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Dainichiseika Color & Chemicals Mfg.Co., Ltd.
(4116)
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Rating:74Outperform
Price Target:
¥1,510.00
▼(-63.83% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid financial quality (low leverage and improved profitability) and supportive valuation (modest P/E with a high dividend yield). These positives are tempered by mixed cash-flow consistency and technically overextended momentum signals that increase near-term pullback risk.
Positive Factors
Low leverage / stronger balance sheet
A materially lower debt-to-equity ratio (from ~0.42 to ~0.13 over FY2021–FY2026) provides resilient financial flexibility. This reduces refinancing risk, supports investment or dividends during cyclicality, and makes the firm better able to fund capex or absorb raw-material shocks.
Negative Factors
Stagnant to slightly declining revenue
Flat-to-declining top-line implies limited secular growth in core pigment and colorant markets or weak end-market demand. Without structural end-market expansion or new product wins, revenue stagnation constrains scalability and places reliance on margin gains to drive earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / stronger balance sheet
A materially lower debt-to-equity ratio (from ~0.42 to ~0.13 over FY2021–FY2026) provides resilient financial flexibility. This reduces refinancing risk, supports investment or dividends during cyclicality, and makes the firm better able to fund capex or absorb raw-material shocks.
Read all positive factors
Dainichiseika Color & Chemicals Mfg.Co., Ltd. (4116) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥101.54B
Dividend Yield3.92%
Average Volume (3M)35.30K
Price to Earnings (P/E)11.1
Beta (1Y)0.93
Revenue Growth1.64%
EPS Growth-24.06%
CountryJP
Employees3,514
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)124.61
Shares Outstanding72,452,440
10 Day Avg. Volume27,040
30 Day Avg. Volume35,296
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)0.53
Price to Sales (P/S)0.59
P/FCF Ratio21.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Dainichiseika Color & Chemicals Mfg.Co., Ltd. Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, and established in 1931, Dainichiseika Color & Chemicals Mfg. Co., Ltd. is a key manufacturer and supplier of diverse pigments and colorants. Their extensive product line includes inorganic, organic, and specialized ...
How the Company Makes Money
The company makes money primarily by manufacturing and selling chemical products—especially pigments and other color/material-related chemicals—to corporate customers. Revenue is generated through (1) product sales of color materials (e.g., pigmen...
Dainichiseika Color & Chemicals Mfg.Co., Ltd. Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.17B | 124.29B | 124.76B | 119.82B | 122.00B | 121.93B |
| Gross Profit | 26.93B | 26.04B | 25.22B | 22.36B | 21.31B | 25.66B |
| EBITDA | 14.24B | 12.73B | 19.54B | 10.80B | 8.87B | 14.18B |
| Net Income | 8.51B | 8.10B | 10.29B | 3.66B | 2.01B | 6.17B |
Balance Sheet | ||||||
| Total Assets | 210.75B | 205.44B | 196.78B | 194.85B | 192.76B | 196.71B |
| Cash, Cash Equivalents and Short-Term Investments | 22.20B | 23.44B | 24.25B | 23.58B | 24.76B | 26.35B |
| Total Debt | 18.16B | 18.70B | 21.04B | 25.28B | 31.00B | 32.91B |
| Total Liabilities | 67.59B | 64.23B | 66.28B | 75.68B | 78.46B | 86.22B |
| Stockholders Equity | 140.55B | 138.63B | 128.01B | 116.75B | 112.06B | 108.45B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.46B | -1.27B | 4.48B | -2.24B | -252.00M |
| Operating Cash Flow | 0.00 | 9.04B | 4.17B | 9.02B | 3.00B | 7.58B |
| Investing Cash Flow | 0.00 | -2.06B | 1.42B | -1.45B | -2.19B | -6.64B |
| Financing Cash Flow | 0.00 | -6.74B | -7.00B | -10.21B | -3.84B | -11.42B |
Dainichiseika Color & Chemicals Mfg.Co., Ltd. Technical Analysis
Positive
4175.00
Price Trends
1160.74
Positive
1114.19
Positive
1080.34
Positive
Market Momentum
70.69
Negative
76.49
Negative
87.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4116, the sentiment is Positive. The current price of 4175 is above the 20-day moving average (MA) of 1291.55, above the 50-day MA of 1160.74, and above the 200-day MA of 1080.34, indicating a bullish trend. The MACD of 70.69 indicates Negative momentum. The RSI at 76.49 is Negative, neither overbought nor oversold. The STOCH value of 87.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4116.
Dainichiseika Color & Chemicals Mfg.Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥121.56B | 10.94 | ― | 3.72% | 8.94% | 22.70% | |
76 Outperform | ¥28.51B | 10.76 | ― | 3.61% | 7.12% | 73.54% | |
74 Outperform | ¥101.54B | 11.10 | ― | 3.04% | 1.64% | -24.06% | |
71 Outperform | ¥9.28B | 6.42 | ― | 2.84% | 5.41% | ― | |
68 Neutral | ¥68.71B | 17.36 | ― | 3.57% | -0.23% | -25.47% | |
62 Neutral | ¥44.17B | 18.03 | ― | 3.70% | 25.27% | -70.96% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:4116
Dainichiseika Color & Chemicals Mfg.Co., Ltd.
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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.