Taoka Chemical Co., Ltd. (4113) AI Stock Analysis

Taoka Chemical Co., Ltd.

(TSE/TYO:4113)

Select Model

Rating:69Neutral

Price Target:JPY 887.00▲(12.71% Upside)

Action:downgraded

Date:10/22/26

The score is driven primarily by improving operating performance and a very strong, low-leverage balance sheet, partially offset by volatile/less consistent cash generation. Valuation is a positive support (low P/E with a moderate dividend yield), while technical signals are mixed with neutral momentum and the price still below the longer-term (200-day) trend.

Positive Factors

Revenue and margin recoveryThe return to revenue growth alongside substantial margin expansion indicates that operating performance is recovering from the 2023 trough. If this progress persists, higher sales and improved operating leverage can strengthen earnings capacity over the next several quarters.

Negative Factors

Weak earnings-per-share trendThe reported decline in EPS shows that shareholder-level earnings have weakened despite the broader recovery in revenue and margins. Sustaining the improvement will require profits to translate into stronger per-share results rather than remaining a partial recovery.

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

Market Cap: JPY 11.28B
Dividend Yield: 2.67%
Average Volume (3M): 31.30K
Price to Earnings (P/E): 16.1
Beta (1Y): 1.19
Revenue Growth: -2.77%
EPS Growth: -63.05%
Country: Japan
Employees: 482
Sector: General
Sector Strength: 55
Industry: Chemicals

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 photore...

How the Company Makes Money

Taoka Chemical makes money primarily through the sale of chemical products it manufactures and supplies to business customers (B2B). Revenue is generated by (1) manufacturing and selling chemical materials/intermediates to industrial clients, where s...

Taoka Chemical Co., Ltd. Financial Statement Overview

Summary

Financials show a recovery profile: revenue returned to growth (+7.5% in 2026) and margins improved meaningfully from the 2023 trough (net margin ~1.0% to ~4.6%; EBIT margin ~1.6% to ~6.2%). Strength is anchored by a very conservative balance sheet (debt-to-equity ~0.04) and improved ROE (~7.8%), but cash flow remains a key limiter due to volatility and weaker 2026 cash conversion (FCF ~55% of net income).

Income Statement

68Positive

Balance Sheet

84Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	32.35B	33.19B	29.93B	28.54B	30.17B	32.37B
Gross Profit	5.20B	5.77B	5.49B	4.58B	4.00B	6.32B
EBITDA	3.28B	3.87B	3.37B	2.54B	1.91B	4.18B
Net Income	1.09B	1.53B	1.48B	820.48M	310.65M	2.06B
Balance Sheet
Total Assets	30.54B	30.93B	30.41B	29.83B	31.14B	32.50B
Cash, Cash Equivalents and Short-Term Investments	1.53B	1.39B	1.18B	972.01M	853.40M	718.63M
Total Debt	715.00M	870.00M	1.75B	2.37B	4.49B	974.58M
Total Liabilities	11.12B	11.38B	11.91B	12.62B	14.57B	15.75B
Stockholders Equity	19.43B	19.55B	18.50B	17.21B	16.57B	16.75B
Cash Flow
Free Cash Flow	0	1.14B	2.97B	2.50B	-2.84B	-3.37B
Operating Cash Flow	0	2.06B	4.37B	3.63B	1.48B	-1.33B
Investing Cash Flow	0	-925.00M	-1.42B	-1.14B	-4.34B	-2.08B
Financing Cash Flow	0	-1.22B	-997.00M	-2.39B	3.00B	-273.53M

Taoka Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price787.00

Price Trends

50DMA802.93Negative

100DMA762.24Positive

200DMA890.99Negative

Market Momentum

MACD-2.36Positive

RSI41.65Neutral

STOCH38.06Neutral

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 787.00 is below the 20-day moving average (MA) of 825.75, below the 50-day MA of 802.93, and below the 200-day MA of 890.99, indicating a bearish trend. The MACD of -2.36 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.06 is Neutral, 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

JP:4113 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4116	74Outperform	JPY 96.04B	10.66	―	3.86%	1.64%	-24.06%
JP:4119	71Outperform	JPY 9.70B	6.76	―	1.94%	5.41%	―
JP:4635	69Neutral	JPY 26.39B	10.05	―	4.46%	7.12%	73.54%
JP:4113	69Neutral	JPY 11.28B	16.13	―	2.67%	-2.77%	-63.05%
JP:4409	66Neutral	JPY 16.93B	9.69	―	2.77%	3.51%	25.31%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:4113 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4113	Taoka Chemical Co., Ltd.	787.00	-411.60	-34.34%
JP:4116	Dainichiseika Color & Chemicals Mfg.Co., Ltd.	1328.00	423.54	46.83%
JP:4119	Nippon Pigment Company, Limited	6180.00	3061.42	98.17%
JP:4409	Toho Chemical Industry Company, Limited	794.00	28.78	3.76%
JP:4635	Tokyo Printing Ink Manufacturing Co., Ltd.	1951.00	612.53	45.76%

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 operating p...

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: Oct 22, 2026

Taoka Chemical Co., Ltd. AI Stock Analysis