | 0.00 | 36.15B | 18.62B | 36.26B | 8.95B | 42.63B |
| Investing Cash Flow | 0.00 | -30.81B | -52.63B | -17.33B | -28.27B | -36.84B |
| Financing Cash Flow | 0.00 | -6.61B | 33.16B | -4.53B | 18.36B | -12.34B |
Denka Co Technical Analysis
Negative
2747.50
Price Trends
3819.46
Negative
3893.66
Negative
3399.22
Positive
Market Momentum
-101.66
Negative
42.77
Neutral
33.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4061, the sentiment is Negative. The current price of 2747.5 is below the 20-day moving average (MA) of 3489.90, below the 50-day MA of 3819.46, and below the 200-day MA of 3399.22, indicating a neutral trend. The MACD of -101.66 indicates Negative momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4061.
Denka Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥394.68B | 17.28 | ― | 5.28% | 3.57% | 35.54% | |
75 Outperform | ¥844.53B | 15.21 | 5.11% | 3.52% | -0.63% | 15.92% | |
69 Neutral | ¥11.78T | 23.35 | 10.90% | 1.58% | 0.62% | -2.72% | |
65 Neutral | ¥910.94B | 8.64 | 6.28% | 2.51% | -5.54% | 995.46% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | ¥292.83B | 21.69 | 5.26% | 3.71% | -2.99% | ― | |
56 Neutral | ¥1.54T | -38.92 | 0.66% | 2.60% | -7.96% | 106.67% |
* Basic Materials Sector Average
JP:4061
Denka Co
3,406.00
1,246.23
57.70%
JP:4188
Mitsubishi Chemical Holdings
1,171.00
360.26
44.44%
JP:4063
Shin-Etsu Chemical Co
5,993.00
1,485.98
32.97%
JP:4005
Sumitomo Chemical Co
558.20
124.04
28.57%
JP:4042
Tosoh
2,663.50
430.37
19.27%
JP:4114
Nippon Shokubai Co., Ltd.
2,652.50
878.17
49.49%
Denka Co Corporate Events
Denka to Add Funds to Share-Based Remuneration Trust for Directors and Executives
Aug 7, 2026
Denka Company Limited will continue its share-based remuneration system for internal directors and executive officers by entrusting additional funds to an existing trust that acquires company shares for delivery as compensation. The move underscor...
Denka Books ¥4.8 Billion Extraordinary Loss as U.S. Elastomer Unit Stays Idle
Aug 7, 2026
Denka Company Limited has recognized an extraordinary loss of 4,844 million yen for the quarter ended June 30, 2026, tied mainly to labor and related costs for material removal at Denka Performance Elastomer LLC in the U.S. The subsidiary has opte...
Denka Raises Interim Profit Outlook Despite Lower Sales and U.S. Elastomer Exit
Aug 7, 2026
Denka has revised its consolidated forecast for the first half of the fiscal year ending March 31, 2027, lowering expected net sales from ¥210 billion to ¥205 billion but raising operating profit from ¥12 billion to ¥17 billion...
Denka Accelerates AI Materials Expansion With New Plant and Rising Demand
Aug 7, 2026
Denka reported steady progress in its AI-focused materials line, with soft-type SNECTON moving toward de facto standard status in the latest M9-grade and favorable evaluations for the next-generation M10-grade. The company has completed a dedicate...
Denka Q1 Profit Surges on Higher Sales as First-Half Outlook Raised
Aug 7, 2026
Denka Co., Ltd., a Tokyo-listed chemical manufacturer operating under Japanese GAAP, reported consolidated net sales of ¥96.98 billion for the first quarter of the fiscal year ending March 31, 2027, a 3.1% increase year on year. Operating pro...
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.