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Zeon
(4205)
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Rating:77Outperform
Price Target:
¥2,786.00
▲(25.78% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial resilience from very low leverage and improving margins, complemented by an uptrend with positive momentum signals and an attractive P/E with a solid dividend yield. The main constraints are the sharp revenue decline in 2026 and historically uneven free cash flow consistency.
Positive Factors
Very Low Leverage
Minimal leverage gives Zeon substantial financial resilience during specialty-chemical cycles, limits interest-burden risk, and preserves flexibility to fund operations, investment, and shareholder returns even when end-market demand weakens.
Negative Factors
Sharp Revenue Decline
The contraction signals weaker demand, pricing, or product mix across Zeon’s industrial markets. If prolonged, lower sales would reduce operating leverage, challenge capacity utilization, and constrain the durability of recent profitability improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Minimal leverage gives Zeon substantial financial resilience during specialty-chemical cycles, limits interest-burden risk, and preserves flexibility to fund operations, investment, and shareholder returns even when end-market demand weakens.
Read all positive factors
Zeon (4205) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥459.58B
Dividend Yield3.15%
Average Volume (3M)643.60K
Price to Earnings (P/E)11.2
Beta (1Y)0.84
Revenue Growth0.17%
EPS Growth69.59%
CountryJP
Employees4,425
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)214.94
Shares Outstanding209,251,250
10 Day Avg. Volume562,710
30 Day Avg. Volume643,596
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)0.90
Price to Sales (P/S)0.83
P/FCF Ratio20.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,600.00Price Target Upside17.38% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)196.73
Revenue Forecast (FY)¥423.11B
Zeon Business Overview & Revenue Model
Company Description
Zeon Corporation, based in Tokyo, Japan, and established in 1950, operates across diverse sectors including elastomers, specialized materials, and various other ventures. Its elastomers segment encompasses the production of synthetic rubbers, incl...
How the Company Makes Money
Zeon makes money primarily by manufacturing and selling materials to industrial customers under multi-product business segments.
1) Synthetic rubber & latex (major revenue stream)
- Zeon earns revenue from sales of synthetic rubber and specialty ...
Zeon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 418.35B | 411.97B | 420.65B | 382.28B | 388.61B | 361.73B |
| Gross Profit | 124.60B | 120.46B | 118.23B | 102.51B | 109.64B | 120.36B |
| EBITDA | 72.96B | 66.71B | 52.51B | 64.04B | 34.93B | 67.83B |
| Net Income | 41.43B | 36.23B | 26.20B | 31.10B | 10.57B | 33.41B |
Balance Sheet | ||||||
| Total Assets | 603.32B | 548.25B | 533.79B | 532.25B | 522.87B | 484.66B |
| Cash, Cash Equivalents and Short-Term Investments | 40.15B | 28.68B | 27.37B | 42.78B | 30.08B | 47.27B |
| Total Debt | 44.83B | 15.96B | 28.28B | 10.51B | 29.84B | 20.52B |
| Total Liabilities | 207.51B | 169.99B | 175.79B | 168.53B | 183.56B | 162.82B |
| Stockholders Equity | 395.09B | 377.56B | 357.34B | 362.47B | 336.40B | 318.75B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 16.96B | -8.32B | 13.74B | -9.89B | 9.86B |
| Operating Cash Flow | 0.00 | 76.44B | 20.78B | 47.41B | 14.36B | 33.14B |
| Investing Cash Flow | 0.00 | -42.44B | -22.03B | -5.43B | -28.90B | -26.44B |
| Financing Cash Flow | 0.00 | -34.92B | -17.12B | -30.09B | -2.82B | -11.88B |
Zeon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥2.18T | 16.88 | 12.36% | 1.69% | 4.24% | 6.46% | |
77 Outperform | ¥459.58B | 11.23 | 9.96% | 3.43% | 0.17% | 69.59% | |
69 Neutral | ¥605.93B | 20.99 | 8.52% | 1.62% | 10.34% | 64.18% | |
66 Neutral | ¥368.97B | 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 | ¥830.05B | 11.91 | 4.01% | 3.40% | -3.47% | 348.74% | |
59 Neutral | ¥372.04B | 37.29 | 2.75% | 4.15% | 2.16% | -77.64% |
* Basic Materials Sector Average
JP:4205
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Zeon Corporate Events
Zeon Posts Strong Q1 Profit Surge, Keeps Full-Year Outlook Unchanged
Jul 29, 2026
Zeon Corporation reported robust results for the three months ended June 30, 2026, with net sales rising 6.2% year on year to ¥109.5 billion and profit attributable to owners of the parent surging 69.4% to ¥12.7 billion. Operating and or...
Zeon Reshapes Senior Management with Key Executive Promotions
May 20, 2026
Zeon Corporation announced a reshuffling of its senior leadership, promoting its chief financial officer and chief technology officer to executive managing directors as part of a broader management restructuring. The changes, effective June 26, 20...
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.