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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 - Gpt-5.6Sol)
Rating:73Outperform
Price Target:
¥823.00
▼(-33.41% 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
Revenue and Profit Recovery
The return to revenue growth and stronger operating margins indicates recovery in demand and improved operating leverage. If maintained, this can rebuild earnings capacity and strengthen the company’s competitive position over the next several quarters.
Negative Factors
Margins Below Prior Peaks
Profitability has recovered from the 2023 trough but remains below earlier-cycle levels, showing that earnings normalization is incomplete. Sustained margin pressure could limit returns and reduce the durability of the current recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Recovery
The return to revenue growth and stronger operating margins indicates recovery in demand and improved operating leverage. If maintained, this can rebuild earnings capacity and strengthen the company’s competitive position over the next several quarters.
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
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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
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue32.35B33.19B29.93B28.54B30.17B32.37B
Gross Profit5.20B5.77B5.49B4.58B4.00B6.32B
EBITDA3.28B3.87B3.37B2.54B1.91B4.18B
Net Income1.09B1.53B1.48B820.48M310.65M2.06B
Balance Sheet
Total Assets30.54B30.93B30.41B29.83B31.14B32.50B
Cash, Cash Equivalents and Short-Term Investments1.53B1.39B1.18B972.01M853.40M718.63M
Total Debt715.00M870.00M1.75B2.37B4.49B974.58M
Total Liabilities11.12B11.38B11.91B12.62B14.57B15.75B
Stockholders Equity19.43B19.55B18.50B17.21B16.57B16.75B
Cash Flow
Free Cash Flow0.001.14B2.97B2.50B-2.84B-3.37B
Operating Cash Flow0.002.06B4.37B3.63B1.48B-1.33B
Investing Cash Flow0.00-925.00M-1.42B-1.14B-4.34B-2.08B
Financing Cash Flow0.00-1.22B-997.00M-2.39B3.00B-273.53M

Taoka Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1236.00
Price Trends
50DMA
732.62
Positive
100DMA
787.40
Negative
200DMA
972.48
Negative
Market Momentum
MACD
5.13
Negative
RSI
62.39
Neutral
STOCH
85.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4113, the sentiment is Neutral. The current price of 1236 is above the 20-day moving average (MA) of 739.85, above the 50-day MA of 732.62, and above the 200-day MA of 972.48, indicating a neutral trend. The MACD of 5.13 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 85.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
74
Outperform
¥101.17B11.273.04%1.64%-24.06%
73
Outperform
¥11.22B11.013.23%4.74%-33.15%
71
Outperform
¥9.29B6.472.84%5.41%
69
Neutral
¥28.28B10.863.61%7.12%73.54%
61
Neutral
¥16.72B9.572.78%3.51%25.31%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4113
Taoka Chemical Co., Ltd.
835.00
-546.28
-39.55%
JP:4116
Dainichiseika Color & Chemicals Mfg.Co., Ltd.
1,404.00
495.95
54.62%
JP:4119
Nippon Pigment Company, Limited
5,910.00
2,395.49
68.16%
JP:4409
Toho Chemical Industry Company, Limited
784.00
2.25
0.29%
JP:4635
Tokyo Printing Ink Manufacturing Co., Ltd.
2,108.00
778.43
58.55%

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...
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