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Taoka Chemical Co., Ltd. (JP:4113)
:4113
Japanese Market
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Taoka Chemical Co., Ltd. (4113) AI Stock Analysis

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JP:4113

Taoka Chemical Co., Ltd.

(4113)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥783.00
▼(-36.65% Downside)
Action:Upgraded
Date:07/22/26
The score is primarily supported by attractive valuation (low P/E and high dividend yield) and a strong, low-leverage balance sheet alongside improving earnings. The main constraints are mixed technicals (below longer-term moving averages) and cash-flow volatility with weaker cash conversion in 2026.
Positive Factors
Very low leverage and conservative balance sheet
A very low debt-to-equity ratio provides durable financial resilience: it reduces refinancing risk, preserves flexibility for capex or acquisitions, and supports continued dividend capacity during cyclicality. Strong equity growth and improved leverage underpin long-term capital stability.
Negative Factors
Volatile cash flow and weakened cash conversion
Persistent volatility in operating cash flow and weakened cash conversion create uncertainty for capital allocation and dividends. If working-capital swings or elevated investments persist, management may face trade-offs between sustaining payouts, funding growth, or rebuilding cash buffers.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage and conservative balance sheet
A very low debt-to-equity ratio provides durable financial resilience: it reduces refinancing risk, preserves flexibility for capex or acquisitions, and supports continued dividend capacity during cyclicality. Strong equity growth and improved leverage underpin long-term capital stability.
Read all positive factors

Taoka Chemical Co., Ltd. (4113) vs. iShares MSCI Japan ETF (EWJ)

Taoka Chemical Co., Ltd. Business Overview & Revenue Model

Company Description
Operating both domestically in Japan and across global markets, Taoka Chemical Company, Limited specializes in the production and distribution of a diverse array of chemical products. Its extensive portfolio includes essential ingredients for phot...
How the Company Makes Money
null...

Taoka Chemical Co., Ltd. Financial Statement Overview

Summary
Earnings are recovering with revenue back to growth (+7.5% in 2026) and improved profitability from the 2023 trough (net margin ~1.0% to ~4.6%, EBIT margin ~1.6% to ~6.2%). The balance sheet is a clear strength with very low leverage (debt-to-equity ~0.04) and improving ROE (~7.8%). Offsetting this, cash flow has been volatile across the cycle and cash conversion weakened in 2026 (FCF ~55% of net income), indicating some consistency risk.
Income Statement
68
Positive
Balance Sheet
84
Very Positive
Cash Flow
55
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue33.19B29.93B28.54B30.17B32.37B
Gross Profit5.77B5.49B4.58B4.00B6.32B
EBITDA3.87B3.37B2.54B1.91B4.18B
Net Income1.53B1.48B820.48M310.65M2.06B
Balance Sheet
Total Assets30.93B30.41B29.83B31.14B32.50B
Cash, Cash Equivalents and Short-Term Investments1.39B1.18B972.01M853.40M718.63M
Total Debt870.00M1.75B2.37B4.49B974.58M
Total Liabilities11.38B11.91B12.62B14.57B15.75B
Stockholders Equity19.55B18.50B17.21B16.57B16.75B
Cash Flow
Free Cash Flow1.14B2.97B2.50B-2.84B-3.37B
Operating Cash Flow2.06B4.37B3.63B1.48B-1.33B
Investing Cash Flow-925.00M-1.42B-1.14B-4.34B-2.08B
Financing Cash Flow-1.22B-997.00M-2.39B3.00B-273.53M

Taoka Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1236.00
Price Trends
50DMA
725.40
Negative
100DMA
819.32
Negative
200DMA
1013.13
Negative
Market Momentum
MACD
3.73
Positive
RSI
38.88
Neutral
STOCH
12.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4113, the sentiment is Negative. The current price of 1236 is above the 20-day moving average (MA) of 756.40, above the 50-day MA of 725.40, and above the 200-day MA of 1013.13, indicating a bearish trend. The MACD of 3.73 indicates Positive momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 12.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4113.

Taoka Chemical Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥10.76B9.903.23%4.74%-33.15%
73
Outperform
¥80.56B9.403.04%-0.37%-20.98%
71
Outperform
¥8.96B7.732.84%11.35%-76.94%
69
Neutral
¥18.92B9.483.61%6.67%65.58%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥15.78B10.192.78%0.02%-1.04%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4113
Taoka Chemical Co., Ltd.
702.00
-639.57
-47.67%
JP:4116
Dainichiseika Color & Chemicals Mfg.Co., Ltd.
1,121.00
295.07
35.73%
JP:4119
Nippon Pigment Company, Limited
5,750.00
2,284.37
65.91%
JP:4409
Toho Chemical Industry Company, Limited
742.00
-46.56
-5.90%
JP:4635
Tokyo Printing Ink Manufacturing Co., Ltd.
1,373.00
349.52
34.15%

Taoka Chemical Co., Ltd. Corporate Events

Taoka Chemical Warns of Profit Slump and Slashes Dividend Despite Modest Sales Growth
Jul 31, 2026
Taoka Chemical Co., Ltd., a Tokyo Stock Exchange-listed chemical manufacturer, reported consolidated net sales of ¥7.7 billion for the three months ended June 30, 2026, down 9.8% year on year. Profitability deteriorated sharply, with operatin...
Taoka Chemical Outlines Ties With Sumitomo Chemical and Measures to Protect Minority Shareholders
May 15, 2026
Taoka Chemical Co., Ltd., a member of the Sumitomo Chemical Group, operates in the chemical industry with a focus on supplying intermediates and purchasing raw materials under toll manufacturing and other arrangements. While leveraging the parent ...
Taoka Chemical Lifts FY2025 Dividend as Profit Rises, but Flags Sharp Earnings Slowdown Ahead
May 15, 2026
Taoka Chemical Co., Ltd., a Tokyo Stock Exchange-listed chemical manufacturer, reported solid financial health for the fiscal year ended March 31, 2026, supported by a strong equity-to-asset ratio of 63.2%. The group continues to apply Japanese GA...
Taoka Chemical Posts Higher Sales and Stronger Balance Sheet for Fiscal 2026
May 15, 2026
Taoka Chemical reported solid earnings for the fiscal year ended March 2026, with net sales rising 10.9% year on year to ¥33.19 billion and operating profit up 8.4% to ¥2.05 billion. Ordinary profit increased 6.7% to ¥2.10 billion, ...
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: Jul 22, 2026