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Kaneka
(4118)
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Rating:66Neutral
Price Target:
¥6,853.00
▲(11.89% Upside)
Action:Downgraded
Date:08/17/26
The score is driven primarily by solid fundamentals—strong revenue expansion and a reasonably sound balance sheet—offset by inconsistent free cash flow that weakens financial flexibility. Technicals are supportive due to a clear uptrend, but overbought signals raise near-term pullback risk. Valuation is reasonable (P/E 12.63) with a moderate dividend yield (~2.52%), providing additional support.
Positive Factors
Sustained Revenue Expansion
Continued revenue growth indicates durable demand across Kaneka’s end markets and supports operating scale. The trend also suggests the company can maintain customer relevance and pricing in specialty materials and healthcare-related applications.
Negative Factors
Volatile Free Cash Flow
Uneven free cash flow limits financial flexibility and can constrain debt reduction, shareholder returns or growth investment. The recurring gap between accounting profits and cash generation suggests continued exposure to capital spending and working-capital swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Expansion
Continued revenue growth indicates durable demand across Kaneka’s end markets and supports operating scale. The trend also suggests the company can maintain customer relevance and pricing in specialty materials and healthcare-related applications.
Read all positive factors
Kaneka (4118) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥371.86B
Dividend Yield2.61%
Average Volume (3M)189.42K
Price to Earnings (P/E)10.5
Beta (1Y)0.87
Revenue Growth3.53%
EPS Growth63.85%
CountryJP
Employees11,762
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)502.44
Shares Outstanding63,000,000
10 Day Avg. Volume277,740
30 Day Avg. Volume189,416
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)0.59
Price to Sales (P/S)0.37
P/FCF Ratio219.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,733.33Price Target Upside-6.39% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)492.63
Revenue Forecast (FY)¥871.17B
Kaneka Business Overview & Revenue Model
Company Description
Kaneka Corporation, established in Tokyo, Japan, in 1949, operates internationally as a diversified manufacturer providing a wide array of advanced materials and specialized products. Its core chemical business includes the production and global d...
How the Company Makes Money
Kaneka makes money primarily by manufacturing and selling chemical and materials products, earning revenue from (1) sales of industrial materials (e.g., polymers/plastics and other functional materials) to business customers and (2) sales of healt...
Kaneka Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
70
Positive
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 811.64B | 807.20B | 762.30B | 755.82B | 691.53B |
| Gross Profit | 224.29B | 216.22B | 195.20B | 190.47B | 190.43B |
| EBITDA | 96.28B | 85.46B | 81.62B | 74.44B | 75.98B |
| Net Income | 30.98B | 25.31B | 23.22B | 23.01B | 26.49B |
Balance Sheet | |||||
| Total Assets | 959.15B | 920.14B | 870.21B | 782.64B | 726.96B |
| Cash, Cash Equivalents and Short-Term Investments | 50.97B | 45.64B | 43.97B | 41.87B | 41.95B |
| Total Debt | 231.31B | 223.06B | 195.09B | 175.94B | 132.83B |
| Total Liabilities | 437.48B | 427.72B | 395.82B | 346.21B | 314.75B |
| Stockholders Equity | 499.43B | 471.94B | 454.11B | 418.00B | 387.77B |
Cash Flow | |||||
| Free Cash Flow | 1.35B | -9.93B | 596.00M | -10.92B | -3.22B |
| Operating Cash Flow | 50.12B | 41.25B | 61.91B | 28.71B | 34.11B |
| Investing Cash Flow | -26.10B | -55.04B | -58.77B | -41.97B | -39.59B |
| Financing Cash Flow | -19.99B | 14.45B | -1.52B | 12.35B | -1.10B |
Kaneka Technical Analysis
Positive
6125.00
Price Trends
5852.00
Positive
5534.26
Positive
5042.80
Positive
Market Momentum
105.76
Positive
57.85
Neutral
30.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4118, the sentiment is Positive. The current price of 6125 is above the 20-day moving average (MA) of 6055.00, above the 50-day MA of 5852.00, and above the 200-day MA of 5042.80, indicating a bullish trend. The MACD of 105.76 indicates Positive momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 30.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4118.
Kaneka Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥2.21T | 17.16 | 12.36% | 1.69% | 4.24% | 6.46% | |
69 Neutral | ¥475.64B | 8.31 | 10.33% | 4.92% | 6.29% | 101.67% | |
67 Neutral | ¥347.50B | 14.63 | 5.75% | 3.31% | 2.52% | ― | |
66 Neutral | ¥371.86B | 10.52 | 6.43% | 2.74% | 3.53% | 63.85% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥834.93B | 12.03 | 4.01% | 3.40% | -3.47% | 348.74% | |
59 Neutral | ¥371.53B | 37.48 | 2.75% | 4.15% | 2.16% | -77.64% |
* Basic Materials Sector Average
JP:4118
Kaneka
6,133.00
1,958.49
46.92%
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Kaneka Corporate Events
Kaneka Issues Reference Translation of FY2026 First-Quarter Financial Summary
Aug 13, 2026
Kaneka has released a translated financial summary for the three months ended June 30, 2026, outlining first-quarter performance, segment results, consolidated balance sheet data, and earnings forecasts. The company emphasizes that these projectio...
Kaneka Profits More Than Double in First Quarter as Dividend Payout Rises
Aug 13, 2026
Kaneka reported strong consolidated results for the three months ended June 30, 2026, with net sales rising 12.3% year on year to ¥223.0 billion and operating income surging 83.1%. Ordinary income more than doubled, and net income attributabl...
Kaneka Reports Progress on Share Buyback Program
Aug 3, 2026
Kaneka Corporation has disclosed progress on its ongoing share repurchase program authorized by its board in May 2026, carried out under the Companies Act and its Articles of Incorporation. During the period from July 1 to July 31, 2026, the compa...
Kaneka Updates on Progress of Share Repurchase Program
Jul 1, 2026
Kaneka Corporation has disclosed the status of its ongoing share repurchase program authorized by its board in mid-May 2026, conducted under the Companies Act and its Articles of Incorporation. During the period from June 1 to June 30, 2026, the c...
Kaneka Unveils “Three-Year Initiatives 2026” Management Plan
Jun 5, 2026
Kaneka Corporation has introduced a new medium-term management plan titled “Three-Year Initiatives 2026,” covering fiscal years 2026 to 2028, with the year ending March 2027 as its starting point. Branded with the slogan “Change!...
Kaneka Reports Initial Progress on ¥7 Billion Share Buyback Program
Jun 1, 2026
Kaneka Corporation has disclosed the initial status of a share repurchase program authorized by its board on May 14, 2026, under Japan’s Companies Act and its Articles of Incorporation. The company is buying back common stock via market purc...
Kaneka Launches New Three-Year Management Plan Through 2026
May 29, 2026
Kaneka Corporation has introduced a new management plan titled “Three-Year Initiatives 2026,” designating the fiscal year ending March 2027 as the first year of the program. The plan outlines the company’s medium-term direction a...
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.