Koatsu Gas Kogyo Co., Ltd. (4097) AI Stock Analysis

Koatsu Gas Kogyo Co., Ltd.

(TSE/TYO:4097)

Select Model

Rating:81Outperform

Price Target:JPY 1,386.00▲(13.70% Upside)

Action:reiterated

Date:08/17/26

The overall score of 81 is driven primarily by an attractive valuation and robust financial health. The most significant strengths are the low P/E ratio, a healthy 3.33% dividend yield, and a pristine balance sheet with extremely low leverage. Additionally, technical indicators display strong positive momentum across all major moving averages. While profitability margins are somewhat modest, consistent free cash flow generation and minimal financial risk solidify the company's long-term stability and value appeal.

Positive Factors

Low leverage / strong balance sheetVery low reported debt-to-equity and an improving leverage profile provide durable financial flexibility. This reduces refinancing and solvency risk through cycles, supports capital spending or opportunistic M&A, and underpins dividend capacity even during near-term revenue weakness.

Negative Factors

Sharp recent revenue contractionA pronounced revenue decline in the latest reported period materially weakens the growth trajectory. If sustained, it can compress operating leverage, reduce scale benefits, and limit funds available for reinvestment, dividends, or debt reduction, increasing medium-term execution risk.

Koatsu Gas Kogyo Co., Ltd. (4097) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 67.29B
Dividend Yield: 3.28%
Average Volume (3M): 62.44K
Price to Earnings (P/E): 13.1
Beta (1Y): 0.90
Revenue Growth: 1.10%
EPS Growth: 12.09%
Country: Japan
Employees: 2,005
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Koatsu Gas Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Koatsu Gas Kogyo Co., Ltd., encompassing its subsidiary operations, is a key player in the manufacturing and distribution of industrial gases and various chemical products, serving markets both domestically in Japan and internationally. Its extensive...

How the Company Makes Money

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Koatsu Gas Kogyo Co., Ltd. Financial Statement Overview

Summary

The company exhibits a fundamentally sound financial profile with a pristine balance sheet, exceptionally low debt levels, and robust free cash flow generation. Modest profitability margins and a low return on equity slightly temper the score, but steady equity growth minimizes overall financial risk.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	100.70B	98.68B	98.98B	93.28B	91.47B	82.48B
Gross Profit	27.12B	26.48B	25.02B	23.95B	22.57B	21.72B
EBITDA	9.75B	9.17B	8.75B	8.47B	7.73B	7.03B
Net Income	5.13B	4.66B	4.78B	4.50B	3.94B	4.15B
Balance Sheet
Total Assets	125.68B	123.38B	122.99B	120.18B	107.51B	98.40B
Cash, Cash Equivalents and Short-Term Investments	26.81B	27.54B	29.98B	29.22B	26.26B	23.97B
Total Debt	6.88B	6.92B	11.59B	11.52B	10.07B	5.95B
Total Liabilities	38.78B	38.38B	43.30B	43.73B	38.44B	32.50B
Stockholders Equity	86.05B	84.17B	78.92B	75.72B	68.41B	65.29B
Cash Flow
Free Cash Flow	0	3.58B	2.26B	2.69B	-1.25B	1.52B
Operating Cash Flow	0	8.00B	6.42B	8.10B	5.65B	5.80B
Investing Cash Flow	0	-4.45B	-5.09B	-5.79B	-6.67B	-3.82B
Financing Cash Flow	0	-6.34B	-1.09B	391.00M	3.23B	583.28M

Koatsu Gas Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1219.00

Price Trends

50DMA1192.35Positive

100DMA1143.43Positive

200DMA1114.76Positive

Market Momentum

MACD6.34Positive

RSI56.59Neutral

STOCH47.82Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4097, the sentiment is Positive. The current price of 1219.00 is above the 20-day moving average (MA) of 1204.20, above the 50-day MA of 1192.35, and above the 200-day MA of 1114.76, indicating a bullish trend. The MACD of 6.34 indicates Positive momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4097.

Koatsu Gas Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4097 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4097	81Outperform	JPY 67.29B	13.12	―	3.28%	1.10%	12.09%
JP:4091	78Outperform	JPY 2.38T	17.12	―	1.20%	8.74%	41.93%
JP:4045	76Outperform	JPY 193.29B	14.88	6.32%	3.77%	2.33%	50.31%
JP:4041	74Outperform	JPY 195.64B	10.60	―	4.72%	-1.25%	34.70%
JP:4093	69Neutral	JPY 14.44B	11.14	―	3.39%	-0.22%	4.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4061	49Neutral	JPY 263.27B	19.45	4.48%	3.27%	-2.99%	―

* General Sector Average

Performance Comparison

JP:4097 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4097	Koatsu Gas Kogyo Co., Ltd.	1219.00	225.58	22.71%
JP:4061	Denka Co	3055.00	880.10	40.47%
JP:4045	Toagosei Co	1815.50	344.97	23.46%
JP:4041	Nippon Soda Co., Ltd.	3600.00	334.05	10.23%
JP:4091	Nippon Sanso Holdings Corporation	5506.00	437.44	8.63%
JP:4093	Toho Acetylene Co., Ltd.	413.00	68.03	19.72%

Koatsu Gas Kogyo Co., Ltd. Corporate Events

Koatsu Gas Kogyo Delivers Strong Q1 Profit Growth and Confirms FY2027 Outlook

Aug 7, 2026

Koatsu Gas Kogyo reported consolidated net sales of ¥26.32 billion for the three months ended June 30, 2026, up 8.3% year on year, with operating profit jumping 37.1% to ¥2.06 billion and profit attributable to owners of parent rising 39.6%...

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: Aug 17, 2026

Koatsu Gas Kogyo Co., Ltd. AI Stock Analysis