Daito Chemix Corporation (4366) AI Stock Analysis

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Daito Chemix Corporation

(TSE/TYO:4366)

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Rating:56Neutral

Price Target:JPY 398.00▼(-9.34% Downside)

Action:reiterated

Date:10/31/26

The score is primarily driven by improving but still mid-quality fundamentals (profit recovery and positive recent free cash flow, offset by modest margins, moderate ROE, and historically volatile cash flow). Technicals materially reduce the score due to a bearish trend (price below key moving averages and negative MACD). Valuation is a supportive factor with a reasonable P/E and modest dividend yield.

Positive Factors

Revenue and profit recoveryThe return to profitability alongside renewed revenue growth indicates that demand has recovered from the 2024 setback. If maintained, this broader operating recovery can strengthen internal funding capacity and support more consistent earnings over the next several quarters.

Negative Factors

Modest and declining marginsThe earnings recovery has not yet translated into strong profitability, with a modest net margin and a longer-term decline in gross margin. Continued cost or pricing pressure could limit operating leverage and make future profit growth less durable than the revenue recovery.

Daito Chemix Corporation (4366) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 14.11B
Dividend Yield: 1.87%
Average Volume (3M): 99.77K
Price to Earnings (P/E): 12.2
Beta (1Y): 1.40
Revenue Growth: 10.12%
EPS Growth: 43.23%
Country: Japan
Employees: 328
Sector: General
Sector Strength: 55
Industry: Chemicals

Daito Chemix Corporation Business Overview & Revenue Model

Company Description

Daito Chemix Corporation, together with its subsidiaries, manufactures and sells specialty and fine chemicals in Japan, South Korea, Singapore, rest of Asia, and the United States. It operates through Chemical Products Business and Environment-Relate...

How the Company Makes Money

Daito Chemix primarily makes money by selling specialty chemical products—especially organic pigments and pigment-related materials—to business customers (B2B). Its revenue model is largely product-sales driven: it manufactures pigments and color mat...

Daito Chemix Corporation Financial Statement Overview

Summary

Financials show a recovery but with mixed quality: revenue is up (~3% in 2026 after a 2024 decline) and the company returned to profitability in 2025–2026, yet net margin remains modest (~4% in 2026) and gross margin has trended down. Leverage is moderate (debt-to-equity ~0.42) but has increased versus 2025, and ROE is only mid-single-digit (~4.8%). Cash flow momentum is improving (positive FCF in 2025–2026), but multi-year volatility and only fair cash conversion (~68% of net income) limit the score.

Income Statement

63Positive

Balance Sheet

66Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	19.83B	19.48B	18.64B	15.81B	16.38B	16.13B
Gross Profit	2.33B	2.22B	2.07B	1.90B	2.44B	2.93B
EBITDA	2.30B	2.42B	2.38B	839.00M	2.08B	2.36B
Net Income	981.00M	791.00M	820.00M	-1.00B	922.00M	1.58B
Balance Sheet
Total Assets	29.57B	28.80B	24.78B	25.12B	24.90B	22.47B
Cash, Cash Equivalents and Short-Term Investments	5.41B	4.85B	2.77B	2.25B	2.39B	3.42B
Total Debt	6.92B	6.92B	5.45B	6.35B	4.72B	3.99B
Total Liabilities	12.65B	12.44B	9.93B	10.58B	9.72B	8.19B
Stockholders Equity	16.92B	16.36B	14.86B	14.54B	15.18B	14.28B
Cash Flow
Free Cash Flow	0	1.75B	1.86B	-1.71B	-1.59B	-342.00M
Operating Cash Flow	0	2.58B	2.75B	1.05B	404.00M	1.15B
Investing Cash Flow	0	-1.84B	-1.19B	-2.67B	-2.00B	-1.52B
Financing Cash Flow	0	1.33B	-1.03B	1.48B	563.00M	543.00M

Daito Chemix Corporation Technical Analysis

Technical Analysis SentimentNeutral

Last Price439.00

Price Trends

50DMA466.74Negative

100DMA463.89Negative

200DMA445.27Negative

Market Momentum

MACD-18.69Positive

RSI45.71Neutral

STOCH38.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4366, the sentiment is Neutral. The current price of 439.00 is below the 20-day moving average (MA) of 464.35, below the 50-day MA of 466.74, and below the 200-day MA of 445.27, indicating a bearish trend. The MACD of -18.69 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 38.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4366.

Daito Chemix Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4366 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5013	84Outperform	JPY 41.58B	9.66	―	3.92%	-0.92%	0.66%
JP:4093	69Neutral	JPY 13.88B	11.06	―	3.44%	-0.22%	4.42%
JP:4960	59Neutral	JPY 8.14B	22.14	―	1.01%	6.87%	300.65%
JP:4366	56Neutral	JPY 14.15B	12.16	―	1.87%	10.12%	43.23%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:9227	51Neutral	JPY 9.46B	-12.29	―	―	―	―

* General Sector Average

Performance Comparison

JP:4366 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4366	Daito Chemix Corporation	439.00	174.50	65.97%
JP:4093	Toho Acetylene Co., Ltd.	407.00	66.88	19.66%
JP:4960	Chemipro Kasei Kaisya,Ltd.	516.00	184.49	55.65%
JP:5013	Yushiro Chemical Industry Co., Ltd.	3110.00	928.43	42.56%
JP:9227	Microwave Chemical Co., Ltd.	604.00	-132.00	-17.93%

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 31, 2026

Daito Chemix Corporation AI Stock Analysis