Zeon (4205) AI Stock Analysis

• Market Cap: $275.53B
• Dividend Yield: 4.75%
• Average Volume (3M): 794.15K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.71
• Revenue Growth: 10.04%
• EPS Growth: -13.43%
• Country: JP
• Employees: 4,462
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Chemicals - Specialty
• EPS (TTM): 30.69
• Shares Outstanding: 215,251,860
• 10 Day Avg. Volume: 1,079,770
• 30 Day Avg. Volume: 794,153
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,510.46
• Price Target Upside: 8.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Zeon's overall score reflects strong financial performance, characterized by consistent revenue growth and solid balance sheet health, offset by recent challenges in cash flow management. The stock's valuation is appealing due to a low P/E ratio and a high dividend yield. However, technical indicators present a mixed outlook, with bearish momentum signals countering the otherwise positive valuation aspect.

Zeon Business Overview & Revenue Model

Company Description

Zeon Corporation engages in the elastomers, specialty materials, and other businesses. The company offers synthetic rubbers, such as general-purpose rubbers for use in automobile tire applications; and various specialty rubbers, including NBR and hydrogenated NBR. It also provides synthetic latex comprising styrene-butadiene copolymer latex, polybutadiene, acrylonitrile butadiene copolymer latex, acrylate latex, and soap-free latex for use in processed paper, fiber treatment agents, adhesives, paints, and rubber gloves; and materials for adhesive tapes and hot melt adhesives, binder for traffic paints, and concrete admixtures. In addition, the company offers specialty chemicals, such as synthetic aroma chemicals for flavors and fragrances; cyclopentene, cyclopentanone, and other derivatives for chemical synthesis; intermediates for pharmaceuticals and agrochemicals; and solvents and cleaning agents. Further, it provides electronic materials, rechargeable battery materials, and toners for the production of semiconductors, etching gas, and materials used in rechargeable battery production; and specialty plastics that include cyclo olefin polymers and fine processed products with cyclo olefin polymer for use in optical lenses, medical devices, and various general-purpose engineering plastics. Additionally, the company develops, manufactures, and sells cardiovascular and gastrointestinal medical equipment, as well as nutritional products; and licenses butadiene recovery and butene purification process technologies in approximately 23 countries worldwide. It also offers PENTAM, a resource- and energy-saving molded product. The company was founded in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Zeon Corporation generates revenue through the development, production, and sale of a wide range of chemical products. Its primary revenue streams include synthetic rubber and latex, which are used extensively in the automotive industry for tires and other components. Additionally, Zeon produces specialty chemicals and materials that cater to the electronics and healthcare sectors, serving clients who require high-performance and durable materials for their products. The company also invests in research and development to innovate and improve its product offerings, ensuring continued demand across its diverse customer base. Strategic partnerships with industry leaders and a global distribution network further enhance Zeon's ability to penetrate various markets and sustain its revenue growth.

Zeon Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
382.28B	388.61B	361.73B	301.96B	321.97B
	Gross Profit
102.51B	109.64B	120.36B	97.55B	91.91B
	EBIT
20.50B	27.18B	44.43B	33.41B	26.10B
	EBITDA
64.04B	47.33B	65.75B	51.45B	43.38B
	Net Income Common Stockholders
31.10B	10.57B	33.41B	27.72B	20.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.78B	30.08B	47.27B	51.97B	32.03B
	Total Assets
532.25B	522.87B	484.66B	448.82B	405.13B
	Total Debt
8.96B	27.96B	18.96B	18.96B	20.96B
	Net Debt
-33.82B	-2.12B	-28.31B	-33.01B	-11.07B
	Total Liabilities
168.52B	183.56B	162.83B	150.57B	144.77B
	Stockholders Equity
362.47B	336.40B	318.75B	295.41B	257.50B
Cash Flow		Free Cash Flow
10.99B	-12.95B	8.97B	32.05B	5.29B
	Operating Cash Flow
47.41B	14.36B	33.14B	56.08B	28.43B
	Investing Cash Flow
-5.43B	-28.90B	-26.44B	-30.24B	-24.57B
	Financing Cash Flow
-30.09B	-2.82B	-11.88B	-8.26B	-8.28B

Zeon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1398.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4205, the sentiment is Positive. The current price of 1398 is above the 20-day moving average (MA) of 1367.35, below the 50-day MA of 1439.97, and above the 200-day MA of 1355.23, indicating a neutral trend. The MACD of -10.06 indicates Negative momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 58.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4205.

Zeon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4205	72 Outperform	$275.53B	10.97	7.16%	4.75%	10.04%	-13.43%
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.88%	-29.24%

Zeon Corporate Events

Zeon Corporation Announces Share Buyback and Cancellation Plan

Zeon Corporation has announced a resolution to acquire and subsequently cancel up to 10 million of its own shares, representing 5.07% of its issued shares, with a maximum total value of ¥10 billion. This strategic move is aimed at enhancing shareholder returns and improving capital efficiency, potentially strengthening the company’s market position and benefiting its stakeholders.

Zeon Corporation Reports FY2025 Financial Results with Increased Sales and Dividends

Zeon Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 10% increase in net sales to ¥420,647 million and a 43% rise in operating profit to ¥29,321 million. Despite these gains, profit attributable to owners fell by 15.8% to ¥26,199 million, and comprehensive income decreased by 25.7%. The company also announced an increase in annual dividends per share from ¥45.00 to ¥70.00, reflecting a higher payout ratio. The forecast for the next fiscal year anticipates a slight decline in net sales and profits, indicating potential challenges ahead.