New Japan Chemical Co., Ltd. (4406) AI Stock Analysis

• Market Cap: ¥8.31B
• Dividend Yield: 1.33%
• Average Volume (3M): 116.64K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.73
• Revenue Growth: -1.40%
• EPS Growth: 65.76%
• Country: JP
• Employees: 410
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 7.02
• Shares Outstanding: 37,286,903
• 10 Day Avg. Volume: 122,880
• 30 Day Avg. Volume: 116,640
• PEG Ratio: 0.10
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -8.05
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥240.00 ▲(6.67% Upside)

The overall stock score of 62 reflects moderate financial performance with stable profitability and manageable leverage, but concerns about cash flow stability and revenue growth. Technical analysis indicates a lack of strong momentum, and valuation metrics suggest the stock is reasonably priced. The absence of earnings call and corporate events data limits further insights.

New Japan Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

New Japan Chemical Co., Ltd. (4406) is a leading manufacturer in the chemical industry, specializing in the production of high-performance materials and chemicals. The company operates primarily in sectors such as electronic materials, industrial chemicals, and pharmaceuticals. Its core product offerings include specialty chemicals, semiconductor materials, and advanced polymers, catering to various industries, including electronics, automotive, and healthcare.

How the Company Makes Money

New Japan Chemical generates revenue through multiple streams, primarily by selling its specialty chemicals and advanced materials to various industries. The company benefits from long-term contracts with major clients in the electronics and automotive sectors, ensuring a steady demand for its products. Additionally, New Japan Chemical invests in research and development to innovate and expand its product portfolio, which helps capture new market opportunities. Significant partnerships with leading technology companies enhance its market position and contribute to its earnings by providing access to cutting-edge applications and increased sales volumes.

New Japan Chemical Co., Ltd. Financial Statement Overview

Summary

New Japan Chemical Co., Ltd. displays moderate financial health with stable profitability and manageable leverage. However, there are concerns regarding cash flow stability and revenue growth. The positive trends in operational efficiency are encouraging, but liquidity concerns need to be addressed to ensure long-term sustainability.

Income Statement

The company shows moderate profitability with a gross profit margin of around 16-17% in recent years. However, the net profit margin remains low, indicating significant expenses or inefficiencies. There is a slight decline in revenue over the past few years, but the EBIT and EBITDA margins have improved recently, reflecting better operational efficiency.

Balance Sheet

The balance sheet is relatively stable with a debt-to-equity ratio of approximately 0.4, suggesting manageable leverage. The equity ratio is strong, indicating a solid financial structure. However, there's been a slight decline in total assets and equity over the last few years, which might limit future growth.

Cash Flow

Cash flow performance is mixed with significant fluctuations. The operating cash flow to net income ratio has been volatile, and free cash flow has been negative in recent years, indicating potential liquidity issues. The inconsistency in free cash flow growth further adds to the concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.64B	32.70B	32.86B	33.10B	32.36B	24.44B
Gross Profit	5.61B	5.45B	5.32B	4.42B	5.88B	4.56B
EBITDA	1.60B	1.56B	1.31B	532.00M	1.78B	1.35B
Net Income	548.00M	522.00M	220.00M	-444.00M	811.00M	501.00M
Balance Sheet
Total Assets	37.81B	37.52B	40.11B	38.55B	40.09B	35.89B
Cash, Cash Equivalents and Short-Term Investments	3.05B	2.94B	3.82B	2.96B	3.50B	3.15B
Total Debt	6.17B	7.13B	7.58B	10.16B	9.96B	8.91B
Total Liabilities	18.07B	18.52B	21.64B	21.60B	23.09B	19.67B
Stockholders Equity	18.54B	17.79B	17.29B	15.86B	15.94B	15.21B
Cash Flow
Free Cash Flow	0.00	-889.00M	2.80B	-593.00M	-705.00M	-680.00M
Operating Cash Flow	0.00	-224.00M	3.58B	104.00M	1.08B	1.25B
Investing Cash Flow	0.00	-174.00M	-60.00M	-659.00M	-1.60B	-1.71B
Financing Cash Flow	0.00	-513.00M	-2.60B	-3.00M	861.00M	519.00M

New Japan Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 225.00
• 50DMA: Negative
• 100DMA: Positive
• 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:4406, the sentiment is Positive. The current price of 225 is above the 20-day moving average (MA) of 222.55, below the 50-day MA of 227.42, and above the 200-day MA of 205.55, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 39.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4406.

New Japan Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4957	―	¥14.83B	8.57	―	1.05%	5.90%	135.08%
4112	―	¥29.74B	13.88	―	2.60%	-6.65%	-45.46%
4092	―	¥25.66B	10.19	―	3.76%	-1.44%	-1.26%
4629	―	¥7.09B	11.03	―	2.60%	4.93%	4.12%
4409	―	¥16.79B	12.04	―	2.54%	4.46%	25.80%
4406	―	¥8.31B	15.20	―	1.33%	-1.40%	65.76%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%